Hyundai Motor Company has introduced a trade-in program for electric vehicles (EVs), allowing consumers to purchase EVs just like electronic devices. This initiative aims to reduce the price burden for customers planning to buy new EVs and to increase EV sales in the domestic market. Certified used EV sales will also commence by the end of this month.
From the 1st of this month, Hyundai announced the implementation of a trade-in program for existing vehicles when purchasing new EVs. This program is applicable when selling a current vehicle through the certified used car service and buying a new Hyundai EV (Ioniq 5, Ioniq 6, Kona Electric).
The trade-in approach is mainly used in the smartphone market to lower the price burden on consumers. By returning an existing product as a used item, consumers can purchase a new item at a price lower than the manufacturer’s suggested retail price.
For example, customers who own a 2022 model Ioniq 5 can sell their vehicle as a used car to get a better price for ‘The New Ioniq 5’ (the updated model of Ioniq 5). Consumers wishing to utilize the trade-in program can sell their existing vehicle through the ‘Sell My Car’ service on Hyundai and Genesis certified used car applications (app) or websites, up to 15 days before their new car delivery.
Hyundai will offer special benefits to consumers participating in the trade-in program when purchasing a new EV.
For instance, if an owner of a Hyundai or Genesis electric vehicle sells their car through the certified used car service, they receive a separate compensation in addition to the selling price. The compensation can be up to 2% of the sale price. Additionally, they will receive a discount of 500,000 KRW on the price of the new Hyundai EV (Ioniq 5, Ioniq 6, Kona Electric).
There’s also an incentive for those transitioning from internal combustion engine vehicles or hybrid vehicles (HEV) to purchase a new Hyundai EV. If they sell their existing vehicle through the certified used car service (including other brands), they can receive up to 4% of the sale price as compensation. Moreover, they will get a 300,000 KRW discount on the purchase of a new Hyundai EV (Ioniq 5, Ioniq 6, Kona Electric).
To facilitate smooth trade-ins between new and used cars, Hyundai started a used EV acquisition business as of the 1st of this month. The acquisition targets Hyundai and Genesis EVs with mileage under 120,000 km, registered more than 2 years, and under 8 years old.
Used EVs purchased from customers will undergo a commercialization process before being sold as certified used cars. This process includes detailed inspections specifically for EVs, such as checking the battery control system and charging device.
Measures have also been established to reassure consumers who may have anxieties about used EV purchases. The ‘Battery Rating System’ is a prime example. It evaluates the battery’s condition and the driving range per charge, established through collaboration with the Hyundai Motor Group Technology Research Institute (Namyang Research Institute).
In the battery rating evaluation, the presence of faults in the high-voltage battery is assessed. If the driving range does not meet certain standards, it is deemed defective. Only EVs that receive a rating of 1 to 3 can pass the battery rating evaluation and be sold as certified used cars.
The sale of certified used EVs will begin within this month. Hyundai will only sell certified used EVs for cars with a mileage of less than 60,000 km and registered for 2-3 years. Compared to internal combustion engine vehicles (with mileage of up to 100,000 km and registered for up to 5 years), the period since registration is shorter.
Additionally, specific EV components will be guaranteed for vehicles registered for up to 10 years and with mileage under 160,000 km while the high-voltage battery will be warranted for up to 10 years and 200,000 km to enhance customer satisfaction.
Hyundai stated, “Through the certified used car business, we can defend the residual value of EVs, giving consumers a wider variety of choices. We plan to offer various benefits so that Hyundai Certified Used Cars can establish themselves as a trustworthy EV trading platform.”
Contact: Lee Sang-jin daedusj@autodiary.kr