On the 19th, Hyundai Motor Company held a media day at the Hyundai certified pre-owned car center in Yangsan, Gyeongnam, to announce the official launch of their certified pre-owned car business.

During the event, Hyundai unveiled the first certified pre-owned Palisade and Genesis G80 vehicles that have completed the quality certification process at the Yangsan center, with formal sales set to begin on the 24th.

Hyundai Motor’s Vice President Yu Won-ha emphasized in his opening remarks that “Hyundai has been preparing its certified pre-owned car business following the philosophy of ‘the maker cares until the end.’ We want to share information that allows customers to make wiser and more rational choices, thus helping to establish a transparent and fair used car trading culture, contributing to the advancement of the domestic used car market.”

He also mentioned the directional focus of the certified pre-owned car business, highlighting transparency, trust, and customer value, pledging to prioritize consumers in all business operations.

This means that since both new and used cars are Hyundai vehicles, used car customers will receive meticulous management similar to that of new car owners. Hyundai aims to promote a healthy ecosystem in the domestic used car market.

Since registering as a used car dealer in January last year, Hyundai has been gradually preparing its certified pre-owned car business. After 1 year and 10 months of gathering used cars, product development, logistics, and sales, Hyundai is launching its comprehensive infrastructure.

Last year, the number of used cars traded in South Korea reached 2.38 million, approximately 1.4 times that of new car registrations. Among these, Hyundai and Genesis used cars accounted for about 900,000, or around 38% of the total used car transactions.

Considering that there are only a couple of months left this year, Hyundai has set a sales target of 5,000 units in 2023 and plans to gradually expand its sales scale starting next year.

Hyundai will pioneer the market by supplying ‘manufacturer-certified used cars’ as the first domestic complete car brand, targeting customers who wish to confidently purchase reliable used cars.

Hyundai/Genesis certified pre-owned cars undergo a quality certification process involving diagnostic examinations across 272 items for Hyundai and 287 items for Genesis, making them among the most rigorously evaluated vehicles in the domestic market.

This initiative is expected to enhance consumer trust in the used car market and contribute to expanding the overall market size.

To provide high-quality used cars, Hyundai has established dedicated product centers for certified pre-owned cars in Yangsan, Gyeongnam, and Yongin, Gyeonggi, similar to new car manufacturing plants, with plans to build additional centers in major regions to meet increasing demand.

Used cars procured through online platforms will undergo precision diagnostics, quality improvements, inspections, and certifications at these centers, ensuring they are refurbished into high-quality vehicles.

The Yangsan certified pre-owned car center, based on its site area (31,574 m²), is the largest single-brand product center in Korea and can productize 15,000 used cars per year, acting as the hub for certified used vehicles.

Additionally, the center aims to provide differentiated customer services and experiences that were previously unseen in existing market regimes, benchmarking against advanced overseas markets.

In particular, using both proprietary data and large volumes of information gathered from external agencies, Hyundai will roll out its self-developed integrated used car information portal, ‘Hi-LAB,’ and ‘AI Pricing Engine’ to address the key issue of asymmetric information between sellers and buyers that has deterred consumers from purchasing used cars.

The sales channels will focus on enhancing innovation and customer convenience.

Customers can search and compare products using the ‘Hyundai/Genesis Certified Pre-Owned Cars’ mobile app and dedicated website, allowing for a seamless online shopping experience from quotes to contracts, payments, and delivery of their purchased vehicle to their desired location.

Hyundai operates a unified mobile app and website that features both the Hyundai and Genesis brand sections, making it convenient for customers to purchase certified pre-owned cars from both brands.

Additionally, Hyundai has introduced a ‘Sell My Car’ service for new car buyers, enabling them to sell their previous vehicles regardless of the brand. (Applicable for vehicles less than 8 years old and with under 120,000 km of mileage)

This means customers can conveniently manage the sale of their used cars while purchasing new ones from the same domestic brand.

The ‘Sell My Car’ service is available only to Hyundai/Genesis new car buyers, following recommendations from the Ministry of SMEs and Startups last April.

Hyundai will objectively evaluate vehicle value through its self-developed AI pricing engine to ensure fair prices for acquiring used cars from new car buyers.

The entire selling process can also be completed through online channels, excluding a field visit by specialists to confirm the actual vehicle condition.

Isangjin daedusj@autodiary.kr