Contrary to predictions that the prices of new and used electric vehicles will rise due to government subsidy cuts next year, signs indicate a drop in the prices of used electric cars.
K Car analyzed the average prices of over 740 models launched within the last 12 years in the domestic used car market, forecasting a decline of up to 8% for used electric vehicle prices in December. Specifically, the prices of representative electric vehicle models such as Hyundai Ioniq 6, Kia EV6, and Genesis eGV70 are expected to drop by 8.4%, 7.6%, and 5.6%, respectively, compared to the previous month.
In past years, as government subsidies for electric vehicles decreased annually, the actual purchase price of new vehicles tended to rise, resulting in an increase in used car prices towards the end of the year. When new car prices rise, it typically causes used car prices to rise as well. However, this year’s end is marked by a continuous downward trend.
This trend is interpreted as being influenced by a weakened consumer sentiment and the imbalance in supply and demand following the unusual phenomenon earlier this year, where the prices of used electric vehicles surpassed those of new cars.
Other eco-friendly car models, such as hybrids and LPG vehicles, which have shown strength over the past three months, are also experiencing weakness. Similar to electric vehicles, the pressure of high prices on consumers, the increase in supply of nearly-new cars, and the stabilization of gasoline prices seem to contribute to this trend.
Kia’s All-New Niro, which had been strong in the hybrid segment, has seen a decline of 6.5% compared to the previous month. For Japanese brand models that had maintained strong prices throughout the year centered on hybrids, it is expected that half will see price declines and half will remain steady.
As high interest rates freeze the consumer market, especially high-cost models priced over 50 million KRW are also expected to weaken. The Genesis GV60 is projected to drop by 6.0% compared to the previous month, while the BMW 6 Series and Kia The K9 are expected to see declines of 7.5% and 7.0%, respectively.
According to Park Sang-il, head of K Car PM1 team, “As used car prices continue to stabilize downwards, we are returning to levels similar to this time last year. With the stabilization of gasoline prices and the increase in inventory, prices are finding their original place, which lowers the purchase burden for actual used car buyers.”
Lee Sang-jin daedusj@autodiary.kr