The used car market has entered a downturn due to high oil prices and external uncertainties stemming from the U.S.-Iran war. However, demand for low-maintenance vehicles such as minicars remained steady.
K Car (381970.KQ), a used car platform company, said Sunday that its analysis of average prices for approximately 740 models within 10 years of release circulating in the domestic used car market showed that used car prices are expected to decline 2% for domestic brands and 3.3% for imported brands compared to March. K Car noted that although April is typically peak season for used cars, the market has entered a pause due to high oil prices and external uncertainties caused by the U.S.-Iran war.
Price declines were particularly steep for premium and high-displacement vehicles most affected by oil prices. Genesis GV80 used prices fell 5.5%, GV70 dropped 4.6%, and G80 declined 4.2%. Hyundai Motor (005380.KS) Palisade is forecast to fall 3.5%, while Kia (000270.KS) Carnival fourth-generation models are expected to drop 3.6%. Imported vehicle prices also saw significant declines. Mercedes-Benz E-Class fell 4.6% and BMW 5 Series dropped 3.2%.
However, demand remained firm for minicars, compact sedans, and small SUVs priced around 15 million won ($10,800). In April's average used car prices, Kia Niro rose 0.6% and the New Avante gained 0.5%. Minicars such as Hyundai Casper and Kia Morning are expected to hold steady.
For electric vehicles, K Car forecast that models priced around 20 million won ($14,400) would see slight increases or remain flat. K Car projected that Kia Niro EV used prices would rise 2.7% and the New Kia Ray EV would edge up 0.3%. Hyundai Casper Electric and Kia Soul Booster EV are expected to maintain the same prices as March.
"The market overall is in a strong wait-and-see mode, but this is also a time when buyers looking for larger vehicles have wider options," a K Car official said. "If there's a vehicle you've had your eye on, this period could be an opportunity to reduce the price burden."
