Compact cars are dominating Korea's used car market as consumers seek budget-friendly options amid the ongoing economic slowdown and high inflation.
Karrot's used car service "Karrot Used Cars" analyzed data from last month and found that compact car listings sold in an average of seven days, 5.4 days faster than the overall average of 12.4 days for all vehicle types, the company said Thursday.
The brisk sales reflect a shortage of available used compact cars, as new vehicle deliveries for some models have been delayed since the second half of last year.
According to Hyundai Motor (005380.KS) and Kia (000270.KS), wait times for the Casper as of December reached 17 to 18 months for gasoline models and 18 to 20 months for electric versions. Some electric trims required waits of up to 26 months. The Ray also faced average delays of seven months for both gasoline and electric models, with some trims taking approximately 10 months.
The supply crunch has pushed up prices for used compact cars. The average transaction price reached approximately 4.76 million won last month, up about 23% from 3.87 million won in the same month last year.
Despite higher prices, demand for compact cars remains steady due to their economic advantages, including low maintenance costs, 50% discounts on public parking and highway tolls, and tax benefits of up to 750,000 won.
Among all vehicle types excluding trucks, the Kia Morning ranked first in total transaction volume. Combined sales of compact models, including the Kia Ray at seventh place, accounted for approximately 20% of all transactions. The Chevrolet Spark and Hyundai Grandeur ranked second and third, respectively.
"Last month's trading patterns showed a clear preference for practical, value-oriented purchases that prioritize maintenance costs and efficiency over flashy options or expensive models," a Karrot Used Cars official said.