First-time car buyers are turning away from minicars toward compact SUVs. As consumers increasingly seek both affordability and practicality, compact SUVs are emerging as the new normal in the used car market.
According to a recent price analysis by K Car, a direct-sales used car platform, covering approximately 740 models released in Korea within the past decade, overall prices for domestic and imported vehicles fell 0.3% and 0.9% respectively, showing a slight downward trend. However, compact SUV models priced between 15 million won ($10,400) and 20 million won ($13,900) bucked the trend with rising prices.
By model, the Chevrolet New Trailblazer posted the largest gain at 3.6%, followed by the Trailblazer (2.5%) and Renault Korea XM3 (1.3%). Popular models including the Kia Niro (0.4%), New Seltos (0.2%), and Hyundai Kona (0.3%) are also expected to hold steady. Analysts attribute this to compact SUVs absorbing demand from consumers who had been considering minicars, drawn by better visibility compared to sedans and superior cargo space.
Meanwhile, the imported and electric vehicle markets face headwinds. New car promotions since the start of the year have pushed down prices for flagship models such as the Mercedes-Benz E-Class W213 (-2.1%) and BMW 5 Series G30 (-1.8%). Electric vehicles continue to see price adjustments amid the Tesla-triggered price war, with the Model Y Juniper down 3.2% and the Kia New EV6 falling 4.6%.
Some models have seen steeper declines due to changes in brand service networks or discontinuation. The Chevrolet New Traverse and Traverse plunged 7.7% and 5.5% respectively, while the New Malibu (-4.2%) also weakened.
"Demand for compact SUVs over minicars is driving brisk trading during peak season," said Cho Eun-hyung, analyst at K Car's PM team. "Electric vehicle prices will likely remain volatile for some time depending on manufacturers' pricing strategies."