New Avante Gets Pricier... Demand Shifts to Used Cars

K Car's October Used-Car Price Analysis
Used Avante Prices Rise by Up to 2.5%
Midsize Sedans, Including the K5, Also Hold Their Value

Despite weakness across the used-car market following price hikes for new cars, prices for older Avante models and major midsize sedans remained firm.

Hyundai The All-New Avante. Hyundai Motor

K Car, a directly operated used-car platform run by KG Mobility Platform, said on October 29 that an analysis of October prices for major models in the domestic used-car market showed this trend.

In October, average prices for domestic used cars fell 1.1% from the previous month, while those for imported used cars fell 1.7%. The declines widened from the previous month's drops of 0.5% for domestic cars and 0.9% for imported cars, respectively. Prices continued to fall as buying activity gradually slowed after the Chuseok holiday. Weakness was particularly pronounced among older vehicles with high mileage.

Against this backdrop, prices for previous-generation Avante models all rose. The Avante CN7 was up 2.5% from the previous month, the Avante AD rose 0.8%, and the The New Avante CN7 increased 0.2%. The trend is attributed to demand shifting to used Avante models, which are relatively affordable, as higher prices for the new Avante increased the cost burden for buyers.

Midsize sedans, seen as alternatives to the new Avante, also held their prices. The The New K5 3rd Generation and K5 2nd Generation remained at the same levels as the previous month, while the Sonata The Edge edged down 0.3%, broadly holding steady. The trend suggests that used midsize sedans, which allow buyers to move up a vehicle class within the budget for a new car, have emerged as alternative options.

In the imported-car market, major Honda models posted steep declines. The 11th-generation Accord fell 9.7% from the previous month, while the 3rd-generation Pilot dropped 9.0%. The 5th-generation Odyssey and 6th-generation CR-V also declined 8.5% and 4.1%, respectively. Expanded discounts on new cars ahead of Honda's withdrawal from the domestic auto sales business appear to have affected used-car prices as well.

Average prices for electric vehicles fell 1.2% from the previous month, a steeper drop than the 0.1% decline recorded the month before. The analysis suggests that some demand for used EVs shifted to new vehicles as conditions for buying new EVs improved following the inclusion of additional EV subsidy funding in supplementary budgets by local governments, including Seoul. As a result, the price strength of near-new used EVs also began to ease. However, prices for the Tesla Model 3 and Model Y remained at the same levels as the previous month.

Jo Eunhyung, an analyst on the PM team at KG Mobility Platform, said, "Higher new-car prices make existing used cars more price-competitive, while discounts on new cars and expanded subsidies put downward pressure on used-car prices. If you are planning to buy a vehicle, it makes sense to compare not only prices for the models you are interested in, but also incentives for new-car purchases and other vehicle classes available within a similar budget."

This content was produced with the assistance of AI translation services.