February Used Car Prices Fall by an Average of 6% Compared to the Previous Month

[Image source=Yonhap News]

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Used car prices in February fell by an average of about 6% compared to January. This is attributed to the effect of model year changes and dealers adjusting prices during the off-season.

On the 8th, car trading platform Encar.com announced that its analysis based on big data showed that used car prices in February dropped 6.08% compared to the previous month. The analysis targeted popular 2021 models from domestic automakers such as Hyundai Motor Company, Kia, Renault Korea Motors, KG Mobility, as well as imported brands like Mercedes-Benz, BMW, and Audi, focusing on vehicles with 60,000 km mileage and no accident history.

Encar.com explained that this decline is larger than in previous years. A representative from Encar.com said, "Since 2022, after used car prices surged due to the COVID-19 pandemic and semiconductor supply shortages, prices have been steadily declining. This trend continued into early this year, and with the model year change, the depreciation rate in February was further impacted." They added, "From early January to February is the off-season for used cars, so dealers tend to adjust prices."

Average prices for domestic cars fell by 5.93%. Notably, prices for compact cars, small cars, and electric vehicles declined significantly. The Kia 'The New Ray Signature' and Chevrolet 'The New Spark Premier', often chosen as first cars, dropped by 7.34% and 6.78% respectively compared to the previous month. Chevrolet's small sport utility vehicle (SUV) 'Trailblazer 1.3 Turbo 2WD RS' fell by 7.86%.

Among electric vehicles, the Kia 'EV6 Long Range Earth' saw the largest drop among domestic cars at 8.04%. Hyundai's 'Ioniq 5 Long Range Prestige' also fell by 7.52%, declining more than internal combustion engine vehicles.

On the other hand, some SUV models experienced relatively smaller declines. The Kia 'Sportage 5th Generation 2.0 2WD Noblesse' dropped by only 2.38%, the smallest decrease. The Genesis 'GV70 2.5T AWD' also fell by just 3.62% compared to the previous month.

Imported cars fell by an average of 6.27% compared to the previous month. Among them, German sedans such as Mercedes-Benz and Audi showed declines in the 7% range. The model with the largest price drop was the Audi 'A6 (C8) 45 TFSI Premium', which fell 7.95% to the 37 million KRW range. The Audi 'A4 (B9) 40 TFSI Premium' also dropped by 7.18%.

Mercedes-Benz's 'E-Class W213 E250 Avantgarde' and 'C-Class W205 C200 Avantgarde' fell by 7.76% and 7.94% respectively. BMW's '3 Series (G20) 320i M Sport' declined by 7.47%.

Imported SUVs also saw smaller declines than sedans. The Volvo 'XC90 2nd Generation B6 Inscription' dropped by only 2.47% compared to the previous month, the smallest price decrease. Volkswagen's 'Tiguan 2nd Generation 2.0 TDI Prestige' and BMW's 'X5 (G05) xDrive 30d xLine' showed declines in the 5% range.

Meanwhile, imported electric vehicles showed smaller price drops than domestic electric vehicles. Domestic EVs recorded declines of 7-8%, while Tesla's 'Model 3' and 'Model Y' fell by about 4%.

An Encar.com representative said, "As the peak season begins in March, prices may rebound, so for consumers considering purchasing a vehicle, February is likely the best time to select optimal products at reasonable prices."

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