While the decline in used car prices widened following the Chuseok holiday, the Avante and mid-size sedans showed relatively firm trends. Demand shifted to existing used models due to price increases for new Avantes, while Honda, which is set to withdraw from the domestic sales market, saw a significant drop in its vehicle prices.
K Car, operated by KG Mobility Platform, announced on the 29th that the average market price of domestic cars fell by 1.1% and imported cars by 1.7% compared to the previous month. The decline was larger than last month's rate (0.5% for domestic cars, 0.9% for imported cars). As buying momentum slowed after Chuseok, the weakness in older vehicles with high mileage became prominent.
Prices for previous-generation Avantes rose across the board. The Avante CN7 increased by 2.5%, the Avante AD by 0.8%, and the All-New Avante CN7 by 0.2%. It is analyzed that interest shifted to existing models as the burden of purchase increased due to new model price hikes. Mid-size sedans also defended their prices. The All-New K5 third generation and the K5 second generation maintained levels similar to last month, while the Sonata D Edge saw only a 0.3% decline. It was explained that used mid-size sedans, which allow buyers to upgrade vehicle classes within a new car budget, emerged as an alternative option.
Among imported cars, major Honda models showed large declines. The 11th-generation Accord fell by 9.7%, the 3rd-generation Pilot by 9%, the 5th-generation Odyssey by 8.5%, and the 6th-generation CR-V by 4.1%. This appears to be due to expanded discounts on new cars ahead of the withdrawal from domestic sales operations.
The average market price for electric vehicles dropped by 1.2%, a larger decline than last month (0.1%). As purchasing conditions for new cars improved with additional budget subsidies from local governments such as Seoul, some demand for used electric vehicles shifted to new models. However, the Tesla Model 3 and Model Y maintained prices similar to last month.
Jo Eun-hyung, an analyst on the PM team at KG Mobility Platform, stated, "New car price increases enhance the price competitiveness of existing used cars, while new car discounts and expanded subsidies act as factors driving down used car prices." He added, "It is rational to compare not only the market prices of models of interest but also new car purchase benefits and other vehicle classes within a similar budget range."
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