Domestic Sales of Secondhand Cars of this year Exceeded 2 Million Cars

It is forecasted that the domestic sales of the secondhand cars will exceed 2 million cars for the first time. The exporting quality of secondhand cars up to November already exceeded the sales of last year. The fields of domestic demand and exports will show the largest accomplishments.

According to Korea Federation of Motorcar Business Association on December 22, the domestic selling quantity up to November were total 1,751,217 cars, increased by 4.3% over 1,678,427 cars of the same period of last year.

Such the selling quantity of the secondhand cars significantly exceeded the sales(1,485,134 cars) of the new cars at the same period. The selling quantity(1,260,000 cars) of the secondhand cars couldn’t reach the selling quantity (1,50,000 cars) of new cars by 1997. However, it was turned after the financial crisis. From 1998, the selling quantity of new cars exceeded by 200,000 ~ 400,000 cars each year.

Lee Neung-ik, planning director of Korea Federation of Motorcar Business Association forecasted, “The sales largely increased owing to an improvement of the secondhand car service and an activation of its auction. Total selling quantity of secondhand cars will exceed 2 million won increasing over the sales of last year (1,817,898 cars).”

Besides, the exports of secondhand cars were 112,043 cars until November and already exceeded total exports (110,117 cars) of last year.

The export of secondhand cars of Korea was 3,177 cars in 92, but it showed the increasing rate of two digits such as △ 21,357 cars in 1995, △35,732 cars in 1997, and △ 81,512 cars in 1999. It has continued the tendency of sudden increase. Last year, it showed the sales of 110,117 cars increased by 25% over the previous year and so exceeded 100,000 cars for the first time.

In terms of the car type, there are 51,125 passenger cars (45.6%), 35,508 trucks/special cars (31.7%) and 25,410 cars (22.7%).

In the central and south America, the small and medium-sized cars such as Tico, Lanos and Avante are popular. In areas of the Middle East, the medium-sized cars such as Leganza and Sonata are popular. In Vietnam and Russia, a bus is popular.

The planning director, Lee Neung-ik explained, “The image of the Korean motorcar is good owing to the improvement of a manufacturing technology. Also, as the 2~3 years secondhand cars like the new car and car parts have been exported, the Korean secondhand cars have become popular.

Kang-Woon Lee kwoon90@donga.com