The Keyword for the 2020 Used Car Market Selected by K Car is '5G'

[Asia Economy Reporter Suyeon Woo] K Car, the largest direct-operated used car company in Korea, selected the keyword for the year 2020, the Year of the Rat, as '5G' and forecasted market trends on the 13th.

The 5G keywords presented by K Car were ▲Grand (expansion of preference for large cars) ▲Grandeur (continued dominance of Grandeur) ▲Gender Balance (increase in female customers) ▲Generation Balance (increase in customers in their 20s) ▲Guarantee (securing consumer trust).

While the new large car market is also showing rapid growth, the popularity of large cars is expected to increase in the used car market as well. According to K Car's sales data from last year, domestic large sports utility vehicles (SUVs) increased by about 27.6% compared to the previous year, and large sedans also showed explosive demand with a 29.3% increase.

Among the top 10 best-selling domestic and imported cars, large SUVs such as Kia All New Carnival, All New Sorento, and Ford Explorer newly appeared. Considering the recent active launch of new large SUVs in the new car market, the variety and scale of large used car listings are also expected to increase in the future.

The most popular model in the current used car market is the Hyundai Grandeur. According to K Car's annual sales data, the Grandeur HG ranked first in sales for five consecutive years from 2015 to 2019 among both domestic and imported cars.

This year, attention is focused on whether the IG, the successor model to the HG, can newly emerge as the best-selling used car. The IG, first introduced in November 2016, has passed the three-year mark, which is the benchmark for an increase in used car supply. With the recent launch of the facelifted model 'The New Grandeur' last month, both supply and demand for the IG are expected to increase significantly, and prices are anticipated to meet consumer expectations.

Female customers are gradually increasing in the used car market as well. Last year, the proportion of female customers in K Car's used car transactions slightly rose by 0.4 percentage points from the previous year to 22.4%. In particular, the share of female customers in the used compact car market is expected to expand significantly.

Last year, the best-selling cars among female buyers were compact cars, with Spark, All New Morning, The Next Spark, and The New Morning occupying the top four spots, showing a clear preference for compact cars. In contrast, imported cars showed a different trend, with mid-size or larger models such as the E-Class, C-Class, 5 Series, Explorer, and 3 Series ranking high.

Another trend is the increase in customers in their 20s purchasing used cars as their first vehicle. Last year, the proportion of customers in their 20s who purchased vehicles from K Car was about 22%, more than double the previous year's 10%. Due to this social atmosphere, the younger generation is expected to grow into major players in the used car market.

Last year, the best-selling cars among customers in their 20s were the Avante AD, K3, The Next Spark, Avante MD, and Spark, indicating a preference for practical compact and subcompact cars. Among these, the K3 was the only model across all generations to rank in the top 5 exclusively among customers in their 20s, proving it is a model distinctly favored by the younger generation.

Meanwhile, the recent growth of the used car market is attributed to industry efforts to resolve information asymmetry and gain customer trust. Last year, the proportion of customers using the quality assurance service 'K Car Warranty (KW)' among all K Car buyers increased by 5 percentage points from the previous year to 43%, indicating a high consumer need and expectation for reliable after-sales service in the used car market.

Jung In-guk, CEO of K Car, said, "As the years go by, an environment where consumers can purchase used cars with peace of mind and at reasonable prices is being established, so we expect the number of used car buyers to increase further in the future." He added, "We will focus on securing customer trust and industry leadership through continuous service innovation in the rapidly changing used car market."

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