[Report] Rapidly Changing Used Car Market... A Visit to Korea's Largest Refurbishment Factory ATC

Visit to AutoPlus ATC Located in Cheongna District, Incheon
One-Stop Process from Used Car Quality Inspection to Merchandising
Trading 'Premium Used Cars' Passed 133 Certification Items

[Asia Economy Reporter Su-yeon Woo] "The biggest problem in the used car market is the lack of objective indicators that both buyers and sellers can agree upon. If we systematically certify and score each used car and set reasonable prices, the market can become much more transparent."

Located in the Cheongna district of Incheon, the ATC (Autoplus Trust Center) used car reconditioning factory. Choi Jong-seok, Vice President of Autoplus, said this while standing in front of the work bay where used cars are inspected. He explained, "Our role is to create systematic criteria to balance fairness between buyers and sellers, where information asymmetry exists."

The ATC factory is the largest used car reconditioning factory in Korea, with a systematic vehicle quality inspection process and an area of 2,882㎡. ATC is the only place in Korea that carries out a one-stop process from quality inspection to reconditioning. Upon entering the factory, various types of vehicles?from compact cars to SUVs and new luxury sedans?were waiting with their hoods open for inspection. Staff held small flashlights to detect even minor scratches on the vehicle surfaces, and unfamiliar vehicle testing machines were arranged in order of the process.

ATC (Autoplus Trust Center), the largest used car reconditioning factory in Korea, located in Cheongna District, Incheon / Photo by Autoplus

The initial inspection alone takes more than an hour, covering flood damage checks, vehicle exterior, interior, engine compartment, and undercarriage. Advanced technology is also introduced, such as measuring brake pad and tire wear with machines to score them, and diagnosing the engine and sensors with scanners.

About one-third of vehicles fail the initial inspection and return to the general used car market. Autoplus does not include a used car in its assets if it determines that the vehicle cannot achieve the same level of quality as a new car even after reconditioning. Vice President Choi said, "Last year, 29% of the vehicles received failed to meet the premium used car standards," adding, "More than 70% of the premium used cars that pass the strict selection process are accident-free vehicles within three years of release."

Vehicles that pass the initial inspection undergo reconditioning in the order of consumable replacement, panel beating, painting, polishing, and interior cleaning. After completing 133 rigorous precision inspections, they finally receive the 'AQI Certification Mark.' Used cars that complete this process are delivered in such pristine condition that they do not require regular vehicle inspections for two years and come with a free warranty covering six months or 10,000 km after purchase.

At the ATC (Autoplus Trust Center) workbay, the largest used car reconditioning factory in Korea, workers are conducting used car quality inspections and reconditioning processes. Photo by Autoplus

In the second-floor showroom, 'premium used cars' gleamed brightly, waiting for new owners. Autoplus only selects and handles accident-free vehicles within five years and 120,000 km of release. Although priced about 500,000 KRW higher than the general used car market and adhering to fixed pricing, the competitive edge lies in the highly reliable certification and reconditioning process.

In the recently spotlighted online market, Autoplus is creating a new trend with customized used cars. Last month, Autoplus launched the 'Selectable Reborn Car' service, which combines various reconditioning processes to produce customized finished products. This method offers buyers options such as tire replacement, scratch removal, engine oil change, and polishing for existing used cars while presenting reasonable price ranges. An industry insider commented, "Some relatively large companies in the industry have started to build systematic systems first," and evaluated, "It is positive that various attempts are being made to enhance transparency and convenience."

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