K Car, 30% Non-Face-to-Face Purchases... Home Service Users Surpass 250,000

[Asia Economy Reporter Suyeon Woo] K Car, the largest direct-operated used car company in Korea, announced on the 6th that the cumulative number of users of its industry-first non-face-to-face used car transaction service, 'Naechasagi Home Service,' has surpassed 250,000, accounting for more than 30% of total transactions.

Launched as the industry's first, 'Naechasagi Home Service' is a 100% non-face-to-face online purchase service that allows customers to buy direct-operated used cars anytime and anywhere via PC or mobile without visiting a store. After a beta service in 2015 and an official launch in 2016, it has received positive responses with cumulative usage exceeding 250,000 cases to date.

Analysis of the service usage data shows that the proportion of buyers using the home service increased rapidly, with an average growth rate of over 6 percentage points, from 9.3% in 2016 to 18.6% in 2017, 24.8% in 2018, and 28.2% in 2019. By October of last year, the cumulative rate exceeded 34%, and this year, with the increase in non-face-to-face transactions, the online purchase ratio on weekdays, when store visits are difficult, even surpassed 50%.

Analysis of the age of home service users showed that those in their 30s accounted for the largest share at 40.2%. This was followed by those in their 40s at 27.2%, 20s at 13.6%, 50s at 12.3%, and 60s and older at 6.7%. Given the relatively fewer time and location constraints of online purchase services, usage is expanding mainly among younger generations who are busy with work and familiar with online environments.

The most purchased used car models through the home service, based on domestic cars, were the Chevrolet Spark, Kia All New Morning, Hyundai Grandeur HG, Kia Ray, and Chevrolet The Next Spark, highlighting a preference for compact and subcompact cars. This is interpreted as many customers choosing light cars, which are less burdensome since they purchase without seeing the actual vehicle.

Notably, the most expensive used car traded through the home service was a 2018 model 'Mercedes-Benz S-Class (W222) S450L,' sold for 125 million KRW. The 2nd and 3rd most expensive were also Mercedes-Benz S-Class models, the 2017 S350d and 2017 S500L, respectively.

Jung In-guk, CEO of K Car, said, "Naechasagi Home Service, launched first in the industry by K Car, has grown rapidly in line with the spread of non-face-to-face consumption culture and the popularization of mobile easy payment." He added, "We will continue to increase service usage and lead the trend of non-face-to-face used car transactions."

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