Hyundai Used Car Service, AI Calculates Price Including Options

Hyundai Motor Introduces 'Sell My Car' Service for New Car Buyers
Implements 'AI Price Estimation Engine' for Fair Pricing
Purchase Price Calculated Including Option Prices
Accident, Repair, and Insurance History at a Glance
Online Access to Seat Texture, Interior Air Quality, and Engine Sound

The distinguishing feature of Hyundai Motor Company's certified used car service is its 'fair price assessment.' To achieve this, Hyundai has developed a data-driven artificial intelligence (AI) price assessment engine. This engine enables more precise residual value estimation by reflecting the option prices of individual vehicle models.

Hyundai is introducing a 'Sell My Car' service, where new car buyers can sell their existing vehicles. This allows simultaneous new car purchase and used car disposal. At this time, Hyundai objectively evaluates the vehicle's value through the 'AI price assessment engine' to assign a fair price.

Usually, when trying to dispose of a used car, the prices offered by dealers tend to be inconsistent. Those with ample time can shop around and sell at relatively higher prices, but those who cannot often end up selling their used cars at unreasonable prices.

To provide fair and reliable pricing, Hyundai developed the 'AI price assessment engine.' For this, Hyundai has secured and databased actual transaction prices covering 80% of domestic used car trades over the past three years. The transaction data is automatically updated every 15 days. Based on this data, Hyundai applies the latest machine learning and big data technologies to determine fair prices. This means offering highly reliable prices based on objective indicators rather than subjective human judgment.

Additionally, Hyundai is the first in Korea to present detailed market prices reflecting the prices of options installed on vehicles. Given Hyundai's diverse sales options, the manufacturer has sales information on options, enabling more precise price assessments. Once a fair price assessment system is established, transactions can be conducted at appropriate prices not only when selling but also when buying used cars. Accurate residual value evaluation is a key task for the advancement of the used car market.

Another challenge in the used car market is resolving the ‘information asymmetry’ between buyers and sellers. Sellers know all vehicle information such as accident and repair history, but buyers must trust the seller's word when making transactions. Ultimately, buyers suffer losses due to this information asymmetry.

To address this, Hyundai operates the integrated used car information portal 'HiLab.' HiLab provides a comprehensive view of a vehicle’s current condition and history, including total loss, theft, flooding, special and insurance accident history, used car performance inspections, maintenance, and recalls. It also allows verification of whether a listing is legitimate, filtering out false or bait listings. Hyundai enables users to check vehicle history information at once by utilizing not only inspection records owned by the brand but also public data from the Ministry of Land, Infrastructure and Transport and the Korea Insurance Development Institute.

Moreover, HiLab offers rankings of popular models by various categories such as brand, gender, age, region, price range, and fuel type, analyzing price trends and actual transaction volume statistics for all domestic and imported used car models. This helps consumers understand the latest used car market trends and aids their purchasing decisions.

Hyundai also provides new services in the used car sales market. Certified used car sales for Hyundai and Genesis are conducted 100% online. To support this, Hyundai has implemented an 'All Five Senses Satisfaction Service' that makes it feel as if customers are actually viewing the car online.

The All Five Senses Satisfaction Service offers visual information such as 360˚ virtual reality (VR) content of the vehicle’s interior and exterior, and photos of the vehicle’s underside to check for leaks or water intrusion. Ultra-high-definition images that can be magnified up to six times allow customers to check tactile details like seat texture. It also provides olfactory information quantifying the comfort of the interior air and auditory information enabling customers to listen to the engine sound?offering detailed ‘all five senses satisfaction information.’

Furthermore, Hyundai allows certified used car buyers to use the same services and memberships they received when purchasing new cars. Hyundai’s certified used cars can be serviced at over 1,300 service centers nationwide, just like new cars. Buyers receive a free warranty for one year or 20,000 km from the purchase date of the certified used car.

Also, when purchasing a certified used car, buyers earn membership points equivalent to 0.2% of the vehicle price. Connected car services such as 'Hyundai Blue Link' and 'Genesis Connected Service' remain available. These services can be used for one year from the certified used car purchase date, including the free usage period provided at new car sale. Additionally, Hyundai operates a responsible refund system allowing buyers to return the ordered used car if they change their mind, and has established a dedicated customer center for certified used cars separate from new cars.

Hong Jeong-hoo, Executive Director of Hyundai Motor Company’s Domestic CPO Business Division, said, "As the overall trust in the used car market increases through manufacturer-certified used car supply, the total market size will expand. We expect the activation of various upstream and downstream industries such as used car maintenance and parts, distribution and management, testing and certification, and used car financing."

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