Used Car Prices in January Down 1.1% from Previous Month... BMW 5 Series Drops 7%

"Demand Expected to Increase Due to Stabilization of Interest Rates and Oil Prices"

The prices of domestic used cars in January this year are expected to drop by an average of 1.1% compared to last month.

On the 4th, direct used car platform K Car analyzed the average prices of about 740 models released within the last 12 years circulating in the domestic used car market and forecasted that the prices of domestic used cars in January this year will fall by an average of 1.1%. This decline is 0.5 percentage points less than the previous month. K Car stated, "January is usually a period when prices drop due to model year changes and demand recovers," adding, "This year, with the stabilization of interest rates and oil prices, demand is expected to increase, resulting in a smaller price decline."

By domestic car models, the estimated price changes are ▲Hyundai Sonata DN8 -1.1%, ▲Kia K5 3rd generation -0.9%, ▲Renault XM3 -1.2%. These figures are in line with the typical monthly depreciation rate of around 1% for used cars. The price decline rates by fuel type are also expected to be at typical levels: ▲Gasoline -1.4%, ▲Diesel -0.9%, ▲Hybrid -1.1%, ▲Electric -1.4%, ▲LPG -0.5%.

However, the prices of imported used cars are expected to fall by as much as 2.7%, which is 1.0 percentage point larger than the previous month. This is attributed to policies such as price discounts implemented by imported new car manufacturers. By model, the BMW 5 Series (G30) showed the largest decline at 6.9%. The Mercedes-Benz E-Class W213 is expected to drop by 4.3%. The price decline rates by fuel type for imported used cars are projected as ▲Gasoline -2.7%, ▲Diesel -2.6%, ▲Hybrid -2.4%, ▲Electric -2.9%.

Jo Eun-hyung, an analyst at K Car’s PM team, explained, "As discount competition among imported car brands has lasted longer than usual, the depreciation of popular imported car models has somewhat increased, but overall price volatility is decreasing." He added, "With the stabilization of interest rates and oil prices and the arrival of the peak season in February, the market is expected to gradually become more active in the first half of this year."

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