“In the past, there were peak and off-peak seasons, but these days, it feels like an off-peak season all year round.”
“In the past, some areas engaged in solicitation and prices were not transparent, but (this has almost disappeared now), the perception is frightening.”
On the 18th, at the Janganpyeong Auto Sales Market in Yongdap-dong, Seongdong-gu, Seoul, Son Mo (56), who has been selling cars for over 10 years, said, “Ten years ago, I sold about 15 to 20 cars a month, but these days, I only contract about 1 to 2 cars. This is often through referrals from acquaintances. I am on the verge of closing the business.”
At the entrance of the sales complex, Jo Mo (60), who operates a car audio company, said, “In the past, the roads were crowded with cars for sale, to the point where there were even traffic controllers, but now cars hardly sell, so there are almost no purchases. Sales have decreased to one-fifth of what they were before, so I plan to close the business within this year.”
The Janganpyeong Auto Sales Market is Korea's first used car market, which opened in 1979. It has over 600 used car sales companies and maintenance and parts companies gathered on a site of 29,883 square meters (approximately 9,000 pyeong). In the 1980s, it was referred to as the 'home of used cars,' but as time passed, the buildings became dilapidated and cases of used car fraud became known, leading to a decrease in visitors.
Kim Tae-hwan (64), who visited Janganpyeong to look for a car to buy for his son, said, “I am driving a mid-size sedan I bought here three years ago without any issues, so I came back,” adding, “This place used to be the mecca of used cars, but because the image isn't good due to scams and stolen vehicles, I verify everything from the vehicle origin and seal to the company's history before conducting a transaction.”
Kim Jun-hee (35), who said she purchased her first car at Janganpyeong, noted, “I made a transaction here because it's a place my uncle's acquaintance runs. If it weren’t for the acquaintance, I would have bought through a certified used car platform.”
People looking for used cars are flocking to sales complexes that only sell vehicles with partnerships with large corporations and certified marks.
Lee Gi-chang (42), who sells used cars at a sales complex in Yulhyeon-dong, Gangnam-gu, said, “We only handle certified vehicles, so there can be no false listings. About 70 to 80% of customers come after seeing a car online in advance.”
Consumers place a high value on trust when buying used cars. Lee Hyun (49), who visited a used car sales complex in Gayang-dong, Gangseo-gu, to look for a commercial small car, said, “Even if the price is a bit higher, it's better to worry less.” Yoon Mo (35), who is looking for a used Sport Utility Vehicle (SUV) to use after marriage, said, “The most important thing in the plan to buy a used car is finding a company that can be trusted and is reassuring.”
An employee of a financial services company located in a sales complex in Gayang-dong said, “About 1,500 cars will be sold from this building each month,” adding, “Dealers and customers are increasingly flocking to places that sell certified cars.” Approximately 37,000 dealers are registered with the country's largest automotive transaction platform, Encar.
According to the Ministry of Land, Infrastructure and Transport, about 2.52 million used cars (excluding private transactions) were traded last year. The exact number of certified used cars has not been confirmed, but the sales volume of K Car, a direct used car platform, increased by 84.3% from about 83,000 cars in 2018 to 154,000 last year.
A K Car official said, “The proportion of cars purchased online reaches 56.4% of the total, and 93% of those buy without seeing the car in person,” explaining that this is possible because sufficient information, including a 360-degree viewing function, insurance and accident history, and vehicle options, is provided online.
Choi Young-seok, a professor of future mobility engineering at Wonju Halla University, said, “While prices have risen slightly as large corporations enter the used car market, the anxiety caused by information asymmetry has decreased. The trend of sales entities expanding into corporate forms will continue.”