As oil prices surge amid a war between the United States and Iran, demand for used electric vehicles is soaring not only in Korea but also in overseas markets such as the United States and Europe. Unlike new cars, buyers can take delivery immediately, allowing them to respond at once to high fuel prices. In Korea, the fact that they have recently been exempted from measures such as the 5-day rotation is also emerging as an attraction.
According to K Car, a directly managed used-car platform, on the 14th, sales of used electric vehicles last month increased 29.5% from the previous month. Over the same period, total used-car sales rose only 8.9%.
A K Car official said, "March is typically peak season for the used-car market, as it coincides with the new school term and hiring and 'first car' demand rises. But this March, overall sales were lower than usual due to the war between the United States and Iran," adding, "By contrast, used electric vehicle sales posted an unusually high growth rate."
The surge in demand for used electric vehicles is seen as being influenced by the recent spike in oil prices. New EV sales are also increasing, but many say that, because those purchases were decided months earlier, they reflect a combination of government subsidies and price discount policies by major brands such as Tesla rather than the recent high fuel prices. In contrast, because buying a used EV is simple and there are no subsidies or discounts, the interpretation is that sales are rising purely for economic reasons.
According to the Korea National Oil Corporation (KNOC) Opinet, the average price of regular gasoline at gas stations nationwide in the fourth week of February was 1,691.26 won per liter (L). After war broke out between the United States and Iran on Feb. 28, fuel prices began to soar, and in the second week of this month they jumped to an average of 1,967.58 won per L. That is up 16.3% from the fourth week of February.
A used-car industry official said, "Used cars can be delivered immediately, allowing an instant response to high fuel prices," adding, "Many consumers prioritize economic efficiency." A K Car official also said, "Cost-effective small electric sport-utility vehicles (SUVs) around 20 million won, such as Kia's Niro EV and The New Kia Ray EV, are particularly popular."
Another official said, "Recently, strong energy-saving policies such as 2-day and 5-day rotation systems are being implemented at public institutions, and the fact that electric and hydrogen vehicles can avoid these measures has emerged as an attraction, which is also contributing to rising demand for used electric vehicles."
The popularity of used electric vehicles is growing overseas as well. Michael Loscheller, chief executive officer (CEO) of Polestar, a Swedish electric vehicle maker, said in an interview with Reuters on the 10th (local time), "Used-car sales are growing faster than new cars," adding, "Many consumers are saying, 'We are price-sensitive. We are considering EVs, but we especially prefer used cars.'" Polestar's total first-quarter sales increased 7% year over year, with used cars surging 47%.
The Financial Times (FT) recently reported, citing auto market research firm Cox Automotive, that U.S. first-quarter used EV sales rose 12% from a year earlier and 17% from the previous quarter.
FT said, "In the first week of this month, the average gasoline price in the United States topped $4 per gallon, setting a record high since 2022, when the Russia-Ukraine war broke out," adding, "As EVs sold after the COVID-19 pandemic flood the market, they are becoming an alternative that eases the burden of gasoline prices."