As gas prices surge due to the war between the United States and Iran, demand for used electric vehicles is jumping in overseas markets such as the United States and Europe as well as in Korea. Unlike new cars, buyers can take delivery immediately, allowing them to respond right away to high oil prices. In Korea, the fact that they are recently exempt from measures such as the five-day rotation is also emerging as an attraction.
According to the direct used-car platform K Car on the 14th, sales of used electric vehicles last month rose 29.5% from the previous month. Over the same period, total used-car sales increased only 8.9%. Search volume in March also showed that gasoline and diesel fell 14% and 17%, respectively, from the previous month, while electric vehicles jumped 39%. Hybrids increased by about 4%.
A K Car official said, "March is typically peak season for the used-car market because demand for 'first cars' increases with the start of the new school term and hiring, but this March overall sales were lower than average due to the war between the United States and Iran," adding, "By contrast, used electric-vehicle sales showed an unusually high growth rate."
The surge in demand for used electric vehicles is seen as being influenced by recently soaring gas prices. New electric-vehicle sales are also increasing, but many say that, because those purchases were decided months earlier, the rise reflects a combination of government subsidies and price discounts by major brands such as Tesla rather than the recent high oil prices. In contrast, because the purchase process for used EVs is simple and there are no subsidies or discounts, the interpretation is that sales are increasing purely for economic reasons.
According to 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 the war between the United States and Iran broke out on Feb. 28, gas prices began to soar, and in the second week of this month they climbed to an average of 1,967.58 won per L. That is up 16.3% compared with the fourth week of February.
A used-car industry official said, "Used cars can be delivered immediately, allowing an immediate response to high oil prices," adding, "Many consumers prioritize economic value." A K Car official also said, "Cost-effective small electric sport-utility vehicles (SUVs) priced 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 the two-day and five-day rotation are being implemented at public institutions, and the fact that electric and hydrogen vehicles can avoid them has emerged as an attraction, which is also contributing to the increase in demand for used electric vehicles."
The popularity of used electric vehicles is also growing overseas. Michael Loscheller, chief executive officer (CEO) of the Swedish electric-vehicle company Polestar, said in an interview with Reuters on the 10th (local time), "Used-car sales are growing faster than new cars," adding, "Many consumers say, 'We are price-sensitive. We are considering EVs, and we especially prefer used cars.'" Polestar's total first-quarter sales increased 7% year over year, with used-car sales surging 47%.
The Financial Times (FT) recently reported, citing the auto market research firm Cox Automotive, that U.S. first-quarter used electric-vehicle 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, hitting a record high since 2022, when the Russia-Ukraine war broke out," adding, "As EVs sold after the COVID-19 pandemic flood into the market, they are becoming an alternative that eases the burden of gasoline prices."