SK Encar reveals system for pricing of used cars

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SK Encar reveals system for pricing of used cars

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The nation’s leading used-car dealer SK Encar has released the rating criteria it uses to determine the trading price for used cars in order to offer more transparency to customers.

Industry insiders said posting the information, such as how navigation and power seat systems affect the selling price, will make customers feel more comfortable when buying or selling a used car in a market that has earned a bad reputation.

“Car owners complain that they always receive less money than the market value when they sell a used car to a dealer,” said Choi Hyun-seok, head of the marketing department at SK Encar. “It’s not because we are bad people. It’s because not many people know that the price can change a lot depending on what is installed. The average market value for a 2011 Avante 1.6 GDI sedan, for instance, is about 9.5 million won [about $8,600], but its value rises by about 400,000 won if it has built-in navigation.”

Built-in navigation can push a vehicle’s price up by 700,000 won because it includes an entertainment system with premium speakers.

Most used cars that are up for sale have a smart key and customers generally receive two when they purchase a new car, SK Encar said. Used-car dealers want both keys when they buy a vehicle from a customer, and losing one could lower a vehicle’s value by 50,000 won to 100,000 won for a domestic brand and by 400,000 won to 500,000 won for an imported car.

Sk Encar said the power seat system is the most expensive add-on a car can have. A broken electric rail on a seat can cut the value of the vehicle by 400,000 won to 500,000 won, and more than 2 million won could be deducted if the entire seat needs to be replaced.

Drivers should also keep their power side-view mirrors in good condition, especially if it has extra features like a rear sensor to detect approaching vehicles. A broken power mirror could drop the value of a car by 150,000 won, but a broken rear safety feature could cut the price by 400,000 won to 500,000 won.

BY KWON SANG-SOO [sakwon80@joongang.co.kr]

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