SK Encar reveals system for pricing of used cars
Published: 27 Nov. 2014, 20:54
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 [[email protected]]
with the Korea JoongAng Daily
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