Hyundai Motor to sell used cars, inspect for lemons

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Hyundai Motor to sell used cars, inspect for lemons

Published: 07 Mar. 2022, 18:55

An image of Hyundai Motor's app that will provide information on the used car market, such as the market prices of secondhand cars by model and the volume of transactions. [HYUNDAI MOTOR]

Hyundai Motor is going into the used car business, pending final approvals.

It will sell secondhand Hyundai cars that are less than five years old and have under 100,000 kilometers (62,100 miles) on the odometer.

The vehicles will go through a Hyundai Motor's qualification test, which includes 200 evaluation items. Only vehicles that pass the test will be released into the market.

Small companies have been opposing the entrance of large companies into the secondhand car business. Hyundai Motor is awaiting final permission from the Ministry of SMEs and Startups.

Hyundai Motor also said it will run an app that provides information on the used car market, such as the market prices of secondhand cars by model and the volume of transactions. The app is designed to solve the information imbalance between customers, and increase transparency.

Sales will be conducted online and offline. Hyundai run an online mall that offers customers virtual tours. Customers can check the inside of the used cars through virtual reality, make transactions and have the cars delivered to their doorsteps.

Hyundai is aiming for a 3.6 percent share in the used car market by 2023, and 5.1 percent by 2024. It vowed not to exceed the target in response to the public concern that its existence will hurt smaller players in the industry.

According to a recent report from the Korea Automobile Industry Association (KAIA), even if the country's top five largest automakers jump into the secondhand car market, their total market share will stay only at between 7.5 percent and 12.9 percent in 2026. The five major automakers KAIA represents are Hyundai Motor, Kia, Renault Samsung Motors, SsangYong Motor and GM Korea.

"We revealed our business strategies to the public, as through them, customers and used car business owners could better understand the positive effects Hyundai's entrance would bring to the development of the used car market," said a spokesperson for Hyundai Motor. "We will try to increase the quality of used cars in order to gain the market's confidence, and will cooperate with other businesses for the further growth of the market."

BY SARAH CHEA [chea.sarah@joongang.co.kr]