Goodbye lemons: Hyundai, Genesis to sell certified used cars

Industry

Published: 19 Oct. 2023, 16:40

Goodbye lemons: Hyundai, Genesis to sell certified used cars

Hyundai Motor employees inspect used cars on a total of 272 evaluation items at a center in Yangsan, South Gyeongsang, Thursday. [HYUNDAI MOTOR]

YANGSAN, South Gyeongsang — Fake dealers, scams and exaggerated ads.

The used car market will no longer be “selling lemons to suckers,” Hyundai Motor says, as it finally snaps into the secondhand car market, after four years of preparations. The market was previously seen as a “market for lemons,” in which sellers knew more about a used car than buyers to an unfair degree.

Secondhand Palisade SUVs and G80s were parked in line at a 31,574-square-meter (339,860-square-feet) certified used car center in Yangsan, South Gyeongsang, ahead of the company’s official open on Oct. 24.

The Hyundai Certified service allows Hyundai and Genesis owners to sell and buy secondhand vehicles after the automaker evaluates the car through nearly 300 quality test items.

Entering Building B at the center, employees were busy checking and disassembling secondhand cars to detect any damages and cracks.

A secondhand Palisade SUV, left, and Genesis G80 that are ready to be resold are on display Thursday [HYUNDAI MOTOR]

The evaluated cars are then sent to a quality improvement line to exchange engine oil, various filters, wiper blades, and other components including batteries, wheels and tires if necessary.

Cars that need any repairs on the exterior are transferred for a new painting process. Colors and gloss will be completely returned to their original look.

Hyundai Motor employees inspect used cars on a total of 272 evaluation items at the Yangsan center Thursday. [HYUNDAI MOTOR]

Around 15,000 used Hyundai and Genesis cars can be inspected and recovered every day at the center. Only cars that are less than five years old and have under 100,000 kilometers (62,100 miles) on the odometer are accepted.

“You will never notice if it is a used car or a completely new one,” said Ryoo Won-ha, executive vice president at Hyundai Motor Asia Strategic Region, during a press event Thursday in Yangsan.

“Under the philosophy of ‘Made by us, Cared by us,’ Hyundai aims to contribute to making a transparent and fair used car market for the customers,” said Ryoo.

Ryoo Won-ha, executive vice president at Hyundai Motor Asia Strategic Region, introduces the Hyundai Certified service during a press event Thursday in Yangsan, South Gyeongsang. [HYUNDAI MOTOR]

The whole process will be recorded with photos and videos so that customers can easily, and transparently, check the condition of the cars.

Sales begin on Oct. 24. Purchases can only be made via an app or its website.

Hyundai’s dive into the used car market came as the government relaxed the ban on Hyundai’s entry into the used car market in 2019.

The secondhand car market is booming in Korea with a total of 2.38 million used cars changing hands in Korea last year, around 1.4 times the number of new cars sold.

Of them, 38 percent were Hyundai Motor and Genesis vehicles.

Hyundai Motor's used car certified center in Yangsan, South Gyeongsang. [YONHAP]

“Korean consumers will now be able to select high-quality used cars that have been certified by manufacturers,” said Hong Jung-ho, vice president at Hyundai Motor. “With the new business, public trust toward the used car market will improve which will activate the industry overall and up the market size.”

Hyundai aims to sell 5,000 used cars this year, with a goal of taking a 2.9 percent share of the used car market by April next year. The share cannot exceed 4.1 percent until 2025 according to the government’s rule to protect smaller firms.

Kia will introduce a similar service on Oct. 25.

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 remain between 7.5 percent and 12.9 percent in 2026.

KAIA represents five major automakers: Hyundai Motor, Kia, Renault Samsung Motors, SsangYong Motor and GM Korea.

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