An office worker in his 20s sold a Hyundai Avante and purchased a 2009 BMW series 3. He thought of buying a KIA KW5 first. However, after comparing the two cars, he was more attracted to the German used sedan. The prices of two cars were similar. The K5 prestige model was 27 million won, while 2009 BMW series 3 was 28 million won.
Used car experts claimed on Jan. 30 that demand for imported cars is increasing among office workers in their 20s and 30s.
Recently, the price of imported cars has dropped in contrast to the increased price of mid-sized domestic cars such as the Sonata or K5. Thus, for a similar price, young workers prefer used foreign cars over domestic ones.
According to used car dealer SK Encar, 32 percent or 2.6 million cars from abroad cost 20 to 30 million won, while 24 percent of them had prices between 10 to 20 million won.
“An increasing number of clients are selling mid-sized domestic cars to buy a BMW series 3s or Audi A4s,” said Kim Hyeong-sup, section chief of Euro Motors. ”It is not a loss. If you buy a car worth 30 million won, you can drive it for several years without getting in to serious accidents and resell it for around 20 million won.”
Used car dealers say imported used sedans have price competitiveness over domestic used cars because the models stay popular for a longer period of time. Domestic mid-sized models have to be changed every four to five years, while imported cars have a seven- year cycle.
However, Lee jin-seok of Gini Auto warns customers need to consider the high maintenance costs. “The average price of insurance for an imported vehicle is 25,000 won per month, while domestic mid-sized vehicles cost 14,000 won.” “But, if the imported car is driven over three years or 10,000 km, the guarantee expires. So drivers must pay high repair costs.”