Hyundai Motor's used car business kicks off

Hyundai Motor's used vehicles are parked at its certified sales center in Yangsan, South Gyeongsang Province, Thursday. The company will officially launch the used car trading business on Oct. 24. Courtesy of Hyundai Motor

Hyundai Motor has launched its much-awaited certified used vehicle business with an online-only sales strategy to offer reasonable prices for customers, the carmaker said Thursday.

Sales for Hyundai-certified used cars will be available from Oct. 24. This came about three years after the company announced its plan to diversify its revenue streams into the used vehicle market in 2020.

No conglomerates have so far been able to enter the sector due to regulatory hurdles. But with the relevant rules alleviated three years ago, the nation’s largest carmaker immediately declared its intention to join the market.

The decision came in response to growing customer distrust over the local used vehicle industry. Hyundai expected its latest move to alleviate the prevalent distrust in used vehicles, as it engages in full processes from the purchase of used cars through to their sales to customers.

A signboard promotes Hyundai Motor's certified used vehicle sales lot in Yangsan, South Gyeongsang Province. Courtesy of Hyundai Motor

Last year, more than 2.38 million used cars were sold, outnumbering newly registered vehicles by 1.4 times, according to the company. Out of all the used cars sold here, the number of those from Hyundai and Genesis topped 900,000, accounting for around a 38 percent market share.

Hyundai also set a sales target of 5,000 for its used car business for the rest of this year. The carmaker aims to increase the target gradually down the road.

The company also plans to launch an online platform for customers to sell their used cars, hoping to present reasonable prices for potential vehicle sellers.

Hyundai will also offer certified warranty services for buyers of its used cars. Any customers who purchase Hyundai vehicles via the newly launched service will be able to receive a free warranty of two years and 20,000 kilometers against defects, the company said.

Only vehicles in good condition will be sold via the certified sales channel, as Hyundai will not allow sales of used cars that have traveled more than 100,000 kilometers and are more than five years old. The carmaker also pledged not to sell any vehicles with a history of accidents.

The company plans to operate two facilities for the commercialization of used vehicles, one in Yangsan, South Gyeongsang Province, and the other in Yongin, Gyeonggi Province. Hyundai will expand the number of such facilities across the nation in line with potential demand growth.

“We have prepared to launch the business under the philosophy of ‘Made by us, Cared (for) by us,’” Hyundai Motor Vice President Yoo Won-ha said. “Hyundai will play a crucial part in improving the nation’s used vehicle market by building a transparent and fair used vehicle trading culture and enabling customers to make more reasonable and wise choices.”