Entry of Major Corporations into the Used Car Market: Restoring Market Trust or

Hyundai Motor Group's entry into the used car market is bringing about a new wave of changes in the automotive industry. In the used car trading hub of Yongin, Gyeonggi Province, known as "Auto Hub," Hyundai and Kia used car stores are preparing for recent openings, intensifying competition in the used car market.
 

Additionally, since Hyundai and Kia plan to provide installment financing to individual buyers who purchase used cars through their affiliated companies, other used car traders may face difficulties competing with them.

 
At Auto Hub on this day, various models from Hyundai and Kia, such as Hyundai Casper, Kona, Kia Sportage, and Niro, were parked. While there were still many empty spaces as the official opening is scheduled for next month, Hyundai and Kia vehicles had already occupied a considerable portion. Most of these vehicles were models that had been released only 1 to 2 years ago, they had been thoroughly cleaned, and yellow arrows pointed out minor scratches – these were used cars ready for sale.
 
Furthermore, vehicles that were previously used by Hyundai and Kia dealerships are also being sold here. Hyundai Casper and other test drive vehicles from Hyundai were parked at the used car stores.
 
However, Hyundai and Kia used car stores are operating differently from traditional used car markets. They plan to take on the roles previously played by used car traders and online intermediary platforms in the used car market. Starting next year, they will only sell vehicles that have passed a rigorous 200-item quality inspection, with a five-year driving history and fewer than 100,000 kilometers, as "certified used cars" in Yongin, Gyeonggi Province, and Yangsan, Gyeongsangnam-do. They will primarily source their inventory from their own dealerships and also open a "used car integrated information portal" that provides comprehensive information about used cars.

 
Consumers have high expectations for these changes. One consumer commented, "I can trust it if the car manufacturers themselves repair, certify, and sell used cars." However, consumer skepticism about the used car market remains the most significant hurdle. The reasons for mistrust include concerns about the condition of vehicles, false advertising, low cost-effectiveness, lack of trust in sellers, and uncertainties regarding post-sale compensation and after-sales service.
 
In response to these challenges, Hyundai and Kia are proposing collaborative efforts and plans for the development of the used car market. Nevertheless, both the industry and consumers express concerns about these changes. With Hyundai and Kia entering the used car market, used car traders are apprehensive about increased competition, and the competition in the used car market is expected to intensify.

 
Additionally, since Hyundai and Kia plan to provide installment financing to individual buyers who purchase used cars through their affiliated companies, other used car traders may face difficulties competing with them. The impact of these changes on the used car market and how consumers will respond to them will be determined in the coming months.