Economic uncertainty, inventory clearance weigh on market
US-made Model Y gains 2% on FSD V14 anticipation
Used car platform K Car said Wednesday that average used car prices in July fell 1.4 percent for domestic models and 1.5 percent for imports compared with the previous month. Used Teslas made in the United States, however, bucked the trend, rising on expectations surrounding Full Self-Driving technology.
K Car analyzed average July prices across more than 740 models within 10 years of their release that are traded in the domestic used car market. July is typically a period of price stability as summer vacation demand picks up, but this year a continued push to clear long-sitting inventory amid economic uncertainty kept prices on a downward trajectory.
By model year, near-new used vehicles showed the strongest price resilience. The end of a reduced individual consumption tax on new cars pushed new car prices higher, in turn supporting prices for near-new used models. Vehicles from the 2026 model year slipped just 0.2 percent from the prior month, while 2025 models fell 0.7 percent. By contrast, model years 2020 through 2024 dropped as much as 1.8 percent, and 2017–2019 models fell as much as 2.2 percent.
By vehicle type, large sedans, SUVs and recreational vehicles posted the steepest declines. Notable drops included the Genesis G80 (down 5.5 percent), the Kia The New K9 second generation (down 5.1 percent), the Hyundai Palisade (down 4.3 percent) and the Kia Carnival fourth generation (down 2.8 percent).
High vehicle prices and running costs, compounded by economic uncertainty, appear to have dampened buying sentiment for large cars, SUVs and RVs. The price correction in family vehicles such as the Carnival and Palisade, however, has improved affordability for buyers looking ahead to summer vacations and the Chuseok holiday season.
Some used Teslas moved higher. Average prices for 2020–2022 model year Tesla Model Y vehicles rose 2.0 percent from the previous month. While the Model Y currently sold in South Korea is produced at Tesla's Shanghai factory, US-made versions were sold here before 2023. Growing attention to the availability of FSD V14 Lite on US-produced vehicles lifted prices for those models. Over the same period, Model Y prices for 2023 and later model years fell 2.5 percent.
In the import segment, BMW and Mercedes-Benz continued to weaken. BMW's average July price fell 1.9 percent from the prior month, while Mercedes-Benz dropped 1.5 percent. Both brands saw their declines widen compared with June, with price adjustments concentrated in higher-end import models.
"This July was different from the typical summer peak season — domestic and import prices fell together," said Cho Eun-hyeong, an analyst at K Car's product management team. "Near-new used vehicles held their value, but prices for popular model years and SUVs came down, widening the range of options available to buyers."
eyre@heraldcorp.com
