Domestic car average falls 1.1%; Avante CN7 bucks trend with 2.5% gain

Earlier Avante generations all post price increases

Hyundai Motor's compact sedan, the All New Avante. [Hyundai Motor]
Hyundai Motor's compact sedan, the All New Avante. [Hyundai Motor]

Used models of Hyundai Motor's Avante compact sedan are benefiting from a spillover effect as the fully redesigned new generation carries a noticeably higher price tag than its predecessor.

K Car, a direct used-car platform, said Thursday that its analysis of major used-car model prices showed the Avante and key midsize sedans held relatively firm in October despite a broad market decline.

Average used-car prices for domestic models fell 1.1 percent from the previous month in October, while imported vehicles dropped 1.7 percent — steeper declines than September's 0.5 percent and 0.9 percent, respectively. Buying momentum slowed after the Chuseok holiday, with older, higher-mileage vehicles showing the sharpest weakness.

The Avante bucked that trend, with prices for earlier generations rising across the board. The Avante CN7 gained 2.5 percent from the previous month, the Avante AD rose 0.8 percent, and the New Avante CN7 edged up 0.2 percent. Analysts attributed the gains to growing interest in more affordable used Avante models as the higher price of the new generation raised the cost of ownership.

The new Avante's gasoline variants are priced at 23.98 million won ($23,800) to 31.52 million won, while hybrid models range from 30.42 million to 36.99 million won before tax incentives. Compared with the outgoing model, the starting price has risen 3.36 million won for the gasoline version and 3.87 million won for the hybrid. Adding options to the top hybrid trim pushes the price above 40 million won.

Midsize sedans that buyers might consider as alternatives to the new Avante also held their ground. The New K5 third generation and the K5 second generation were flat from the previous month, while the Sonata The Edge slipped just 0.3 percent. Used midsize sedans are emerging as an attractive option for buyers who want to move up a segment within a new-car budget.

In the imported-car segment, Honda models posted the steepest declines. The Accord 11th generation fell 9.7 percent from the previous month, and the Pilot third generation dropped 9.0 percent. The Odyssey fifth generation and CR-V sixth generation were down 8.5 percent and 4.1 percent, respectively. The declines reflect broader discounting on new Honda vehicles ahead of the brand's exit from the domestic car sales market.

Average used electric vehicle prices fell 1.2 percent from the previous month, widening from a 0.1 percent drop in September. Supplementary budget funding for EV subsidies from Seoul and other local governments has improved conditions for buying new EVs, drawing some demand away from the used market. Tesla Model 3 and Model Y prices were unchanged from the previous month, holding relatively firm.

"New-car price increases strengthen the price competitiveness of existing used vehicles, while new-car discounts and expanded subsidies work as downward pressure on used-car prices," said Jo Eun-hyeong, an analyst at KG Mobility Platform's PM team. "If you are planning to buy a vehicle, it is sensible to compare not only the market price of the model you are interested in but also new-car purchase benefits and other vehicle segments within a similar budget."

Meanwhile, K Car ranked first in a survey on preferred platforms for peer-to-peer used-car transactions, conducted through market research firm Macromill Embrain among 700 consumers. Among the 639 respondents who were aware of at least one peer-to-peer used-car platform, 24.7 percent named K Car as the platform they would most like to use for direct transactions.


likehyo85@heraldcorp.com