South Korea’s second-hand car market is experiencing a significant shift towards online transactions amid strengthened consumer compensation policies by used car platforms and increased participation from tech-savvy individuals.

Last year, online sales at K Car, a used car trade platform, accounted for 56.7 percent of the entire sales of 109,997 cars. The online sales proportion jumped from 34.7 percent in 2020.

Previously, used car platforms focused on sharing vehicle information online and encouraged consumers to visit offline stores. However, they are now actively working towards increasing the share of online sales.

From the perspective of used car platform companies, online sales offer cost savings compared to offline operations and present an opportunity to generate additional revenue through vehicle inspection, insurance, and finance services.

AutoPlus, a Korean automotive distribution management firm, introduced REBORN, a used car brand for online transactions in 2018.

REBORN conducts live broadcasts on YouTube in a home shopping format where hosts showcase used cars.

Last year, REBORN successfully sold high-end vehicles such as the 4th generation Range Rover and the new G90 through internet live broadcasts.

Consumers may find it challenging to experience a used car firsthand when purchasing online but used car platform companies are addressing this concern by extensively photographing both the interior and exterior of the vehicles.

They enable consumers to virtually rotate the vehicle 360 degrees and view it from various angles on their online platforms.

Furthermore, these companies are expanding their refund policies, allowing consumers to receive a 100 percent refund without penalties.

By Moon Gwang-min and Minu Kim

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]