Second-hand car dealers are looking to provide reliable sources for price comparison for used foreign vehicles. The move was prompted by an anticipated flood of used foreign cars after more than 100,000 of new imports were registered last year.
"The number of used imported cars is rising, but there is a lack of information about sales routes and prices," said an employee at the Korea Automobile Importers and Distributors Association on Tuesday.
KAIDA plans to benchmark the U.S.' largest automotive vehicle valuation company Kelley Blue Book. Consumers in the U.S. widely turn to reputable car valuation sources like it, which offer a wide range of price information for new, used or trade-in vehicles.
Since Korea opened the market to imports in 1987, the number of foreign cars on the streets here has reached 660,000. They now account for 4.5 percent of all passenger cars in the country. Of those, 400,000 are believed to have been bought second hand. The remaining 260,000 were newly registered over the last two or three years, and many are expected to be traded in soon.
BMW, the No. 1 imported car brand in Korea, started directly selling used cars in 2005. The German carmaker buys used BMW models that have been driven less than 100,000 km, or which were manufactured less than five years ago, and resells them after thoroughly testing their condition. The company believes keeping used cars at a certain value is beneficial for the company as consumers will eventually buy new cars of the same brand.