German automakers are strengthening their respective used car businesses in South Korea as demand for their luxury brands continues to soar and as the number of cars in circulation increases.
According to data released by the Korea Automobile Importers Association, BMW, Mercedes-Benz and Volkswagen group sold a combined 52,278 new cars in South Korea in the first six months of 2014, a 33.1% increase on the 39,267 units sold in the same period of last year.
Go deeper with GlobalData
This was more than half of the total foreign brand sales in the country in this period.
Mercedes-Benz, which already has a used car showroom in the country’s capital city Seoul, is starting to sell other used luxury brands while Volkswagen group plans to start up its in-house used car business in September. BMW began its used car business in South Korea in 2005 but said it plans to increase its used car floor-space in the country.
In the luxury segment, the used car business is seen as an integral part of the overall dealer service and is often the most profitable segment for local dealers. New buyers often trade in their used cars at guaranteed buy-back prices while used car buyers are offered warranties and other quality guarantees.
Controlling the used car market also helps underpin the value of the brand.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
