As institutional investors in internal combustion engines wane... electric vehicles rise, August used-car prices show starkly contrasting changes

*This content was translated by AI.

Impacted by the summer vacation season and extreme heat, the August used-car market showed a general downturn, with price trends diverging sharply by powertrain type. While vehicles powered by internal combustion engines saw significant declines, electric vehicles (EVs) and hybrid models led by HYBE (HEV) maintained or even increased their prices, continuing a trend of polarization.

According to an analysis released on the 11th by Encar regarding August 2026 used-car prices (based on 2023 models, 60,000 km driven, and no accident history), the overall average price for August fell 1.43% compared to the previous month. Domestic cars dropped by an average of 1.77%, while imported cars fell by 0.99%. However, the EV market showed signs of vitality. In particular, Tesla's Model 3 rose 3.32% to 40.53 million won, and the Model Y increased 3.05% to 48.98 million won, driven by expectations of expanded domestic application of FSD (Full Self-Driving) capabilities and sustained demand growth. Domestic EVs also maintained stable prices; the Kia EV6 (-0.76%) and Hyundai Ioniq 5 (-1.44%) showed depreciation rates lower than the average decline for domestic cars.

The strong performance of HEV vehicles, which share the eco-friendly trend, is also notable. The Kia New Sorento HEV rose 1.11% compared to the previous month, making it the only representative domestic model with a price increase. In the imported car market, the Lexus ES300h also rose by 1.19%. The Hyundai Grandeur HEV (-0.53%) and Santa Fe HEV (-0.77%) also demonstrated strong retention of residual value.

On the other hand, prices for internal combustion engine vehicles fell. Among domestic gasoline and diesel models, the Hyundai Casper dropped 6.25% compared to the previous month, recording the steepest decline. It was followed by the Chevrolet Trax Crossover (-3.24%) and Kia Carnival Diesel (-3.05%). Imported internal combustion engine models also saw declines of around 3–4%, centered on models such as the Mercedes-Benz E-Class (-4.10%), C-Class (-3.43%), Volvo XC90 (-3.36%), and Audi Q5 (-3.33%).

An industry expert stated, "While overall transaction volumes have slowed due to the summer off-season, consumer interest is shifting toward electric vehicles with software update benefits and HEVs with excellent fuel efficiency." The expert added, "The polarization of used-car prices based on powertrain preference will likely continue for some time."

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*This content was translated by AI.