Demand for used electric vehicles is climbing sharply in South Korea and overseas as soaring oil prices, driven by geopolitical tensions involving the United States, Israel and Iran, push consumers toward more affordable transportation alternatives.
According to K Car, a direct-sales used car platform in South Korea, used EV sales jumped 29.5% in March from the previous month, significantly outpacing the 8.9% increase in overall used car sales during the same period.
While March is traditionally a strong month for vehicle purchases due to the start of the academic year and job recruitment season, industry analysts said used EVs outperformed expectations even as broader market conditions weakened amid uncertainty linked to the conflict.
The sharp rise in fuel prices has emerged as the main catalyst behind the shift. Data from Opinet, operated by the Korea National Oil Corporation, showed the nationwide average price of regular gasoline rose from 1,691.26 won per liter in the fourth week of February to 1,967.58 won in the second week of April, marking a 16.3% increase in roughly two weeks.
Analysts said the used EV market is reacting more quickly to fuel-price volatility than the new vehicle market because secondhand electric cars can be purchased and delivered immediately. New EV sales, by contrast, often reflect buying decisions made months earlier and are subject to longer delivery timelines.
South Korean buyers are also being drawn to electric vehicles because they are exempt from certain vehicle operation restrictions, including odd-even driving systems and one-day-per-week driving bans in some areas.
Among the most sought-after models in the domestic market are competitively priced vehicles such as Kia’s Niro EV and the New Ray EV, both available at around 20 million won in the used market.
The trend is also gaining momentum globally.
In an interview with Reuters, Polestar Chief Executive Michael Lohscheller said used EV sales are expanding faster than new EV sales, noting that price-conscious consumers are increasingly favoring pre-owned electric models. Polestar reported a 7% year-on-year increase in first-quarter total sales, while its used car sales surged 47%.
Meanwhile, the Financial Times, citing data from Cox Automotive, reported that used EV sales in the United States rose 12% year-on-year and 17% quarter-on-quarter in the first quarter.
The newspaper noted that average U.S. gasoline prices exceeded $4 per gallon during the first week of the month, reaching their highest level since the outbreak of the Russia-Ukraine war in 2022. It added that a growing supply of EVs sold during the COVID-19 pandemic is now entering the secondhand market, giving consumers more affordable alternatives as fuel costs rise.
