Used electric vehicle demand is rising sharply in South Korea and key overseas markets as escalating oil prices, fueled by geopolitical tensions involving the United States, Israel, and Iran, push consumers toward more cost-effective transportation options.
In South Korea, K Car, a direct-sales used car platform, reported that used EV sales increased 29.5% in March compared with the previous month. This growth significantly outpaced the broader used car market, which saw an 8.9% month-on-month increase over the same period.
Although March typically marks a strong period for vehicle purchases due to the start of the academic year and recruitment season, analysts noted that used electric vehicles performed above expectations even as overall market sentiment weakened amid uncertainty linked to the ongoing conflict.
Rising fuel costs have become the primary driver behind the shift in consumer behavior. Data from Opinet, operated by the Korea National Oil Corporation, shows that the nationwide average price of regular gasoline climbed from 1,691.26 won per liter in the fourth week of February to 1,967.58 won in the second week of April, representing a 16.3% increase in roughly two weeks.
Industry observers say the used EV segment is responding more quickly to fluctuations in fuel prices than the new car market. Unlike new electric vehicles, which often involve long delivery cycles and purchasing decisions made months in advance, used EVs can be purchased and delivered immediately, allowing consumers to react faster to rising fuel costs.
Domestic buyers are also being influenced by policy-related advantages, as electric vehicles are exempt from certain driving restrictions in parts of South Korea, including odd-even license plate systems and one-day-per-week driving bans in some cities.
Among the most popular used models are relatively affordable options such as Kia’s Niro EV and the New Ray EV, both of which are available in the secondhand market for around 20 million won.
The momentum is not limited to South Korea, with similar trends emerging in global markets.
Polestar chief executive Michael Lohscheller told Reuters that used EV sales are growing faster than new EV sales, highlighting a shift among cost-conscious consumers toward pre-owned electric vehicles. The company reported a 7% year-on-year increase in first-quarter total sales, while its used car segment surged 47%.
In the United States, data cited by the Financial Times from Cox Automotive shows that used EV sales rose 12% year-on-year and 17% quarter-on-quarter in the first quarter. The report also noted that average U.S. gasoline prices exceeded $4 per gallon in the first week of the month, reaching their highest level since the Russia-Ukraine conflict began in 2022.
Analysts further point to expanding supply as another factor supporting demand, with a growing number of electric vehicles originally sold during the COVID-19 period now entering the used market. This increasing availability is providing consumers with more affordable alternatives at a time of sustained fuel price pressure.
