Why people sell used car?

Used car purchase requires well rounded inspection. This article will focus on why people sell cars as used cars. Also, should I buy high mileage or low mileage cars? From my experiences let me address some of the key questions. Ask yourself the same question. When do you sell your car? Among many, here are some of the common reasons.

1) Major repair timing

For imported cars, 50,000km and 120,000 km cars require major repair easily costing you a few thousand dollars. Sometimes repair could cost more than your used car purchase price. In the case of Mercedes-Benz, each shock could cost you up to U$2,500.00. BMW could cost you US$3,000~5,000 for 80,000 km repair. I personally estimate that about 70% to 80% of used cars in Korea fall into this category.

2) Selling as a used car after the accident

To general public, the legal term of 'accident' is a 'serious accident' and the 'simple replacement' is an 'accident'. The tricky issue is that, in the case of imported cars, most of the cases are repaired by private independent shops. Because of higher repair costs, not all cars are repaired in good condition. I personally estimate about 10% of used cars sold in Korea fall into this category.

3) After purchasing a new car or can not afford car mortgage

The car is still in good condition with warranty. Rich people just purchase new cars and sell existing cars. In addition, for some because of car mortgage, good cars are sold as used cars as well. Since these used cars are rather expensive, you might as well buy a new car. In my experience, it's probably around 5% of used cars sold in Korea.

4) Watch out these used cars

From experiences, it is opinionated personal comment. Often, after used car purchase unexpected repair costs could be very high. In this case, some car owners immediately scrap or sell as spare parts. However, other car owners re-sell as a used car with good storytelling. Personally, I avoid or carefully inspect vehicles sold within 1 or 2 years after the last purchase date.

High mileage or low mileage cars?

There are several cases as below. Of course, this is a bias opinion based on personal experience, so keep that in mind.

1) Low mileage stop and go cars

For example, year 2010 car with 60,000km only owned by one-person driver. Most people will like low mileage cars very much. However, these low mileage used cars often have issues with engine performance.  Of course, routine repair items could be in good condition including suspension system. However, such used cars might have engine mission issues that matters a lot. This type of used car needs careful inspection, in particular the diesel engine.

2) Low mileage second car

For example, a vehicle parked in the basement as a secondary car is a typical case, and I personally like such used cars very much. Engine performance and consumables are generally good in many cases. You can find out right away by scanning LTFT and by inspecting cars visually. Such used car is one of the highly recommended vehicles.

3) Long-distance vehicle with high mileage

For example, year 2010 car with over 250,000km. In this case, more than 90% of the general public would not consider buying such high mileage used cars. But for me, it's my favorite vehicle. Generally, most of such used cars are in good engine and maintenance condition. Of course, overall inspection would tell us the final results before the used car purchase decision.