Abstract
This paper describes the formation process, current business status, and the structure of distribution channel of Korea second-hand car market. In addition, it is discussed about the characteristics of Korea second-hand market and its structural problems. The summary of its contents is as follows.
Firstly, the current business status of SHCT (Second-hand car traders) which means personal second-hand car traders is explained clearly. SHCT stock up on secondhand cars mainly from new car dealers, individual users, and some auctions. And this paper will examine the reason how SHCT could be the main distribution channel of Korea secondhand car market.
Secondly, the method for calculating of a price of second-hand car will be explained. For example, popularity of same type of new car and its volume of sales have an influence on remain value of a second-hand car. By using this method we can observe notable price differences between some second-hand cars which have high brand power and others which have not. Running distance and model year also have influences on the price of second-hand car as well as brand power.
Thirdly, the historic role of the SHCT and their new directions of changes were also discussed. Korea economy developed rapidly through 1970's. And car ownership numbers also increased very high speed. This paper will discuss that why new car dealers didn't or couldn't do any second-hand car related jobs.
Finally, we will examine some points at issue of Korea second-hand car market, and discuss about the direction to the current state improvement.
