A Hyundai Glovis building for the sale of used cars run by the Hyundai Glovis Auto Auction.(Photos:Hyundai Glovis)

Hyundai Glovis, the logistics arm of Hyundai Motor Group, is gaining traction with its one-stop auction service for used cars. “Hyundai Glovis Auto Auction is creating a new used car sales culture by providing a wide range of vehicles and securing convenience and credibility with accurate performance inspections and a transparent, high-tech auction system,” a company official said.

“The country’s largest used vehicle auction service provider offers a one-stop service from auction to vehicle assessment and transfer of vehicle ownership.” Hyundai Glovis figures that some 184,000 used cars sold through auctions in 2015, up 24 percent from 2014’s 148,000 units. The number of used cars sold through auctions has seen double-digit expansion for three years in a row, the affiliate of Hyundai Motor Group said. According to statistics compiled by Hyundai Glovis, the used car market in Korea has been growing since 2010, the year the company started to record the numbers with the marketing picking up 12.5 percent in 2013, from stagnancy in 2010-2012. It was up 26.5 percent YoY in 2014 and 24.5 percent in 2015. Auction sales picked up an average of 3 percent from 2010 to 2013, but it jumped to 4.3 percent in 2014 and 5 percent in 2015.

Industry sources said the increase in the number of used car auction houses has to do with the increase in the number of cars available at auction houses.  

It has three auction houses in the country, two in Gyeonggi Province — Sihwa and Bundang — and one in Yangsan, South Gyeongsang Province. A total of 72,600 used cars have been auctioned in those three salesrooms in the past year, a 5 percent increase from 2012.

The company expects the total number of used cars auctioned through its auction houses since 2001, when the firm was established, to reach 650,000 units by the end of the year.

“The increase started with people’s recognition of our convenient service, which allows them to put their vehicle on the block with one phone call and sell it at better price (than they would otherwise get),” a Hyundai Glovis Auto Auction official said.

Those who want to sell their cars can call the company to make a reservation to conduct performance inspections before putting them up for action, and the car owners can give a reserve price and the price they hope to retain. “In short, sellers have an upper hand during the entire auction process unlike in conventional auctions,” the official said.  “The prices of vehicles sold at the auctions, which tend to be higher than those on any dealer’s lot at a private sale, are another advantage for sellers.” 

Hyundai Glovis Auto Action has more than 1,200 members, consisting of franchised dealers and approved buyers who can participate in its automobile auctions.

Among them, the highest bidder can auction off the car while the whole bidding process and results are updated online in real-time for fair and transparent transactions.

Although the majority of Korean consumers still opt for direct dealing or sell their cars through dealers, Hyundai Glovis says the market has a lot of room to grow.

“Hyundai Glovis Auto Action tops in brand ranking for used car auctions, boasting a 61 percent market share in the segment. We believe strong brand power will further increase market growth in upcoming years,” the official said. 

AJ Rent Car jumped into the business in June 2013 by setting up its car auction house in Yongin, Gyeonggi Province followed by Autobell and AJ Sell Car with their own car auction set ups. Lotte Rent Car opened its auction house in Ansong, Gyeoggi Province, in March, 2014.

A view of the used car sales center run by Hyundai Glovis where the buyers use the computers to make their bids to win the bids for used cars.