Have you ever checked the market price of your car? If you’re a vehicle owner, you’ve probably checked the value of your car at least once. For various reasons, such as to apply for public housing, to apply for work incentives, to sign up for auto insurance, and to sell used cars. By the way, did you know that you shouldn’t do a vehicle price inquiry anywhere? Today, we summarized how to view vehicle value by use.
Vehicle price inquiry post by use
Institution to inquire vehicle vehicle price by use 차량가액 조회
Currently, there are several institutions in Korea that can inquire vehicle vehicle prices. In summary, it can be divided into three major categories as shown in the table below.
□ Arranging car price tables by use 좋은뉴스
Name Calculation Institution Use
Insurance Development Institute vehicle standard price table Insurance Development Institute
– Criteria for car insurance contract
– Standard for subsidies for early scrapping of old diesel vehicles
– Based on assets when moving into public housing
Standard Market Price Adjustment Criteria for Buildings and Other Objects Ministry of Public Administration and Security
– Asset standards for payment requirements such as labor incentives and child incentives
– Criteria for payment of used car registration tax
Used car price list Auto Trade Association – Used to check the average price of used cars sold on the market
Looking at why so many places are calculating the vehicle value, each institution has a different use of the vehicle value. What do you mean? In general, to check the used car market price, you can look at the used car price table of the automobile dealer association. However, in order to check the standard vehicle price when signing a car insurance contract or paying vehicle registration tax, it means that you need to look at the vehicle standard price table announced by the Insurance Development Institute or the Ministry of Public Administration and Security, not the used car price table.
Please note that the vehicle price calculated by each agency may vary slightly. From now on, we will take a closer look at the characteristics and usage of vehicle price tables by institution.
① Insurance Development Institute vehicle price inquiry – vehicle standard price table
The Insurance Development Institute announces the vehicle standard value every quarter, and it classifies and announces the vehicle value based on the model year and detailed model of each vehicle type. If you go through the link above, you can view the vehicle price as shown in the picture below.
Insurance Development Institute Vehicle standard value
Insurance Development Institute vehicle standard price search screen
As shown in the figure above, after selecting the vehicle type (ex, passenger car, truck) and vehicle name (ex, K3), select the vehicle year, vehicle name classification (engine and displacement), and detailed classification (ex, luxury, prestige, etc.) and search. You can check the standard price of the vehicle model. There is one thing to be aware of, but there is a limit to the number of inquiries per day/month/year in the vehicle standard price table of the Insurance Development Institute. Please note that you can only search up to 5 times per day, 10 times per month, and 20 times per year.
What is the purpose of the vehicle standard price table of the Insurance Development Institute? Basically, when signing a car insurance contract, it is used as a criterion for determining the appropriate insurance value and determining the amount of damage in the event of an accident. It is also used as a criterion for subsidies for early scrapping of old diesel vehicles (Article 10 of the Regulations on Follow-up Measures for Specific Diesel Vehicle Inspections and Subsidy Payment, etc.) and, one more thing, the occupancy requirements for national housing to which the Special Act on Public Housing applies (asset-based requirement) is also used. According to [Article 5 of the Standards for Processing Assets Owned by Public Housing Residents], it is written that ‘the value of a car is based on the standard value of a vehicle determined by the Minister of Health and Welfare.’ This is a price tag.
The purpose of the insurance development agency vehicle price table is as follows.
· Use of vehicle price inquiry for Insurance Development Institute
Criteria for calculating the appropriate insurance value when signing a car insurance contract
Criteria for determining the amount of damage in the event of an accident
Criteria for Subsidies for Early Scraping of Old Diesel Vehicles
Asset standard among the national housing move-in requirements to which the Special Act on Public Housing is applied
② Inquiry of vehicle price by Ministry of Public Administration and Security – standard market price of vehicle
The government also announces the automobile price table every year, and on the website of the Ministry of Public Administration and Security, I was able to confirm a document titled [2020 Standard Market Price Adjustment Criteria for Buildings and Other Objects]. According to the document, the vehicle value of a car is calculated in the following way.
Vehicle standard market price (vehicle value) = Base price × Remaining price by elapsed years
Here, the residual value ratio refers to the ratio of the residual value remaining after depreciation to the base price of the vehicle. In the standard market value document, the residual value rate table for each elapsed year of the vehicle is shown as follows.
Remaining rate table by age of vehicle
Remaining value by age of vehicle
As you can see from the residual rate table above, you can see that the value of a vehicle drops to 50% of the new car price even if the useful life of the vehicle is only 3 years. Car depreciation is really huge..? Next, let’s take a look at the standard price of the vehicle. In the standard market price document, you can check the standard price list for vehicles classified by vehicle name and type as shown below. Let’s take K3 as an example.
Standard price for each type of K3 vehicle
If I own a 2017 model year K3 (BD57GC-P-88), the vehicle value of this car in 2020 is calculated as KRW 19.42 million × 0.518 (3 years of useful life) = KRW 10.06 million. For reference, the government’s standard vehicle market value is different from the Insurance Development Institute’s standard vehicle value for use, and the calculated vehicle value may also be different.
Then, what purpose will the government’s vehicle price table be used for? Representatively, it is used for qualifications to apply for work subsidy and child subsidy. In order to apply for the work subsidy and child subsidy, certain property requirements must be met. This property requirement includes a car owned by a household member. In addition to this, it is also used as a basis for payment of vehicle registration tax, which is a tax paid when a vehicle is first acquired. (For reference, the vehicle tax is paid based on the engine displacement, so the value of the vehicle and the vehicle tax are irrelevant.)
The government’s vehicle price table is summarized as follows.
· Purpose of vehicle price inquiry by the Ministry of Public Administration and Security
Criteria for Confirmation of Property Requirement for Employment Subsidy and Child Subsidy Application
Criteria for payment of vehicle registration tax
③ Automobile Trading Association Vehicle Price Inquiry – Used Car Price Table
Finally, the used car price table of the automobile dealership association. Because automobiles have a very large depreciation feature, the second hand market is very active. So there are many used car companies on the market. Each company calculates the used car market price through its own algorithm.
· Organization that calculates used car market price
National Association of Automobile Trade Associations
Korea Association of Automobile Dealers
Hyundai Capital Plaka
KB Cha Cha Cha
K Car
finca
There is a site where you can check the used car prices announced by the above institutions at a glance. If you go to the [Used Car Price Page of the Automobile Civil Complaint Portal], you can check the vehicle price by calculation agency, vehicle type and year. For reference, you cannot check the market price for each vehicle’s mileage and detailed options here, and most vehicle prices are based on the basic price and average mileage (within about 20,000 km), excluding additional options. In addition, the vehicle price table provided on this site is based on the previous month’s transaction price, and you can check the price only for passenger vehicles. If there is no transaction performance for the previous month for each institution, the market price is not provided.
As you all know, the use of the used car price table provided by the Automobile Trading Association is as follows.
· Automobile trading association vehicle price inquiry purpose
To estimate the average market price of used cars by model, year, and detailed trim.
concluding
Today, we looked at how much a car’s depreciation is, and which agency’s vehicle value should be inquired for by purpose. Now you know for sure which institution’s vehicle price table you need to check for each purpose, right? In the future, I hope that you will be careful not to incur disadvantages by incorrectly checking the vehicle value of your car!