'Asset vs. Traffic' Three-Way Battle of Used Car Platforms... Hey Dealer, Encar.com, and Autohands' Tri-Color Survival Strategies and IPO Forecasts

The battle for dominance among three platform companies is fierce over the domestic used car distribution market, which has grown to an annual scale of 30 trillion won. As the entry of large automakers like Hyundai Motor Group simultaneously increases the market pie and transparency, leading used car platforms Autohands ('Auto Inside'), Encar.com, and PRND Company ('Hey Dealer') are knocking on the door of the capital market (IPO) based on their distinct revenue models and cost structures.

Although they compete in the same field of used cars, they are taking completely different paths, from their fundamental sources of making money to their methods of controlling costs.

The Essence of Revenue Models and Cost Structures: 'Asset-based' vs. 'Traffic-based'

The most decisive difference that determines the fate of these three companies is 'whether they hold inventory' and the resulting 'revenue and cost structure'.

First, Autohands is an 'asset-heavy mobility commerce' that directly purchases used cars, provides warranty services, and operates rental car assets. Since the scale of assets (inventory and vehicles) is directly linked to sales, continuous capital injection is essential. The scaled-up 'direct purchase' model has led to massive top-line growth, but holding inventory worth around 24 billion won carries a high risk of valuation loss if market prices fall. As a capital-intensive model, its main expenditure items are large-scale rental car maintenance costs (depreciation, maintenance fees) and 'interest expenses'. How low they can control interest expenses is the core of their profitability.

On the other hand, Encar.com is a 'traditional advertising platform' that provides a 'place' where dealers advertise vehicles and consumers obtain information. As it does not hold direct inventory, there is almost no risk of depreciation or price drops. It is a typical cash cow that maintains high profitability, reaching an EBITDA margin of over 40%. Encar.com's main expenditures are concentrated on salaries to retain excellent personnel and 'labor and technology costs' used to maintain technology infrastructure, while it stably maintains the ratio of advertising expenses to operating revenue below 10%.

PRND Company, the operator of 'Hey Dealer', is a 'network effect-based reverse auction platform' that connects individuals and dealers. Although it poured massive marketing funds in the early stages, it is currently demonstrating the 'magic of advertising costs' as its brand awareness recently crossed a critical threshold. Despite drastically reducing advertising expenses by more than 30% compared to the previous year, revenue exceeded 100 billion won and operating profit surged, entering a stage of 'economies of scale' where the platform runs on its own.

Tri-Color IPO Stories and Investment Points of the Three Companies

Differences in fundamental business structures directly lead to differences in the 'listing stories' each company appeals to the capital market.

① Autohands: An 'Attacker' of Unstoppable Asset-based Top-line Expansion

Autohands, led by CEO Kang Gwi-ho (formerly of Hyundai Capital), recorded explosive growth of over 40% annually by expanding its reach into the B2C sector after acquiring 'Auto Inside'. Autohands' fundamental revenue model is an 'asset-heavy used car commerce and mobility' business that directly purchases used cars, provides warranty services, and operates rental car assets. Because it is a model where the scale of assets (inventory and vehicles) is directly linked to sales, it possesses capital-intensive characteristics that require continuous capital injection (borrowing and capital increase) to increase market share.

In fact, it is being reborn as a 'comprehensive mobility service connecting online and offline' by recently purchasing a 5,157-pyeong site estimated at about 69 billion won in Yongin, Gyeonggi Province, to build an offline complex. For this, it also executed a 15.5 billion won paid-in capital increase and large-scale borrowing from the financial sector. Due to this business structure, its cost structure is also concentrated on 'interest and management expenses'. As of 2025, interest expenses alone reach approximately 1.15 billion won, and asset maintenance costs such as vehicle maintenance fees for rental car operations (3.9 billion won) and depreciation (2.5 billion won) account for the main expenditure items. In other words, how low it can maintain its cost of capital is the core of its profitability. It is suitable for investors who expect strong offline market dominance based on inventory and physical assets, but its low profitability and high debt reliance compared to commission platforms are hurdles to overcome before listing.

② Encar.com: A Cash Cow-type 'Wealthy Investor' Boasting Overwhelming Traffic-based Cash Generation

Encar.com, the No. 1 platform in Korea, has 99.14% of its stakes held by Australia's Carsales Holdings. It operates a 'traditional advertising platform' model that provides a 'place' where dealers advertise vehicles and consumers obtain information. Since it does not hold direct inventory, there is almost no risk of depreciation or price drops, and it generates stable cash based on high traffic.

The stability of the revenue model directly translates into the efficiency of the cost structure. The ratio of Encar.com's advertising expenses (11.1 billion won) to its operating revenue (115.6 billion won) is very stably controlled at about 9.6%. Its main expenses are structured around 'labor and technology costs' that maintain brand power, such as salaries (30.2 billion won) and stock compensation expenses (3.7 billion won) to retain excellent personnel. As a 'goose that lays golden eggs' operating with no debt and hoarding tens of billions of won in cash, it carries out large-scale dividends worth tens of billions of won (39.4 billion won in 2024) to its parent company based on its abundant cash-generating ability, making it attractive to those who prefer safe dividends and value investing. However, its moderate growth trend compared to other companies, its history of withdrawing its listing in 2023, and the fact that its public offering structure could be focused on the sale of old shares if it attempts an IPO again in the future are pointed out as its Achilles' heels.

③ PRND Company (Hey Dealer): A 'Tech Unicorn' Evolving from the Magic of Brokerage Commissions into an 'Asset-based Hybrid'

PRND Company is targeting a corporate value of over 1 trillion won, led by its overwhelming competitiveness as a reverse auction brokerage platform through its existing 'Sell My Car' service. By proving the 'network effect' where revenue increases even after cutting its initially massive advertising costs, it has achieved a strong turnaround on a separate headquarters basis.

However, its recent moves go beyond a simple brokerage platform. According to its consolidated audit report, PRND Company has greatly expanded its business scope into the 'Buy My Car' service, which directly purchases and sells used cars beyond its existing brokerage. To this end, it vertically integrated its business by incorporating several subsidiaries, such as Onion Motors (now PRND Revolt) and Market Motors (now PRND Techbay). This brought about a massive financial change. As subsidiaries directly purchase vehicles, consolidated inventory assets surged from 4.1 billion won in 2024 to a whopping 86.4 billion won in 2025. An inventory-free platform company suddenly came to bear massive physical assets. Its external size rapidly grew to approximately 299.7 billion won in consolidated operating revenue in 2025, but in the aftermath of large-scale purchase and operating costs of its subsidiaries, PRND Techbay (-14.4 billion won) and PRND Revolt (-3.7 billion won) generated large net losses, recording a consolidated net loss of 31.1 billion won.

In conclusion, if the three used car platforms are listed, they will offer completely different options to investors. If you want safe profitability and the dividend appeal of a firm No. 1 platform, Encar.com would be the optimal investment point. If you expect the magic of marketing efficiency and the turnaround and growth potential unique to tech companies, PRND Company (Hey Dealer) would be the choice. And if you prefer a vision of aggressively expanding physical market share in the used car market based on large-scale physical assets and infrastructure, Autohands could be the best fit.