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  • suntofu
  • Adventurer

    • 32

    • March 03, 2014, 05:34:36 pm
    • Busan
Q's about buying a car in Korea
« on: November 06, 2014, 04:12:36 pm »
Hi everyone, so I was just wondering what the process was like when it comes to buying a car here?

I'm thinking of getting a korean car at around 15,000,000원 (roughly $15,000 USD). How does tax and all that work over here? If I agreed on buying the car at like 15,000 then how much I really be paying and how much a month if i was able to get it at 40 months?

I have an aunt who I'm thinking about asking to sign for me in case I cant. I dont know if it matters but she very wealthy. I'm asking you guys first because I dont want to go to her without having done any research on my part.

So yeah, how much does all this plus insurance cost me per month? Also I'm 24 US age; I will be 25 in January (26 Korean age).

Re: Q's about buying a car in Korea
« Reply #1 on: November 06, 2014, 06:45:24 pm »
Maybe you've already made up your mind, but I'd really recommend checking out the used car market. Korean car prices are pretty ridiculous considering they're made here, and they're worse quality than the same cars that get sold in other countries. Koreans like buying new cars, which makes used car prices pretty low. There are a lot of crappy old 2000/2001 cars out there but you can also get a car with really low mileage with a few years on it for like half the price of a new car.

Anyway bare-bones insurance should be like $400 for an entire year, pretty cheap compared to the US. I think it depends on the size of your car and some other variables though. I went with AIG insurance that was about $800 or so, which would provide more money if I was in an accident or the car was really damaged or stolen or whatever. Some people here have said AIG isn't doing new car insurance accounts anymore, which is weird. I haven't heard anything from them.
Quote from: Mr.DeMartino on Yesterday at 01:40:32
    Trump is a liar and a con man.
Quote from Mr.DeMartino on June 14, 2019 at 02:28:07
Donald Trump is a lying sack of shit

  • TDC troll
  • Adventurer

    • 50

    • October 06, 2011, 08:55:42 pm
    • Gyeongi Do
Re: Q's about buying a car in Korea
« Reply #2 on: November 06, 2014, 11:11:22 pm »
Your post doesn't include enough info , and why does your aunt being loaded
have to do with anything .
If she's really that well off ask her nicely to buy it for you .

In any case , for a used 15mil won car , to finance it at 48 months would
be about 460,000 won/month .
In total you'll end up paying about 21mil for the car of which around 5.5mil will be interest .
For a 15mil used car at the time you take possesion you'll need to pay :

A) 5% Registration Tax = 750,000 won
B) 3% Local Tax = 300,000 won
C) Used Car Purchase Tax = 250,000

The tax on the car be between 200,000 won to 600,000 won , depending on engine size
and some other factors .

If on the other hand you want to buy a new car for 15mil , options will be limited but
you will be able to get a much better loan %  ; and even in some cases (Chevrolet) 0% financing  .

As far as insurance goes it will definitely depend upon make and model , also
with you being a new driver here and your young age , I'd say at least a mil/year.

I have have driven here for 15 years ; I now have 2 cars a Hybrid YF Sonata and
a Volkswagon Tiguan . For both I pay about 2.3mil / year for insurance .

  • Jgrat
  • Super Waygook

    • 486

    • May 16, 2011, 06:14:29 am
    • Siheung
Re: Q's about buying a car in Korea
« Reply #3 on: November 07, 2014, 08:26:28 am »
Fairly informative from TDC troll. I only have to add that you are considered a young driver here and your insurance, especially on a new car will be higher unless you have proof of insurance for over 5 years from back home. Your insurance could be closer to 800 or more for the year for you age bracket. Still significantly cheaper than what you'd pay in a western country.

On a personal note, have you ever driven in Korea? If you have ignore what I'm about to say.

Drivers here are nutters. There are various posts on here about Korean driving and the OECD stats on Korean vehicle mortality rates are just a quick Google away. You have twice the chance of dying in a car here than in any other country. Pedestrians don't fare too well either. If you live in the country the risk is diminished but they drive equally crap there.

I'll leave you to judge your own abilities, but if you haven't lived and driven in a major city for at least 5 years accident free. I'd consider a Korean road rules lesson at a Korean driving school.

All that being said also consider that your new car will be a magnet for every Bongo truck and half drunk who decides to drive if you're in it or not. Check the Euro Ncap ratings for the car you're going to buy and consider those are models built to European safety standards. Every Korean will tell you they cheap out on Korean model cars and they are not built to the same safety standards. Knock a star off those NCAP ratings and that's what you're buying. The only exception to that would be certain models that are redesigns of other car models and borrow components from sturdier models or models from other companies whose safety standards are higher.

Happy Motoring!

  • tamjen
  • Hero of Waygookistan

    • 1180

    • June 19, 2013, 08:08:14 am
Re: Q's about buying a car in Korea
« Reply #4 on: November 07, 2014, 09:20:32 am »
I've been driving for decades and have driven in dozens of countries, both left and right side of the road.

I find Korean drivers to be dangerous because in my opinion they have no spatial awareness and they do the most ridiculous things. I've been driving here for nearly 4 years now and I see a Korean do something totally whacked every single day.

I bought a used car for 700,000 Won 3 years ago and drive it daily. There has been no problems with it. I pay 400,000 Won a year for the best coverage AIG offers.

Do yourself a favour and buy a good used car. Unless of course you don't mind seeing your car after you've owned it for 48 hours with a huge scrape or dent in it where some person ran into it and then buggered off.
Hail Caesar

Re: Q's about buying a car in Korea
« Reply #5 on: November 07, 2014, 09:42:06 am »
Yeah the drivers are crazy here and will drive you up the wall, but I think most Koreans have been driving long enough here that they can get away with it. If you drive cautiously and always expect someone to do something stupid and crazy, and expect Korean drivers to always be extremely impatient to the point of doing stupid and crazy things to get 5 meters forward, you should be ok. And definitely drivers here do not pay attention to anything a lot of the time, you see them weave around and not check their blind spot a lot, and blinkers are a rarity.

After a while you'll see how predictable drivers are here, it helps if you drive the same routes every day. Every time I take a different route to a new place I always feel really unsafe compared to the usual routes I take, just because I'm not used to it and I don't know where all the trouble spots are yet.
Quote from: Mr.DeMartino on Yesterday at 01:40:32
    Trump is a liar and a con man.
Quote from Mr.DeMartino on June 14, 2019 at 02:28:07
Donald Trump is a lying sack of shit

  • riceboy77
  • Adventurer

    • 37

    • September 18, 2012, 01:33:44 pm
    • SEOUL
Re: Q's about buying a car in Korea
« Reply #6 on: November 07, 2014, 09:44:12 am »
I totally agree about buying a good used car . I've been driving for 3 years in Korea, and you will get scratches from the snow, dents from the car doors parked next to you , scuffs on your rims from the parking elevators and etc.
It's something that you can't avoid here. 

Take your new car to the Costco parking lot  in Yangjae on a Saturday : it won't be the same the next day .

Go to any parking a lot and see for yourself : 95% of the cars will have some scratches or dings on them  :-[
« Last Edit: November 07, 2014, 09:49:28 am by riceboy77 »

  • Rafiqua
  • Super Waygook

    • 293

    • January 05, 2013, 04:15:41 pm
    • South Korea
Re: Q's about buying a car in Korea
« Reply #7 on: November 07, 2014, 02:52:44 pm »
I also bought a second hand car here. I paid 1.3 million for it, and registration cost me 4000W and tax was 115 000W. I don't know how these amounts are worked out but that's all I paid. My basic insurance cover cost me 650 000W for the year.

I also agree with the previous advice about Korean drivers being so TERRIBLE. Just be careful when and where you drive, they do some ridiculous things.

Re: Q's about buying a car in Korea
« Reply #8 on: November 07, 2014, 03:14:28 pm »
If you know any hanguel use this site to get an idea of features and prices.

You can look for age of the vehicle, condition, how many km's are on it, big engine, small engine, age of the vehicle, etc.

As a hint, many foriegners selling sh!tboxes from the 1990's are often pieces of junk and overpriced.  Anything from that era being sold ought not be more than 500,000 won.  Defintely less than a million won even if in better condition. 

If you can afford it, spending between 3 to 5 million will get you something half decent and maybe with the past several years.  It's be safer, keep the repair costs down, etc.  Go to a used car shop and make sure you see the vehicle history or the accident report.  Everyone here has minor fender benders.  If it's minor like a ding on a door, it should be ok. 

Most important, I can't stress this enough, get an ajossi to go and negotiate with you or before you go.  He can negotiate like a MOFO and get the best deal for you and prevent some dude from ripping you off.  He'll also know where to go.  Buy from a local used car place with a decent rep.  Use the encar website to get an idea of what to expect. 

I have done this myself.  I bought an LPG vehicle.  Some of them are actually have good engines with power to them.  If it's a 2.0 liter engine or higher.  It's burns gas more quickly, but still works out to being cheaper.  This especially true if idolling in traffic with all the cars and red lights you'll face here.  Anyone can buy an LPG vehicle that's more than 5 years old.  If you buy a gasoline engine, get a small engine like 1.4 liter.  (But be warned, you'll have no power when you step on the gas and some cars driving behind you will lay on the horn telling you to hurry up). 

Make sure you have the cash and proof of insurance.  You will also need proof of legal residency (form from immigration) before you can get it changed over and registered at your local DMV if bought from a lot.  If it's bought from a fellow foreigner, he can't just sign over the registration to you (Koreans can do this, waygooks can't).  You must both go together and sign papers in front of the clerk at the DMV.  Bring a Korean you know to translate.  An English speaking clerk there is no gaurantee. 

Good luck whatever you decide.  A car will cost money.  Have a million won sitting aside for emergency repairs and the like if you don't have a credit card as an alternative.  Hope this long winded rant of advice helps.

  • suntofu
  • Adventurer

    • 32

    • March 03, 2014, 05:34:36 pm
    • Busan
Re: Q's about buying a car in Korea
« Reply #9 on: November 07, 2014, 04:56:07 pm »
Thanks for the advice everyone, I really appreciate it!
I love using this forum.
I've considered all aspects. Actually the car I am looking is a used car lol...  used but its only a year old. My aunt I actually mentioned because shes korean and from what ive heard the insurance rates and such will be taken out from her premium. I could be wrong but thats how i understood it to be.

financially i dont think itll be as big of a problem if i can keep monthly payments to 550 (550,000원) and under. and occasional fees and taxes shouldnt be a problem at all.
I've been asking advice from other people around me but I also wanted advice from yall since you guys are kinda like me, foreigners teaching and living in korea.

I actually plan on living in korea for a very long time if not forever so investing in a higher priced car is okay with me. I'm ethnically korean and my korean is pretty good but I always investigate all opinions from as varying a group as possible so i really do appreciate all the advice you guys have given me!  :-* ;D