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Buying and Registering a Car, Korea

It is possible for foreign residents to buy either new or used cars. Since foreign models are generally extremely expensive in Korea, a domestic model may be your most affordable option. When deciding what kind of car to get, you might want to take a look at how people park and how often they misjudge distance both in parking and sometimes even, driving. (Note: as Koreans gain more driving experience, this problem is gradually decreasing).

Whether you purchase a new or used car, it must be registered within 15 days of purchase. The cost of the registration will vary depending on the model.

You can drive the car as long prior to registration as long as you have car insurance. There are some insurance agencies near used car markets. You may want to purchase your insurance policy when you sign the contract if you want to drive your car right away.

NOTE re car part prices: The Transport Ministry announced in August 2014 that the prices of parts for domestic and foreign cars must be publicly disclosed on the car manufacturers' websites. The domestic car makers that are subject to the disclosure of price information include Hyundai Motor Co., Kia Motors Corp., GM Korea Co. and Renault Samsung Motors’ Co. Imported car brands include BMW, Mercedes-Benz, Volkswagen, Audi and Lexus.

Registering a used vehicle:
Tips for buying a used car:

1. Check the original automobile registration at the appropriate TrafficAdministration section of the gu office to confirm that any car loan has been fully paid off.
2. Check with the Car Registration Section of the gu-office to make sure that there are no outstanding installment payments and/or taxes due on the vehicle.
3. Check the vehicle carefully and test drive it.
4. Get as much information as possible about the car’s history – ask a lot of questions – just as you would in your home country.
5. Check to see if there are any outstanding fines against the vehicle.
6. Clarify the closing date as well as the expected delivery date in the sales agreement/contract. 

Registering the car (must be done within 15 days of purchase):
Obtain the car registration certificate from the previous owner (the car inspection certificate), the certificate of transfer and the certificate of the owner’s registered seal impression to register the transfer of ownership. Failure to register the car within 15 days of purchase, will result in a fine (~W500,000).

Registration must be in the buyer's district of residence (as per her/his alien registration card). Registration centers are open during weekday business hours only (government hours).

1. Required documents:
   a.Car registration certificate
   b.Used car transfer contract (the legal form for the certificate of transfer) and alien registration card (or a certificate of alien registration). For those who have not yet acquired an alien registration card, two Korean sponsors and a certificate of entry will be acceptable in lieu.
   c.Certificate proving you have purchased a liability insurance policy and public bonds.
    
2. Registering a new vehicle: The car dealership will register your new purchase if you wish – the dealer may charge a fee for performing this service (although some don't), so you may want to find out how much it will be. The registration fee itself will be 5% of the cost of the vehicle.
   Required documents:
   a. Application for registration – you must apply for the registration no later than 10 after the temporary period begins.(Note: There is a fine of up to W100,000 for diving past the specified temporary period).
   b. A temporary tag number (license plate) that allows you to drive the vehicle for about 10 days
   c.  vehicle (car manufacturer) certificate or import documentation
   d. inspection sticker
   e. alien registration card or residence certificate + passport
   f. proof of valid vehicle liability insurance
   g. ownership certificate if you cannot prove ownership with the vehicle certificate.
    
3. Registering an imported vehicle:
   Documents required:
   a. Imported vehicle certificate (Note: if you cannot prove ownership
      with the imported vehicle certificate, you must show proof of ownership)
   b. Certified copy of both alien registration card and passport
   c. Permit for temporary driving and temporary tag number
   d. Receipt showing payment of registration fee and government securities
       purchase
   e. Noise and pollution inspection certificate 
    
4. Taxes due:
   a. Registration Tax (5%) as explained above
   b. Acquisition tax (2% of the acquisition price/the price you paid for the vehicle)
   c. Government bonds - the cost of purchasing these wil vary from 4% to 20% of the cost of the car depending on the 'piston displacement', size and model of the vehicle.
   d. Automobile Taxes must be paid every three months. You can make your payment at any bank. You will then receive a sticker that must be displayed in the car window. The year and make of your car will determine the amount you have to pay.
    
5. Disposing of a car requires going to a licensed auto junkyard. You must bring a copy of the following documents with you: vehicle registration certificate and the vehicle’s original registration issued within the last three days as well as a certificate of ownership (with owner’s seal impression) and your alien registration car. The yard should pay you for the iron scraps and should not charge you any kind of disposal fee.
    
6. Checking on outstanding fines can only be done by the owner. A dealer purchasing the car will ask if there are any outstanding fines against the vehicle; if you are buying a used car you should do the same.
   To check fines, you need to create an ID at the government website (http://etax.seoul.go.kr).  Choose the English option and proceed with an ID creation. NOTE:  You will first need a sign-in certificate (the one used for on-line banking meaning you will also have to download Active-X) in order to create an ID. That done, simply sign-in. You can check for outstanding fines and if there are any, pay them on-line through thiswebsite.
    
   
   
   
   
7. Inspections and Maintenance are the responsibility of the owner.
    
8. An Inspection every two years is required for vehicles under ten years old. The inspection must be conducted by a designated (government approved) garage, which will want to see a current insurance policy.
    
9. Garages or Repair Centers can be found all over the city and, although the mechanics don’t often speak English, most can read it. Repairs on domestic vehicles can be done quickly and relatively cheaply. You usually have to go to a garage to have air put in your tires.
    
10.  Change of Address on your vehicle registration is now done automatically when you register your new address. (in the past, foreign vehicle owners had to do this separately but that is no longer the case).

Liability and Auto Insurance, Korea

INSURANCE:Under Korean Law, auto liability insurance is compulsory for vehicles with an engine displacement size of 50cc and above for use on the road. Insurance is not compulsory for moped or other vehicles under 50cc, but owners are strongly encouraged to purchase it. In fact, no foreign resident or visitor should drive any vehicle without full insurance coverage given the liability policies and practices in Korea.
Auto insurance policies are issued for a period of one year with the renewal date corresponding to the vehicle’s inspection date. When a vehicle is sold, the “CALI” (Compulsory Auto Liability Insurance) transfers automatically for a period of 15 days from the former owner to the new owner.
New owners should purchase auto insurance in excess of “CALI”. Insurance policies with unlimited liability for bodily injury are available in Korea and such coverage is a prerequisite for protection under the Special Law. Auto insurance policies can only be purchased from companies licensed by the Korean government. Each company provides the same form of coverage at standard premium rates and there are a number of U.S. and foreign insurance companies operating in Korea. Some Korean insurance companies also have English speaking staff. Look for the insurer who can provide the best service.

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Korean old antique car 1986 Hyndai Stellar

Explanation.

The engine and transmission were licensed from Mitsubishi Motors. Engines available were 1.4 L (4G33) and 1.6 L (4G32) inline-fours until 1986 (same as the Hyundai Pony, using either a KM119 5-speedmanual or a Borg-Warner 03-55L 3-speed automatic) and a 2.0 L engine for 1987. Trim levels includedL (base), GL/CL, and GSL/CXL. The GSL/CXL featured power windows, locks and mirrors; remote fuel door, remote trunk, premium sound system, full instrumentation (speed, tach, fuel, water temp, volts, and oil pressure) and available air conditioning, a rather surprising list of features for the year and type of car. The Stellar's Ford genes and conventional design led many British observers to compare it with the then recently retired Cortina - where conservative buyers were scared off by the Sierra's radical styling,^[1] a fact played upon by Hyundai's advertising agency with print advertisements depicting a jelly/jello mold shaped like the Sierra, above a picture of the Stellar. Like the Cortina, the Stellar also has wishbone suspension up front with a coil sprung live rear axle.^[1]

For 1987, the Stellar II (Or Stellar 2.0 in Canada) was refreshed. Changes included a 2-way catalytic converter, new instrument cluster, larger 2.0 L Mitsubishi 4G63 engine (SOHC with eight valves) with a feedback two-barrel carburetor, higher output alternator, larger headlights and restyled taillights. The front double wishbone suspension was changed to a MacPherson strut design, along with larger brake calipers, as well as a two-piece driveshaft. The Stellar had the option of riding on several types of aluminum alloy wheels, and was equipped standard with Michelin all-season tires (Canada). Also that year, an automatic transmission (Borg Warner 03-71) with overdrive was available as an option. In the domestic Korean market, this was the first of their cars to be sold as the Sonata.

The Stellar was not available in the United States due to strict emission standards there, but it was available in Canada and other countries. In addition, the Stellar was the only four-cylinder powered mainstream rear-wheel drive sedan, replacing the Toyota Corolla (which shifted to front-wheel drive) in 1984. The Stellar was replaced in Canada by the Hyundai New Sonata for 1992. In the Korean domestic market, the lower end of the Stellar lineup can be considered as having been replaced by the Sonata. The Stellar (along with the Pony) would be Hyundai's last rear-wheel drive cars for North America until the 2009 Genesis.

Buy a Used Car from a Private Owner or a Dealership?

When you buy a used car, you have two possible sellers: a private owner or a dealership. Each has its advantages and disadvantages.

Owner Advantages

§  Great deals. When you buy from a person who put an ad in the paper or onAutotraderkr.com, you can often find some really good deals. The best deals I’ve seen are at estate sales. You can find an older car with low mileage because the little old lady who owned the car only drove it to church and the grocery store. The car might smell like mothballs, but you’ll enjoy the sweet scent of saved cash.

§  Less intimidating negotiations. Negotiations can also be less intimidating because you’re working with an average Joe and not some highly trained salesman who has to take your offer to a mysterious backroom boss to get it approved. Moreover, dealerships often try to throw in unneeded extras when you’re buying from them — extra floor mats, XM Radio, etc. When you buy from an owner, they’re just selling you the car and nothing more. Makes the experience less irritating and cheaper.

Owner Disadvantages

§  Complicated and annoying negotiations. Owners tend to be more attached to their cars than dealerships. To them, they’re not just selling a product, they’re selling a memory. These sorts of owners can be difficult to work with. They’ll bust your balls in negotiation over a piece of crap Buick simply because it was their grandfather’s beloved car, and they hate to see it get in the hands of the “wrong person.”

§  No consumer protections. Private sales aren’t generally covered by many states’ implied warranty laws. Implied warranties are unspoken and unwritten warranties that hold sellers responsible if the product they sold doesn’t meet reasonable quality standards. When you buy from an owner, you’re buying the car “as is,” meaning if the car has a problem (known or unknown by the seller), once you buy it, it becomes your problem and the seller doesn’t have to do anything to fix it. Moreover, private sales generally aren’t covered by the FTC Used Car Rule which requires dealers to post a Buyer’s Guide in used cars for sale.

Dealership Advantages

§  Certified Pre-Owned Program. A CPO vehicle undergoes rigorous mechanical and cosmetic inspection before it’s put on sale. Moreover, CPO cars are often covered by a warranty beyond the original factory warranty which includes items like roadside assistance. Buying a CPO vehicle can give you the piece of mind that the car you’re buying is in great condition and not a piece of crap. Even if you don’t buy a certified pre-owned car, when you buy from a dealer, you’re likely protected by your state’s consumer protection laws such as implied warranties or warranties of merchantability.

§  Extra services. Dealers will often throw in extra services for free that a private seller can’t. For example, when Kate and I bought our last car, before we drove it off the lot, the dealer cleaned and detailed it, performed a free oil change, and gave us a discount on our first service visit with them.

§  Trade-ins. Dealers also take trade-ins which lowers the amount you have to pay in cash. Personal finance guru Dave Ramsey has a system set up that uses trade-ins on used cars to allow him to upgrade his vehicles every year or two without having to take out a loan on his car. Check it out. It’s pretty brilliant, if you ask me.

§  Better negotiation experience (possibly). The negotiation experience can be a bit more even keeled with dealerships. It’s just a business transaction for them. You can avoid some of the emotional baggage you often find when negotiating with owners.

§  Financing. If you don’t have all the scratch on hand to buy a used car, a dealership can often provide financing to help you make the purchase. And with the crum-dum economy, car manufacturers and dealerships are providing some pretty good deals if you decide to finance a used car. Things like cash-back or zero interest can make financing a used car a reasonable thing to do.

Dealership Disadvantages

§  Higher list prices. List prices at dealerships tend to be more expensive than when buying from an owner. However, you can usually negotiate this down easily.

§  High-pressure negotiation. Negotiations with car salesmen can be more high-pressured than when buying from owners. Selling is what these guys do for a living. They know every trick in the book and will unleash them on you without hesitation. When you step foot on the dealer’s lot, gird up your loins, and prepare to play hardball.

§  Up-sales. Dealers will try to up-sale you until your eyes bleed. They’ll tell you that you need to add the extended warranty or that you need the new stereo. If you’re not careful, you can drive out with a used car that cost you $1,000 more than the original value simply because you let the add-ons creep in. However, you can turn the up-sale to your advantage by simply using it as leverages in negotiating. If the salesman presses for an extended bumper to bumper warranty, tell him you’ll take it only if he lowers the price of the car a few hundred dollars.

§  Financing. Financing is both an advantage and disadvantage. When you finance a used car, you can end up paying thousands of dollars more for your car than if you had paid in cash. Dealers that finance to buyers directly want this extra cash, so they’ll often pressure car buyers to finance their new car. Save your money. Pay in cash.

Upfront prices. Zero hassles.

Upfront prices. Zero hassles.
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All of our used cars are AutoTraderKr Quality Certified and come with a 30-Day Limited Warranty (only for the Engine and Transmission).