When you’re a foreigner living(short or long term) in South Korea, there might be instances where you’ll be needing a vehicle to get around or out of town. Some might not have enough to purchase a brand new car, and some might just use it for a few months. Renting a car from a car rental company might also be expensive if you’ll be using it regularly. Instead of renting, buying used cars in Korea might be the most convenient option for you. In this article, Ziptoss has made a quick guide on how to buy and also sell a used car in South Korea.
Compared with domestic models, buying foreign cars is very expensive. South Korea has a very strong automobile industry. Most of the cars produced in the country are sold overseas. The industry continues to grow and is very important to the country’s economy. It is in a leading position in technology, design and vehicle performance. Foreign residents can buy new or used cars in Korea without any special restrictions. For all purchasers, regardless of their nationality, car registration must be completed within 15 days of purchase. The registration fee varies by car model.
How to buy a car in Korea?
Documents required to buy a new or used car:
- Alien registration certificate (if the buyer has one); without this, the buyer must have two Korean sponsors
- Photocopy of passport
- Only used cars, Korean residence permit (issued by local office, Dong Sa Mu So or Gu)
You’ll need to pay some taxes when you buy a car in Korea:
- Registration tax(7%) to be paid within 15 days of purchase
- Purchase tax(2% of the price paid for the vehicle)
- Government bonds-Cost depends on the size and model of the vehicle
How to sell a car in Korea?
Used cars can be sold privately or through Korean agents. For private sales, sellers can place advertisements in car magazines, newspapers or websites.
Documents required to sell a car:
- Alien Registration Certificate
- Photocopy of passport
- Korean residence permit (issued by local office, Gu or Dong Sa Mu So)
- Vehicle registration certificate
- Vehicle tax certificate for the last six months(issued by the district government)
- Check the vehicle carefully and do a test drive.
- Specify the closing and delivery date delivery date in the sales agreement or contract.
- Check the original registration and any outstanding tax balances at the regional office of the car registration to confirm that any car loan has been fully paid.
- Check the vehicle for any outstanding fines.
- The point here is that while buying/selling used cars in korea will probably involve some negotiation especially if it is going to be your first time dealing with this, always follow up with your dealer if there are any problems during the transaction even if they are minor ones. Considering these factors, I think it would be better for people who want to buy or sell their used cars in Korea.