Unlocking the Road: Your Journey to Buying a Used Car in South Korea

Are you a newcomer to South Korea looking to purchase a used car but don’t know where to start? At ThxKorea, we’ve got you covered.
Here’s a step-by-step guide to help you navigate the process seamlessly while introducing the benefits of K-Car and our unique partnership:

Required Documents

• Certificate of Domestic Residence Report Or Certificate of Alien Registration
• Domestic Registration Card Or Alien Registration Card (Copy)
• Seal Certificate & Seal Stamp (Signature)
• Signature Confirmation Or Alien Registration Card (Copy)
• Proof of Vehicle Liability Insurance – Registration is available when purchasing the vehicle
• Car Release Certificate Power of Attorney

Your Three-Step Guide to Buying a Used Car in South Korea

Step 1: Research Online

Begin your journey by conducting a thorough online search for used cars in South Korea.
Google is your friend here, as it can lead you to English-speaking used car sales options, including our services at ThxKorea and our trusted partner, K-Car.
Explore Facebook groups and other reputable companies as well. Understanding your options is the crucial first step.

Step 2: Compare Car Prices

Now that you’ve identified potential places to buy, it’s time to compare vehicle options and prices.
Take a close look at different cars and their price ranges. Define what you’re looking for in a vehicle so you can gauge the average market price.
Remember to shop around; your confidence in your dealer choice is paramount.

Step 3: Contact Dealers

Once you’ve reviewed dealers and have a clear picture of the vehicle you want, reach out to dealers or private sellers.
Don’t hesitate to contact multiple dealers to find the best fit for your needs.

Points to Clarify Regarding Price and Payment

When buying a vehicle through a dealership, make sure to clarify the following points in addition to the vehicle’s price:

Payment Options

Confirm the accepted payment methods. Dealers may accept Korean and foreign credit cards, cash, or Korean and foreign bank transfers. Payment options may vary between dealers, so it’s essential to clarify this upfront.

Additional Fees and Charges

Be aware of administrative fees, which can differ from province to province and city to city. Knowing these fees helps you avoid surprises.

Taxes Paid When Purchasing a Car

When buying a car in South Korea, you’ll need to pay three different taxes: Individual Consumption Tax, Education Tax, and Value Added Tax (VAT). These taxes are typically included in the vehicle’s price, so you don’t need to pay them separately. The Individual Consumption Tax varies based on the vehicle’s engine displacement and fuel type, while the Education Tax amounts to 30% of the Individual Consumption Tax. The Value Added Tax is 10% of the vehicle’s price.

For instance, if you’re purchasing a car with an engine displacement of 2,000cc or less that runs on gasoline, the Individual Consumption Tax is 5% of the car’s price. So, for a car priced at 20 million KRW, the tax would be 1 million KRW. The Education Tax is 30% of the Individual Consumption Tax, which would be 300,000 KRW, and the Value Added Tax is 10% of the car’s price, amounting to 2 million KRW. Therefore, when buying this car, you’d pay a total of 3 million KRW in taxes.

Taxes Paid When Registering a Car

When registering a car, you’ll need to pay Acquisition Tax and Registration Tax. The Acquisition Tax is a local tax that varies by region, usually ranging from 2% to 5% of the vehicle’s price. The Registration Tax, on the other hand, is a national tax that depends on the car’s type and engine displacement. Typically, Registration Tax rates range from 5% to 7% of the vehicle’s price.

For example, if you’re buying a gasoline-powered sedan with an engine displacement of 2,000cc or less in Seoul, the Acquisition Tax rate is 4%, which amounts to 800,000 KRW for a 20 million KRW car. The Registration Tax rate for a sedan is 5%, which equals 1 million KRW. So, when registering this car, you’d pay a total of 1.8 million KRW in taxes.

Coordinating Insurance

Before taking your newly purchased vehicle out of the dealership, you’ll need insurance.
This includes even test drives. In South Korea, insurance agents typically handle this process at the time of sale.
They require specific car information from dealers to finalize the insurance. Purchasing a car in the morning on a weekday often allows for immediate car pickup. However, buying on weekends or evenings may require delivery or a return visit.

About K-Car: Your Reliable Partner

K-Car, South Korea’s leading name in the used car sector, offers an incredible 81% market share in online sales. Their seamless blend of online and offline services simplifies the buying process, erasing fears of false listings or deception. With K-Car, you gain:

• 3-Day Refund Policy: Ensuring your satisfaction.
• 24/7 Online Purchases: Shop for your dream car at any hour from the comfort of your home.
• Prompt Delivery: Choose next-day shipping and have your new ride delivered to your doorstep.
• Comprehensive Inspection: Every car undergoes rigorous testing, providing full vehicle histories from insurance records to exhaustive performance and condition checks.

ThxKorea & K-Car Partnership

At ThxKorea, our bond with K-Car is fortified by mutual trust and an unwavering commitment to our community.
We don’t just offer a service; we promise a hassle-free, transparent journey to your dream car. Navigate paperwork like a pro, overcome language obstacles, and drive home with confidence.
ThxKorea and K-Car, together, make your car-buying experience in South Korea smoother than ever before.