Korean Job Discussion Forums

[WasteCase]

Hey I was just wondering if anybody out there knew how to go about buying a used car in Korea. What is the expected price? Do you have to get insurance?

Any help would be much appreciated!

[WasteCase]

Heres a used car website in Seoul

http://www.usfkclassifieds.com/index/listings/category285/page1.htm

[madoka]

Wow, that 2008 M3 looks like a good deal.

[Lunar Groove Gardener]

http://global.encar.com/global/choose_yours/search_by_type.jsp?category=0

[kimchi_pizza]

1. Go to city hall and register your signature or name stamp. Collect a paper from them that shows proof of your signature/name stamp.

2. Purchase a car. 2,000,000 should get you a decent used car.

3. Purchase insurance for the car. Around 300,000 - 400,000 for full coverage for a year maybe.

4. Take the proof of signature, title, and proof of insurance to the local "DMV" to register your car.

5. Take the registration to the local plate shop where they will make the plates and put'em on.

6. Drive safely.

[bassexpander]

My advice, after just purchasing our 2nd car:

1. If buying from a dealer, view the document that highlights any issues/problems noticed by the gov't checking facility (if available).

2. Test-drive the car. Take it over speed bumps at a good clip and note any odd noises. Accelerate and decelerate heavily. Do full turns both left and right. Test the brakes at various speeds. If you hear any noises that don't seem normal, then chances are you shouldn't buy the car.

3. If possible, try to take it to an authorized dealer shop and view any service history they have. The dealer shops keep computer database records on all repairs done by their shops (but won't note other repairs). You might have to pay for this service.

4. Try to get it checked-over by a mechanic. Good luck finding one that's worth their salt. I'd go to a dealer to do that -- but make sure it's a PAID viewing, and not just some quick lookover he's doing as a service. The car salesman will be with you at this time, and he'll probably know the dealer, so you need money down and a reciept to make it worth the dealer's while to tell you the truth.

When Koreans get something new (like a car) these days, they treat it like a baby. Unfortunately, over time, that goes by the wayside. The car gets dings, dents, and just older. By the time it gets out of warranty period, if the family still has the car (and if, amazingly, it hasn't wrecked by this time), they either sell or start getting cheap on scheduled maintenance. They'll generally do oil changes and whatnot, but serious required maintenance (like spending 250,000 to 500,000 to get a timing belt and water pump replaced at 80,000 kms) is skipped. They then unload the car before they have to spend money on such things, or it develops a problem.

When you buy a used car in Korea, there will likely be a reason WHY that car was sold. You need to expect this, and be prepared to budget for 100,000 to 500,000 in repairs to fix the reason why it sold or live with whatever the problem is.

The used car market in Korea is filled with lies. If you buy a used car from a site like Encar, or some shops, you get a sort of gov't paper that is supposed to highlight what's wrong with the car. It is supposed to show any accidents, if the engine is leaking, and other basic stuff. That document is by no means 100% accurate! DO NOT count on it to be truthful, because the goal of used car salespeople is often to cheat it.

The first used car I bought had noted a rear accident on the form. It was noted that all damage had been fixed (noted by the gov't testing shop). I foolishly assumed it had. After a time, I noticed that the two rear tires were offset. It looked odd compared to other cars. I took it to Daewoo, and they put it on a lift. A stabilizer bar that ran parallel to the axel was bent in half. It was pulling the right-side tire inward. If that so-called gov't testing place had bothered to put the car on a lift and check, it would have instantly been spotted from a mile away. Luckily, the part was cheap and Daewoo fixed it for me for a whopping 35,000 won. I was amazed.

A note about used car warranties:

The shop that you buy a used car from will sometimes offer a warranty with it -- good luck. The warranty is generally bull, and will probably only cover you if they have to haul the machine away because it won't start. These warranties are barely for a few weeks to a month in length, anyway.

Example: The used car we just bought had an oil leak. We agreed to buy it only after they changed the gaskets and got that test form re-made to show the leaks were gone. For all we know, they just power-washed the engine again and took it in for a re-evaluation. We still had a leak. We took it in for "warranty" work. The guy who owns the gov't-sponsored place that gave the warranty simply said, "It's an old car -- old cars leak."

Nice.

In other words -- warranties here are complete bull$hit, and the forms they get made to prove the car is OK are of little use. My only advice is not to even look at a car from a shop until you see the form and it has no issues.

Accidents happen frequently in this country. Some are reported, and some are not. We made it perfectly clear that we didn't want to purchase a car that had been in an accident. We stupidly considered more expensive cars that they said had no accidents. Three days after buying the car, I took it to Daewoo and looked at the service record. A front bumper, and left panel had been replaced. There were problems with the front left tire creaking when we went over speedbumps. I have also realized that the fog lamp level adjustment dials on my dashboard don't do a thing.

Translation: This car has been in an accident. We were lied to. The accident just hadn't been reported, and the minimum repairs were done to cover it up.

Luckily, after about 500,000 in repairs (my bill), it seems the problems are pretty much handled. We also held the "warranty" guy's feet to the fire a little (nagging wife) and got the gaskets replaced. We're not sure if that handled the leaking or not.

Basically, the goal of these shops is to purchase a used car -- or damaged car -- for cheap, then resell it at max profit. They have no scruples about half-fixing something just so it eeks by lackluster gov't tests and can be resold.

Another good one: The tires on my car are the wrong size. My car cost a bit more because it was a "high spec" model with things like wider tires. That model year does come with two tire sizes. Only the more expensive of the two is nearly twice as expensive. What the shop did was put 4 off-sized tires that were far cheaper, but were somewhat close to the high-spec model that is supposed to be there. For all I know, they pilfered the better tires and put the cheapers ones on to save a buck. The reason I noticed they were wrong was because the speedometer is 7kms off from my GPS when going 50kms/hr. I then checked the specs in the book and on the tires, and they're the wrong ones.

My advice is this: Either buy from someone you know/trust, buy new (if you can afford it and afford the price depreciation), buy something almost new that still has a warranty (prices will be unfairly high) or buy something below 2,500,000 won that has had the timing belt changed recently. A timing belt needs to be changed every 80,000k or so, and most people unload cars about this time. For example, if a car has been running for 125,000 kms, and had the timing belt/water pump changed, then that'd be a good car to buy cheap, IMHO.


With any used car you buy, budget for taxes. I think it's close to 8% or so in sales tax you must pay. You must pre-buy your insurance and have proof of that (via fax or whatever) before you complete the paperwork at the gu office.

Here are some car insurance places to check. Depending on your vehicle and coverage limits, prices can vary. Check all:

1. Lotte Direct : 1588-3655 or www.3655.co.kr
2. Educar: 1566-3000
3. Gina Insurance (formerly AIG): 02-794-7414 or 011-9873-7415

The most expensive will be Gina, but you'll get English service. Also, what she sells is considered "Foreign Insurance" and you won't be put in the Korean system. That means if you switch to a Korean insurer down the road, you probably won't get credit for years of a good history. If you are here on an F visa, and plan to stay in-country a while, I'd suggest going with a Korean company. It'll be far cheaper in the long run.

I'm currently selling my 2001 Matiz II BEST (manual), by the way, and it's got 99,600 kms on it. There ARE NO hidden problems, and I have kept up with all maintenance. I also did the timing belt replacement. It also looks great. If someone is looking for a solid little car that looks great, gets awesome mileage, and is cheap to maintain, you should PM me. I have an ad in the "For Sale" section of this board.


Some additional advice on car repairs: My cars are Daewoo. They do good work, but charge double what non-affiliated shops will charge for many repairs. Daewoo will often replace parts that don't need to be replaced. Smaller shops will try to save money by doing as little as possible to fix the problem (sometimes not fixing the entire issue). Also keep in mind that what some people call "fixed" may not fit your definition of what "fixed" means. And when you complain, they'll probably come up with some excuse like, "Well, it's just an old car..." and hope you pay them and go away.

[madoka]

Kudos for such an informative post Bass.

I was an idiot in the way I bought a car last year. In hindsight, I should have done more research like Bass. But I ended up buying it sight unseen, never test drove it, never sat in that model, never even stepped foot in any of the brand's dealerships. The first time I sat in that model was after I ordered it and a few weeks later went to the auto show to check it out. I based everything off of magazine reviews and pictures from the internet.

Once I got it I realized all the ergonomic issues that bugged the crud out of me. I HATE the NAV system, it takes four screens/button pushes to make a simple phone call or tune a new radio station, the ignition on the left side of the steering wheel just feels wrong, the engine idle note is weak, and I have to position my left foot in a awkward position when driving. Indeed, I couldn't even figure out how to properly close the trunk, and discovered ten pages of threads with owners arguing over the best way. I'm trying to reserve final judgment since it's still in the insanely long 2000 mile break in period, but it doesn't look good. Somewhat ironic since I mostly bought it for its looks. Oh well, lesson learned.

[bassexpander]

Just a note on insurance prices.

My old car is a 2001 Matiz II BEST. My first year of ownership, I paid over 600,000, followed by a discount to 560,000 per year (2nd year) for full-coverage car insurance. That was when the car was about 4 to 5 years old. I was with Gina at AIG insurance. As the car aged, and I kept a good record, AIG was lowering the rate a bit. I found out about Lotte Direct though, and ended up with almost same (slightly less overall coverage, but close) coverage for around 380,000 won! Educar quoted me 360,000 this year, and I'm with them on the Matiz currently.

Lotte Direct is cheaper for my Rezzo. It varies from car to car. I paid about 520,000 to insure my 2001 Rezzo. AIG quoted a similar price, but in dollars, which made them quite a bit more expensive yet again.

[Pinished]

My best advice, DON'T buy a car in Korea unless you don't care about the person driving. You will live longer and save more money!!! But, who knows, you might luck out. Truthfully, depending on the city it could be ALMOST as safe as driving in any other in the world, but don't count on it.

I've been told by Koreans themselves that Korean cars in Korea are not as good as Korean cars elsewhere, so expect MORE problems.

Despite what Koreans know about Korean cars, they still pay 5 - 10 thousand dollars more on most/all types regardless of how much steel/etc... is used on each car.

Don't forget about the parking problems, or lack of open spaces, and the parking fees; not to mention the number of dents/trips to the body shop you'll make if you care about how it looks?

If you're in an accident, expect to pay blood money. I knew a Korean female who walked away with a black eye and more. She wasn't driving, her relative was but she stuck up for him after an accident. Even if you're not at fault, think again. According to Korean law, you are at least partly at fault. Good Luck!

[anjinsan]

Perspective from the seller's point of view:

A pal had a car. Suddenly needed about 500,000 in replacement parts/
repairs. Mechanic said: 1. We can do the full repairs for 500,000
or 2. We can do 150,000 in repairs and you can sell the car QUICKLY.

Yup, honesty is always the best policy. . .

[air76]

[Slaps]

Hey Bass, how about a podcast on buying a car in Korea?

If you could get someone to give the low down on buying new too, that would be a very informative podcast.

[bassexpander]

[Troglodyte]

[bassexpander]

Trog, you can find old cars like that at www.jamesgarage.net . I've never met them, so I can't vouch for them, but I've spoken with them on the phone. They sell a lot of older hoopty cars in the 1.5 to 2.5 range to military guys who are here for a short time and then leave. They speak English.

As for the scrap yard, I've heard anywhere from 200,000 for a smaller car to 800,000 for a larger van (but not entirely sure).

You have to keep your fees and tickets paid up to license your car, sell your car, and other things. If you don't, some of the fees can grow and become expensive very quickly -- they'll make you pay one way or another or you can't sell, etc.

There are emissions tests every year and a half for gas cars, and yearly for diesel (one guy on here said every 6 months for diesel, but my friend disagrees). There is a car tax every 6 months. More tax for bigger cars. My car tax on my 2001 Matiz is about 43,000 this time. Always make sure your address is updated and current at the gu/dong office, so you get this paperwork and don't miss it. There can be a big fine just for being late to register address changes, too. I can't remember how much time they give you to register address changes, but it's a very short time -- like a week maybe?