Korean Used Car Reservation Deposit: How to Lock In a Car (2026)

A Korean used car reservation deposit is a small holding payment — typically $200 to $1,000, or roughly 5–10% of the FOB price — that takes one specific car off the market for a short window, usually 3 to 7 days, while you and the exporter finalize the sales contract and arrange the balance. It is not the full purchase price and not the larger contract deposit; it simply reserves the exact unit by chassis number so it is not sold to another buyer while your paperwork and payment are set up.

If you have found the right car — on Encar or through an exporter's stock list — a reservation deposit is what stops someone else from buying it first. This guide explains exactly how much to pay, when it is refundable, the six-step reservation flow, how to pay it safely, and the red flags that separate a genuine hold from a scam. To anchor it in real cars, you can explore SH GLOBAL's live Hyundai inventory, where each unit can be reserved by chassis number.

Live Hyundai stock at SH GLOBAL — reserve a specific unit by chassis number before it sells

What Is a Korean Used Car Reservation Deposit?

A reservation deposit — sometimes called a holding deposit or, in Korean, a provisional deposit (가계약금) — is the first, smallest payment in the buying sequence. Its single job is to reserve one exact vehicle so the exporter can de-list it and stop selling it to anyone else while you commit.

Used-car export stock is one-of-a-kind: each unit has a specific year, mileage, condition grade and chassis number, and there is only one of it. Unlike a new car you can re-order, a good used unit that sells is gone. The reservation deposit exists to bridge the gap between "I want this car" and "the contract is signed and the advance payment is in" — a gap that can take a few days to cross once inspection, a proforma invoice and a bank transfer are involved.

Because it is a hold rather than the purchase, the reservation deposit is deliberately small. It should feel proportionate: enough to prove you are serious, never so much that losing it would be painful. Anything approaching the full price at the "reserve" stage is a warning sign, covered in the red-flags section below.

Reservation Deposit vs Advance Deposit vs Full Payment

Buyers often blur three different payments together. Keeping them separate is the key to understanding where your money is at every stage.

The crucial point: the reservation deposit is not an extra cost. It normally rolls straight into the advance payment, so it is the same money moving from "hold" to "confirmed order." The full mechanics of the larger contract deposit — the 30/70 split, milestone structures and the Korean earnest-money rules — are covered in our advance payment, deposit and milestones guide. Think of the reservation deposit as the doorway into that process, not a separate toll.

The stage before all of this is getting a firm, written quote. If you have not locked a price yet, start with our export quotation guide so you know the exact FOB figure your 5–10% reservation deposit is measured against.

How Much Is a Reservation Deposit?

There is no single fixed rate — exporters set the reservation deposit either as a flat amount ($200–$1,000) or as a percentage of the FOB price (5–10%). The higher the car's value, the more the percentage basis tends to apply. The chart below shows a realistic hold amount across common export segments.

These are indicative figures, not a fixed tariff — always confirm the exact amount in writing. As context, a budget Korean sedan often lands around $6,000–$14,000 FOB, a compact SUV like a Tucson around $8,000–$28,000, and a large or luxury SUV $24,000–$50,000+, so a $300–$1,500 hold is a small fraction of the deal in every case.

For bulk or fleet buyers reserving several units at once, the hold scales up because more stock is being taken off the market. That larger commitment is best handled inside a written framework — see how deposits work at volume in the advance payment guide.

The 6-Step Reservation Flow

From the moment you choose a car to the moment the order is confirmed, a clean reservation follows the same six steps. The whole flow usually fits inside the 3–7 day hold window.

Notice that the reservation deposit (step 3) and the advance payment (step 6) are only days apart. That is by design: the hold is a bridge, not a parking space. Once step 6 clears, the car enters the wider export pipeline — inspection, de-registration (말소등록), export declaration and booking — which is mapped end-to-end in our how to buy guide.

Refundable vs Non-Refundable: What Your Deposit Protects

The single most important question to settle before you pay is whether the reservation deposit is refundable, and under what conditions. Korean practice recognizes two distinct types, and they behave very differently.

Provisional / Refundable Hold (가계약금)

A provisional deposit is a soft hold. It is generally returned if the deal does not proceed for an agreed, legitimate reason — for example, the car fails its condition inspection, the exporter cannot deliver clear title, or the exporter cancels. This is the buyer-friendly option and the right structure while facts about the car are still being confirmed.

Earnest Money / Non-Refundable Deposit (계약금)

Once it becomes formal earnest money, the deposit carries real consequences. Under Korean Civil Code Article 565, if the buyer withdraws, the earnest money is forfeited to the seller; if the seller withdraws, the seller must return double the amount. That symmetry protects both sides once a deal is genuinely struck — but it means a simple change of mind can cost you the deposit.

Why Reservation Deposits Exist: The Hot-Stock Problem

Reservation deposits are not a way to squeeze buyers — they solve a real supply problem. Korea exports hundreds of thousands of used vehicles a year (according to KAMA and KITA trade data), and the most in-demand export models move fast. A clean, low-mileage Hyundai Tucson, Santa Fe, Porter, or Kia Sorento or Bongo can be sold within days of appearing in stock.

A weak Korean won has also kept export demand structurally strong, meaning good units attract multiple interested buyers at once. In that environment, an exporter simply cannot hold one specific car for a buyer who is "thinking about it" while turning away another who is ready to pay. The reservation deposit is the fair mechanism that decides who gets the car: whoever commits first with a genuine hold.

This is also why chasing the very cheapest listing without acting can backfire: by the time you decide, the standout unit is reserved by someone else. Understanding how Korean export stock is sourced and priced helps you recognize a genuinely strong unit quickly — and a reservation deposit lets you act on it before it disappears.

How to Pay a Reservation Deposit Safely

Because a reservation deposit is small and paid early — often before you have deep trust in the exporter — it is exactly the payment scammers target. Protect it with the same discipline you would use for the full amount.

• Pay only to the registered company account. The account name must match the exporter's business registration. Never send a reservation deposit to a personal account or an unrelated third-party name.
• Use a traceable method. A bank transfer/SWIFT to the company account, or escrow where available, leaves a paper trail. Avoid untraceable cash-transfer apps.
• Get the written reservation agreement first. It must state the car's chassis number, the deposit amount, the hold period, and the refund conditions before you send anything.
• Match the method to the value. A $300 hold on a $9,000 sedan is a low-risk transfer; a $2,500 fleet hold deserves escrow or a documented milestone.

The broader menu of safe options — telegraphic transfer, letter of credit, escrow and their trade-offs — is laid out in our safe payment methods guide. The governing principle for a reservation deposit is simple: traceable money, named company account, written terms. Any deviation from those three is a reason to pause.

Converting Your Reservation Into a Confirmed Order

A reservation deposit is only useful if it converts cleanly into a firm order. Within the hold window, three things should happen in sequence:

1. Inspection confirmation — the exporter confirms the car matches its listed grade, mileage and condition (ideally with fresh photos or a video walk-around).
2. Contract & proforma invoice — a written sales contract and PI are issued, stating the FOB price, terms, and how the reservation deposit is credited.
3. Advance payment — you pay the contract deposit (commonly 30%), with the reservation deposit deducted, and the order is confirmed.

At that point the reservation ends and the export process begins. The exporter moves the car to de-registration, export declaration and shipment booking — the full downstream sequence covered in our advance payment guide and the step-by-step how to buy guide. If, during the hold, the car turns out not to match its description, a refundable reservation deposit is exactly what lets you walk away without loss.

7 Red Flags — Reservation Deposit Scams

1. A personal bank account. A genuine exporter collects deposits to a registered company account, not an individual's name.
2. An oversized "hold." Demanding 30%, 50% or the full price just to reserve a car you have not contracted for.
3. No written terms. Refusing to put the chassis number, amount, hold period and refund conditions in writing.
4. Pressure and false scarcity. "Ten buyers are waiting — pay in the next hour or lose it." Urgency is used to skip due diligence.
5. Only screenshots. The car exists only as a photo; the seller cannot provide the chassis number or a live video of the actual unit.
6. No refund logic. The deposit is "non-refundable no matter what" — even if the car fails inspection or cannot be delivered.
7. Unverifiable identity. The exporter cannot show a business registration number you can check, or dodges the question.

These overlap with the broader warning signs in our scam prevention guide. The common thread: a legitimate reservation deposit is small, written, traceable and tied to a real, identifiable car. Anything that breaks those rules is protecting the seller's exit, not your purchase.

How SH GLOBAL Handles Reservation Deposits

SH GLOBAL Co., Ltd. treats the Korean used car reservation deposit as a transparent, buyer-protective step — never a trap. The standing process:

1. Written reservation first — we issue a reservation agreement naming the exact car by chassis number, the deposit amount, the hold window, and the refund terms before you pay anything.
2. Company account only — the deposit is paid to SH GLOBAL's registered company bank account, matching our business registration, with a full paper trail.
3. Fair, proportionate amount — a modest hold ($200–$1,000 or 5–10% of FOB), never a disguised full payment.
4. Credited in full — the reservation deposit rolls straight into your advance payment; it is never an extra charge.
5. Refundable where agreed — if the car fails inspection or the deal cannot proceed for an agreed reason, the refundable portion is returned.

As a multilingual Korean used car exporter sourcing directly from Korean auctions, SH GLOBAL can hold a specific unit for you while your contract and financing are arranged — then move it straight into inspection and export. To reserve a car or ask how a hold works on a specific unit, reach the SH GLOBAL team through the request-a-quote form, or first browse the live Hyundai inventory to find the one you want to lock in.