Korean Job Discussion Forums

[bassexpander]

Ok, school me on this... I've got to be missing something.

http://www.encar.com/dc/dc_carbuybacklist.do?carType=kor

You buy (lease?) a used car with X million won down. Then you make a payment of XXX man won per month. Then, after 24 months (or 36, if you choose), they guarantee to pay you back a minimum of XX million won.

So what's the catch? You pay on any repairs? It doesn't say.

Take this SM5 for example:

http://www.encar.com/dc/dc_cardetailview.do?carid=4891495&pageid=dc_carbuyback

You put down 2,440,000 deposit. Then you pay 270,000 per month for 24 months. After 24 months, they "buy back" the car for 6,100,000. So, if I'm doing the math right, you're paying 270,000 per month, but after all is said and done (and they buy it back) it really means you've paid the equivalent of 117,500 won per month to lease the car?

There has to be more to this...

[bassexpander]

Anyone? I'm trying to compare costs against normal depreciation, and seeing if it's a good deal. I have no idea what the rules are on repairs. I'm assuming, since it says nothing, you must pay for all repairs. That could suck if you get a clunker (or maybe they know it's a clunker)?

[big_fella1]

Bass will they let foreigners do this, or would I have to use my wifes name?

[rmparent]

I don't think that's a buy-back lease. I believe that the amount at the end must be paid by the person leasing the car in order to own it.

I just bought a brand new SM3 and the guy also informed me of something similar. You put around 5M down and pay around 200,000 a month for 3 years. At the end you have to pay a sum (which can be re-financed) to complete the sale.

[bassexpander]

[rmparent]

Yeah, I'm not a 100% but I'm pretty sure that you would have to pay that amount at the end of the payment cycle. Otherwise it is definitely a damn good deal

[bassexpander]

Ok,

After a call from a Korean co-worker of mine, the catch has been revealed, and you were pretty much correct.

What they don't tell you in the ad (probably to get you to call) is that you first pay the down money, followed by 24 (or 36) months of payment. At that point, you are considered 50% owner of the car, and will be guaranteed the value of half of the price of the car. To buy it, you then pay the other half (보장금액).

So on this car, for example:

http://www.encar.com/dc/dc_cardetailview.do?carid=4863008&pageid=dc_carbuyback

... you end up paying about 16 million won for a car that's currently valued at 13 million. My co-worker explained that the banks don't really offer used car loans, so this type of system is common.

[rmparent]