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Luxury Car Sales Plunge In Korea After Company Vehicles Forced To Wear Green Plates

Posted by tiagojpg@reddit | cars | View on Reddit | 119 comments

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119 Comments

SchemeShoddy4528@reddit

huh, why not just ban performance vehicles from being purchased as company vehicles with a special exception. haven't they just created more work for themselves? not hard to create a database...
View on Reddit #24643421

KenEarlysHonda50@reddit

The issue is defining "performance". Is "luxury" okay, but performance not? Is a Mercedes luxury? Is an A class luxury? Is a Miata performance?
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SchemeShoddy4528@reddit

what are you talking about, in what world should a company get a tax break for buying a mazda miata unless it's literally a buisness that rents cars to customers. (special exception) What you've listed isn't an issue at all. Companies should get tax break for buying vehicles that their company requires to function. Nothing you listed is required for the average buisness. Trucks, Vans, Busses, Trailers, etc are required for most businesses. It doesn't take a super genius to know that "luxury" vs "performance" (no idea why you put those in quotes lmao) are both in the same group of 95% of buisnesses won't NEED them to function.
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KenEarlysHonda50@reddit

You misunderstand the issue. It's not about tax breaks for companies. It's about untaxed renumeration for staff and directors.
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SchemeShoddy4528@reddit

... no i understand that lmao. They're using their business to make purchases that aren't for the business to avoid tax. By making these vehicles "green plates" it will deter the practice and make it easier to see a vehicle which is actually personal use. You ironically completely misunderstood what i was saying.
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KenEarlysHonda50@reddit

You were talking about banning them, not marking them out.
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SchemeShoddy4528@reddit

yes, and the purpose of marking them is to??? bro come on
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KenEarlysHonda50@reddit

If you could spell your thesis out, I might understand it. I'm lost however.
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SchemeShoddy4528@reddit

honestly at this point even if i explained how banning something is more effective than deterring it i don't think you'd understand.
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nirad@reddit

what's interesting is that I could see this being a flex, rather than an embarrassment, in America.
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EndPsychological890@reddit

Absolutely. It'd be a badge of honor and patriotic tax evasion here.
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xXxDickBonerz69xXx@reddit

It already is with Montana tags. All the rich assholes love advertising how they're dodging taxes. The dipshits in Atlanta got themselves caught by using Peachpass every single day of the year with a car registered out of state. Turns out that telling the state you drive your Montana registered Ferrari yhat was sold in Buckhead up and down the I75 express lane 52 weeks out of the year raises some red flags.
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falcon0159@reddit

> All the rich assholes love advertising how they're dodging taxes. I don't think it is. No one I know with MT plates (and a lot of people I know in my car club have them) talk or brag about it. Some only do it to get out of the inspection/emissions test, some do it because it's easier to register there than the state we live in (NJ/NY/CT) as you don't need to waste a day at the DMV only to be told that the paperwork you have is no good and you need to come back another day. Some do it to get around front plate and tint laws. Some do it to get around taxes. Some do it to get around personal property taxes which is a really stupid tax. Some do it for a little bit of all of the above. The taxes on those cars are ridiculous though. If you buy a $300,000 car with 7% tax, that's $21k. Most of the people I know with MT plate don't keep cars for more than a year, so then they would sell the car, and the new owner now buys it for $280k and needs to pay another $20k in taxes. Meanwhile the guy that sold the car is now buying another car for $350k and needs to pay another $25k in taxes. Don't get me wrong, I get it - fuck the rich - they should pay their fair share. But also, fuck the government for taxing the shit out of us and wasting the money on stupid shit. And the tax laws on cars suck in most states, why should you pay sales tax on a used car? Someone already paid sales tax on it. Tax the corporations and multi millionaires instead - or better yet the senators.
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09Customx@reddit

Fuck that shit, if you can afford to buy a new $300k car every few years you can pay your goddamn taxes.
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UnknownResearchChems@reddit

I'd rather set money on fire than give it to the government
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Krispythecat@reddit

That’s an idiotic thing to say
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Bau5_Sau5@reddit

Says a guy who drives an M5 on public road and constantly uses government paid for utilities lol Pay your taxes loser
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UnknownResearchChems@reddit

I do it every other day buy buying gas.
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KaosC57@reddit

You are literally the problem with the USA. If you and all the other multi-millionaire people actually had to pay your fair share, the collective of the US might not be so bad off. We might have a functional healthcare system!
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UnknownResearchChems@reddit

It functions just fine for me
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KaosC57@reddit

Yes, because you’re fucking rich. Us poor people down in the REAL WORLD have to deal with gigantic medical bills that basically put us out of house and home. While boomers who probably need to be in a nursing home by now just say “stop eating your Avacado Toast and stop going to Starbucks every week and you’ll be rich!” When that isn’t what is making us poor. It’s the oppressive Housing, Healthcare, and Grocery markets! Oh, and jobs basically paying people nothing.
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UnknownResearchChems@reddit

Cope
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falcon0159@reddit

Not necessarily. I know a lot of people that do well, but definitely aren't multi millionaires. But they buy cars that hold their value and trade every year. Some made a lot of money on car they had during Covid and were able to upgrade to $150-300k cars. Some of them paid cash, but most have loans/leases.
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probablyhrenrai@reddit

> why give the government money when you can avoid it Why pay money when you can shoplift? Same reason; paying a price for the things you value is the only way to keep them coming, and if no one pays the good thing stops.
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falcon0159@reddit

I mean in CA and NYC, there is a lot of shoplifting going on because of the lax enforcement. Not completely apples to apples as having a Montana LLC and registering a car there is legal. What if you dont value what your tax money is spent on? I know I sure don’t for the most part. My state has one of the highest tax burdens in the country and we get corrupt senators, never ending construction projects, like 10 years to redo a 10 mile stretch of road because the contractors that get it are friends with the politicians, local corruption, cops that make over $150k a year and so forth.
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partyavocado@reddit

Hi 👋 NYC resident here, stop using my city as an excuse and pay your taxes you fuck
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falcon0159@reddit

Welcome - I lived in NYC, and still work there. It's not an excuse, look at the statistics of crime in NYC ever since deblasio became mayor, it's actually gotten worse somehow now that Adams is in office. It sucks, but it's true. Stores are legit closing in NYC because the shoplifting and theft is so high and the police won't do anything about it. I pay all the taxes that I'm legally required to pay and my CPA has verified that. That bill is quite high - believe me. It's funny - because your assuming I have MT plates and use that loophole, but I never said I do. I'm just defending the practice of legal tax avoidance. If someone can do something legally to minimize their tax burden, why shouldn't they? God knows our politicians take advantage of every loophole in the law they can find. If we decide to close these loopholes, then so be it. But it should be fair and equal throughout the country.
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ElChaz@reddit

>the practice of legal tax avoidance That's the problem. Montana plates are, at best, a legal grey area bordering on outright fraud. The premise of the program is that the person doesn't live in Montana, but their business is incorporated there, and the car is an asset of the business. So if someone has an actual, revenue-generating biz. in Montana - a going concern - they're engaging in "legal tax avoidance." If the LLC isn't a going concern and in fact only exists to own the car, then IMO that's not "legal tax avoidance," they're just defrauding the other citizens of their state.
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LegitimateSoftware@reddit

Cali and NYC aren't even an excuse really, NYC contributes the most federal taxes and Cali literally contributes the 2nd most.
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brolix@reddit

Don’t come to Texas and use any of my roads then. If I see you, expect an ass beating for stealing my road that you didn’t pay for.
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verdegrrl@reddit

Rule 1.
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falcon0159@reddit

Too late bud. No worries though, because your road maintenance is paid through gas tax and tolls. No worries though, I've always like W124's and I'm not scared of some random guy that doesn't know who to be mad at. How about this, send me your number, and I'll buy you a round next time I'm in TX. I can civilly explain my side, without any threats about how I don't like big government and wasteful spending and how I already pay a shit ton in taxes - something i think a texan would understand...
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UnnamedStaplesDrone@reddit

Watch out everyone. We got a badass over here.
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Audisans@reddit

The people downvoting you are the ones that are happy driving a Model 3 or a Corolla. Unless you're a car enthusiast, and it's your dream to drive high-end exotics, you'll never understand how insufferable it is to constantly be paying significantly more taxes just to enjoy your hobby. It becomes cost prohibitive for many. Start taxing rounds of golf at $20,000 each time to step on the green, and see how fast people change their tune.
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falcon0159@reddit

Right, or at least change the law to provide a sales tax credit on anything bought within 6 months after sales of a similar item (like cars for example). In my state, there is a tax credit if you trade it in, but dealers typically low ball you and then mark up the cars like crazy, and I prefer to sell to other enthusiasts instead for fair market value. I know some states only charge sales tax on used cars sold at a dealer. That seems fair to me. But for those of us who swap cars multiple times a year (me), paying sales tax on each transaction becomes very annoying, especially when I can't deduct it off of my federal or state taxes.
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BrandonNeider@reddit

Your getting downvoted by people who drive crapboxes all day. Reality is people use Montana and it's not illegal. If they want to stop it they'll have to require corporations including rental car companies to re-register cars that stay in the state for so long which is different then current law which requires if YOU own the car (and you don't, your company does).
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falcon0159@reddit

Oh, I'm aware. And I agree completely. Don't get me wrong, if it was actually against the law, I would agree with everyone saying that it's not right and people should pay their fair share. But the fact is it's not against the law, and if it makes financial and logistical sense, people should take advantage. Paying $15k in sales tax on a car hurts. It hurts even more if you decide to swap cars in a year and need to pay another $15 in sales taxes.
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outlawtartan@reddit

I wish I could downvote your comments more than once.
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Birds-aint-real-@reddit

You don’t get rich wasting money on easily avoidable fees. Even John Kerry used to park his boat in a different state to avoid taxes.
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09Customx@reddit

Fuck him too then
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Equivalent_Chipmunk@reddit

If the rules as written allow you to do it, why shouldn’t you? Are people under an obligation to make a voluntary donation to the federal government? It’s not like you’d fault him for choosing to deduct his mortgage from his taxes, so why get upset that he parks his boat where it is cheaper to legally do so?
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Birds-aint-real-@reddit

He also faked his Purple Heart. Let’s not forget that. but honestly, if one state offers better deals, you should use them. I’m not buying a video game at GameStop if Amazon has it cheaper for instance.
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TurboFucked@reddit

> but honestly, if one state offers better deals, you should use them. Good. Then they should they should *move* there. Oh, wait, they don't want to actually live in Montana because all of the economic opportunity is in the states with higher taxes?
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mtndrew352@reddit

That isn't even close to a valid analogy, what? lmao
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dWaldizzle@reddit

This dude doesn't pay his taxes ^^^
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Birds-aint-real-@reddit

You say that like it is a bad thing. Not paying taxes is the fabric our country was founded on.
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Bau5_Sau5@reddit

lol
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mammaryglands@reddit

"taxes are fine except when I don't like them"
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Killb0t47@reddit

Ah yes. All that stupid shit like pensions, health care, science, product safety, disaster relief, and the military that keeps people from shooting you in the face for your stuff. So many useless things.
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Porshuh@reddit

>the military that keeps people from shooting you in the face for your stuff That's what police do.
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Killb0t47@reddit

Do you think the Chinese, Russians, or any other country would just sit at home and ignore your vast wealth? Did you forget about pirates? Of course you did. Also police don't keep people from shooting you. They keep the people who do from destabilizing the community.
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Porshuh@reddit

>Do you think the Chinese, Russians, or any other country would just sit at home and ignore your vast wealth? They don't care about your paltry wealth. They care about the state's wealth. So the military stops them from stealing the state's wealth, not from stealing your wealth. >Also police don't keep people from shooting you. They keep the people who do from destabilizing the community. This is a fallacious sequence of statements.
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Killb0t47@reddit

Rich countries don't confiscate private property. Poor countries absolutely do. The police in the United States are not obligated to protect you individually. They are obligated to protect the community. If you believe otherwise, you might want to brush up on your reading.
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Porshuh@reddit

>Rich countries don't confiscate private property. Not sure how this is related, but try not paying your property tax. >The police in the United States are not obligated to protect you individually. They are obligated to protect the community. Why move the goalposts here as if the military, which is the whole reason we're having this conversation, absolutely isn't obligated to protect your personal wealth? LOL.
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falcon0159@reddit

Don't get me wrong, there's some good stuff in there, but there's other things like a 15 year project to build a 2 mile train tunnel that will cost $16B. Like where the hell did they come up with those numbers?!? I also think our military spending is a bit out of control and I would rather invest that money back into the country. I don't know why you wrote healthcare, we pay for that ourselves here in America hahaha! If you don't believe that there's corruption in the government, you are sadly mistaken.
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TeriusRose@reddit

A not insignificant chunk of the country genuinely believes, companies should handle those things rather than the government. The idea that privatization of literally everything is preferable, championed by mouthpieces for the rich and the rich themselves, has woven itself into part of the political ideology of a slice of the country. All you have to do is deregulate everything/start a full-fledged corporatocracy and then something something paradise.
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Killb0t47@reddit

Ah yes, the share holders dividend . Truly, the best use of tax dollars.
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Energy4Days@reddit

This is what eBay has become. Getting taxed on things that have already been taxed. 
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ZombiePope@reddit

With the exception of edge cases, taxing 300k car purchases IS taxing multimillionaires.
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falcon0159@reddit

Youd be surprised. I’m not a multi millionaire despite having a car worth almost that much. Besides, I think taxing corporations and people making over $1M/yr would go a lot further.
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ZombiePope@reddit

That's exactly what I meant about edge cases. I completely agree with you about increasing corporate and ultra-high income taxes, but I think that doing it without loopholes would require a fairly comprehensive rework of our tax system. It seems like a pretty sticky problem tbh
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infinitig@reddit

Ahhh, the mountain motorsports crew.
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ASK_ABT_MY_USERNAME@reddit

It seems pretty ridiculous that its the plates that are having this effect..like you wanted to drive a Lamborghini before but having green plates now makes it too obvious a flaunt on wealth?
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WarlockGuard@reddit

Isnt it the opposite because it's not bought with their own money so it's less of a flex if its the companies car.
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Viperlite@reddit

Americans have no problem with registering cars is Montana to avoid home state taxes, fees, and inspections. Then they go to cars snd coffee and flex about their cleverness.
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Drone30389@reddit

Like rolling coal but with less work.
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Various-Ducks@reddit

Huge flex. You have a good job. Your parents didn't buy it for you. Plus, "Sorry you can't afford those car payments because you didn't get that $0.35/hr raise. That sucks. Anyways, check out this new BMW they gave me! Ya, it was a bonus for coming up with the idea to not give everyone that $0.35/hr raise."
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meh_whatev@reddit

Well, I wouldn’t be surprised if it soon becomes like that in Korea too
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2019nCoV@reddit

My FIL gets a brand new K900 every year. His company covers the lease. Guy doesn't even really care about cars, I'd be surprised if he cared about the green plate. lol
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tiagojpg@reddit (OP)

That’s a neat detail, those cheabols really rule the country from what we’ve read. I guess this plate would enforce people to avoid using company cars as personal cars because of social stigma (?) but if everyone does it, is it really a stigma?
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2019nCoV@reddit

I wouldn't think so, people have been saying that people will start to not mind the green plate cause they can flex that they have a position that allows them to have a nice car paid for by their company. However, the issue is that it will raise questions about personal use, especially if the CEOs company car is being used by his son, wife etc. Since the plate is affixed to the car permanently, already purchased cars don't have to get a new green plate. So, I think there will be a momentary dip in sales since people will rather keep their car with a white plate, but sales will return once people decide they would rather have a new car with a green plate, over an old one with a white plate.
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ParappaTheWrapperr@reddit

Oh no :( it’s almost as if people dont want to pay large amounts of money for a problematic status car in a country where people don’t make a lot of money and was built with public transport in mind not requiring a car for anything other than to say you have a car and can flex it in your 5x8 garage by your 1 BR 500 sqft house
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Active-Device-8058@reddit

*it’s almost as if people dont want to pay large amounts of money for a problematic status car in a country where people don’t make a lot of money and was built with public transport in mind not requiring a car for anything other than to say you have a car and can flex it in your 5x8 garage by your 1 BR 500 sqft house* You drive a Hellcat Redeye?
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ParappaTheWrapperr@reddit

Yeah but I live in a country they are viable and was designed where an automobile is REQUIRED and plus the Redeye is the most reliable of all the super cars especially at the entry level of super cars. South Korea doesn’t have the same culture they are a nearly carless society. It would be like if Dodge made a big push into Bolivia then were shocked that Bolivia isn’t buying these cars when even the V6 cost what is the equivalent of just under 10 years of the average income in Bolivia. I’ve vacationed over there and the only cars I’ve seen are taxi’s, work trucks, and moving trucks. If you’re unfamiliar with Asian society they are basically carless and the ideal set up, you could live your whole life over there and never own a car and not even notice.
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clownpirate@reddit

I’m confused. South Korea, even metropolitan Seoul, is full of private cars. Despite having amazing public transit, many Koreans still aspire to own a car. You don’t sound like someone that’s part of the “ban all cars” cult.
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5GCovidInjection@reddit

What was somebody like you doing in South Korea for vacation? Or were you actually in Thailand? I’m kind of questioning whether you were actually there because you say Korea is “nearly carless”, yet in 2022 was a larger market for new Mercedes Benz vehicles than even Germany. That’s just one example. And you compare Korea, one of the wealthiest countries in the world, to Bolivia, which is not even in the same category in terms of GDP per capita.
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ParappaTheWrapperr@reddit

I’m not from El Paso I just live here. I’m an engineer on a DOD contract. I didn’t choose to live here I just ended up here. Please do not compare me to these people.
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AlexGonzalezLanda@reddit

It seems you’re just terribly insecure.
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Dragobrath@reddit

Sounds miserable.
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hi_im_bored13@reddit

I love the redeye as much as the next guy but calling it a supercar is a bit of a stretch ...
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ParappaTheWrapperr@reddit

Tell that to my insurance. If I’m paying super car premium imma call it a super car lol
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hi_im_bored13@reddit

It's a pricey vehicle but a hellcat isn't exactly a status vehicle ... not anywhere near bentley/lambo/rolls/porsche at the least.
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xXxDickBonerz69xXx@reddit

Buddy have you listened to any modern hip hop? A Hellcat is absolutely a status symbol.
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Active-Device-8058@reddit

*It's a pricey vehicle but a hellcat isn't exactly a status vehicle ... not anywhere near bentley/lambo/rolls/porsche at the least.* There's a *huge amount* of people who consider Hellcats to be ***h*****ugely** desirable. Do you not know that? Hell, it's one of the most stolen cars :[Dodge muscle cars once again top HLDI’s list of most-stolen vehicles (iihs.org)](https://www.iihs.org/news/detail/dodge-muscle-cars-once-again-top-hldis-list-of-most-stolen-vehicles)
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Noopy9@reddit

Yeah Kias are also one of the most stolen cars, does that make them prestigious or desirable?
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Active-Device-8058@reddit

Dude if you don't realize that Redeyes are super desirable amongst a lot of people, I dgaf trying to convince you. \*I\* don't care for them, but they're very desired.
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Noopy9@reddit

Relax dude. I know they are desirable, I’m just saying the fact they are stolen frequently isn’t a good indicator of desirability.
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hi_im_bored13@reddit

Thats partly because they are quite easy to break into and steal and the parts are good money. Kia sportage and the infiniti q50 also top that list but they aren't desirable vehicles are they?
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PinolesCheese@reddit

I see more Hellcats than Altimas where i live
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Doppelkupplungs@reddit

That explain why luxury car used to sell so well in Korea. IIRC Korea was the second or third largest market for BMW 5er or S-class and I am like WTF because Korea has such a small population (relatively speaking)
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2019nCoV@reddit

Koreans are very focused on their image in Korea. Personal debt is high there because keeping appearance is highly important in society and professionally.
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IrinaAtago@reddit

People still purchase BMW and Mercedes. Its more about social status and how people appear rather than how they are in reality. Lots of people are in debt just to purchase a luxury branded vehicle and keep up with the latest fashions. Every 3rd car I typically see is a BMW, Mercedes, or a luxury model from Kia and hyundai.
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Pandorama626@reddit

Some people could just like the way BMW or Mercedes drive. Not everyone is about social status.
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phanta_rei@reddit

I guess some things are universal across all countries: people buying cars they can’t afford, often by indebting themselves, just to flaunt it…
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TeriusRose@reddit

Most things are. Although human behavior is complex and cultures have their obvious unique points, we are generally much more similar than we are different as a species. But there are several factors that lead to us laser focusing on mostly minor or literal skin deep differences, exaggerating how much space exists between us *at times*, much to our collective detriment.
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tiagojpg@reddit (OP)

Very similar thing happens in Portugal too, waaay too many 5 series and alike for a country with a 1000€/month median wage
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One_Swan2723@reddit

Won’t someone think of poor Bentley and their dwindling sales
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HankSteakfist@reddit

Wasn't it Bentley that said their customers were afraid to buy their cars because of "emotional sensitivity", that is that they're afraid driving a Benley makes them look like an out of touch rich asshole in a society that is increasingly frustrated with wealth disparity?
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Elvis1404@reddit

My god even rich people are soft nowadays, at least let me have the enjoyment of seeing a cool car
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UnknownResearchChems@reddit

If I was rich enough to have a Bentley there would be exactly 0 fucks given what other people think about me.
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ScousePenguin@reddit

The Bentley factory is based in Crewe, a working class town in the north of England So yeah, I would prefer Bentley to still sell well so a town doesn't lose a large chunk of its jobs
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Various-Ducks@reddit

Aren't all car factories kind of in working class towns? Otherwise who's building the cars
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skepticaljesus@reddit

Not the same considering how many bespoke supercars they make, but [the mcclaren factory isn't exactly a picture of dickensian london](https://images.adsttc.com/media/images/5016/bb55/28ba/0d14/1600/0ecd/large_jpg/stringio.jpg?1414010062)
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Various-Ducks@reddit

You can have a also isn't owned by McLaren. They rent that whole factory. No, seriously. https://investors.mclaren.com/group-news/2021/mclaren-group-agrees-campus-sale-and-leaseback They used to own it, and they built it, but they had to sell it during covid to get some cash and now they pay rent to the new owners. Not really Dickensian, but it's sadder lol
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ScousePenguin@reddit

Yeah true, and they're all a key part of the towns economy
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fobbyk@reddit

It’s not the only factor that drove the sales down. More like low demand.
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WhenInDoubtFlatOuttt@reddit

I love it how mad Redditors get over “tax fraud” with some license plates. Last time I checked a loophole ≠ fraud. It’s not even comparable to other fraud and loopholes people use to enrich themselves.
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Politicsboringagain@reddit

The way Americans business owner co-mingle funds in this country. This needs to be done here. 
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snoo-boop@reddit

Discussion of the same thing from yesterday: https://old.reddit.com/r/cars/comments/1c5duyu/bentley_porsche_rollsroyce_see_sales_plunge_after/
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tiagojpg@reddit (OP)

Ooh sorry I searched the sub for it but couldn’t find it right away
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snoo-boop@reddit

No problem, plenty of people on this sub want to discuss the topic again starting from zero! Bring on the duplicate posts!
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dfjdkdofkfkfkfk@reddit

Passive agressive like a btch
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tiagojpg@reddit (OP)

It’s gotten some traction now, I’m not just gonna delete it
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snoo-boop@reddit

Yes, circle jerks get traction.
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HighlyFalmmable@reddit

“Korea Times says that company-owned cars accounted for 40 percent of total registrations last year, but now made up just 28 percent – the first time they’ve dropped below 30 percent.” Fascinating.
View on Reddit #24635118

snoo-boop@reddit

It takes a long time to stamp out company car tax evasion -- the US mostly has done it, it's still a problem in Europe.
View on Reddit #24635119

IrinaAtago@reddit

The green tag denoted company car. The whole thing is a way for the government and people to point out who bought their luxury car through the company funds, or who bought them legitimately. A lot of executives and higher ranked corporate personnel would use company funds for purchasing cars for tax purposes, and then drive them as if they owned them.
View on Reddit #24633725

BipedalWurm@reddit

Guess they aren't proud to work for a company that'll spend, they just want to front being well off. Shocked Pikachu fell right over
View on Reddit #24619190

Vasto_lorde97@reddit

Good
View on Reddit #24613165