What discount for cash new car ?

[Tuvoc]

In Thailand what sort of discount is there for buying a new car outright rather than financing it or leasing it ?  Or free giveaways ? Say a Toyota Fortuna, Mitsubishi, Ford  or other similar SUV type vehicle ? Of course it will vary by dealer, but I'm after some sort of rough guideline.

[Vacuum]

I think no discount. Financing is their way of making extra money.

[giddyup]

You are more likely to get some extras like tinting, wind deflectors etc, thrown in for free rather than a cash discount. I did get 100,000 baht discount off my Mitsu Triton because it was a run out model, and that price was widely advertised.

[Chazar]

Depends which model exactly and how desperate the dealer, I got 100k  off a  1.1 million baht vehicle start of this  year, just went in plonked down the cash and let them gawp at it.

[Tuvoc]

OK thanks all, that gives me some idea of what to expect.

[transam]

Pot luck, plus they don't really like cash cos they lose a bonus payment..

[blackcab]

I have a friend who owns a Nissan dealership. His margin as a dealer is 4 per cent, so there isn't a lot of discount he can give. That 4 per cent has to pay for his entire business.

 

He explained that he has a series of sales thresholds that are advantageous for him to reach. I suppose if you caught him one car short of the next threshold one day before the end of the period you might get a discount, as long as the discount was less than what he would receive for making the higher threshold.

 

Other than that, he would prefer a bank transfer. The only thing he did say is that deposits only can be paid by credit card, so if you have a rewards card of one flavour or another then you can earn a bit that way.

[Toosetinmyways]

Free window tint and wind deflectors.

Friend was offered 60,000 off 1.5 million baht car one week before facelift model released. Decided to wait for new model. He then discovered 4 month wait list.

[Fab5BKK]

Mostly depends on the brand, dealer & location.

 

Last month, at a Mitsubishi dealer in Bangkok, they offered me THB80,000 off on a new Pajero Sport + 5-year warranty + 5-year free service (labor + fluids) + 1-year 1st class insurance + usual add-ons (films, window deflectors, floor mats, etc.).

[transam]

Just now, Fab5BKK said:

Mostly depends on the brand, dealer & location.

 

Last month, at a Mitsubishi dealer in Bangkok, they offered me THB80,000 off on a new Pajero Sport + 5-year warranty + 5-year free service (labor + fluids) + 1-year 1st class insurance + usual add-ons (films, window deflectors, floor mats, etc.).

Sounds like a ride to avoid.....

[Tuvoc]

The Pjaero is due for replacement soon? 

[DaRoadrunner]

4 hours ago, blackcab said:

I have a friend who owns a Nissan dealership. His margin as a dealer is 4 per cent, so there isn't a lot of discount he can give. That 4 per cent has to pay for his entire business.

The dealer margin in the uk is 17%. Plus bonus for hitting targets. 4% in Thailand?.... One would think it is more than that?

 

Sometimes there are extra incentives to move old models on.

 

Your best buy is one 6-12 months old.

[petermik]

11 hours ago, blackcab said:

I have a friend who owns a Nissan dealership. His margin as a dealer is 4 per cent, so there isn't a lot of discount he can give. That 4 per cent has to pay for his entire business.

 

He explained that he has a series of sales thresholds that are advantageous for him to reach. I suppose if you caught him one car short of the next threshold one day before the end of the period you might get a discount, as long as the discount was less than what he would receive for making the higher threshold.

 

Other than that, he would prefer a bank transfer. The only thing he did say is that deposits only can be paid by credit card, so if you have a rewards card of one flavour or another then you can earn a bit that way.

I bought a Nissan Almera a couple of years ago from a local dealership and after playing one garage off with another I got a 40,000 baht discount of a new series (sportech) plus 1 years insurance/tints/car mats and a full tank of fuel....list price of the car was 538,000....other dealerships looked horrified when asking for a discount.

[blackcab]

3 minutes ago, DaRoadrunner said:

One would think it is more than that?

 

I would have thought so too, but it's got to the stage where he has closed branches to consolidate costs. I really don't think he's making a fortune.

[monkeycu]

4 hours ago, blackcab said:

I have a friend who owns a Nissan dealership. His margin as a dealer is 4 per cent, so there isn't a lot of discount he can give. That 4 per cent has to pay for his entire business.

 

He explained that he has a series of sales thresholds that are advantageous for him to reach. I suppose if you caught him one car short of the next threshold one day before the end of the period you might get a discount, as long as the discount was less than what he would receive for making the higher threshold.

 

Other than that, he would prefer a bank transfer. The only thing he did say is that deposits only can be paid by credit card, so if you have a rewards card of one flavour or another then you can earn a bit that way.

And you believe a car dealer to tell the truth  

[Tuvoc]

31 minutes ago, petermik said:

I bought a Nissan Almera a couple of years ago from a local dealership and after playing one garage off with another I got a 40,000 baht discount of a new series (sportech) plus 1 years insurance/tints/car mats and a full tank of fuel....list price of the car was 538,000....other dealerships looked horrified when asking for a discount.

 

I'll certainly be asking for all of those freebies and some free servicing or something if possible. With sky high prices I'd hope to get a little bit back. For the price of a Fortuner in Thailand you can buy a BMW X3 in the UK. Mind you, after years of owning BMW money-pits in the UK I'll be happy to have a reliable Toyota ????

[DavisH]

1 hour ago, Tuvoc said:

 

I'll certainly be asking for all of those freebies and some free servicing or something if possible. With sky high prices I'd hope to get a little bit back. For the price of a Fortuner in Thailand you can buy a BMW X3 in the UK. Mind you, after years of owning BMW money-pits in the UK I'll be happy to have a reliable Toyota ????

Servicing and parts are generally much cheaper than that overseas, so the higher cost of the car here becomes less important over time. Toyota and honda here have very good resale value as well. A 10-12 year old fortuner sells for 500K baht or so, for example. 

[DavisH]

3 hours ago, Tuvoc said:

The Pjaero is due for replacement soon? 

A minor change is coming, possibly August. http://www.headlightmag.com/special_report_new_cars_in_thailand_2019_2022/

[MatteoBassini]

Big discounts are only offered on outgoing models or models that sell really badly.

 

Cars such as the Nissan Teana, you can easily get 300k discount off the top trim level as they're already offering 200k discount without even asking.

If there are still unsold G9 Accords you can also get pretty good deals on them because the G10 Accord was released. Last I heard someone was getting 400k discount off the G9 Accord Hybrid.

[cracker1]

You are most unlikely to get any discount when paying cash for a car in Thailand.

The dealers make far better profits from Finance Companies when they finance Hire Purchase deals.

Add-ons are a different deal and by playing one dealership against another you can do very well.

[scorecard]

22 hours ago, transam said:

Pot luck, plus they don't really like cash cos they lose a bonus payment..

True, when the dealership generates a car loan on behalf of the bank / finance company etc., the dealership gets a sizeable commission. Same in many countries. 

 

Here's a twist of this, 10 years back my Thai nephew in Chayaphum saved enough cash to buy a new motorcycle, cash on the spot, from memory about 40,000Baht.

 

The local dealership said 'cannot' accept your cash full payment, it's illegal, the government have a policy that you have to pay a deposit and then pay it off, that's the law.

 

Naive nephew complied. Friends / family told him it's all bullxxxx, but the dealer concerned was the village chief, quite powerful and ruthless, all agreed better to not challenge him.  

[Tuvoc]

6 minutes ago, cracker1 said:

You are most unlikely to get any discount when paying cash for a car in Thailand.

 

Totally different from the UK then. It is just as well I asked !

Edited June 23, 2019 by Tuvoc

[essox essox]

NO DISCOUT whatsoever here end of story.....

[BobBKK]

Zero selling you the financing of loans to buy helps his profit margin. Why would you think cash helps?

[Tuvoc]

Just now, BobBKK said:

Zero selling you the financing of loans to buy helps his profit margin. Why would you think cash helps?

 

Because in the UK you do get substantial discounts.

[scorecard]

14 hours ago, DavisH said:

Servicing and parts are generally much cheaper than that overseas, so the higher cost of the car here becomes less important over time. Toyota and honda here have very good resale value as well. A 10-12 year old fortuner sells for 500K baht or so, for example. 

Another factor is the labour costs for servicing or repairs, in LOS a fraction of the cost of most western countries.

[Brer]

I just ordered a new updated Honda BRV, the retail price was 835000 baht, as my wife’s daughter works for Honda we got a special price of 800000 baht plus 1000 baht given back for petrol.

No other extras given because of the special price, my understanding is you won’t get to many places discounting as the way they come across is you can afford it if you finance and pay back over seven years or so. 

There is no harm in trying you might get a few extras thrown in though.

Its also about a seven week wait for the car, it should be arriving mid July.

The dealerships don’t seem to carry much stock, not like walk in today and drive away tomorrow which you can almost do in Australia.

[LOS14]

Any chance of getting a cash discount on a Yaris? I noticed some of the models don’t have spare wheels. What happens if you have a flat tyre in the middle of nowhere? 

[bronzedude]

hahaha! Thai auto dealers don't understand the concept of "discount." I've bought 2 new vehicles in the last 10 years and not a baht off the sticker price. Although, I like the poster who put down the cash and let them look at it. I think the next time I'll do that and see what happens. Also, I'll be prepared to walk out the door if they don't bite. 

[Sydebolle]

No discount, except if you tell them, that you do not need a receipt for the full amount (so they can cook the books on the revenue). 

The finance companies cover 90% of all car purchases; hardly any Thai buys a car cash (unless it is "tax free money"). The salesman or the dealership gets a kick-back by the finance company for each and every financing contract which eliminates the dealerships interest in selling cash to you as they get the cash anyhow by the finance company, a kick-back and the customer is happy to drive away with a car he actually could never afford if cash would be king.