Virus wipes 25% off auto dealers’ revenue

By THE NATION

 

 

The Covid-19 crisis has hit the automobile market hard, wiping around 25 per cent off dealers’ revenue, according to Krungthai Bank’s Compass research centre.

 

Phacharaphot Nuntramas, the centre’s senior director, said that total auto sales this year would shrink at a high rate, after people’s purchasing power reduced sharply. Total sales this year will be 620,000, a drop of 38.2 per cent from last year, the centre estimates – though that figure could fall as far as 570,000 in the worst-case scenario.

 

The research centre predicted that sales would reach 1 million in 2021, but if a second wave of coronavirus spreads in Thailand, the market would take around two to five years to recover.

 

Kanit Umsakul, a Krungthai Compass analyst, added that revenue of auto dealers would fall by 25 per cent, causing the sector to shrink 4.8 per cent against its normal 1 to 1.2 per cent growth.

 

Source: https://www.nationthailand.com/news/30393162

 

-- © Copyright The Nation Thailand 2020-08-19

 

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25% sounds pretty good considering.  It will probably get worse before it gets better 

why don't they just quote actual up to date figures, instead of looking into a cloudy crystal ball.

Might be time for an upgrade, one of those Hyundai vans should be just right for the 6 of us, although I would imagine the 25% hit would also reflect on the sale of my second hand vehicle.

Edited August 19, 20205 yr by 4MyEgo

Yet...no discounts offered on anything....the Thai Auto Dealer method...if you can't sell anything...keep proces high and hope 

They could help themselves by offering much better deals; especially for cash.  New Cars are way overpriced in Thailand and secondhand are not even worth looking at !

Domestic sales are down over 50%, so there's a lot worse to come.

 

I really don't think they understand what is coming. The scale, the severity, the hardship. Thais still seem to have their heads in the sand as regards to the economic catastrophe that is currently underway. 

 

Now would be the worst ever time to purchase a new or second hand vehicle. In three or four months there will be so many non-performing loans the dealers will be begging for you to take them off their hands.

5 hours ago, webfact said:

Virus wipes 25% off auto dealers’ revenue

Wait for all the repossessions to start, the secondhand market will be flooded with cars. The new sales will plummet faster than Prayuts popularity..

6 minutes ago, hotchilli said:

Wait for all the repossessions to start, the secondhand market will be flooded with cars

Many with aftermarket mufflers and no maintenance records. I've looked at so many used cars that look great in the ad and when I arrive I realize that many Thais have no clue as to maintenance schedules , oil changes, and the like. I would always prefer to buy new here....just a dodgy secondhand market.

1 minute ago, tonray said:

Many with aftermarket mufflers and no maintenance records. I've looked at so many used cars that look great in the ad and when I arrive I realize that many Thais have no clue as to maintenance schedules , oil changes, and the like. I would always prefer to buy new here....just a dodgy secondhand market.

Absolutely.

 

As with literally everything here, there's no proper controls. 

Good - because Thailand has an excess of car ownership having 548 vehicles per 1,000, one of the highest in Asia, and most just being dirty diesel or poorly tuned petrol.  A few years of fewer cars, and a change to electric, wont hurt anyone other than the top tier of wealthy that own the fuel and car businesses. 

Wait for the 100,000k discount if owned for 3 years...worked last time...most dealers are now offering zero deposit, payments over 7 years

Went to a Toyota dealer in Pattaya last week to ask about new car pricing. Biggest discount she offered was 20,000 baht off the list price of a Corolla Altis, cash deal. I was shown a price list and told to choose a model from the list. I asked to see all the different models - answer - no have. I was the only customer in the showroom. 5 other employees at a desk played with their phones. I did get a baby bottle of water and brochure free. This is the way Thais do business.

 

In Canada and USA, they'd have me in the car of my choice within a minute (maybe not in my chosen colour). As quick as they could install the dealer plates onto the vehicle, I could have a test drive.

Edited August 19, 20205 yr by Banana7

8 minutes ago, baansgr said:

Wait for the 100,000k discount if owned for 3 years...worked last time...most dealers are now offering zero deposit, payments over 7 years

Did you check the interest rate? Usually it is 24-28% per annum.

As much as it would be nice to have fewer cars on the roads, unfortunately it is the single car family that is struggling - not those with four or five cars in the driveway.

True about the interest rate...when I bought my last car, I asked for a discount for cash.  I was looked at like I was from another planet.

Maybe the wrong thread for this but are new low end motorbikes such as Honda Wave or Click usually negotiable or do they sell off the price list?  Was also thinking of buying used from a dealer as they would handle all the paperwork.    If I were to buy privately, are there places that handle the paperwork for a small fee or would I need to go to a government office? 

1 hour ago, Mr Meeseeks said:

Domestic sales are down over 50%, so there's a lot worse to come.

 

I really don't think they understand what is coming. The scale, the severity, the hardship. Thais still seem to have their heads in the sand as regards to the economic catastrophe that is currently underway. 

 

Now would be the worst ever time to purchase a new or second hand vehicle. In three or four months there will be so many non-performing loans the dealers will be begging for you to take them off their hands.

The time has already come, I just bought a 2. hand Honda Jazz with 31.000 km on the clock for THB 300.000 only 2 years and 3 month old. Half price from new.

you think anyone in power will start to think, why the hell did we kill the economy for 58 dead?

 

30 billon baht of revenue lost per dead covid patient

2 hours ago, Jimbo2014 said:

Good - because Thailand has an excess of car ownership having 548 vehicles per 1,000, one of the highest in Asia, and most just being dirty diesel or poorly tuned petrol.  A few years of fewer cars, and a change to electric, wont hurt anyone other than the top tier of wealthy that own the fuel and car businesses. 

And auto parts manufacturers.

Its past time to go electric, but few choices in Thailand 

3 hours ago, baansgr said:

Wait for the 100,000k discount if owned for 3 years...worked last time...most dealers are now offering zero deposit, payments over 7 years

I waited 2 months for  my New Rocco , Toyota played gAmes , offered 0 % changed to 1.5 , 3 month no pay , took that away and 95,000 off was for last years model , the girl said they sell 500 cars a month now down to 200 but deals are scams , just walk away 

3 hours ago, perconrad said:

The time has already come, I just bought a 2. hand Honda Jazz with 31.000 km on the clock for THB 300.000 only 2 years and 3 month old. Half price from new.

Where did you get those? I am looking for a Toyota Altis 1.8 "V" 2017 or younger with less than 50K KM but the prices are still very high.

3 minutes ago, Banana7 said:

Where did you get those? I am looking for a Toyota Altis 1.8 "V" 2017 or younger with less than 50K KM but the prices are still very high.

I was looking for a small 2. hand pick up a Nissan Nv on FB. I'm getting older and taking the dog out for exercise on the Click is getting more dangerous. Then I saw the Jazz advertised on FB the owner needed fast cash. There are more groups on FB where you can see cars for sale. And now I have to learn my dog to sit in a car until now she don't like it in the Fortuner.

 

And for those who says that the yellow housebook and the pink Thai ID card are of no use I can inform that that the only ID for me that the Landtransport office wanted was my pink Thai ID card.

6 hours ago, 4MyEgo said:

Might be time for an upgrade, one of those Hyundai vans should be just right for the 6 of us, although I would imagine the 25% hit would also reflect on the sale of my second hand vehicle.

If you sell do it private. 2 years ago my 5 year old Everest 3.4 4x4 I was offered 250,000 from a dealer who was selling an older les spec model for a million. The lowest of the low, parasites.  I sold private for 650,000baht which I still thought low but was leaving Thailand.

3 hours ago, Bender Rodriguez said:

you think anyone in power will start to think, why the hell did we kill the economy for 58 dead?

 

30 billon baht of revenue lost per dead covid patient

Yeah...instead they could be thinking..."we killed the economy and still have 170,000 dead and counting"

41 minutes ago, perconrad said:

I'm getting older and taking the dog out for exercise on the Click is getting more dangerous.

I would have thought the dog would get more exercise if he walked instead of taking the bike...

5 hours ago, baansgr said:

Wait for the 100,000k discount if owned for 3 years...worked last time...most dealers are now offering zero deposit, payments over 7 years

hau mut?

4 hours ago, Banana7 said:

Did you check the interest rate? Usually it is 24-28% per annum.

no ploplem. Pay 1 or 2 months and they can pick car up.

16 minutes ago, tonray said:

I would have thought the dog would get more exercise if he walked instead of taking the bike...

Here where I live there are many dogs running around, so I can't walk with the dog in the neighbourhood it gets attacked all the time I have to drive a couple of kms out to the jungle, lakes, klongs and rice fields where we together spend time walking and running at least 5 km, that's me the dog Goldie a Golden Retriever get at least 10 km.

Edited August 19, 20205 yr by perconrad
Spelling error

36 minutes ago, Scot123 said:

If you sell do it private. 2 years ago my 5 year old Everest 3.4 4x4 I was offered 250,000 from a dealer who was selling an older les spec model for a million. The lowest of the low, parasites.  I sold private for 650,000baht which I still thought low but was leaving Thailand.

Yeh know how dealers work, brother was one for many years, but a good one, rare, but fair.