Anyone notices used car shops overflowing with stock?

[dahagla]

Drove through the country twice recently and could see, that every single car dealer seems to be having an overhang in stock. New second hand dealers are popping up like mushrooms after a warm summer rain.
But the really weird thing is, that the prices seem to go up despite that. Is this a sign, that the private debt bubble is about to burst?

Edited December 14, 2021 by dahagla

[berrec]

[4MyEgo]

Thai buyers don't really care about the price and the dealers take advantage of that as they mostly buy on finance with rates low at the moment, so it's a win/win for the dealers.

 

When your a cash buyer price is everything in the deal and not many cashed up buyers at the moment.

 

Cash is still King IMO.

[GreasyFingers]

On 12/14/2021 at 10:01 PM, dahagla said:

Drove through the country twice recently and could see, that every single car dealer seems to be having an overhang in stock. New second hand dealers are popping up like mushrooms after a warm summer rain.

Yes, in Phetchabun province.

[snowgard]

The auction lists be longer & longer!!!

http://www.auct.co.th/home.php

https://www.mottoauction.com/home/main

https://home.sia.co.th/

 

 

[userabcd]

Along Sukhumvit noticed one of the 2nd hand car dealership lot was full of vehicles.

 

Not 2nd hand, but was in Imperial world a few days ago and they had a car show on and about 6 sales tables were fully occupied with salesmen selling cars.

 

It seems there is still big interest and no restraint on buying expensive new stuff.

[OneMoreFarang]

On 12/14/2021 at 10:01 PM, dahagla said:

Is this a sign, that

It is Thailand. Don't try to find any logic where there is no logic.

[dahagla]

Great chart, thanks! I assume "Total vehicle sales" does not include used cars. Anyway, trend is pointing downwards...
While the situation in the US is understandable (low inventory, markups on new vehicle prices), we seem to have higher used car stocks here and no increase in new car prices. Still used market points up. Makes no sense to me.

I once read, that high second hand car stocks on one side and many new luxury cars on the road are an inevitable sign of a bubble to burst soon. We see this exact situation here now.
I agree, cash in king in times like this - maybe even better gold....
 

5 hours ago, berrec said:

[dahagla]

6 minutes ago, OneMoreFarang said:

It is Thailand. Don't try to find any logic where there is no logic.

Even here market forces are at work.... eventually ????

[OneMoreFarang]

3 hours ago, dahagla said:

Even here market forces are at work.... eventually ????

That is like saying there is supply and demand.

Yes, there is. But that doesn't mean there must be a logical connection between them.

[AustinRacing]

11 hours ago, 4MyEgo said:

Thai buyers don't really care about the price and the dealers take advantage of that as they mostly buy on finance with rates low at the moment, so it's a win/win for the dealers.

 

When your a cash buyer price is everything in the deal and not many cashed up buyers at the moment.

 

Cash is still King IMO.

Not quite right when it comes to used car in Thailand. In fact dealers prefer finance over outright cash purchases. That is why you usually cannot bargain with the salesperson. 

[ThailandRyan]

Folks are dumping their cars in order to buy new ones.  There are so many new red plated cars driving around in Bangkok I keep asking myself where the money is coming from, especially with Covids hit....

[StayinThailand2much]

On 12/14/2021 at 10:01 PM, dahagla said:

But the really weird thing is, that the prices seem to go up despite that.

Not weird according to Thai logic. If sales are down by half, just double prices to remedy the situation. If still no sales, blame everything/-one but yourself. If nothing helps, just buy lottery tickets and hope for the best...

[4MyEgo]

15 hours ago, AustinRacing said:

Not quite right when it comes to used car in Thailand. In fact dealers prefer finance over outright cash purchases. That is why you usually cannot bargain with the salesperson. 

It's all in the margins and the more stock they hold, the more it's costing them.

 

Never had a dealer knock back a negotiation, new or used car, just depends on your negotiation skills and of course there is more meat on the bone if they sold the car with finance and insurance, but like I said, it costs to hold stock and when are more second hand dealers propping up, competition is ripe.

 

Most Thai's are not cash buyers as I said.

 

[AustinRacing]

4 hours ago, 4MyEgo said:

It's all in the margins and the more stock they hold, the more it's costing them.

 

Never had a dealer knock back a negotiation, new or used car, just depends on your negotiation skills and of course there is more meat on the bone if they sold the car with finance and insurance, but like I said, it costs to hold stock and when are more second hand dealers propping up, competition is ripe.

 

Most Thai's are not cash buyers as I said.

 

When I was in the market for a second hand cars I tried negotiating with lots of dealers. Non were interested. So I bought a new car. The only negotiation I could do was the accessories. Price and finance are fixed by the head office.  

[4MyEgo]

7 minutes ago, AustinRacing said:

Price and finance are fixed by the head office.  

Cash is King, and there is always someone who will drop their pants, particularly the new car market.

 

The prices are controlled by the manager/owner of the dealership, usually a franchise with the car manufacturer having a foot in the door, i.e. set up costs etc.

 

Edited December 17, 2021 by 4MyEgo

[AustinRacing]

2 hours ago, 4MyEgo said:

Cash is King, and there is always someone who will drop their pants, particularly the new car market.

 

The prices are controlled by the manager/owner of the dealership, usually a franchise with the car manufacturer having a foot in the door, i.e. set up costs etc.

 

That hasn’t been my experience and research dealing with them. I can only go by facts. 

[4MyEgo]

36 minutes ago, AustinRacing said:

That hasn’t been my experience and research dealing with them. I can only go by facts. 

Everyone's experiences are different, for me, like I said, it's cash is King.

[Adumbration]

Price of second hand motorbikes has definitely plummeted here in the south close to Phuket.  I have kept a close eye on prices over the last decade.  Even an old click was always 15K up.  Newer one 25K up.  Now they are selling sub 10K.  

 

There is a new used bike dealer opened in my village.  He has at least a hundred bikes in stock now.  He was trucking them in weekly from Phuket.  But they are not selling because no one has any money.  I actually went in there a few days ago to check out price of new sidecar.

 

Had three guys chasing me around the shop.  Jumping on the sidecar and extolling how well built it was and its superior design....blah blah blah.  Never seen a hard sell that that before in LOS.  Must be desperate for a sale.

 

And yes every space bit of space in Phuket now has a used car lot on it.

 

Oh and I also am very good friends with the Thai chap that owns the Honda dealership here in Town.  He told me in confidence that he is very close to going bust.  He said the market is just absolutely saturated with second hand bikes and bargain prices.  I noticed that he has lost a great deal of weight this year.  I was worried in was cancer or the like but looks like just stress from his business.

[dahagla]

The interesting question for me is the following: is this saturated car market an indicator for bad loans going up and therefore putting pressure on banks? Once the banks loose patience second hand vehicle prices are probably going down by 50% or thereabouts...