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Auction Company Gears Up For Jump In Seized Vehicles Amid Spike In Defaults


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AMID a spike in non-performing loans (NPLs) and risky debts with this likely leading to an increase in seized vehicles Union Auction Plc (AUCT) has now joined hands with garages to increase their lots to cope with the upcoming influx, Matichon newspaper said this evening (June 28).

 

Mr. Waranyu Sila, AUCT’s CEO, said despite the National Credit Bureau having said that car hire purchase loan default is expected to jump leading to 1 million vehicles being seized over four months, this is unlikely to soar this rapidly from an annual total of around 200,000 vehicles because finance companies tend to offer debt restructuring plans to defaulting clients.

 

Moreover this big a spike would impact the overall auto industry as it would lead to prices of new vehicles falling while having a wide effect on the national economy.

 

by TNR Staff

Top photo: Some parked used cars. Photo: Thai Rath

 

#news

Full story: https://thainewsroom.com/2023/06/28/auction-company-gears-up-for-jump-in-seized-vehicles-amid-spike-in-defaults/

 

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-- © Copyright  THAI NEWSROOM 2023-06-29

 

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53 minutes ago, VinnieK said:

My take...a glut of second hand vehicles won't mean a drop in prices (used or new)

Thai logic.

If anything,they might even raise prices ????

It used to mean some good prices at auctions with banks getting rid of reclaims. 

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2 hours ago, edwinchester said:

Thai bank lending is a mess. Wifey and I asked for a loan to buy a new car recently. I can get a better rate on my savings elsewhere than the loan rate so it makes sense. My pension is twice the married man's as demanded by Immigration and wifey has a million bht deposited at the bank. We were turned down. One of wifeys friends recently got a loan on a new pick-up. Their a teaching asst earning 9k a month and their repayments are 7k a month......insane.

Lending criteria here is without logic and will vary from one retailer to another . Not sure if there is a credit rating in Thailand . As an e.g. in the UK , big brother / credit agencies will have access to your finances and financial history and that info is openly available to lenders . However Thai lenders are keen to lend to government employees and the teaching profession , without doing a means test . My ladies sister is a teacher and her husband is a head teacher . They are mortgaged and c.c. debts to the hilt . They do not think about tomorrow . I suggest you approach another dealership because you appear to be financially secure and a safe lending risk .

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1 minute ago, superal said:

Lending criteria here is without logic and will vary from one retailer to another . Not sure if there is a credit rating in Thailand . As an e.g. in the UK , big brother / credit agencies will have access to your finances and financial history and that info is openly available to lenders . However Thai lenders are keen to lend to government employees and the teaching profession , without doing a means test . My ladies sister is a teacher and her husband is a head teacher . They are mortgaged and c.c. debts to the hilt . They do not think about tomorrow . I suggest you approach another dealership because you appear to be financially secure and a safe lending risk .

Too late I'm afraid, I went back and paid cash.

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37 minutes ago, edwinchester said:

Too late I'm afraid, I went back and paid cash.

Any details of make/model and discounts ? No logic business as they normally prefer finance as they get commission .  Well done for your perseverance

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4 hours ago, jcmj said:

Well, when you give the Thais a money incentive to buy, when they really can’t afford it, what do they expect? 

Well some could have afford it if the government wouldn't have done lockdowns...

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3 hours ago, edwinchester said:

Thai bank lending is a mess. Wifey and I asked for a loan to buy a new car recently. I can get a better rate on my savings elsewhere than the loan rate so it makes sense. My pension is twice the married man's as demanded by Immigration and wifey has a million bht deposited at the bank. We were turned down. One of wifeys friends recently got a loan on a new pick-up. Their a teaching asst earning 9k a month and their repayments are 7k a month......insane.

My wife....not much money on the bank account....they kicked in the door to give her some millions in credits, just because we paid back the loan we had on the company building in time. Luckily she is a smart one and turned it down. But I would like to see the regular Thai turning down a million....or recently 2 million credit line....you pay only for how much you are in the minus.....Sounds good but is a slippery slope, if you don't have discipline.

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18 minutes ago, ChipButty said:

Over the years i have many offers to take over the finance from Thai's I never took them up on it, 

why? Service issues?

Second hand purchases in Thailand are a big questions....I know a turbo diesel who only got a engine oil that cost 30 Baht per liter.....I don't know what this is and what doggy source......but it survived the owner

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4 hours ago, edwinchester said:

Thai bank lending is a mess. Wifey and I asked for a loan to buy a new car recently. I can get a better rate on my savings elsewhere than the loan rate so it makes sense. My pension is twice the married man's as demanded by Immigration and wifey has a million bht deposited at the bank. We were turned down. One of wifeys friends recently got a loan on a new pick-up. Their a teaching asst earning 9k a month and their repayments are 7k a month......insane.

We were turned down......Because YOU Are an ALIEN ( Farang )

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1 hour ago, brianthainess said:

Dealers don't like cash purchases, they like the profits they make on HP  .... IMO also they give crap deals on trade ins, 

I was offered 160k trade in on a car that my insurance value at 300k. 

Me Too,I Was Offered 100,000 For my 20 Year Old Mitsu G Wagon with only 154k Kilos on it,Hardly Run-In for a Diesel,I Reckon a TRUE Trade in Price would've been Nearer 300,000 Baht as it's in Immaculate Condition Body Wise & Drives like a Dream.....

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2 hours ago, Nong Khai Man said:

We were turned down......Because YOU Are an ALIEN ( Farang )

Probably true. Neither wifey or myself work and the bank wanted to see my work permit. Retirement and pension, however big, seemed a big no.

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