Economic Struggles Slow Down Used Car Market

[snoop1130]

 

Used car dealers in Chiang Mai are battling to stay open in the face of severe economic challenges and escalating price wars amid electric and gasoline vehicles. Due to these conditions leading to an increase of repossessed cars and stricter lending, the used car market continues to suffer. Numerous dealerships have had to close down, while others are trying to remain operational by selling vehicles at a notable loss. However, consumers could potentially benefit from this situation.

 

Multiple Chiang Mai car dealerships have had to either shut down or downsize due to the economic challenges and the ongoing price competition between new electric vehicles and traditional gas cars.

 

Teerapat Phisut, a Chiang Mai used car dealer, noted that this period is been the most difficult in his 25-year career. He further explained that he's been forced to sell cars at a huge loss to minimize his inventory and ensure sufficient cash flow. He has also introduced incentives like zero down payments, two-year warranties, and 24-hour emergency assistance. Promising clientele can even get cashback deals.

 

Workers at various Chiang Mai used car dealerships are broadcasting sales pitches live and offering numerous promotions and services to draw in customers. Despite these attempts, the used car market in Chiang Mai remains dull.

 

 

Similar sentiments were echoed by Boonthanom Phisut, the head of the Chiang Mai Used Car Dealers Association. He compared the current business environment to a boxer on the ropes, battered by difficult economic conditions, a rise in repossessed cars, stricter financing, and fierce pricing competition from new electric and gasoline vehicles. Only about 10% to 20% of customers pass the financing checks, and the fluctuating prices of used cars further complicate sales.

 

While this is a challenging situation for dealers, it could be a great opportunity for consumers with purchasing power. Many buyers are discovering top-quality used cars at greatly lowered prices.

 

The struggles faced by used car dealerships mirror deeper trends in Thailand's car market, including the increasing market share of electric vehicles. As Thai consumers grapple with reduced income and mounting debt, the effects spread throughout the whole economy, pressuring businesses in all sectors to adapt to survive.

 

File photo for reference only

 

-- 2024-07-08

 

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[edwinchester]

Simple, nobody's got any spare cash and the banks don't want to lend anyone.

[Snackbar]

Dragging two tons of steel wherever you go is madness

[hotchilli]

15 hours ago, snoop1130 said:

. Numerous dealerships have had to close down, while others are trying to remain operational by selling vehicles at a notable loss. However, consumers could potentially benefit from this situation.

The used car market it heavily overpriced....

[Pouatchee]

IT is alleged the tents are used for laundering money. They usually are overpriced by a lot. We were shopping for a suzuki swift and all the tents were selling 8 year old models for 300k-400k. For the new model 620k. Considering thr price difference it was a no brainer...

 

If the cars were listed at their actual value with the expdcted dealer mark up it would be win win for everyone

[spidermike007]

The economy is just starting to show signs of distress, both here and overseas, and the extent of the upcoming correction is going to be massive. The vast majority of people just do not see it coming. I talk to people about stock picks and they have no concept of what's coming, and yet people as conservative as Warren Buffett are predicting a 40% drop in the DOW within the next 6 months, and have cashed out. That's how bad things are and that's how overblown and over inflated the economy has become. 

 

Get ready. Have as much cash handy as possible. 

[Kaopad999]

On 7/9/2024 at 7:13 AM, hotchilli said:

The used car market it heavily overpriced....

Yes, and especially at these larger used dealerships.

[oxo1947]

 

The Auctions are always a good choice...........................