Second-hand tsunami: Used car flood drives Thai sellers to despair

[webfact]

A torrent of high-quality used cars flooding the market might sound like a bargain hunter’s dream but it’s turning into a nightmare for sellers. While buyers drive off with the deals, automakers in Thailand are hitting potholes trying to move new stock, and used car dealers are struggling to keep sales engines running.

 

The second-hand car market skidded to a halt in the first half of 2024, and though industry insiders hope for a slight uptick, forecasts for 2025 already look like a car crash waiting to happen. The number of repossessed cars zooming past 200,000 this year is only adding fuel to the fire.

 

This gluttony of gleaming motors should be a seller’s paradise, but with sales from January to June faltering, dealers are strapped for cash to snap up these unwanted wheels. Many of these repossessed rides are in mint condition, with banks and finance companies barely getting the keys back before throwing them on the auction block.

But it’s not all smooth driving. High interest rates on second-hand auto loans and sagging consumer buying power are deflating any chance at higher resale prices, says Vithavat Thongves of the Federation

“We are monitoring car seizures, which keep increasing this year amid the economic slowdown that has lasted for months.”

 

The year 2023 saw a jaw-dropping 250,000 vehicles seized, a stark contrast to the usual 150,000 to 180,000 in healthier times, according to recent figures.

 

An electric vehicle charges at the Fast Auto Show Thailand, picture courtesy of Bangkok Post

Yuphin has pointed out that most of these impounded rides are trusty pickups, typically owned by small business operators hit hard by financial woes.

 

“It’s the small businesses, the SMEs, still reeling from the pandemic and current economic slump, struggling to stay afloat with little liquidity.”

 

As if things couldn’t get worse, used car dealers have been forced into a brutal price-cutting frenzy akin to the electric vehicle (EV) market price war. The oversupply glut in the used car market has forced many sellers to slash prices just to get customers through the door. Naturally, the longer these motors sit unsold, the more their value nosedives, according to the club.

 

Pinyo Tanawatcharaporn, head honcho of used car outfit Yo Ratchada and former president of the Association of Used Cars, added that the EV price war is making matters worse.

 

“The used car market had never been in crisis until Chinese EV makers became powerful players in the global and Thai markets. They are causing disruptions to the automotive industry and its supply chains.”

Some Chinese EV manufacturers have slashed car prices to attract customers, with discounts reaching up to 100,000 baht, said Pinyo. Falling prices have led prospective buyers to delay their purchases, waiting to see if prices will drop further, he explained.

 

Investment return

 

In July, EV Primus Co, a local distributor of EVs under multiple brands, including Chinese marque Wuling, launched the compact sedan EV Wuling Binguo in Bangkok for less than 500,000 baht, said EV Primus chief executive Pitaya Tanadamrongsak.

 

“The retail price was set following a joint discussion between SGMW and my company, which expects to receive an appropriate investment return. This is not a price war.”

 

SGMW, which stands for SAIC-GM-Wuling, manufactures Wuling vehicles. Pitaya mentioned that companies could sell EVs at low prices due to the reduced cost of lithium-ion batteries, a key EV component, now priced at 100,000 baht. Cheaper auto parts enable manufacturers to offer more competitive prices.

“We will not participate in a price war or price dumping. We have chosen to give our customers the best price since day one.”

 

Zeekr Intelligent Technology, a Chinese EV maker under the Zeekr brand, stated it would not engage in price-cutting tactics to avoid damaging the reputation of Chinese EVs and eroding consumer trust. The company intends to market its Zeekr X compact electric sports utility vehicles to the luxury segment, said Bao Zhuangfei, head of Zeekr’s Southeast Asia region.

 

The Electric Vehicle Association of Thailand (EVAT) is closely monitoring EV price trends in the country.

 

Chinese companies

 

Former EVAT president Krisda Utamote acknowledged that the decrease in new EV prices impacts second-hand EV sales, but expects the effect to be short-lived.

 

He attributed the lower prices of new EVs to some Chinese firms’ efforts to reduce their stocks.

 

Prospects for used car sales are expected to improve in the second half of the year as buyers gain better access to auto loans, despite some ongoing challenges.

 

Financial service providers frequently reject loan applications due to high debt levels, fearing non-performing loans.

 

However, after discussions with the Association of Used Cars, finance companies may relax their lending criteria, said Vichai Suwanasilar, president of the association.

 

Financiers have agreed to approve more loan applications from used car buyers if the vehicle is certified by the association, which assists in screening used cars, Vichai explained.

 

Interest rates for used car loans range from 2.3% to 7%, according to the association, reported Bangkok Post.

 

Despite these financial relief measures, the impact of banks’ stricter lending criteria is expected to become more apparent next year, Vichai noted.

 

“A shortage of used cars is possible in the first and second quarters of 2025 due to this year’s sluggish new car sales. This scenario would result in fewer cars entering the used car market.”

 

by Bob Scott
TOP Picture courtesy of MotorwatThailand

 

Full story: The Thaiger 

-- 2024-09-03

 

 

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[brianthainess]

Such elegant writing, more puns than, Top gear............... 

[Tropicalevo]

1 minute ago, brianthainess said:

Such elegant writing, more puns than, Top gear............... 

A bit too over the top for my taste.

Six in the first two sentences. I stopped reading after that.

[brianthainess]

10 minutes ago, Tropicalevo said:

A bit too over the top for my taste.

Six in the first two sentences. I stopped reading after that.

I was being sarcastic. 

[OneMoreFarang]

If the price is right, then people buy 2nd hand cars. It's not really that difficult to understand. 

[KhunLA]

Definitely a buyer's market for vehicles now.  Been that way for the past 4 years, since covid and economic turn down.   Then along comes cheaper & better BEVs hitting the market with their own little price war.

 

Been peeking locally on FB Marketplace, as I do, and locally, so many bargains on vehicles, and some really low prices on the ICEVs listed.   Maybe jumping ship to a new BEV before the market completely collapses in 2nd hand ICEV sales.

 

Quite a few seem to be ready to upgrade their BEVs also, as surprising numbers of 2022/2023s models on sale.

 

Great time to be in the market for a new car.  Not so good if selling an old one.  Oh well, sh!t happens 

[daveAustin]

I’m sure they could squeeze some more adjectives in there if they tried. 

[CallumWK]

2 hours ago, OneMoreFarang said:

If the price is right, then people buy 2nd hand cars. It's not really that difficult to understand. 

 

But have you ever seen that logic in Thailand?

 

I just went looking for a second hand Navara. The top model cost 1.175.000 Bht NEW

 

 

2 year old models from that model are sold at the same price by Nissan. What you expect?

 

https://www.nic-usedcars.nissan.co.th/en/home

 

 

 

Edited September 3 by CallumWK

[OneMoreFarang]

8 minutes ago, CallumWK said:

 

But have you ever seen that logic in Thailand?

 

I just went looking for a second hand Navara. The top model cost 1.175.000 Bht NEW

 

 

2 year old models from that model are sold at the same price by Nissan. What you expect?

 

https://www.nic-usedcars.nissan.co.th/en/home

 

 

 

 

This one sounds definitely interesting. 😉 

 

Edited September 3 by OneMoreFarang

[brianthainess]

58 minutes ago, CallumWK said:

 

But have you ever seen that logic in Thailand?

 

I just went looking for a second hand Navara. The top model cost 1.175.000 Bht NEW

 

 

2 year old models from that model are sold at the same price by Nissan. What you expect?

 

https://www.nic-usedcars.nissan.co.th/en/home

 

 

 

Just go for the lowest KM would be my advise, 

[spidermike007]

The economy here is in very rough shape. Alot of people are pulling back and spending less. 

Thailand might have been the tiger of SE Asia a decade or so ago, having been the 22nd largest economy in the world, but those days are long gone. So, I would say it would be safe to refer to Thailand as an up and coming country, these days. Assuming they can get it together, and put things back on track, which I seriously doubt will happen, I would not be surprised to see Thailand in 75th place in terms of GDP, 20 years from now. There is absolutely no doubt the nation is moving backwards, on at least a dozen levels. And unless a dynamic leader like Thanathorn or Pita is allowed to head the nation,  the great tiger will continue to devolve into a whiny little street cat. 

 

The people need to take action and rid themselves of the goons. ASAP. Whatever it takes. The economy is in the toilet. No hope in sight. And no plan of action from the retrograde brigade. They are in so far over their heads. If only they would man up and admit it. And with the heinous CCP subsidies, it is harder for Thai industry to compete. 

 

Kasikornbank is correct. These goons have succeeded in sabotaging the nation on a dozen levels. They have turned the roaring tiger of SE Asia into a whiny, anemic, weak, broke, frail, infirm, paranoid, timid, fragile, rabid, sickly, alley cat type creature. A once important and vital industry reduced to ashes. 

[Caldera]

No surprises there, many people bought cars they can't really afford.

[Lacessit]

My auto mechanic pointed out a vehicle carrier near his house in Chiang Rai loaded with vehicles. He said every day, there are one or more of the carriers heading back to Bangkok with repossessed vehicles. Many looked almost brand new.

 

Many Thais are up to their eyeballs in debt, due to the obsession with buying new. If they said the hell with face, and bought secondhand within their capacity to repay, they would not be having these problems.

[koolkarl]

Astute people leaving Thailand due to big changes coming to tax laws, ie. CRS.

[khunano]

1 hour ago, Caldera said:

No surprises there, many people bought cars they can't really afford.

Indeed, and they always have. The mantra being here: If you can afford a bicycle, buy a motorbike, if you can afford a motorbike, buy a car! 

[richard_smith237]

5 hours ago, KhunLA said:

Maybe jumping ship to a new BEV before the market completely collapses in 2nd hand ICEV sales.

 

Unless the market for 2nd hand EV’s collapses - after the end of your battery warrant who wants a car that is worthless if the battery cost more to replace the value if a car ??? 
 

… of course, that’s loaded with assumption, just as your bias is towards the collapse of a 2nd hand ICE market. 
 

 

Also - is there a growing shift towards hydrogen fuel cell & biofuels ? 
 

 

There are huge environmental issues potentially facing us with the handling of expired car batteries & millions of tonnes of solar cells that are no longer efficient &  require disposal or recycling. 

 

My car chill likely be an EV - but I’m not as confident as you are of their longevity from a value perspective. 

 

 

[KhunLA]

12 minutes ago, richard_smith237 said:

Unless the market for 2nd hand EV’s collapses - after the end of your battery warrant who wants a car that is worthless if the battery cost more to replace the value if a car ??? 
.... don't see that happening, as they seem to be gaining in market share every year

 

… of course, that’s loaded with assumption, just as your bias is towards the collapse of a 2nd hand ICE market. 
... not really bias   more just how I'm reading the numbers, and common sense thinking of folks, realizing the value & savings.  More as the see friends & family going BEVs.   As the word spreads ...

 

Also - is there a growing shift towards hydrogen fuel cell & biofuels ? 
 ... definitely not seeing that for personal vehicles.  30+ of R&D and still no market for them.   

 

There are huge environmental issues potentially facing us with the handling of expired car batteries & millions of tonnes of solar cells that are no longer efficient &  require disposal or recycling. 

... I would think there will be a huge 'repurpose' market for batteries & motors outlasting the rest of the, or value of.  

My car chill likely be an EV - but I’m not as confident as you are of their longevity from a value perspective. 

... they almost pay for themselves, especially if you have solar.

 

[PETERTHEEATER]

3 hours ago, OneMoreFarang said:

 

This one sounds definitely interesting. 😉 

 

The load capacity of 190 cubic centimetres is a bit low😋

[Muhendis]

In UK second hand car showrooms, all second hand cars have the price displayed on the windscreen so you can easily see if it is affordable.

Why don't they do this here in Thailand?

[OneMoreFarang]

35 minutes ago, PETERTHEEATER said:

The load capacity of 190 cubic centimetres is a bit low😋

With a 3,124 HP engine and an adequate tank, there is not much space for anything else anymore. 

[JBChiangRai]

1 hour ago, richard_smith237 said:

 

Unless the market for 2nd hand EV’s collapses - after the end of your battery warrant who wants a car that is worthless if the battery cost more to replace the value if a car ??? 
 

… of course, that’s loaded with assumption, just as your bias is towards the collapse of a 2nd hand ICE market. 
 

 

Also - is there a growing shift towards hydrogen fuel cell & biofuels ? 
 

 

There are huge environmental issues potentially facing us with the handling of expired car batteries & millions of tonnes of solar cells that are no longer efficient &  require disposal or recycling. 

 

My car chill likely be an EV - but I’m not as confident as you are of their longevity from a value perspective. 

 

 

 

There is NOT a growing shift towards hydrogen fuel cells, there is a growing shift AWAY from hydrogen fuel cells.

 

Tried it in Norway, it failed.

 

Tried in California, it failed.

 

Tried it in the UK, it failed.

[richard_smith237]

32 minutes ago, JBChiangRai said:

 

There is NOT a growing shift towards hydrogen fuel cells, there is a growing shift AWAY from hydrogen fuel cells.

 

Tried it in Norway, it failed.

 

Tried in California, it failed.

 

Tried it in the UK, it failed.

I’m not so sure - there seems to be  new shift in focus again - certainly in Japan which seems to be pushing hydrogen once again.

 

Japan also pushing biofuels. 
 

 

[richard_smith237]

1 hour ago, KhunLA said:

Unless the market for 2nd hand EV’s collapses - after the end of your battery warrant who wants a car that is worthless if the battery cost more to replace the value if a car ??? 
.... don't see that happening, as they seem to be gaining in market share every year

 

… of course, that’s loaded with assumption, just as your bias is towards the collapse of a 2nd hand ICE market. 
... not really bias   more just how I'm reading the numbers, and common sense thinking of folks, realizing the value & savings.  More as the see friends & family going BEVs.   As the word spreads ...

 

Also - is there a growing shift towards hydrogen fuel cell & biofuels ? 
 ... definitely not seeing that for personal vehicles.  30+ of R&D and still no market for them.   

 

There are huge environmental issues potentially facing us with the handling of expired car batteries & millions of tonnes of solar cells that are no longer efficient &  require disposal or recycling. 

... I would think there will be a huge 'repurpose' market for batteries & motors outlasting the rest of the, or value of.  

My car chill likely be an EV - but I’m not as confident as you are of their longevity from a value perspective. 

... they almost pay for themselves, especially if you have solar.

Decent responses… it will be interesting to see how a lot of this plays out but can’t help think that a lot of this has been politicized to such a degree we may not have the best option and see increasing interest from others parties towards H2 & biofuels… 

 

 

[JBChiangRai]

1 minute ago, richard_smith237 said:

I’m not so sure - there seems to be  new shift in focus again - certainly in Japan which seems to be pushing hydrogen once again.

 

Japan also pushing biofuels. 
 

 

 

There are class action lawsuits everywhere Hydrogen has been trialed for passenger cars.

 

One of the biggest problems is at the filling station, each pump can only carry enough hydrogen for about 50 cars.  The UK, Norway & the USA are shutting sown most of their hydrogen fuel stations.

 

Japan can't be trusted, they left EV too late and are now just spreading disinformation.

 

I believe we may see hydrogen vehicles, long distance haulage and if there is a lithium shortage possibly a two-tier strategy with hydrogen cars.

 

Expensive EV's that are cheap to run

Cheap HFCEV's that are expensive to run

 

I think we will also see cheap city EV cars with shorter range and Sodium batteries.

[Cameroni]

 

2 hours ago, richard_smith237 said:

Also - is there a growing shift towards hydrogen fuel cell & biofuels

 

Yes, there very much is. The scale of hydrogen production is increasing massively leading to lower prices.

 

https://pubs.rsc.org/en/content/articlehtml/2024/se/d4se00137k#:~:text=Moreover%2C it is important to,are used as a reference.

[Cameroni]

3 minutes ago, JBChiangRai said:

Japan can't be trusted, they left EV too late and are now just spreading disinformation.

 

That's of course complete nonsense. Toyota is not spreading "disinformation". Toyota, BMW, Hyundai, Kawasaki and Yamaha have joined forces and are investing billions in the future production of hydrogen cars. Their factories are already subsidised by the UK government.

 

To try and pretend Toyota's drive for the hydrogen car is just a "disinformation" campaign is frankly just silly.

[JBChiangRai]

2 minutes ago, Cameroni said:

 

That's of course complete nonsense. Toyota is not spreading "disinformation". Toyota, BMW, Hyundai, Kawasaki and Yamaha have joined forces and are investing billions in the future production of hydrogen cars. Their factories are already subsidised by the UK government.

 

To try and pretend Toyota's drive for the hydrogen car is just a "disinformation" campaign is frankly just silly.

 

There are over 300 Toyota Mirai drivers in California suing Toyota for misinformation about their cars and network.

 

They want their money back.

 

HFCEV trials have failed in every country.

 

Tried it in Norway, it failed.

Tried in California, it failed.

Tried it in the UK, it failed

 

Nobody wants expensive to run HFCEV's.  

 

[Cameroni]

Just now, JBChiangRai said:

 

There are over 300 Toyota Mirai drivers in California suing Toyota for misinformation about their cars and network.

 

They want their money back.

 

HFCEV trials have failed in every country.

 

Tried it in Norway, it failed.

Tried in California, it failed.

Tried it in the UK, it failed

 

Nobody wants expensive to run HFCEV's.  

 

 

Lol, the Mirai was just like a Nokia phone of the first generation, a first try. Obviously the future hydrogen cars will be far better. It has been very useful actually the Mirai showed what issues could arise with the hydrogen car. You can see from this that it flatly denies your argument that the drive for the hydrogen car is just a "disinformation" campaign. Toyota has for a long time been involved in researching and developing hydrogen cars. They actually began in 1992, long before EVs were a real thing.

 

So clearly their development of hydrogen cars is in no way "because they missed the boat" with EVs. That in fact, is "disinformation".

[richard_smith237]

I think a lot of the issue with Taichung discussions is that people become too invested in there angle towards the discussion into the fray.

 

300 Mirai drivers suing Toyota is insignificant & hardly slowing Japans appetite for a better solution. 

[JBChiangRai]

Toyota missed the boat because of their CEO at the time Akio Toyoda (now Chairman) who was violently opposed to EV's.  Whilst it's true to say they invested very early on, they also invested very early on in every technology including Ammonia.

 

Only this year Akio Toyoda said EV's would never achieve more than 30% new vehicle market share.  In China last month it reached 55%.

 

There are reports indicating that Japanese automakers, particularly Toyota, have been involved in spreading disinformation about electric vehicles (EVs). A report by InfluenceMap highlights that many major car companies, including those from Japan, are actively working against the transition to EVs. The report specifically mentions that Japanese automakers are among the most active in lobbying against stringent climate policies and promoting hybrid vehicles over fully electric ones.

 

Additionally, there have been instances where Toyota has been accused of spreading anti-EV propaganda within Japan, including distributing materials that favor hybrids and downplay the benefits of EVs.

The InfluenceMap report is behind a registration wall, it is entitled 

Automakers and Climate Policy Advocacy:

A Global Analysis

How automaker lobbying threatens the global transition to electric vehicles

Nearly all major car companies are sabotaging EV transition, and Japan is worst, study finds (thedriven.io)

How Toyota sneakily spreads anti-EV propaganda in Japan | Electrek

How Japan's Auto Industry Became Two Factions To Survive The EV War (insideevs.com)