Explain These Crazy Used Car Prices Please.

[rixalex]

In the UK i think i'm about right in saying that a 3 to 4 year old car will have probably lost about 50% of its new price value. This obviously varies on the make model and how its been used, but in the main is about right. Although this level of depreciation might seem a little harsh, it's fair to say that the owner has more than likely had the best days of motoring out of the vehicle, and the person who buys it will most likely be having to foot some maintenance bills.

Here in Thailand, (again just my guess but i think fairly accurate) cars of 7 to 8 years in age might be reaching half of their new price value. A 3 to 4 year old car however might have only lost 20%. Whilst this is great news for people who buy new cars, and i certainly don't begrudge them getting what they can at market led prices, i can't for the life of me figure out who it is that buys these used cars. Especially when you bear in mind that a car's history here is all the more suspect, and if you are talking about a Bangkok car it's more than likely had a life of city driving with all that entails, i.e. short stop and start trips, and a few collisions for good measure.

So just who is it that buys these used cars, and why on earth don't they pay a little more and get a new one?

[qualtrough]

In the UK i think i'm about right in saying that a 3 to 4 year old car will have probably lost about 50% of its new price value. This obviously varies on the make model and how its been used, but in the main is about right. Although this level of depreciation might seem a little harsh, it's fair to say that the owner has more than likely had the best days of motoring out of the vehicle, and the person who buys it will most likely be having to foot some maintenance bills.

Here in Thailand, (again just my guess but i think fairly accurate) cars of 7 to 8 years in age might be reaching half of their new price value. A 3 to 4 year old car however might have only lost 20%. Whilst this is great news for people who buy new cars, and i certainly don't begrudge them getting what they can at market led prices, i can't for the life of me figure out who it is that buys these used cars. Especially when you bear in mind that a car's history here is all the more suspect, and if you are talking about a Bangkok car it's more than likely had a life of city driving with all that entails, i.e. short stop and start trips, and a few collisions for good measure.

So just who is it that buys these used cars, and why on earth don't they pay a little more and get a new one?

Resale values tend to be very high. Bad if you are a buyer, but good if you are selling your car, new or used. Cars don't lose their value anywhere near as rapidly as back home, so even though you might pay much for a used car initially, you will likely be able to get much of that money back even if you sell it years later.

[BossHogg]

Remember that a new car here can be more expensive than a new three bedroom house. Compare that to the uk house market and you would say that saving 20% was a big deal. Many Thais would buy a car to drive into the ground as its a huge expense and cant be done every 2 years or so.

[thai4u]

I just bought d-max space-cab 2004 auto top model (slx- abs+ dual airbags)...

360K baht.

I dont think its a bad deal compare to that new model cost 670K ...

[JustAnotherFarang]

Must also remember to factor in that the cost of repairs, maintenance and parts is far cheaper than in the UK. This might explain the high resell values along with the fact that cars and pickups are still a luxury for most thais but essential if you want to do business

JAF

[choppychugger]

I had to chuckle. There was an old red diahatsu Mira for sale at the end of my road. 88,000clicks for 195,000thb.

Who in there right mind would pay that..............?

In the U.K that would have been more like 7,000thb.

It's not there anymore

[Phil Conners]

I just bought d-max space-cab 2004 auto top model (slx- abs+ dual airbags)...

360K baht.

I dont think its a bad deal compare to that new model cost 670K ...

You did a good deal. 6 months ago I sold a 4 year old cab-4 similar deal- for 440K

I think the high second hand prices here are a combination of two things:

1) Supply and demand - the growth of motor ownership combined with the assumption that many (most?) Thai keep and drive the car as long as it can be used, cause a smaller supply of newer used cars than there is demand for - this automatically press up the price.

2) maintenance is dirt cheap so much less of an issue than in the west.

Personally I just take advantage of the situation and trade my car for a new every 2-3 year with a minimal loss

Edited October 12, 2007 by Phil Conners

[rixalex]

I had to chuckle. There was an old red diahatsu Mira for sale at the end of my road. 88,000clicks for 195,000thb.

Who in there right mind would pay that..............?

In the U.K that would have been more like 7,000thb.

It's not there anymore

More like in the UK you would pay someone to take it off your hands - and they'd still be no takers!

That's given me an idea for a topic. What's the worst piece of crap you've seen at the silliest price?

[thai4u]

I had to chuckle. There was an old red diahatsu Mira for sale at the end of my road. 88,000clicks for 195,000thb.

Who in there right mind would pay that..............?

In the U.K that would have been more like 7,000thb.

It's not there anymore

More like in the UK you would pay someone to take it off your hands - and they'd still be no takers!

That's given me an idea for a topic. What's the worst piece of crap you've seen at the silliest price?

1 answer: S-U-B-A-R-U !!!

[rixalex]

Remember that a new car here can be more expensive than a new three bedroom house. Compare that to the uk house market and you would say that saving 20% was a big deal. Many Thais would buy a car to drive into the ground as its a huge expense and cant be done every 2 years or so.

Most new cars aren't more expensive though. A new 3 bed house in Bangkok usually goes for no less than 3.5 mil. these days. Cars however start from about 600,000.

While i get the point about maintaining being quite cheap, i still don't get why people don't pay that bit extra for new.

[thai4u]

read my messege here.

I was thinking of buying a new car and really I didnt understand why people say its better new... I almost did it..but then I thought again.

why buy second hand in my case.:

second hand: cash 360K.

finance option: 90K down + 6100*60 months.(5 years).

new(the most desired red plate.. ): 670K

finance option: 204K down + 7200*72 months(6 years).

now you tell me ..why buy new?(from the finance aspect of course. and in condition that the second hand car is in good condition..).

[Sanpatong]

Must also remember to factor in that the cost of repairs, maintenance and parts is far cheaper than in the UK. This might explain the high resell values

Indeed it does. And this is the exact answer to the OP's question.

The VALUE is actually higher, because maintenance is cheap, and risk of having a de-facto write-off when something goes wrong is nil. In the UK for a car 7-8 years old, if certain things break, the repair is higher than the value of the vehicle.

I posted earlier about my Isuzu just having done 100,000 kms. It looks and drives like the day we drove it out of the showroom. (Better actually and it performs the exact same functions, reliably.

It cost about 640,000 baht new I think. (4x4 model with everything on it).

Why would I sell it for 50% less than this, now after 6 years? I wouldn't even sell it for less than 500,000... Why should I? It'd be like throwing money away for no reason.

The clutch had a slightly audible squeek when pressing the pedal, which I mentioned when taking it in for the 100,000 service. They opened the whole thing up, checked the clutch, replaced a part costing a couple hundred baht.. Labour costs: <deleted> all. Try the same in the UK....

So there's your answer.

Edited October 12, 2007 by Sanpatong

[solo siam]

No MOT, so keeping a car on the road is very easy and cheap.

[rixalex]

Must also remember to factor in that the cost of repairs, maintenance and parts is far cheaper than in the UK. This might explain the high resell values

Indeed it does. And this is the exact answer to the OP's question.

The VALUE is actually higher, because maintenance is cheap, and risk of having a de-facto write-off when something goes wrong is nil. In the UK for a car 7-8 years old, if certain things break, the repair is higher than the value of the vehicle.

I posted earlier about my Isuzu just having done 100,000 kms. It looks and drives like the day we drove it out of the showroom. (Better actually and it performs the exact same functions, reliably.

It cost about 640,000 baht new I think. (4x4 model with everything on it).

Why would I sell it for 50% less than this, now after 6 years? I wouldn't even sell it for less than 500,000... Why should I? It'd be like throwing money away for no reason.

The clutch had a slightly audible squeek when pressing the pedal, which I mentioned when taking it in for the 100,000 service. They opened the whole thing up, checked the clutch, replaced a part costing a couple hundred baht.. Labour costs: <deleted> all. Try the same in the UK....

So there's your answer.

Thanks - well answered.

I can appreciate why you wouldn't want to sell your car for less than 500,000, but fail to see why anyone would want to buy it for that when for a few bob more they could have a brand new one.

And in answer to thai4u, haven't we already established that your purchase was unusually cheap - either you got lucky or there's something dodgy going on. Either way, the price you paid was not the normal market value.

[thai4u]

the guy couldnt pay the payment anymore.. also its an auto gear so its not so popular among thai people..

BUT I think its really the market price... see these link:

http://taladrod.com/Search/CarDet.aspx?cib=137056

[mikethevigoman]

In the UK i think i'm about right in saying that a 3 to 4 year old car will have probably lost about 50% of its new price value. This obviously varies on the make model and how its been used, but in the main is about right. Although this level of depreciation might seem a little harsh, it's fair to say that the owner has more than likely had the best days of motoring out of the vehicle, and the person who buys it will most likely be having to foot some maintenance bills.

Here in Thailand, (again just my guess but i think fairly accurate) cars of 7 to 8 years in age might be reaching half of their new price value. A 3 to 4 year old car however might have only lost 20%. Whilst this is great news for people who buy new cars, and i certainly don't begrudge them getting what they can at market led prices, i can't for the life of me figure out who it is that buys these used cars. Especially when you bear in mind that a car's history here is all the more suspect, and if you are talking about a Bangkok car it's more than likely had a life of city driving with all that entails, i.e. short stop and start trips, and a few collisions for good measure.

So just who is it that buys these used cars, and why on earth don't they pay a little more and get a new one?

Resale values tend to be very high. Bad if you are a buyer, but good if you are selling your car, new or used. Cars don't lose their value anywhere near as rapidly as back home, so even though you might pay much for a used car initially, you will likely be able to get much of that money back even if you sell it years later.

Yes, and you will have to pay 3k uk for a 15 year old golf or similar ! better off buying a new /ish pick up as you say,. seems anything that runs here is desireable !

[mikethevigoman]

the guy couldnt pay the payment anymore.. also its an auto gear so its not so popular among thai people..

BUT I think its really the market price... see these link:

http://taladrod.com/Search/CarDet.aspx?cib=137056

Idont think yours was that cheap,.just that most others are dear !

[thai4u]

I think your point of view is because you under estimate the thai baht/you have lots of money in thai baht / cars are cheaper here compare to europe/uk or wherever you come from.

I think you mistake big time on this "resale value",price of used cars not drop down",and of course have this thai society that runs after every new model and buy it on an endless payments and because of what? to come to the soi with the shining red plate(!).

I think its idiotic and I never see this thing anywhere in the world but in thailand.

have some good deals,not all cars has been crashed down or whatever excuse you make to make it right to buy new car.

sorry , I tried to understand for 2 years,I bought second hand and I still dont understand what r u talking about.

[rixalex]

I think your point of view is because you under estimate the thai baht/you have lots of money in thai baht / cars are cheaper here compare to europe/uk or wherever you come from.

I think you mistake big time on this "resale value",price of used cars not drop down",and of course have this thai society that runs after every new model and buy it on an endless payments and because of what? to come to the soi with the shining red plate(!).

I think its idiotic and I never see this thing anywhere in the world but in thailand.

have some good deals,not all cars has been crashed down or whatever excuse you make to make it right to buy new car.

sorry , I tried to understand for 2 years,I bought second hand and I still dont understand what r u talking about.

You are not the easiest guy to understand yourself mate!

[thai4u]

english is not my native language but I think I clear enough..

[rixalex]

english is not my native language but I think I clear enough..

As long as you understand yourself that's the main thing

[thai4u]

english is not my native language but I think I clear enough..

As long as you understand yourself that's the main thing

hi , we're trying to discuss here about a subject you started with.. so ..

if you want to fix my grammer its really ok by me, I could learn something or two on English languge.

if u REALLY didnt understood what I meant to say/write(if to be more specific for your limited understanding) its ALSO OK BY ME.

thanks and take it easy man

[elkangorito]

I think your point of view is because you under estimate the thai baht/you have lots of money in thai baht / cars are cheaper here compare to europe/uk or wherever you come from.

I think you mistake big time on this "resale value",price of used cars not drop down",and of course have this thai society that runs after every new model and buy it on an endless payments and because of what? to come to the soi with the shining red plate(!).

I think its idiotic and I never see this thing anywhere in the world but in thailand.

Now things are making sense.

Culturally, many Thais need to "appear" to be "well off". If they can save 100k by buying a 2nd hand car in extremely good condition, they will do so to "look good". This alone will drive the price of 2nd hand cars higher.

Secondly, due to the easy credit available to Thai people, the "repossession" market is HUGE!!! Combine this fact with Thais wanting to "look good" for a slightly cheaper price & you have have an expensive 2nd hand car market.

This twaddle about maintenance is crap! In Thailand, if you don't experience problems with your "new" car, it's not because of Thai mechanics....it's because the car manufacturers & distributors enforce proper & correct technical assistance. On the other hand, how many people have taken their "not new" car to Somchai & had it returned with more or different problems? What's that old saying, "Farang use too many parts".

Cars are just mechanical buffalos...nothing more or nothing less. If you're crazy enough to pay the Thai price, you're crazy enough to buy my 14 year old Seiko watch (which still works perfectly without batteries).

Edited October 12, 2007 by elkangorito

[paulsmithson]

my Thai friend is a motor trader, he works on a first year devaluation of 30% then 10% pa thereafter.

Buying new is a mugs game .

Just offer them 50% of the new value for the 6 month old car then walk away and wait for the phone to ring.

There are so many new cars sold here to people who relly cannot keep up the payments,

There are some very good half priced 6 month old cars available her if you forget that you are a rich farang and use your head.

[madjbs]

I would say maintenace is probably one of the bigest factors. The car can be repaired cheaply which means it can be used for a much longer period of time which means it must be worth more. If you also include factors such as the quality of older cars, ie. they are very rarly rusted to pieces like in the U.K due to the nice weather. Then the high prices make more sense. I would even go as far to say the cheapness of used cars in the west is almost ilogical. Why should a car loose 35% of its value one week after purchase? It just doesnt make sense, Its the same car.

Edited October 12, 2007 by madjbs

[elkangorito]

I would say maintenace is probably one of the bigest factors. The car can be repaired cheaply which means it can be used for a much longer period of time which means it must be worth more. If you also include factors such as the quality of older cars, ie. they are very rarly rusted to pieces like in the U.K due to the nice weather. Then the high prices make more sense. I would even go as far to say the cheapness of used cars in the west is almost ilogical. Why should a car loose 35% of its value one week after purchase? It just doesnt make sense, Its the same car.

I totally agree with you (about the bolded section) but why should anyone pay a similar price (or close to it) for a 2nd hand car (buffalo) as compared to a new car? And please, can you verify that vehicle maintenance in Thailand, is to the same relatively consistent standard as compared to that in other countries? BTW, I teach at a technical college in Thailand & I know exactly what is being taught. I can assure you that when it comes to "doing the correct job", it is NOT about technical ability (unless you work for a foreign company). It's all about behaving according to your "place". ie I will do whatever the boss says & under any circumstances.

Perhaps you are thinking that this sounds like the "west". Well, yes it does...the difference being that these "shonky" western dealers are soon caught up with because there are enforced consumer protection rules. In Thailand, the "shonks" are free to carry on whenever, however & wherever they please.

"Shonky" means "bad/rough" workmanship.

[madjbs]

I see what you mean about cars that are nearly new. I was thinking more about older cars I supose. If I could afford to spend the amount of money of a 1 year old car then I could probably afford to pay a little extra to buy a new one. If I couldnt afford that little bit extra then I buying a older car in the first place. So that must be one of the reason why cars loose value very quickly in the west, perhaps an excess supply of nearly new cars.

[madjbs]

.

Edited October 12, 2007 by madjbs

[mikethevigoman]

my Thai friend is a motor trader, he works on a first year devaluation of 30% then 10% pa thereafter.

Buying new is a mugs game .

Just offer them 50% of the new value for the 6 month old car then walk away and wait for the phone to ring.

There are so many new cars sold here to people who relly cannot keep up the payments,

There are some very good half priced 6 month old cars available her if you forget that you are a rich farang and use your head.

if you see any vigo 3.0d4d autos at half the new price at 6 months old im your man ! ill take them all

[choppychugger]

my Thai friend is a motor trader, he works on a first year devaluation of 30% then 10% pa thereafter.

Buying new is a mugs game .

Just offer them 50% of the new value for the 6 month old car then walk away and wait for the phone to ring.

There are so many new cars sold here to people who relly cannot keep up the payments,

There are some very good half priced 6 month old cars available her if you forget that you are a rich farang and use your head.

if you see any vigo 3.0d4d autos at half the new price at 6 months old im your man ! ill take them all

Me too, I'll buy one for all the wifes family......