28,000 Usd Honda Accord Costs 2.880.000 Baht In Thailand?

[lifeisrandom]

http://www.honda.co.th/th/showroom/honda_accord.html

right hand corner. i don't know if that is with tax and title or not.

3.5 V6 2,880,000

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http://www.edmunds.com/new/2008/honda/acco....speedread..2.*

EX-L V-6 2dr Coupe (3.5L 6cyl 5A)

MSRP:

From $28,310

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<deleted>?

[dingdongrb]

http://www.honda.co.th/th/showroom/honda_accord.html

right hand corner. i don't know if that is with tax and title or not.

3.5 V6 2,880,000

--------------------------------------------------

http://www.edmunds.com/new/2008/honda/acco....speedread..2.*

EX-L V-6 2dr Coupe (3.5L 6cyl 5A)

MSRP:

From $28,310

----------------------------

<deleted>?

Yes, that's including taxes. That is why autos in LOS cost so much, 100% sales tax included in the sticker price. Get used to it you're in LOS now..

[Meerkat]

That's the way it goes I'm afraid - gotta love them taxes.

Base Audi TT Coupe in the US - under USD 40,000

Base Audi TT Coupe in Thailand - THB 4,698,000 or USD 140,000!

[lifeisrandom]

why?

[dingdongrb]

why?

Someone has to pay for all those extra wide, 'smooth as silk', and flood free roads.....

Oh, and the extra lanes dedicated just for the scooters ....

[lifeisrandom]

the price increase is in the form or taxes?

[Heng]

The profit margins are higher also. That's the way it is for a lot of items here.

With proper business/financial sense, one still comes out way ahead here despite this. That same 3 million for the accord will buy you 12,000 days of labor here. That same 3 million or $90k would only buy you about 1,300-1,400 days of labor back home in say, Texas.

Edited August 21, 2008 by Heng

[JimmyTheMook]

There is no way to justify these markups except for pure and simple greed.

[Heng]

There is no way to justify these markups except for pure and simple greed.

And superior business acumen. But even the car dealers aren't anywhere as sharp as the bankers who pay interest at 1% and loan it out at 7-9%.

[JimmyTheMook]

There is no way to justify these markups except for pure and simple greed.

And superior business acumen. But even the car dealers aren't anywhere as sharp as the bankers who pay interest at 1% and loan it out at 7-9%.

Actually no , it is called greed as the banks and car dealers are essentially one in the same in their level of control in what still is a feudal society.

[Meerkat]

why?

From a government point of view, high taxes on non-Thai built cars help the domestic (mostly Japanese owned) auto industry. As much as I'm against protectionism, it's a fair point; it's a major export sector and employer for this country.

From an establishment point of view (which includes policy makers), high taxes stop the comparatively lower classes buying so many "face-generating" European cars. Beamers, Mercs et al being as common as muck in the UK/US now of course (but we won't spoil their fun)...

Some Euro models are now assembled in Thailand and are subject to less tax, but because of the higher taxes on their offshore built competition it allows the companies to boost margins. Same way that duty-free booze is slightly cheaper at the airport than on the street, but is still a huge mark-up compared to what it would be if it were sold at equivalent margins.

On the upside for the buyer (or rather to help cushion the downside), it keeps residual values higher, so you'll be able to recoup much of the extra tax when you sell.

[Heng]

There is no way to justify these markups except for pure and simple greed.

And superior business acumen. But even the car dealers aren't anywhere as sharp as the bankers who pay interest at 1% and loan it out at 7-9%.

Actually no , it is called greed as the banks and car dealers are essentially one in the same in their level of control in what still is a feudal society.

Nah, it's only greed when you can't afford it or you can't find a way to charge similar margins.

Noodle vendors would love to make a 300% profit, and it's not the goodness of their hearts that keeps their profit margins at 5 Baht a bowl.

Edited August 21, 2008 by Heng

[lifeisrandom]

So which (new) cars sell in Thailand with the lowest markup? Hondas aren't built in Thailand?

[JimmyTheMook]

There is no way to justify these markups except for pure and simple greed.

And superior business acumen. But even the car dealers aren't anywhere as sharp as the bankers who pay interest at 1% and loan it out at 7-9%.

Actually no , it is called greed as the banks and car dealers are essentially one in the same in their level of control in what still is a feudal society.

Nah, it's only greed when you can't afford it or you can't find a way to charge similar margins.

Noodle vendors would love to make a 300% profit, and it's not the goodness of their hearts that keeps their profit margins at 5 Baht a bowl.

Maybe you're right.

Mobile phones were like a $1000. each when I first got here , guess it was another brilliant Thai businessman earning his fortune on those types of profits.

[lifeisrandom]

Just went to the Honda Singapore website and the same car costs about the same in Singapore as it does in Thailand. Are there added taxes to driving in Singapore beyond the inital price tag of the car? I know there aren't a whole lot of cars on the road there.

[JimmyTheMook]

So which (new) cars sell in Thailand with the lowest markup? Hondas aren't built in Thailand?

The Honda Jazz is assembled in Ayutthaya.

Many others are also made in Thailand with the engines shipped in from Japan.

The whole import tax thing is BS on these cars.

[sweetchariot]

So which (new) cars sell in Thailand with the lowest markup? Hondas aren't built in Thailand?

There is a kind of pan-ASEAN cartel. If it was built in the right country then you will pay small money. If you want a Lambo (and I saw a Mucielago in Pattyaya a few weeks back), then you will pay silly money - about $600,000 I believe.

Look around you - Toyata, Isuzu, Mitsubishi, even Ford now as they have opened a plant at Laem Chabang.

[Grant]

Accord 3.5 are made in Thailand but there is some additional tax 50% because the engine is more than 200 hp

Accord 2.0 and 2.4 cost 1.2 -1.7 ml.

If you want a Lambo (and I saw a Mucielago in Pattyaya a few weeks back), then you will pay silly money - about $600,000 I believe.

28 ml and more - depend on spec

[Gary A]

Buy a pickup truck and you will avoid most of the crazy taxes.

[stingray]

Buy a pickup truck and you will avoid most of the crazy taxes.

Not everybody like to drive a "Pick". I'm from Switzerland and i didn't grew up with noisy" Diesel Picks". I'm more into the sport cars. My dream was a new Corvette, (not neccessary the C6), cost about 1.8 Million in the states and 9,9 Million in Bangkok. So my dream is gone! We allways see only the negative things. Ok! Cars are much more expensive like in Germany, US or UK, but not so expensive as in Danemark, Norway or Uruguay for example. Anotherthing! How much Road Tax and insurance we pay here, in compare with Europe? For a normal car, the roadtaxes and insurance are penauts. Remember for about 2 or 3k you get a one year road tax for a normal 2 liter vehicle and after 10 year you'll pay 50% less. for another 3'k you get a thirth partie insurance, doesn't matter how big is your car or what model you drive. All cars cost the same amount for a third partie insurance. I'm Swiss and overthere i would pay at least a 2'300 Dollar for a one year third partie insurance on a nice V6 or V8 car. Someone have to pay the roads in Thailand and we should be happy to not pay much roadtaxes. I' my self own 3 private vehicles overhere. I couldn't afford the roadtaxes an insurance for 3 vehicles in Europe. The second thing why they put high taxes on import cars is: They want to protect their own carmanufactorers. You think: Who would like to buy a Camry when you could get a Cadillac for the same price? Therefore the high import taxes! They would like to see that everybody drives a nice little "made in Thailand" car. It's somehow understandable, even i don't like it. The French do the same. They want sell their Renaults Peugeots and Citroens. Therefore they only let import a certain limited amount of Japanese Cars every year into France. Third thing: Labour is so cheap overhere, if you got the right mecanic. Once you bought the car you never have high expenses again, because labour and repairs ar very cheap in compare to Europe. How mutch you pay for en hour labour in US?

[culicine]

Still its hard to justify a honda civic (made in Thailand) in Australia being cheaper than the same car in Thailand. Cars are still considered luxury items and I guess that is why the taxes are so high.

Wishful thinking, but read the BKK Post today, with an S40 volvo E85 possibly being available here fior the price of an altis! As the authors pointed out though, thats not likely to happen.

[rixalex]

You think: Who would like to buy a Camry when you could get a Cadillac for the same price?

"Who?"

Me.

[dude123]

90k for a Honda Accord I wonder what my Honda CRV would cost there? Guess I might buy a Tuk Tuk when I come over I do like the simplicity of them.

[roygsd]

There is no way to justify these markups except for pure and simple greed.

I dont think you have quite graped the reality of taxes, whatever makes you think the Thai government or any other governemt for that matter,must justify its taxes?

I also dont think the customer has any right to decide what markup a seller can or should set the products they produce.

If you dont want to pay the tax dont buy the product, simple really.

I think part of the problem is that People in the US have always been spoilt with low fuel costs and car costs whilst residents of other countries around the world are used to paying much higher rates.

Americans consider a vehicle to be a neccessity rather than a luxury item, but when in Rome...........

roy gsd

[Plus]

V6 Accord attracts highest possible taxes for a locally produced car (and no, they don't ship engines from Japan - it's nearly 100% local content).

The reason is simple - Thais don't need powerful, thirsty vehicles, they are considered luxury items and a burden on the economy and the society.

You could buy a 2.4l Accord for half the price that would get you from A to B at the same level of comfort, but if you really want power and performance - be ready to pay extra.

The upcoming eco-car project will offer lowest tax rates, lower than pickups - that's the kind of cars the government wants people to buy, not v6/v8 monsters.

[rixalex]

90k for a Honda Accord I wonder what my Honda CRV would cost there?

A CRV In Thailand would be much the same price as you paid for yours.

The Honda Accord in question is only so out of whack with Europe/America, because it's the 3.5 litre model, which incurs much greater taxation than the smaller engine sizes, such as the 2.4.

[dotcom]

It could be worse.

The Porsche 911 Turbo costs 16 million baht.

4 million for the car & 12 million Tax.

[PattayaDavid]

I think part of the problem is that People in the US have always been spoilt with low fuel costs and car costs whilst residents of other countries around the world are used to paying much higher rates.

Americans consider a vehicle to be a neccessity rather than a luxury item, but when in Rome...........

roy gsd

What a simplistic rationalization.  Americans pay lower fuel prices, lower car prices and lower taxes because they don't accept being screwed by their government and their retail industry.  Americans encourage competition in industry and simply refuse to pay above fair value.  Either the American people cave or the government and industry cave; my money is on the American people.  If you standby and passively let them do it to you then you get what you deserve.

[dominique355]

There is no way to justify these markups except for pure and simple greed.

Buy a pickup truck and you will avoid most of the crazy taxes.

The high import and excise tax here are a joke. Unfortunately, a joke that gives the government a lot of money (to buy a submarine), but costs dearly not only the environment, but also in human lifes.

These outdated pickup trucks made in Thailand pollute the air with clouds of black diesel fumes and when they have an accident, many people die. I believe about 12'000 every year. Pickup trucks are inherently "unsafe at any speed".

Thai people simply cannot afford a clean and save European car, so they are stuck with their outdated pickup trucks.

Is it protectionism? Certainly also, and probably even in violation of the WTO agreement. European business is slowly waking up about these unfair trade regulations in Thailand. The agricultural producers have started a test case against Thailand (wine), I hope the car manufacturer will follow. Pickup trucks built in Thailand enjoy a free market in Europe, but European cars are punished by sky high import and excise taxes. Not Fair!

I hold the Thai government directly responsible for thousands of death on the road in these unsafe trucks, because people could not afford a save vehicle.

But there is another aspect. A wealthy Thai would rather buy an overpriced Mercedes-Benz E200 than a Honda Accord 2.4 at a fraction of the Benz' price. Why? Show off and snobism.

OK, enough ranting...

... but I wish I could afford a better car.

[Naam]

There is no way to justify these markups except for pure and simple greed.

what part of T A X is it you don't understand?