New Car Prices And The Current World Economic Crisis

[imaneggspurt]

Thailand wants to keep the big jap automakers happy so hike the taxes on everything else ,.fair enough, mitsubishi/toyota are the major players here and deserve some loyalty,.however the price difference is rediculous when you want to buy anything else ( even bmw, and its assembled in thailand ) someone is making very big profits,. but thats just it there are the cars for the peasants and then the rich, nothing in between it seems ,.

[neverdie]

They obviously don't put much research money into the names.

One of the best examples of this is the Suzuki Smash .

Sorry off topic, but a Nissan Felatio, thats a classic.

[trogers]

No it's not like that. Many Locals who can't pass the finance requirements for a new car 9and this riquirements and downpayments are much higher now than 2 years ago), start looking for a cheap second hand one, but pay thet in cash.

So what are you saying? That sales in cheap used cars bought for cash is on the increase, whilst sales in new cars bought on finance goes in the other direction?

I doubt customers who are deemed financially not able to service monthly payments for a new car have the hard cash to buy a used car.

Some of these customers can purchase a used car due to the lower quantum of the loan when spread over the same number of years.

[rixalex]

No it's not like that. Many Locals who can't pass the finance requirements for a new car 9and this riquirements and downpayments are much higher now than 2 years ago), start looking for a cheap second hand one, but pay thet in cash.

So what are you saying? That sales in cheap used cars bought for cash is on the increase, whilst sales in new cars bought on finance goes in the other direction?

I doubt customers who are deemed financially not able to service monthly payments for a new car have the hard cash to buy a used car.

I would doubt too. I'm interested to hear clarification from Stingray regarding his comments - as a used-car dealer himself he should know.

[ignis]

Today's Post

Mr Ray said the new MX-5 would continue to strengthen Mazda's sports car image and allow it to reach out to more customers in Thailand. The recommended price for the 2.0-litre MX-5 RHT is 2.64 million baht.

[Plus]

Thailand wants to keep the big jap automakers happy so hike the taxes on everything else ,.fair enough, mitsubishi/toyota are the major players here and deserve some loyalty,.however the price difference is rediculous when you want to buy anything else ( even bmw, and its assembled in thailand ) someone is making very big profits,. but thats just it there are the cars for the peasants and then the rich, nothing in between it seems ,.

It's BMW's own policy - they can, just like anyone else, invest in local production of car parts to increase their local content and qualify for lower taxes. But that would hurt their image as a premium brand for rich cats. That's how they sell it here, not for its driving pedigree.

In between lie Camry/Accord and lower value European brands like Volvo.

It is time to reduce import taxes (may be not in the middle of the crisis, but still). Last auto tax package went through in 2004, I believe, and it didn't reduce import taxes, but it allowed SEC group to make a shitload of money, Democrats even included the case in their censure motion.

Now there are far more pressing matters - they need to keep Japs going and deal with alternative fuels.

[thaieagle67]

It seems from all the response that this is a split line of thinking.

I would like to see the taxation drop to allow the average man to at least have a chance to drive something else than what is the norm in Thailand, with BMW, Mini, Audi, VW, Volvo and the higher level Japanese models coming to mind.

Only time will tell but as some of you have mentioned, some of the major manufacturers are pursuing this bone of contention, as its the majority of their models that are being affected. I think it is also clear that some of the high cast members of Thai society would prefer it stays the way it is to ensure their "them and us" status

Thanks for the response, it has been good to get different perspectives.

[Grant]

I would like to see the taxation drop to allow the average man to at least have a chance to drive something else than what is the norm in Thailand, with BMW, Mini, Audi, VW, Volvo and the higher level Japanese models coming to mind.

For the higher level Japanese models taxation drop already and will drop mort in next 5 years due the Japan-Thailand Economic Partnership Agreement:

By 2011, Thailand will immediately reduce the tariffs on Japanese automobiles with an engine displacement of 3000 cc or larger to 60 percent from 80 percent. The two countries will hold talks again in 2009 on total tariff elimination for those vehicles in mid-2010s.

Edited March 12, 2009 by Grant

[thaieagle67]

I would like to see the taxation drop to allow the average man to at least have a chance to drive something else than what is the norm in Thailand, with BMW, Mini, Audi, VW, Volvo and the higher level Japanese models coming to mind.

For the higher level Japanese models taxation drop already and will drop mort in next 5 years due the Japan-Thailand Economic Partnership Agreement:

By 2011, Thailand will immediately reduce the tariffs on Japanese automobiles with an engine displacement of 3000 cc or larger to 60 percent from 80 percent. The two countries will hold talks again in 2009 on total tariff elimination for those vehicles in mid-2010s.

Great news, lets hope they see sense and drop the over the top tariffs completely. My MX-5 could become a reality soon!!!

[Plus]

They've got biofules and LPG/NGV issues to attend to first, they have hundreds of thousands of eco-cars in the pipeline they need to sell, they have dropping share of pickup trucks.

I don't think lowering taxes on high end imports is anywhere near priority list.

The thinking is that in the big scheme of things they need to supply basic options first, so that everybody could afford a vehicle.

[stingray]

No it's not like that. Many Locals who can't pass the finance requirements for a new car 9and this riquirements and downpayments are much higher now than 2 years ago), start looking for a cheap second hand one, but pay thet in cash.

So what are you saying? That sales in cheap used cars bought for cash is on the increase, whilst sales in new cars bought on finance goes in the other direction?

I doubt customers who are deemed financially not able to service monthly payments for a new car have the hard cash to buy a used car.

I would doubt too. I'm interested to hear clarification from Stingray regarding his comments - as a used-car dealer himself he should know.

It is not about to service the monthly payments for a short time, but for a long time it's gonna heart. So finance companies take the things very serious. Customers need a payment slip for the last 6 months, and statement from the bank. They also need a gurantor as well. Sometime they have some cash, but they don't have statement or real job and sometime they have some cash, but a bad credit in the past, sometime they just don't want to take the burden to pay 12'k for the next five years for a new car. In Pattaya we sell quite more and more cheap cars to Thai Customers. Now they even start buying cars, like chrysler, hyundays, etc in the priserange of 100 to 150'k. Sometime they don't have the full amount in cash on the day they do the purchase, but for a period, not over than 6 months we can finance by our self. So we don't need to use any finance company to apply for a loan. There are many used car dealership who do the same. At the moment, this is a better solution than keeping money in the bank without interest.

Edited March 13, 2009 by stingray

[jingjoke]

QUOTE I doubt customers who are deemed financially not able to service monthly payments for a new car have the hard cash to buy a used car. UNQUOTE

Most probably true. I don't know the Pattaya used vehicle prices, but here in Chiangmai I was astounded at the really high prices of used vehicles, particularly used pickups. My Thai friends and I recently spent three days trying to find one of them a reasonably priced used vehicle. He finally settled on buying new, a lower end model. As he put it, probably best to go new as one never knows how stressed the gear and bearings are in a used pick-up as they are often badly overloaded, and the Thais have truly excelled at making a wreck shine as new.

[stingray]

QUOTE I doubt customers who are deemed financially not able to service monthly payments for a new car have the hard cash to buy a used car. UNQUOTE

Most probably true. I don't know the Pattaya used vehicle prices, but here in Chiangmai I was astounded at the really high prices of used vehicles, particularly used pickups. My Thai friends and I recently spent three days trying to find one of them a reasonably priced used vehicle. He finally settled on buying new, a lower end model. As he put it, probably best to go new as one never knows how stressed the gear and bearings are in a used pick-up as they are often badly overloaded, and the Thais have truly excelled at making a wreck shine as new.

Yes thats correct! this is exactl;y what i talking about. The 400'k upwards used cars standing arround everywhere. But i mean the cheap used car sector, the 100'k to 150'k cars. This is what peaple can afford and buy at the moment. If u go to Bankok, Srinakarin Rd or even Kantchana Pisek Road, you'll see everywhere the very expeisnive used car tent. It is almost impossible to find a car for let's say 150'k. Sometime you'll find one privat, but again than is it so used and f...kc...t up that it's not worth to fix it up again or you have to spend a 50'k to make it good. This was different 10 years ago. In that time you'll find plenty of 150'k cars in BKK. Today 150'k is nothing. All tent's sell the 400'k upwardfs cars, almost everywhere.