Why Are Used Cars So Expensive?

[sabdart]

I've been looking online at used car prices in Bangkok and they seem to be very close to the price of buying a new car. The type of car I would lie to buy is a Toyota vios, or Honda city.

Is it not worth buying a used car in Thailand or am I looking in the wrong places.

Please suggest any dealers with more reasonable prices.

[Dakhar]

I've been looking online at used car prices in Bangkok and they seem to be very close to the price of buying a new car. The type of car I would lie to buy is a Toyota vios, or Honda city.

Is it not worth buying a used car in Thailand or am I looking in the wrong places.

Please suggest any dealers with more reasonable prices.

The days of buying a decent used car at a fair price are over.... you are in Thialand. Welcome

As to why they are so expensive? I believe, and I could be wrong, but I think it is associated with the crazy amount fo tax that is added to the car at the time of purchase.

I just recently bought a Nissan Sunny that would be worth maybe 3K USD in the states, I paid 11K USD and right now one could easily purchase a nice used car in the states for 11K.

But, I needed a beater car, and a nice car in Thailand is a luxury I can not afford. Contrary to popular belief, a life worth living, is not cheap in Thailand.

[patklang]

I think this idea of expensive second hand cars is good,because one doesnt lose big money from new to second hand.The depreciation isnt no where near as great as in the uk.

Second hand cars,generaly are in better condition,especialy the lack of rust,than uk.Mechanicaly work is much cheaper too,so one is able to keep a car for a few years here.

[Richb2004v2]

Yes, I get very envious of my friends that still live in the UK buying great second hand cars for next to nothing. My friend just bought a second hand Jeep Cherokee in the UK for a little over 2k (GBP). That would be an ideal car for me here, but there is no way I am going to pay four times that price here in Thailand.

[Underbelly]

Yeah I wanted to buy a Nissan Skyline GTR R32 here, but they are pretty expensive here, more then double then what I would pay for in Australia.

Might have to settle for a GTS-T, but its just not the same.

[GuestHouse]

It looks to me like a classic case of a market that is oversupplied and sellers/purchases who haven't cottoned on to the realities of the market yet.

Twenty years ago there was a total undersupply of cars and particularly saloon cars - waiting lists for new cars were months long and even then there was a chance of someone paying a bung to jump to queue. Getting any car was difficult and so the price of second hand cars was high.

Take a look now, second hand dealerships are all over the place and everyone of them is stuffed to the gunwales with cars they can't sell.

Added to that the small compact market is well oversupplied - People who bought their cars on pay nothing now deals are about to start getting the bills.

Now we know there's the face thing where Thais will not sell if they are seen to be making a loss - but the economics is piling up against the high prices in the used car market.

[Dakhar]

It looks to me like a classic case of a market that is oversupplied and sellers/purchases who haven't cottoned on to the realities of the market yet.

Twenty years ago there was a total undersupply of cars and particularly saloon cars - waiting lists for new cars were months long and even then there was a chance of someone paying a bung to jump to queue. Getting any car was difficult and so the price of second hand cars was high.

Take a look now, second hand dealerships are all over the place and everyone of them is stuffed to the gunwales with cars they can't sell.

Added to that the small compact market is well oversupplied - People who bought their cars on pay nothing now deals are about to start getting the bills.

Now we know there's the face thing where Thais will not sell if they are seen to be making a loss - but the economics is piling up against the high prices in the used car market.

sounds similar to the US housing bust & cars are expensive enough to cause a disruption

[Underbelly]

It looks to me like a classic case of a market that is oversupplied and sellers/purchases who haven't cottoned on to the realities of the market yet.

Twenty years ago there was a total undersupply of cars and particularly saloon cars - waiting lists for new cars were months long and even then there was a chance of someone paying a bung to jump to queue. Getting any car was difficult and so the price of second hand cars was high.

Take a look now, second hand dealerships are all over the place and everyone of them is stuffed to the gunwales with cars they can't sell.

Added to that the small compact market is well oversupplied - People who bought their cars on pay nothing now deals are about to start getting the bills.

Now we know there's the face thing where Thais will not sell if they are seen to be making a loss - but the economics is piling up against the high prices in the used car market.

I dont agree, I think it has more to do with how much tax is paid for when they are bought brand new, so after a few years the price of the car drops but they still include the tax amount on the used car and bring it down slowly

[sabaijai]

It looks to me like a classic case of a market that is oversupplied and sellers/purchases who haven't cottoned on to the realities of the market yet.

Twenty years ago there was a total undersupply of cars and particularly saloon cars - waiting lists for new cars were months long and even then there was a chance of someone paying a bung to jump to queue. Getting any car was difficult and so the price of second hand cars was high.

Take a look now, second hand dealerships are all over the place and everyone of them is stuffed to the gunwales with cars they can't sell.

Added to that the small compact market is well oversupplied - People who bought their cars on pay nothing now deals are about to start getting the bills.

Now we know there's the face thing where Thais will not sell if they are seen to be making a loss - but the economics is piling up against the high prices in the used car market.

I dont agree, I think it has more to do with how much tax is paid for when they are bought brand new, so after a few years the price of the car drops but they still include the tax amount on the used car and bring it down slowly

I don't remember paying all that much tax when buying new (Thailand-assembled) cars here in Thailand, 3 times over the last 11-12 years. Or is it a hidden tax?

[sabdart]

I dont agree, I think it has more to do with how much tax is paid for when they are bought brand new, so after a few years the price of the car drops but they still include the tax amount on the used car and bring it down slowly

Whats the portion of a used car sale that goes to tax? How does that work with private sales?

[Underbelly]

I got my info from a mate at the pub, he told me new cars are twice the price then in the west due to the tax.

If thats the case then used car prices would be still very expensive

[sorensen]

Once you find a car of your liking you are welcome to give a offer below the advertised price. I got a 15% discount that way.

Robert

[Dakhar]

Once you find a car of your liking you are welcome to give a offer below the advertised price. I got a 15% discount that way.

Robert

15% off of a 20K USD that should be worth 6K is not much of a comfort.

[hansgti]

Its not all bad news , the price of a brand new decent pick up in thailand is cheaper than the states or Uk.

Suggest you buy one instead of a saloon as under thai law it equates to agricultural vehicle classification and carrys a lower tax burden.

[rolypie]

Import Taxes are sky high thats why used cars keep there rediculous prices

[MJo]

Import taxes on cars made in thailand ?

There is no reason why cars are expensive in thailand when you are comparing prices in US. You could be asking reason why cost of living is so high in US as you can do it so much cheaper here in Thai...

The fact is that cars cost here what they cost as new and price goes down over the years like anywhere else. Granted, here in Thailand cars keep their value better than most places but i as well see it as a good thing as it makes it much more easier to swap to the new one every couple of years or so.

[imaneggspurt]

It looks to me like a classic case of a market that is oversupplied and sellers/purchases who haven't cottoned on to the realities of the market yet.

Twenty years ago there was a total undersupply of cars and particularly saloon cars - waiting lists for new cars were months long and even then there was a chance of someone paying a bung to jump to queue. Getting any car was difficult and so the price of second hand cars was high.

Take a look now, second hand dealerships are all over the place and everyone of them is stuffed to the gunwales with cars they can't sell.

Added to that the small compact market is well oversupplied - People who bought their cars on pay nothing now deals are about to start getting the bills.

Now we know there's the face thing where Thais will not sell if they are seen to be making a loss - but the economics is piling up against the high prices in the used car market.

Also they dont seem to care how long they have them in stock, there is a garage near me that has had some of theirs well over a year,one in particular is a 1990 mitsubishi gto 3000 for 1.1 million, the car is a 1000 pounds in the uk, ill carry on driving a late pick up as i feel sick to think id have to pay that much for an old pile of a car,

[Underbelly]

watch it bud, a 1990 GTO is a nice car, its not a pile of piss. Also 1000 pounds? you wouldnt get close to that in Australia

[BAYBOY]

Most new Japanese cars and pickups that are made here are exported to New Zealand (Honda, Nissan, Toyota). The new price in N.Z. is usually lower than here, and this include 12.5% internal retail tax.(G.S.T.)

Honda Jazz Sport 1.5 5 speed auto NZ$32900= Baht 658000

Honda CRV Sport 2.4 5speed auto N.Z$50400=Baht1,008000

In 2/3 years time you would be lucky to get 65% as a price for the trade in.Second hand cars very cheap in N.Z. so why buy new if living there.

Cars here are stupid prices new or second hand.But times are changing.

BAYBOY

[torrenova]

There is no logic to 2nd hand car prices when no-one in their right mind would pay the figures they are asking. Dodgy finance isn't an issue on 2nd hand either as they will fix the finance on new ones even better !

On imports then yes, the tax is an issue for depreciation. But for home grown stuff ? just daft really. The argument about the old days and scarcity is the best I've heard as nothing else works. Cheap labour is a misnomer as those are minimal ownership costs even back home.

[ajahnlau]

All this whining about prices of cars and mc's here and comparing to back home. Best advice is from Johnnie Walker " Keep on Walkin"

[RAZZELL]

I got my info from a mate at the pub, he told me new cars are twice the price then in the west due to the tax.

If thats the case then used car prices would be still very expensive

Don't listen to him...

Imported cars are subjected to massive duties hence the high prices.

Cars and trucks made in Thailand are not subject to these taxes and until very recently were considerably cheaper than those "offically" sold in other countries (hence their export to Middle East, Uk, Caribbean etc)

I believe if you compared percentage drop in price to average salary it might be pretty similar to other countries.

Also, the second-hand price is a "thai/asian" thing to do with face.

RAZZ

[ScubaBuddha]

I recently bought a 2001 Mitsubishi Strada Grandis with 110k km's in BKK for 260K. The best deal around if you want a decent second hand I think. Check www.cars4thais.com or www.one2car.com.

[stingray]

All this whining about prices of cars and mc's here and comparing to back home. Best advice is from Johnnie Walker " Keep on Walkin"

Since 15 years i living here. Yes i can't hear anymore. Make me sick! They want the cheap living, cheap houses, cheap food, cheap labour, cheap insurance, cheap rentals (homes and cars), cheap property, low taxes, chep police tickets and of corse the cheap girls, but it when comes to the car they start whining. Why this peaple only complain and complain and complain? If can't accept the Thai prices of cars, why they don't buy the cars in their home countries, instead of Thailand? Bring them over if you can.

[rixalex]

I've been looking online at used car prices in Bangkok and they seem to be very close to the price of buying a new car. The type of car I would lie to buy is a Toyota vios, or Honda city.

Is it not worth buying a used car in Thailand or am I looking in the wrong places.

Please suggest any dealers with more reasonable prices.

As to why they are so expensive? I believe, and I could be wrong, but I think it is associated with the crazy amount fo tax that is added to the car at the time of purchase.

You're right. You are wrong.

Although the difference between new car prices and used is pretty small, for many Thais to buy a new car is out of reach because of financing. To get finance on a new car means having a sizeable deposit and passing more stringent requirements. Buying used however often requires only a small deposit and it's much easier for people who don't have a regular monthly income to get passed for finance. This is what keeps used car prices so high.

[Texpat]

Bring one over and it's taxed at up to 300% of the value.

[rixalex]

All this whining about prices of cars and mc's here and comparing to back home. Best advice is from Johnnie Walker " Keep on Walkin"

Since 15 years i living here. Yes i can't hear anymore. Make me sick! They want the cheap living, cheap houses, cheap food, cheap labour, cheap insurance, cheap rentals (homes and cars), cheap property, low taxes, chep police tickets and of corse the cheap girls, but it when comes to the car they start whining. Why this peaple only complain and complain and complain? If can't accept the Thai prices of cars, why they don't buy the cars in their home countries, instead of Thailand? Bring them over if you can.

Yes, i'm sure as a used car dealer yourself, you're sick of hearing people's moans about the expense of used cars in Thailand, but the truth is that there's a lot of crap here that is sold for a lot of money. You shouldn't be surprised if your customers raise this to your attention.

[PattayaParent]

I got my info from a mate at the pub, he told me new cars are twice the price then in the west due to the tax.

If thats the case then used car prices would be still very expensive

Don't listen to him...

Imported cars are subjected to massive duties hence the high prices.

Cars and trucks made in Thailand are not subject to these taxes and until very recently were considerably cheaper than those "offically" sold in other countries (hence their export to Middle East, Uk, Caribbean etc)

BUT, if an imported car is subject to say 100% tax, why would you sell a domestic car for 50% of the price of the imported one?

You make much more money selling for say 80% of the cost of the imported car. After all you're selling in a restricted market so the buyer either has to pay the asking price or 'Do a Johhnie Walker' as one poster suggested.

When the tax on imported cars comes down then the prices of domestic cars will also come down aslo.

[t.s]

I got my info from a mate at the pub, he told me new cars are twice the price then in the west due to the tax.

If thats the case then used car prices would be still very expensive

oh, alright then, i thought you were just spouting nonsense.

[kartman]

Difference East and West -

West - buyers wont tolerate proportion of origional sales taxes & VAT being passed on.

East - sellers wont tolerate sale without proportion of origional sales taxes & VAT being passed on.