Any Advice On Buying A New Car ?

[in2fridge]

I live near Khon Kaen and have just embarked on the treadmill of changing my car/truck....

Last time, when in Udon,I struggled to get any sort of a deal,when approaching the subject of a "deal" most salesman(women) looked like they were going to faint on the spot.I went around with my wife ,I went around with my police sergeant brother in law + his colonel boss..same o result.....In the end we got a Mitsubushi Triton with free insurance/road tax/protective truck floor/cover and something else now forgotten!

Encountering the same scenaro in KK plus the added aggro of the Mitsu' dealer has just closed,to the obvious delight of the Toyota salesman who told me..

..I know my way around buying / selling cars from 20+ years selling BMW's in the UK..OK things work differently here,surprise - surprise ,my questions are :-

Are new cars just not discounted or is it just the sight of my smiley farang face ? I have noticed Thai's don't seem at all comfortable with haggling.

Our "old" car has a small amount of finance to settle which seems to mean the finance house (Tisco Bank) sets the PX price,would I do better to pay off the finance and then present my pride and joy to the dealer for a valuation.?

Anyone know of a good source of 1 yr old cars/trucks .?

Any positive info' welcome Daft ones not

[Chaam local]

My 2 cents: new cars are not heavily discounted, Farang or police or whoever. You can get free stuff (one year insurance and all kinds of gadgets), but you'll never get a big discount. Last time I bought a car, the more I tried to discount and the more the dealer was adding various fees. So from a 800,000 price (say) we went to 835,000, then he gave me a generous discount of 35,000 and we were back to square one. At the end I think I managed 5,000 more discount, but I'm not sure you can get more than that.

I don't know about 1 yo cars but it's not a typical Thai market and they are probably nearly as expensive as brand new cars, so I wouldn't bother.

[nakachalet]

auto dealerships in thailand differ significantly from farangs' auto dealerships back home.

the sale price in thailand is pretty much fixed by distributors.

bought one new pickup and one suv last yr.... we got plenty of freebies but the discount is only 12 thou less than being offered to public.

however, each dealership does honor their promises of lots of free services.

for the price paid for a mb, we could have very well bought two in germany.... lol

Edited February 2, 2010 by nakachalet

[dave111223]

When i bought my car (new) i asked for more discount, and seller offered me a free key-chain. I thought she was joking, and laughed, but apparently she was serious, and wouldn't even give me a 2nd key-chain for the 2nd key.

[jonwilly]

My Honda Jazz was book price B705,000, the dealer gave me a B5,000 discount without me asking.

I had been told to expect zero discount.

john

[skybluestu]

Got 10k discount on a Yaris and before that a 50k discount on a Ford Ranger.

[fletchsmile]

Having spent a little time in the Finance departments of this industry in Thailand, I can tell you gross profit margins for car retailers are thin. On the brands I oversaw 5% was max on most models. The average came in around 3%. That's their profit at gross margin, before all the expenses like salaries, rent, financing to get to net margin. That probably puts in to perspective their scope for discounts.

More common is to give away (or for a better salesman discount) accessories.

Toyotas, Hondas etc, in particular tend to have pretty much fixed prices. Less popular brands duch as Mazda, Nissan etc may be more open to bargaining. The extra small % discount you may get though is easily lost on resale values of less popular brands.

A couple of ideas on bargains is to look at 1) ex-demo cars or 2) a spec/colour/model on the shop floor that hasn't sold well. This ties up cash flow for the car retailer. Even if they finance their cars, they will eventually have tied up the cash after around 6-12 month, and finance can be prohibitive as they start paying capital in addition to just interest - so they want to free up cashflow. If you've seen the same car in the showroom, same VIN number for 6 months, chances are they'll accept an offer to free up cash. Again this works better on models which are less popular - Toyotas and Hondas shift the volumes so they easily rotate items on shop floor.

[ianguygil]

Honestly the only good deals are at the 2 motor shows (1 at BITEC and 1 at Muang Thong Thani) which are on each year. I think the next one is in April or May.

The only other thing would be if you know somebody in the business. But the motor shows are normally very good deals.

[PattayaParent]

If you tell them you don't want the 'freebies' you can get between 20k and 30k discount depending on the model.

Edit: I declined their insurance and spent the money on other 'freebies'.

Edited February 2, 2010 by PattayaParent

[dmax]

you expect a thai to drop a few thousand baht because you swagger in with the sergeant and his colonel

Edited February 2, 2010 by dmax

[ianguygil]

I got a much larger discount than that, but it was a relatively expensive product.

As a percentage it is about 5%, maybe a little more. So I suppose for a normal priced car (camry, accord etc.) it would be about 50K, about 30K for a pickup.

[in2fridge]

Thanks to all (except dmax),very interesting and kinda what I thought (or feared !)..Will look into the ex demo idea...

As for dmax I guess the law of averages says there will be at least one Prat....just for the record the police colonel volunteered to take me round some mates of his in the used car business..maybe dmax doesn't get out much.......

[soundman]

Moved to the motor forum.

[Nana]

I bought a Mazda BT-50 about 10 months ago. When I have been back at the dealer for service, I have been showing interest in a Mazda3 priced just over a million baht. I don't know how many times they have been calling me with new offers. But have been offered a 100.000,- baht discount on the model I looked at.

Cheers

Nana

Edited February 3, 2010 by Nana

[in2fridge]

I bought a Mazda BT-50 about 10 months ago. When I have been back at the dealer for service, I have been showing interest in a Mazda3 priced just over a million baht. I don't know how many times they have been calling me with new offers. But have been offered a 100.000,- baht discount on the model I looked at.

Cheers

Nana

Went into the local dealer to look at a BT 50,mentioned I had a friend who had been offered -100,000....I am sure the sales lady went a shade paler followed by a stunned silence ! ..

..She recomended we come back and see her english speaking boss on his return from his USA holiday on the 16th ..

Very surprised airbag (s) not standard.

[Loz]

If you've been in the motor trade I presume you are wise to the "best time to buy" a car. In the Uk for example, when they still sold Camrys you could get a three year old ex fleet car for peanuts. It was the worst depreciation around. (maybe why they stopped selling them? ) Do your homework and look at what is going off the boil here and when...

THere are bargains!

[in2fridge]

If you've been in the motor trade I presume you are wise to the "best time to buy" a car. In the Uk for example, when they still sold Camrys you could get a three year old ex fleet car for peanuts. It was the worst depreciation around. (maybe why they stopped selling them? ) Do your homework and look at what is going off the boil here and when...

THere are bargains!

True,any car massively discounted into the fleet market is going to have a horrendous depreciation,trouble is after buying your bargain it keeps right on depreceating.....

Buying an older car tends to mean higher maintenace so it's a balancing act and really there is no correct answer.

Some just buy "the deal" ,some the car that best suits their needs,some combine the two !

You pay's yer money and takes yer choice.....

[Bobr]

When I bought my car here, it's the first time I ever paid sticker, but I was still happy. I had looked at used cars and ended up with a new Yaris that was priced less (no exaggeration) than some of the identically equipped used ones I had looked at in the used car shops around Pattaya. I bought mine from Toyota 1998 in Pattaya, and they even financed it through Thanachart Bank with 25% down. It was not an unpleasant experience, they were straight forward, reasonable and honest.

[aussiebebe]

Just looking at the OP's questions; are new cars discounted, and should you finish the finance repayments before selling.

Firstly, freebies are commonly offered in lieu of discounts and the best 'discount' I've ever got in Thailand was when I bought a Chevy with 0% finance last December. I felt really sorry for the salesman when I was chatting to him after I made the purchase. He revealed that his basic salary was only 9,000baht per month; I was expecting this. However, his commission for selling me the car was a pittance, only a few thousand baht.

Secondly, I'd suggest paying off a car completely before selling this purely because it gives you more options as to where you can sell it and to whom, if you own it outright.

[GAS]

As a newb to LOS I am having a hard time understanding the prices of new vehicles here!! It seems in the states you would get a comparable Honda or Toyota for THOUSANDS less!! As I understand it, many of the Toyota's at least, are made right here...I just do not get how they charge so much in the Thai market.

Can someone enlighten me?? Is it supply and demand, economy of scale or something?

Someone mentioned a Mazda 3 for a million Baht?? <deleted>?? They start at $16K USD in the states... So what is the deal?

[DeathbyDurian]

TAX

Since only 30% of the population (That might be an over statement) pays tax, the government needs to get their money from somewhere...

Edited February 19, 2010 by DeathbyDurian

[mdechgan]

Prices are pretty much set by the distributors. Bangkok is a small city so it gives every dealer a chance to sell. So someone living in Thonburi doesn't buy a car in Bang Na just because of a lower price bypassing dozens of local dealers.

However each individual dealer has their own customer budget for various freebies like tint, sensors, floormats, even some gas in the tank before delivery, etc.

Gotta be careful of the sticker price though. Lots of fees are added. At the Izusu dealer for example my truck cost 845,000. But I had to add a/c at a cost of 15,000. I said what if I don't want the a/c? They said all cars come with a/c so the 15,000 fee couldn't be removed. They should of just put it on the sticker price.

Some prices are really ridiculous in Thailand. 3.5 million for a V6 honda accord? BMWs for 3-5 million? They cost half as much in the U.S.

[babykyo]

Prices are pretty much set by the distributors. Bangkok is a small city so it gives every dealer a chance to sell. So someone living in Thonburi doesn't buy a car in Bang Na just because of a lower price bypassing dozens of local dealers.

However each individual dealer has their own customer budget for various freebies like tint, sensors, floormats, even some gas in the tank before delivery, etc.

Gotta be careful of the sticker price though. Lots of fees are added. At the Izusu dealer for example my truck cost 845,000. But I had to add a/c at a cost of 15,000. I said what if I don't want the a/c? They said all cars come with a/c so the 15,000 fee couldn't be removed. They should of just put it on the sticker price.

Some prices are really ridiculous in Thailand. 3.5 million for a V6 honda accord? BMWs for 3-5 million? They cost half as much in the U.S.

thailand cars are dirt cheap. Try buying a car in Singapore. I am surprise US cars are super dirt cheap. I would be a king if I live in USA

[babykyo]

In Singapore you pay for a low spec toyota vios and you can get a top of the range toyota fortuner in thailand. Thats is why I said cars in thailand are dirt cheap. So whats there to complain about, since you are earning more that thai people.

[craigt3365]

Prices are pretty much set by the distributors. Bangkok is a small city so it gives every dealer a chance to sell. So someone living in Thonburi doesn't buy a car in Bang Na just because of a lower price bypassing dozens of local dealers.

However each individual dealer has their own customer budget for various freebies like tint, sensors, floormats, even some gas in the tank before delivery, etc.

Gotta be careful of the sticker price though. Lots of fees are added. At the Izusu dealer for example my truck cost 845,000. But I had to add a/c at a cost of 15,000. I said what if I don't want the a/c? They said all cars come with a/c so the 15,000 fee couldn't be removed. They should of just put it on the sticker price.

Some prices are really ridiculous in Thailand. 3.5 million for a V6 honda accord? BMWs for 3-5 million? They cost half as much in the U.S.

thailand cars are dirt cheap. Try buying a car in Singapore. I am surprise US cars are super dirt cheap. I would be a king if I live in USA

Right...cars are less expensive, but everything else is WAY more...so there goes your "king" status....

[katabeachbum]

Prices are pretty much set by the distributors. Bangkok is a small city so it gives every dealer a chance to sell. So someone living in Thonburi doesn't buy a car in Bang Na just because of a lower price bypassing dozens of local dealers.

However each individual dealer has their own customer budget for various freebies like tint, sensors, floormats, even some gas in the tank before delivery, etc.

Gotta be careful of the sticker price though. Lots of fees are added. At the Izusu dealer for example my truck cost 845,000. But I had to add a/c at a cost of 15,000. I said what if I don't want the a/c? They said all cars come with a/c so the 15,000 fee couldn't be removed. They should of just put it on the sticker price.

Some prices are really ridiculous in Thailand. 3.5 million for a V6 honda accord? BMWs for 3-5 million? They cost half as much in the U.S.

thailand cars are dirt cheap. Try buying a car in Singapore. I am surprise US cars are super dirt cheap. I would be a king if I live in USA

3,5 mill baht for Accord 3,5 V6 is not correct, since sticker price is 2,8 including all taxes and gizzmos. Got a 2,4 myself cost 1,5. cars with more than 3000cc or 220 hp are heavily taxed in LOS.

[Nana]

As a newb to LOS I am having a hard time understanding the prices of new vehicles here!! It seems in the states you would get a comparable Honda or Toyota for THOUSANDS less!! As I understand it, many of the Toyota's at least, are made right here...I just do not get how they charge so much in the Thai market.

Can someone enlighten me?? Is it supply and demand, economy of scale or something?

Someone mentioned a Mazda 3 for a million Baht?? <deleted>?? They start at $16K USD in the states... So what is the deal?

It's all about tax.....a Mazda3 will start from 755.000 up to 1.025.000 (22k - 30k US) depending on engine size and equipment.

But still a lot less than many european countries. In Norway the Mazda3 starts from 44.000 up to 72.000 US !!!

[katabeachbum]

As a newb to LOS I am having a hard time understanding the prices of new vehicles here!! It seems in the states you would get a comparable Honda or Toyota for THOUSANDS less!! As I understand it, many of the Toyota's at least, are made right here...I just do not get how they charge so much in the Thai market.

Can someone enlighten me?? Is it supply and demand, economy of scale or something?

Someone mentioned a Mazda 3 for a million Baht?? <deleted>?? They start at $16K USD in the states... So what is the deal?

It's all about tax.....a Mazda3 will start from 755.000 up to 1.025.000 (22k - 30k US) depending on engine size and equipment.

But still a lot less than many european countries. In Norway the Mazda3 starts from 44.000 up to 72.000 US !!!

Mazda3 made in LOS (1600cc to 2000cc) has 35% excise tax and 7% VAT.

The price in LOS includes leather seats and gizzmos you pay extra for in the US. It also includes all taxes and usually 1st class insurance for one year. Free service for 3 years.

[mca]

At the Izusu dealer for example my truck cost 845,000. But I had to add a/c at a cost of 15,000.

Huh? What sort of honky tonk Isuzu dealership was that?

[mdechgan]

At the Izusu dealer for example my truck cost 845,000. But I had to add a/c at a cost of 15,000.

Huh? What sort of honky tonk Isuzu dealership was that?

Isuzu Mahanakorn dealer on Phet Kasem road right after Phutthamonthon 4 road on the right side.

I can show the receipt if I can find it. It was a rodeo LS 3.0 Auto transmission.