Car Prices

[happylarry]

I have just been browsing in the classified section and I see a 14 year old Honda thats done more than 200,000 miles and they are asking 250,000 baht!!

Thats over 5,000 pounds sterling, for an old banger!!!!!!!

Why are the prices of cars over here so high?

You would think that with all the Thai people buying a new car on hire purchase every time they manage to get a deposit together that there would be so many secondhand cars around that they would give them away.

Any thoughts as to why????????????

HL

[true blue]

great, im made up my hondas only 4 years old,money in the bank,lol.

[Seismic]

Would love to know the answer too, I am just about to sell the Tiger pickup, 6 years old only 55000 on the clock.

I know Toyota have good resale value here but I always seem to see second hand car lots without many customers.

[WarpSpeed]

Thai economics 101............... Less customers............Increase the price.....

[Birdman]

Tried to sell a 4 door, 7 year old, good condition, etc etc...Mazda Pick Up for over a year for 280.000/new ~ 620.000 without anyone seriously interested.

Aya, there was a Farang who liked the car/price instantly, but his Thai wife gave the car not even a slightest glance.......he probably had to buy a new Civic or Fortuner....

[Forethat]

As strange as it might sound, the price on a car is actually decided on whether you are currently employing a bilingual gardener.

It's hard fact.

[jpolten]

Older cars are cheaper to maintain...easy to find second hand parts,lower price for parts

[Richb2004v2]

I think I read on TV that sometimes Thais are actually quite proud of high millage on a car. I'm not sure if it's true though.

I can't work out the situation either though. If so many cars get reposessed you would expect to be able to get a good bargain. I guess like most things here it defies logic.

[nam-thip]

Why they ask over the top prices for second hand cars is beyond belief when you see forecourts full.

Is it that the price of a second hand car is decided by the seller’s greed?

I’ve seen the same cars on local forecourts for years and at the same selling price with no reduction for the added years.

My misses once suggested the forecourts in Thailand were owned by Toyota, Honda, Ford, Mazda and all the other top brand names and by putting a high price on a second hand car with a dubious history it forces people into their showrooms to buy new cars.

In general Thai's don't like buying second hand anything for reasons of a ‘lack of trust’ which I fully understand having lived among them for many years.

[rixalex]

It's all to do with financing i think you'll find.

New cars not only require a larger down-payment, but fulfilling the requirements to get the finance is much harder, and for many Thais simply not possible.

Second-hand cars on the other hand often can be driven off the forecourt with as little as 20,000 baht down. Getting the finance is also generally a lot easier.

All of this means that second-hand dealers have their customers over a barrel. If you don't work for a company with a regular monthly income, and you don't have a large dob of cash sitting about, you have no choice.

[bkkjames]

Simple math solves the problem.

14 year old Honda purchased originally for 500,000 Baht when the value of the baht was 25 to the USD. Then economic crisis hit in 97 and the baht when to near 50 to the USD. = Value of the Car Doubled.

[ignis]

The Logic ??

Put it like this, you buy a new pickup for 600,000, put down 100,000, so finance 500,000 [On a new truck this is less than half the interest of a finace on a secondhand pickup]

In 4 years you have paid for the finance, and the truck is still worth 400,000... You then start again, if the payments are OK then you get cash bach in the hand, or use the full money and pay a lot less per month finance..

As milage/km appear to pay little part on the price a Isuzu or Vigo will still be worth a lot of money.. In 2008 exchanged the D-Max for a new one.. it was 3 years old and had covered just over 400,000km, still got 448,000 baht.. Paid 612,000 in 2005. Later the same years sold my Honda Jazz I bought new in 2004, but had covered only 26,000km. lost 155,000 baht..

You then have lots of cars and trucks for sale at 3, 4 or 5 yrs old... Most Thais I know that buy NEW + pay cash keep there cars for 10+ years.

When I was looking for another car, 2nd hand luxury, there were loads I looked at 10 - 15 years old with only one owner from new.

Edited March 18, 2010 by ignis

[sungod]

Does anyone know where( online maybe?) I can get a decent idea of valuation of my truck? Spoke to some dealers, but I want to try private sales first.

Edited March 18, 2010 by sungod

[ignis]

http://www.siammotor.com/siammotornew/index.php

Appears to be Private, maybe see what other truks are selling for like yours?

Edited March 18, 2010 by ignis

[LennyW]

Does anyone know where( online maybe?) I can get a decent idea of valuation of my truck? Spoke to some dealers, but I want to try private sales first.

Google ...Red Book Asia Pacific ... i think thats the one.

[ignis]

http://www.redbookasiapacific.com/th/home.php?lang=en

But you have to pay 100 baht for a valuation

[bkkjames]

http://www.redbookasiapacific.com/th/home.php?lang=en

But you have to pay 100 baht for a valuation

add it to the price of the car mate when you sell it.

[dave111223]

My parents just bought a new car in the US, and traded in a 14 year old chevy blazer (SUV) and a 13 year old chevy cavalier (2 door). Total trade-in value = $700 (total for 2 cars).

They had tried to sell the cars online and in local classifieds prior to trading in, but basically you can't even give them away.

My wife's eyes just about popped out of her head when i hold her a drivable 13 year old car was worth about 11,000 baht in the US. Same cars probably would have fetch 150K each out here.

[rixalex]

My wife's eyes just about popped out of her head when i hold her a drivable 13 year old car was worth about 11,000 baht in the US. Same cars probably would have fetch 150K each out here.

More like double that i would say.

[ignis]

My parents just bought a new car in the US, and traded in a 14 year old chevy blazer (SUV)

Is that anything like a Chevy Suburban ?? noticed one for sale here was a 2000 model, DID NOT have leather or electric seats or climate control looked a very basic model, in a car Tent @ 1.6 million !!! [did have a tow hook, maybe to pull a petrol container ]

Edit: ther are a number a Chevy Day Vans around, all are around the 500,000 baht price for 1994/5 models + have climate control, cruise control, leather.

Edited March 18, 2010 by ignis

[sungod]

Thanks to all who replied, no 'Glasses' book to be bought out the newsagents then!

[ignis]

Thanks to all who replied, no 'Glasses' book to be bought out the newsagents then!

Yes sort of, the Thai Car Mags cost around 60 baht, some have 2nd hand prices in them

[samran]

Pretty simple really.

Thailand has high tariff barriers that makes the price of all cars more expensive than they need be. Flows through to second hand car prices.

The other reason is that second hand cars are much much cheaper to repair and serivice in LOS. So in thailand, car price is high but servicing is low. In the west, the car price is low but the service cost is high.

Swings and round abouts.

[dave111223]

My parents just bought a new car in the US, and traded in a 14 year old chevy blazer (SUV)

Is that anything like a Chevy Suburban ??

Kind of but smaller/shorter:

Suburban:

Blazer:

Edited March 18, 2010 by dave111223

[Flatouthruthefog]

Pretty simple really.

Thailand has high tariff barriers that makes the price of all cars more expensive than they need be. Flows through to second hand car prices.

The other reason is that second hand cars are much much cheaper to repair and serivice in LOS. So in thailand, car price is high but servicing is low. In the west, the car price is low but the service cost is high.

Swings and round abouts.

Thank gawd, I was hoping for this. Thanks. High initial tax on new cars in Thailand has a trickle-down effect.

Add to this the total reluctance of 2nd hand dealers to bargain (they'd rather see the tyres slowly go flat than sell at 10k less than they ask), PLUS the practical impossibility of importing your own favourite wheels thanks to the greed of Customs - and you have your answer.

If the Thai lady wants a brand new car to impress her family and friends, let her buy one. You get into a reliable, 3rd hand, slightly outdated but totally smart and competent car for 250,000b and laugh at her for years to come.

There IS a printed price guide here and it sometimes contains surprises. The old shape 3 door Suzuki Vitara (not the 5 door!) has RISEN in value around 50k in the past 18 months!

[mca]

Just an aside but my dad just traded in his car back home against a new Lexus. He's always been one for buying a quality car and keeping it for years so

1999 BMW 740. Fully loaded. Full main dealer service history. 85000 miles.

He got the equivalent of 88000 baht for it.

Over here usually with a car of that price I reckon it's advisable to carry a set of jump leads, a gallon of cheap engine oil and a fully charged up mobile phone so you can call a mate when it breaks down.

[Boater]

My parents just bought a new car in the US, and traded in a 14 year old chevy blazer (SUV) and a 13 year old chevy cavalier (2 door). Total trade-in value = $700 (total for 2 cars).

They had tried to sell the cars online and in local classifieds prior to trading in, but basically you can't even give them away.

My wife's eyes just about popped out of her head when i hold her a drivable 13 year old car was worth about 11,000 baht in the US. Same cars probably would have fetch 150K each out here.

we had a 1992 K reg ford escort on trade in, 160,000 miles, full service history , MOT , TAX, drove fine, no damage...

there are a few old escorts on www.one2car.com , and they are asking around 250K ( 5,000 Pounds)

When we capped it, it was worth .... 10 Pounds !, even with 40K on theclock it was worth 20 Pounds Trade in !!!

I dont think Thaland has a Cap system like the UK?

[Richb2004v2]

My parents just bought a new car in the US, and traded in a 14 year old chevy blazer (SUV) and a 13 year old chevy cavalier (2 door). Total trade-in value = $700 (total for 2 cars).

They had tried to sell the cars online and in local classifieds prior to trading in, but basically you can't even give them away.

My wife's eyes just about popped out of her head when i hold her a drivable 13 year old car was worth about 11,000 baht in the US. Same cars probably would have fetch 150K each out here.

we had a 1992 K reg ford escort on trade in, 160,000 miles, full service history , MOT , TAX, drove fine, no damage...

there are a few old escorts on www.one2car.com , and they are asking around 250K ( 5,000 Pounds)

When we capped it, it was worth .... 10 Pounds !, even with 40K on theclock it was worth 20 Pounds Trade in !!!

I dont think Thaland has a Cap system like the UK?

I'm from the Uk and I don't even know what the cap system is!

40k on the clock? You said it had 160k on it? You should have sold it privately for 250 pounds.

[steelepulse]

>>There IS a printed price guide here and it sometimes contains surprises.

Where might that printed price guide be?

Still strange that tents will sit on cars for months or even years instead of just flipping them and making their margins that way. Supply and demand don't really come into play in the used car market it appears. Lots of supply, not that much demand.

[WinnieTheKhwai]

Thai economics 101............... Less customers............Increase the price.....

Nope.

If so many cars get reposessed you would expect to be able to get a good bargain. I guess like most things here it defies logic.

Nope, nothing to do with it.

> Is it that the price of a second hand car is decided by the seller's greed?

Nope.

New cars not only require a larger down-payment, but fulfilling the requirements to get the finance is much harder, and for many Thais simply not possible.

Somewhat true.

14 year old Honda purchased originally for 500,000 Baht when the value of the baht was 25 to the USD. Then economic crisis hit in 97 and the baht when to near 50 to the USD. = Value of the Car Doubled

Nope.

Anyway.. I'm getting a numb finger copying and pasting so let's end this:

Used cars are more expensive because the value they represent X years down the road is much higher. This has everything to do with maintenance costs. In the UK if you buy a 10 year old car and the slightest thing goes wrong with it then you're writing it off. Here a mechanic will happily work on it for a day for 500 baht. So, less risk, higher value, longer life expectancy, higher price.

If you don't like this, buy new. Nothing wrong with buying new though you will still lose a percentage just driving it out the showroom.

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