Trade In Prices Plunging?

[Jocky]

My friend has a Toyota Vigo Prerunner 4 door which is 14 months old.

He paid 810,000baht for it inclusive of extras (List 779,000 at the time).

His family is growing so he enquired about buying a Fortuner around 1.3 million and bearining in mind he has bought 4 cars in 3 years of them they offered him 500,000baht trade in on his vigo with 16000kms on the clock.

That's a loss of 310,000 in a year so i'm assuming as everyone is buying new cars there are a glutton of used cars around therefore affecting the used market.

I suppose it had to happen but surely if this starts to be the norm it will affect new car sales too.

[marquess]

You can be assured that the dealer will be selling that car for about 700k, one is always better off selling privately! I am thinking of getting Honda Civic and selling my City which has 76,0000km on the clock 2005/6 I don't know how much the dealer will give for it? But have seen some advertised for about 400k with no indication of millage, dealers usually screw you full stop!

[MoonRiverOasis]

My gut says it's probably worth mid to high 500's as a trade-in, but if you want to be sure it's only 100 Baht for a Redbook valuation: https://www.redbookasiapacific.com/rbcert/i...ng=en&cc=th

Edited May 2, 2010 by MoonRiverOasis

[proximity]

It looks like dealers would try to retail that truck at around 650k. One lowball quote from a new car doesn't mean the market is crashing. Perhaps go get some quotes from tent dealers?

[stingray]

You can be assured that the dealer will be selling that car for about 700k, one is always better off selling privately! I am thinking of getting Honda Civic and selling my City which has 76,0000km on the clock 2005/6 I don't know how much the dealer will give for it? But have seen some advertised for about 400k with no indication of millage, dealers usually screw you full stop!

650 is normally the resale price if it's fully loaded. If you can sell it privetly, so do it. But it's clear that if a dealer buy it, he want make some profit. Dealers don't screw all. but it's like any investment. Have to make some profit. For what reason a dealer would buy if he can't make profit? Sometimes car stay 3 or more months with the dealer until he can sale. Dealer have overheads to pay, rentals, staff, adverts, taxes, etc. Maybe they have someone for financing behind and they want some money as well. So 150'k profit is reasonable for a 500'k investment. I'ts not 150'k profit after al the expanses. If can't make a higher profit why some dealer would block a half milin with that kind of car. To gain o low profit like 20'k it's better to buy old Soluna for example and not much money is "blocked".

Edited May 3, 2010 by stingray

[Sakeopete]

From my experience selling my Vigo two years ago your friend if Farang should get premium second hand price for it. If its well looked after even some Thais will be willing to pay on the higher end. They know farang tend to not skimp on maintenance. I would never buy second hand from a Thai if I could help it unless I knew the vehicles history first hand.

[basjke]

I have a colorado 4x4 from 2005 which I am replacing currently.Went to the new car dealers and the best they offered me was 350.000 baht for it.That was after they consulted a second hand car dealer.

Then I went to a few of those second hand dealers on sukhumvith and got 380.000 Baht for it.

[stingray]

I have a colorado 4x4 from 2005 which I am replacing currently.Went to the new car dealers and the best they offered me was 350.000 baht for it.That was after they consulted a second hand car dealer.

Then I went to a few of those second hand dealers on sukhumvith and got 380.000 Baht for it.

Yes, because maybe they wanted also 30'k for a phone call. It's normaly in LOS. BT way there is a very big difference sometimes, because some 05 models don't have commonrail engine and this is what the dealer can't see over the phone. But if your's have Commonrail already than it's maybe more worht, therefore the 380k.

[happyaussie]

From a buyers perspective the number of used cars available in unbelievable. And at such high prices. Last month I was considering buying 2nd hand only to discover how expensive 1,2 & 3 year old cars were. It made much more sense to buy new. As a previos post said, sell privately.

When buying new, demand seems to outstrip supply. When I ordered my new Honda they didn't even have a test vehicle available. There was a very take it leave it attitude.

I get the feeling the dealers will sell to anyone, arrange finance, then when all goes pear shaped the vehicle is on the 2nd hand car market.

Yes, dealers are in business to make profit. But 100,000+bht minimum per car seems a tad excessive. Sell 10 cars and they have a cool million baht.

[aussiebebe]

My gut says it's probably worth mid to high 500's as a trade-in, but if you want to be sure it's only 100 Baht for a Redbook valuation: https://www.redbookasiapacific.com/rbcert/i...ng=en&cc=th

Thanks for posting that link. I was completely unaware of it, it looks very useful to anyone selling. Cheers.

[stingray]

From a buyers perspective the number of used cars available in unbelievable. And at such high prices. Last month I was considering buying 2nd hand only to discover how expensive 1,2 & 3 year old cars were. It made much more sense to buy new. As a previos post said, sell privately.

When buying new, demand seems to outstrip supply. When I ordered my new Honda they didn't even have a test vehicle available. There was a very take it leave it attitude.

I get the feeling the dealers will sell to anyone, arrange finance, then when all goes pear shaped the vehicle is on the 2nd hand car market.

Yes, dealers are in business to make profit. But 100,000+bht minimum per car seems a tad excessive. Sell 10 cars and they have a cool million baht.

Did you know how much cost to rent a used car tent for 12 cars in Sri Nakarin or Kantanapisek Road in Bangkok? Prices are similar like in Europe or US. I can tell you, that most cardealers only "work" for their landlords. What is 100'000 Baht? 100'000 Baht is 3'000 USD. Maybe can sell only 2 or 3 cars per month. In America or Europe a used cardealer also get 3'000 USD profit on a 18'000 Dollar SUV, for example. That's very normal. Otherwise it would be impossible to doing business. Invest ist high for the expensive cars. Money not falling from the trees or sky, Most dealers have dealerfinancing, they can't just buy 10 cars for 500'k each. So there the finance company or some private investor comes into the game. They want money as well. Sometime they split profit 50/50. So there is no 100'000 anymore for the dealer. There are other expenses as well, salaries on salestuff, advertising costs, power and waterbills, taxes, etc. Sometime can not sale one car for maybe 3 weeks. It's not so easy to doing business anywhere.

I myself personally would not buy a 500'k car, if i can't make a 100'k Profit. To gain 20'k i no need to invest 500'k and carry the risk of theft or what ever. To make 20'k profit, can buy a 18 year old Totota Corona or Nissan Sentra for 90'k and sell it for 110'k. No risks with surprises of electronic problems and only 90'k invest, instead of 500'k.

Edited May 7, 2010 by stingray

[robblok]

From a buyers perspective the number of used cars available in unbelievable. And at such high prices. Last month I was considering buying 2nd hand only to discover how expensive 1,2 & 3 year old cars were. It made much more sense to buy new. As a previos post said, sell privately.

When buying new, demand seems to outstrip supply. When I ordered my new Honda they didn't even have a test vehicle available. There was a very take it leave it attitude.

I get the feeling the dealers will sell to anyone, arrange finance, then when all goes pear shaped the vehicle is on the 2nd hand car market.

Yes, dealers are in business to make profit. But 100,000+bht minimum per car seems a tad excessive. Sell 10 cars and they have a cool million baht.

Did you know how much cost to rent a used car tent for 12 cars in Sri Nakarin or Kantanapisek Road in Bangkok? Prices are similar like in Europe or US. I can tell you, that most cardealers only "work" for their landlords. What is 100'000 Baht? 100'000 Baht is 3'000 USD. Maybe can sell only 2 or 3 cars per month. In America or Europe a used cardealer also get 3'000 USD profit on a 18'000 Dollar SUV, for example. That's very normal. Otherwise it would be impossible to doing business. Invest ist high for the expensive cars. Money not falling from the trees or sky, Most dealers have dealerfinancing, they can't just buy 10 cars for 500'k each. So there the finance company or some private investor comes into the game. They want money as well. Sometime they split profit 50/50. So there is no 100'000 anymore for the dealer. There are other expenses as well, salaries on salestuff, advertising costs, power and waterbills, taxes, etc. Sometime can not sale one car for maybe 3 weeks. It's not so easy to doing business anywhere.

I myself personally would not buy a 500'k car, if i can't make a 100'k Profit. To gain 20'k i no need to invest 500'k and carry the risk of theft or what ever. To make 20'k profit, can buy a 18 year old Totota Corona or Nissan Sentra for 90'k and sell it for 110'k. No risks with surprises of electronic problems and only 90'k invest, instead of 500'k.

If dealers have such high costs then its always better to sell private if you can. First try to sell private then try a dealer if your absolutely desperate.

[SomTumTiger]

Last week I sold my 2006 Vigo Prerunner for 530,000. It had 43,000km, and was in great shape. I tried to sell it privately at first, on TV Classifieds and Bahtandsold, and kept getting ridiculous lowball offers from farang buyers. (One offered me 400,000 and when i refused, proceeded to insult my wife for insisting the sell price was a good deal higher sigh). I turned things over to my brother in law, and he took it first to several of the "tent" sales, and also to Toyota Sure (Toyota used car certified resale). All the offers to buy were within 10,000, pegged right at 480,000. My brother in law put in on the "Tent" lot of a family friend, and they advertised the car at 550,000. When my brother in law sold it for 530,000, via an internet ad, we conducted the sale privately.

My advice? Check the model and make and price on taladrod.com and one2car.com. That will give you a better idea of the resale value. Then, have a Thai friend help you sell. Don't rely on farang "experts" who try to lowball you. Know your numbers!

[torrenova]

You can be assured that the dealer will be selling that car for about 700k, one is always better off selling privately! I am thinking of getting Honda Civic and selling my City which has 76,0000km on the clock 2005/6 I don't know how much the dealer will give for it? But have seen some advertised for about 400k with no indication of millage, dealers usually screw you full stop!

650 is normally the resale price if it's fully loaded. If you can sell it privetly, so do it. But it's clear that if a dealer buy it, he want make some profit. Dealers don't screw all. but it's like any investment. Have to make some profit. For what reason a dealer would buy if he can't make profit? Sometimes car stay 3 or more months with the dealer until he can sale. Dealer have overheads to pay, rentals, staff, adverts, taxes, etc. Maybe they have someone for financing behind and they want some money as well. So 150'k profit is reasonable for a 500'k investment. I'ts not 150'k profit after al the expanses. If can't make a higher profit why some dealer would block a half milin with that kind of car. To gain o low profit like 20'k it's better to buy old Soluna for example and not much money is "blocked".

I'm sorry but your maths doesn't work. Expecting 150k on a 500k deal is why people rightly tell you that they are robbing you blind. As for having to keep the vehicle for 3 months, then that is purely because it is overpriced. If it was the correct price, it would walk out on its own. As for needing 150k for expenses then that argument is laughable. We are talking about the marginal cost of one vehicle, not this one vehicle paying for all operating overheads.

When my truck was a year old I took it to a garage and asked them and they came back with 400k from an original 792k and that was with about 15k on the clock. The real price would have been around 650k to 700k and I could have sold a thousand of them at 600k or below.

[MoonRiverOasis]

Dealer margin on used vehicles in Thailand is typically 10-15% on popular models, and 15% to 25% on less popular/more expensive ones.

Offer prices when trading-in typically start at prices that would fetch 20-30% margin, less another 20,000 to 40,000 Baht in commission if someone is "helping you" (e.g. a new car salesperson is assisting with the trade-in).

I have now traded-in four cars in LOS, and they always start by offering you a ridiculously low price - that's just business. However, with a little negotiation I have always managed to achieve (and in one case, slightly better) the price suggested by the 100 Baht Redbook valuation..

Edited May 7, 2010 by MoonRiverOasis

[stingray]

You can be assured that the dealer will be selling that car for about 700k, one is always better off selling privately! I am thinking of getting Honda Civic and selling my City which has 76,0000km on the clock 2005/6 I don't know how much the dealer will give for it? But have seen some advertised for about 400k with no indication of millage, dealers usually screw you full stop!

650 is normally the resale price if it's fully loaded. If you can sell it privetly, so do it. But it's clear that if a dealer buy it, he want make some profit. Dealers don't screw all. but it's like any investment. Have to make some profit. For what reason a dealer would buy if he can't make profit? Sometimes car stay 3 or more months with the dealer until he can sale. Dealer have overheads to pay, rentals, staff, adverts, taxes, etc. Maybe they have someone for financing behind and they want some money as well. So 150'k profit is reasonable for a 500'k investment. I'ts not 150'k profit after al the expanses. If can't make a higher profit why some dealer would block a half milin with that kind of car. To gain o low profit like 20'k it's better to buy old Soluna for example and not much money is "blocked".

I'm sorry but your maths doesn't work. Expecting 150k on a 500k deal is why people rightly tell you that they are robbing you blind. As for having to keep the vehicle for 3 months, then that is purely because it is overpriced. If it was the correct price, it would walk out on its own. As for needing 150k for expenses then that argument is laughable. We are talking about the marginal cost of one vehicle, not this one vehicle paying for all operating overheads.

When my truck was a year old I took it to a garage and asked them and they came back with 400k from an original 792k and that was with about 15k on the clock. The real price would have been around 650k to 700k and I could have sold a thousand of them at 600k or below.

650, usually salesprice, depend on model. Most dealers not buy cash anyway. Sometime you get a better price if you park the car there as "commission" car. That's mean they pay you wen they sell the car. So in this case they don't have to invest anything. But if you need instant cash, they try t get it cheap. Thats' the way the business is. Similar with a pondshop. Did you ever try to sell a TV in a pondshop? It's uptto the customer, if he want sell it privetly or to a dealer. As i said, personally i wouldn't spend a half milllion Baht to gain only 20'k. Take the risk and hassles only if it's worth it. If pay 500, have to make a pricetag of 599. Customer negotionte a little bit so maybe can sell at 580 and i think that's fair.

Edited May 8, 2010 by stingray

[SomTumTiger]

You can be assured that the dealer will be selling that car for about 700k, one is always better off selling privately! I am thinking of getting Honda Civic and selling my City which has 76,0000km on the clock 2005/6 I don't know how much the dealer will give for it? But have seen some advertised for about 400k with no indication of millage, dealers usually screw you full stop!

650 is normally the resale price if it's fully loaded. If you can sell it privetly, so do it. But it's clear that if a dealer buy it, he want make some profit. Dealers don't screw all. but it's like any investment. Have to make some profit. For what reason a dealer would buy if he can't make profit? Sometimes car stay 3 or more months with the dealer until he can sale. Dealer have overheads to pay, rentals, staff, adverts, taxes, etc. Maybe they have someone for financing behind and they want some money as well. So 150'k profit is reasonable for a 500'k investment. I'ts not 150'k profit after al the expanses. If can't make a higher profit why some dealer would block a half milin with that kind of car. To gain o low profit like 20'k it's better to buy old Soluna for example and not much money is "blocked".

I'm sorry but your maths doesn't work. Expecting 150k on a 500k deal is why people rightly tell you that they are robbing you blind. As for having to keep the vehicle for 3 months, then that is purely because it is overpriced. If it was the correct price, it would walk out on its own. As for needing 150k for expenses then that argument is laughable. We are talking about the marginal cost of one vehicle, not this one vehicle paying for all operating overheads.

When my truck was a year old I took it to a garage and asked them and they came back with 400k from an original 792k and that was with about 15k on the clock. The real price would have been around 650k to 700k and I could have sold a thousand of them at 600k or below.

650, usually salesprice, depend on model. Most dealers not buy cash anyway. Sometime you get a better price if you park the car there as "commission" car. That's mean they pay you wen they sell the car. So in this case they don't have to invest anything. But if you need instant cash, they try t get it cheap. Thats' the way the business is. Similar with a pondshop. Did you ever try to sell a TV in a pondshop? It's uptto the customer, if he want sell it privetly or to a dealer. As i said, personally i wouldn't spend a half milllion Baht to gain only 20'k. Take the risk and hassles only if it's worth it. If pay 500, have to make a pricetag of 599. Customer negotionte a little bit so maybe can sell at 580 and i think that's fair.

The word stingray is getting at is "Pawn shop".

[stingray]

Thanks, so at least i have a chance to improve my english. i welcome that, because i'm willing to learn. (i'm not native english speaking).