Second-hand Auto Dealers Feeling The Pinch

[george]

Second-hand auto dealers feeling the pinch

BNGKOK: -- Used-car dealers have seen few buyers in the past two months following the surge in oil prices, forcing some operators out of business, said a tent operator.

Sakhon Chaengchenjai, a dealer and chairman of a used-car tent operators’ group in Muang Chaiyaphum, said yesterday that before diesel prices started to surge, each dealer was selling an average of 10-20 vehicles per month. “Now sales revenue has dropped by more than half,” Sakhon said. The 20 dealers in the area are reporting sales of only a few vehicles each month, and three of them have shut their business, he said. He foresees several others following suit as rising oil prices drive up the cost of all consumer goods, squeezing the purchasing power of car buyers.

“Many cannot finance their loans and during the last two months, more than 100 vehicles have been seized,” Sakhon said.

Dayan Singtothong, owner of 2 Tor – a used-motorcycle shop – has also experienced a sharp drop in sales. From five to 10 units on average per month, her shop, which has been in business for 30 years, now welcomes only the occasional customer.

“If the situation remains like this for a while, I may have to close the business,” she said, adding that of 15 used-motorcycle dealers in the area, five have already gone out of business.

She also said clients who bought on instalment are having problems repaying the loans.

“I don’t know what to do. I don’t want to seize the units. I have had to repossess more than 20 motorcycles so far.

“As they cannot find new buyers, I need to offer the clients a longer instalment period,” she noted.

--The Nation 2005-07-13