Why Are New Cars So Overpriced In Thailand

[WarpSpeed]

No, I'm not suggesting that the packages are the same, but they don't have to be for me to recognize that the prizes in Thailand are significantly cheaper. As an example the cheapest Honda Jazz back home costs (at current exchange rate) THB 965,000 and that is for a 1.2 with manual transmission. I'm sure it's superior to Thai models in some aspects (e.g. safety features), but I challenge you to argue that this isn't more expensive than the prize for a Honda Jazz in Thailand.

Sophon

The cheapest Jazz in Thaland at approx 550k baht comes with a 120 hp 1,5 and dual airbags. Comparing prices should be done with same spec

Cars er very cheap in the US, they also have rather expensive Insurances and maintance and a huge loss of value in 3 years.

Lets compare a car available in LOS and the US with similar spec, Camry Hybrid. Whats the US price included taxes, and Insurance for a 22 year old driver, and whats the costs over 3 years, and resale (lease rest value) after 3 years? I would guess Thai ownership is less expensive

I agree that optimally we should compare cars with same specs, but that is not always possible.

This was my point exactly from the beginning, thank you for finally seeing it..

[MoonRiverOasis]

What an interesting thread this turned into.

For all you Eurpeans accustomed to high taxes, Thailand cars must seem cheap. Americans (and Australians) find the car prices here a tough pill to swallow though..

[wolf5370]

15 years ago I bought my father in-law a new 1.5 cab toyota vigo pickup. It cost me b750k - I can buy the same basic model now new for under 500k (list price). Seems to be its only getting cheaper here to buy (especially if we exclude the exchange rates for people who live and earn here). I wonder how it compared to the USA over the same time span - i.e. is it getting closer to cheap old USofA of is the gap widening (correcting for exchange rate changes)?

[Sophon]

No, I'm not suggesting that the packages are the same, but they don't have to be for me to recognize that the prizes in Thailand are significantly cheaper. As an example the cheapest Honda Jazz back home costs (at current exchange rate) THB 965,000 and that is for a 1.2 with manual transmission. I'm sure it's superior to Thai models in some aspects (e.g. safety features), but I challenge you to argue that this isn't more expensive than the prize for a Honda Jazz in Thailand.

Sophon

The cheapest Jazz in Thaland at approx 550k baht comes with a 120 hp 1,5 and dual airbags. Comparing prices should be done with same spec

Cars er very cheap in the US, they also have rather expensive Insurances and maintance and a huge loss of value in 3 years.

Lets compare a car available in LOS and the US with similar spec, Camry Hybrid. Whats the US price included taxes, and Insurance for a 22 year old driver, and whats the costs over 3 years, and resale (lease rest value) after 3 years? I would guess Thai ownership is less expensive

I agree that optimally we should compare cars with same specs, but that is not always possible.

This was my point exactly from the beginning, thank you for finally seeing it..

But that doesn't change the fact that when a clearly inferior package is almost twice as expensive in my home country compared to Thailand, then you can safely say that the price of the car is cheaper in Thailand even if the specs are different. You don't always need to have identical packages to make that determination.

Sophon

[Derifo]

Hi, why not reverse your question? Why are cars so cheap in the US? It's a huge market, with much greater competition between dealers and manufacturers both domestic and international; almost all cars are sold below suggested retail prices. Last decade, GM and Ford used to make so much profit from SUVs that they'd sell compacts at a loss unless the customer added options. They did this to lower their fleet-average fuel economy within Federal limits. Thailand has less consumers than the US which means wider margins as there is less competition.This is true for cars and electronics - all much cheaper in US compared with Thailand or Europe for that matter.

The US prices you see for cars may not include State sales taxes which may be none to 8.5%, or delivery/registration charges, but Thai prices are comprehensive.

The larger number of brands and models in the US means more advertising competiton. Although most of the US car industry is unionised -people used to joke that GM is the world's largest health-care provider that makes cars on the side at a time when they were the biggest car manufacturer in the world - there are some non-union car plants. Also more suppliers from Mexico and Brazil, besides the actual assembly plants there, means competition to lower component costs.

As for Thailand, you're right that Honda and Toyota are assembled in Thailand so have a lower rate of tax than imported cars, however perhaps someone else knows whether the V6 engines on the top-end Camry/Accord are imported? I don't know but this may explain the high price also.

Mine wasn't. I had to pay an additional registration fee.

[WarpSpeed]

The cheapest Jazz in Thaland at approx 550k baht comes with a 120 hp 1,5 and dual airbags. Comparing prices should be done with same spec

Cars er very cheap in the US, they also have rather expensive Insurances and maintance and a huge loss of value in 3 years.

Lets compare a car available in LOS and the US with similar spec, Camry Hybrid. Whats the US price included taxes, and Insurance for a 22 year old driver, and whats the costs over 3 years, and resale (lease rest value) after 3 years? I would guess Thai ownership is less expensive

I agree that optimally we should compare cars with same specs, but that is not always possible.

This was my point exactly from the beginning, thank you for finally seeing it..

But that doesn't change the fact that when a clearly inferior package is almost twice as expensive in my home country compared to Thailand, then you can safely say that the price of the car is cheaper in Thailand even if the specs are different. You don't always need to have identical packages to make that determination.

Sophon

Denmark that was wasn't it?? Last I knew that wasn't a state in the US, you continue to argue a point that doesn't apply to the OP.. Does your country apply it's own import or other taxes you're overlooking?

[Sophon]

Denmark that was wasn't it?? Last I knew that wasn't a state in the US, you continue to argue a point that doesn't apply to the OP.. Does your country apply it's own import or other taxes you're overlooking?

But if you had bothered to check the post I was replying to, and you had commented on, had moved on to car ownership in "the west" - not in the U.S. And what I said was simply that it made no sense to refer to car ownership in the west, since prices vary greatly between different western countries. So to compare prices you would have to do it for a specific country. Do you agree with that point?

You were the one who then chose to reply to my post as if I had commented on car ownership in the U.S., which I clearly didn't as I specifically mentioned that the situation in my country was not the same as for the O.P.

Sophon

[WarpSpeed]

Denmark that was wasn't it?? Last I knew that wasn't a state in the US, you continue to argue a point that doesn't apply to the OP.. Does your country apply it's own import or other taxes you're overlooking?

But if you had bothered to check the post I was replying to, and you had commented on, had moved on to car ownership in "the west" - not in the U.S. And what I said was simply that it made no sense to refer to car ownership in the west, since prices vary greatly between different western countries. So to compare prices you would have to do it for a specific country. Do you agree with that point?

You were the one who then chose to reply to my post as if I had commented on car ownership in the U.S., which I clearly didn't as I specifically mentioned that the situation in my country was not the same as for the O.P.

Sophon

The OP hadn't moved onto anything, it's still the same OP, you just moved the goal posts with another member or two and last time I checked the generalization you've made of the "west" still doesn't apply as the U.S. is considered a major part of the "west" therefore can't be excluded. In fact the contrary, it's just about as far west as you can get before you're back where you started again, kind a like this topic ..

Anyway returning to the OP, bottom line is you can't touch a car here for the prices you can back in the States pound for pound or otherwise, the features and appointments offered back home coupled with model choices is just not comparable to the limits here. The value in terms of return for your dollar is much higher back home for much less and up keep with the exception of possibly insurance is also on par with prices here only higher quality for the most part..

Much of it taxes, much of it limited choices and limited market exposure as well as limited consumer knowledge due mostly to lack of choices..

Cute puppy though ..

Edited April 17, 2011 by WarpSpeed

[Sophon]

Denmark that was wasn't it?? Last I knew that wasn't a state in the US, you continue to argue a point that doesn't apply to the OP.. Does your country apply it's own import or other taxes you're overlooking?

But if you had bothered to check the post I was replying to, and you had commented on, had moved on to car ownership in "the west" - not in the U.S. And what I said was simply that it made no sense to refer to car ownership in the west, since prices vary greatly between different western countries. So to compare prices you would have to do it for a specific country. Do you agree with that point?

You were the one who then chose to reply to my post as if I had commented on car ownership in the U.S., which I clearly didn't as I specifically mentioned that the situation in my country was not the same as for the O.P.

Sophon

The OP hadn't moved onto anything, it's still the same OP, you just moved the goal posts with another member or two and last time I checked the generalization you've made of the "west" still doesn't apply as the U.S. is considered a major part of the "west" therefore can't be excluded. In fact the contrary, it's just about as far west as you can get before you're back where you started again, kind a like this topic ..

Anyway returning to the OP, bottom line is you can't touch a car here for the prices you can back in the States pound for pound or otherwise, the features and appointments offered back home coupled with model choices is just not comparable to the limits here. The value in terms of return for your dollar is much higher back home for much less and up keep with the exception of possibly insurance is also on par with prices here only higher quality for the most part..

Much of it taxes, much of it limited choices and limited market exposure as well as limited consumer knowledge due mostly to lack of choices..

Cute puppy though ..

I never excluded the U.S. nor did I make any generalizations. Quite the opposite as I simply pointed out that there were great differences between the prices in the U.S. (as brought up by the O.P.) and in my country (both western countries), so it makes no sense to talk about the price of car ownership in "the west". So i.e. what I what saying was exactly that you cannot generalize, and that somehow leads to you accusing me of generalizing? I also never stated that the OP had moved on, just that the post I (and you) commented to had brought up the generalization "the west", so if you would bother to read it again you might understand what I said.

But as you obviously cannot read - or comprehend - I will stop discussing this with you and leave you to disagree with what you imagine I said, which seems to be the opposite of what I actually said. So congratulations, you win the discussion with my imaginary comments.

But thanks for your comment about my dog, though he has not been a puppy for a while now

Sophon

[WarpSpeed]

Good luck to you then thanks for getting personal about reading and comprehension, though clearly I'm not the one with the deficit.. That'll be that then, when you've spent 42 years in the States and understand the market there we can take this up again on equal terms..

Except by then I'll have another couple of decades experience so on second thought maybe not..

Edited April 17, 2011 by WarpSpeed

[transam]

Good luck to you then thanks for getting personal about reading and comprehension, though clearly I'm not the one with the deficit.. That'll be that then, when you've spent 42 years in the States and understand the market there we can take this up again on equal terms..

Except by then I'll have another couple of decades experience so on second thought maybe not..

Calm down Warps.

[WarpSpeed]

Good luck to you then thanks for getting personal about reading and comprehension, though clearly I'm not the one with the deficit.. That'll be that then, when you've spent 42 years in the States and understand the market there we can take this up again on equal terms..

Except by then I'll have another couple of decades experience so on second thought maybe not..

Calm down Warps.

That post somehow portrays a lack of calm to you ??? Your on the drink again aren't you ??

Edited April 17, 2011 by WarpSpeed

[transam]

Good luck to you then thanks for getting personal about reading and comprehension, though clearly I'm not the one with the deficit.. That'll be that then, when you've spent 42 years in the States and understand the market there we can take this up again on equal terms..

Except by then I'll have another couple of decades experience so on second thought maybe not..

Calm down Warps.

That post somehow portrays a lack of calm to you ??? Your on the drink again aren't you ??

Yes

[babykyo]

IMO< cars are cheap in thailand, and are dirt cheap in the west. By the way, I am living in Singapore. What's the fuss about it? I bought a new honda civic for $120,000 Singapore dollars(2,880,000 baht). And It can only be driven for 10 years, with that amount, I can buy 3 basic mitsubishi pejero sport. For me, I don think New Cars So Overpriced in Thailand. But in fact, why Cars are so dirt cheap in the west?

[powderpuff]

In word exchange rate (well 2 words then)

When I bought a new car here 15 years ago the exchange rate was 80 baht to the Quid, when I bought another new one a couple of years ago it was 50 Baht to the Quid.

But the price in Baht was exactly the same. Can you say the same in US or UK?

I don't believe so. Up until the crash of 1997 the baht was pegged at 25 to one USD. Afterward it went to 55. The price of new cars doubled with it. They get most of their components from Japan.

[powderpuff]

MRO is correct. The reason cars are stupid expensive in Thailand is TAX. This is a holdover from the 1940's etc when only the very rich could afford a car. So it was OK to tax the bejesus out of them.

[katabeachbum]

MRO is correct. The reason cars are stupid expensive in Thailand is TAX. This is a holdover from the 1940's etc when only the very rich could afford a car. So it was OK to tax the bejesus out of them.

a new 2 door pickups is taxed with 3% excice and 7% VAT

a Camry Hybrid is 10% excice and 7% VAT

4 door pickup 13%

SUV like Fortuner 20%

from memory

compared to most countries in the world, these taxes are close to nothing

compared to most countries in the world, Thai cars are cheap

[guzzi850m2]

MRO is correct. The reason cars are stupid expensive in Thailand is TAX. This is a holdover from the 1940's etc when only the very rich could afford a car. So it was OK to tax the bejesus out of them.

a new 2 door pickups is taxed with 3% excice and 7% VAT

a Camry Hybrid is 10% excice and 7% VAT

4 door pickup 13%

SUV like Fortuner 20%

from memory

compared to most countries in the world, these taxes are close to nothing

compared to most countries in the world, Thai cars are cheap

Agreed. As Sophon also pointed out + 1 mill bath in Denmark (its a small country way up North West) for a shitty 1.4 manual Honda. In DK the tax is something like 200% (bastards, another reason I left), so even the Germans went to DK to buy VW's at some stage as they obviously don't have to pay that tax. Cars in UK & Germany are cheap compared to LOS, especially if you want a BMW or Benz.

[katabeachbum]

MRO is correct. The reason cars are stupid expensive in Thailand is TAX. This is a holdover from the 1940's etc when only the very rich could afford a car. So it was OK to tax the bejesus out of them.

a new 2 door pickups is taxed with 3% excice and 7% VAT

a Camry Hybrid is 10% excice and 7% VAT

4 door pickup 13%

SUV like Fortuner 20%

from memory

compared to most countries in the world, these taxes are close to nothing

compared to most countries in the world, Thai cars are cheap

Agreed. As Sophon also pointed out + 1 mill bath in Denmark (its a small country way up North West) for a shitty 1.4 manual Honda. In DK the tax is something like 200% (bastards, another reason I left), so even the Germans went to DK to buy VW's at some stage as they obviously don't have to pay that tax. Cars in UK & Germany are cheap compared to LOS, especially if you want a BMW or Benz.

Thai pickups are being purchased in Thailand with all taxes, exported to UK, ad taxes, sold 10-30% less than local retail price and there is a good profit.

Expat Motors bread and butter business

[Wavefloater]

After you have driven your new USA Camry for 5 years, in the USA, its value is a great deal less than if you bought a similar car in Thailand and drove it for 5 years!

A great many cars in Thailand are around for 20-30 year again unlike the USA.

Go back to the USA if you don't like prices here!

BB

LOL - Of course, there had to one person to make THE comment.

The OP brings up the relevant topic of comparing car prices, and this guy has to jump in to show everybody that his love for Thailand is the greatest of anybody's.

Thanks we were waiting for you.

[powderpuff]

compared to most countries in the world, Thai cars are cheap

But yet again you forget the name of the thread.

Why are cars in Thailand almost double the price of USA?

btw. I don't care what socialist regimes in Europe gouge their citizens. They slam you real hard at the pump too.

[katabeachbum]

compared to most countries in the world, Thai cars are cheap

But yet again you forget the name of the thread.

Why are cars in Thailand almost double the price of USA?

btw. I don't care what socialist regimes in Europe gouge their citizens. They slam you real hard at the pump too.

double?

Camry hybrid top spec is 1,6 million baht here included taxes and 1st Class insurance any drivers age. How much on the road in Calif?

[powderpuff]

Why do I care the price of a hybrid?

Come down out of the clouds.

Lets talk about these crappy econo boxes like Honda City & Soluna Vios. Plastic crap. Which the bumpers would not pass USA crash tests. They are made of &lt;deleted&gt; plastic.

Accord 2.4 & Camry. Probably the USA use different engines. Because we want more Horsepower.

Man you like to take over threads don't you?

[powderpuff]

Camry Hybrid JUNK.

Under 1 million baht.

Greenie weenies make me want to puke.

Camry

Hopefully your kids get to live with mountains of old batteries that can't be disposed of.

Phony green tech.

[katabeachbum]

Why do I care the price of a hybrid?

Come down out of the clouds.

Lets talk about these crappy econo boxes like Honda City & Soluna Vios. Plastic crap. Which the bumpers would not pass USA crash tests. They are made of &lt;deleted&gt; plastic.

Accord 2.4 & Camry. Probably the USA use different engines. Because we want more Horsepower.

Man you like to take over threads don't you?

So you dont want to compare a car sold with same specs and approx same taxes in LOS and US. In Thailand taxes are used to lower fuel consumption and stimulate to use domestically made fuel. Thus Hybrids have low taxes. E20 compatible cars have lower taxes than E10.

Accord 2,4 and Camry 2,4 use the same engines in USA and LOS. Different spec on Accord 2,4 in Europe, tuned for higher HP and RON (200hp and require 95RON in Europe spec), because Europe require more hp than USA and because they have 95 and 98 RON available at every pump, and this spec also provides better emission. Different suspension setting to as Europe require handling, while US focus on comfort and dont have fast roads.

getting upset?

[katabeachbum]

Camry Hybrid JUNK.

Under 1 million baht.

Greenie weenies make me want to puke.

Camry

Hopefully your kids get to live with mountains of old batteries that can't be disposed of.

Phony green tech.

a secondhand low spec car. With cloth seats. Not available in Thailand. Only make and sell high spec here

[powderpuff]

You know how to put your finger on the scale don't you. Those GD batteries are imported at 30% duty +++++ all the other BS taxes added on top.

Here is a real world car Honda Accord 2.4 auto.

Accord

$24,000.00 or 700,000 baht

btw The Camry Hybrid krapola is $20,000 cheaper in USA. To some of us that is "real" money.

[stingray]

I would understand the need for a large engine vehicle in the West due to snowy conditions, but I do not understand the same needs in the tropics. I had driven my 1.3 lit Honda City to Singapore and back without any problems.

So why is there bickering about overpriced large capacity cars in Thailand due to high excise taxes?

Not everyone is satisfied with a Honda City. A "normal car", like a new Ford Mustang, Chevrolet Camaro, etc is so expensiveoverhere, that no one can afford. For all those peaple who are not satisfied with a Japanese car (like me), is the only one way to go: Buy a project car (which cost also a couple hunert grand) and build it up the way you want it.

[katabeachbum]

Car ownership in Thailand

November 5th 2009 took delivery of a Toyota Vigo 3,0 D4d auto 4x4 G in white. Used it for 18 months and 28k km. Serviced at 1k, 10k and 20k km at total 5k baht including cleaning of AC. When purchased Insurance taxes etc included, so payed 6.800 for tax once and ad 11k for half year Insurance. Fuel to keep 140-160kmh on Highways, 95-100k baht.

Forgot the cost of having it waxed every 2-3 months, 500 baht each with Meguire 21.

Placed an ad in classfieds.ThaiVisa.com on Monday, 14 different numbers called me during Tuesday, sold it and recieved cash yesterday. 850.000 baht. Deleted ad to stop people calling.

This is my 4th Toyota truck since Vigo was launched late 2004. All similar numbers.

Cheapest car owneship I have ever had

[WarpSpeed]

After you have driven your new USA Camry for 5 years, in the USA, its value is a great deal less than if you bought a similar car in Thailand and drove it for 5 years!

A great many cars in Thailand are around for 20-30 year again unlike the USA.

Go back to the USA if you don't like prices here!

BB

LOL - Of course, there had to one person to make THE comment.

The OP brings up the relevant topic of comparing car prices, and this guy has to jump in to show everybody that his love for Thailand is the greatest of anybody's.

Thanks we were waiting for you.

Actually didn't have that long to wait but I'm surprised Mills didn't beat him to it..