Crazy Lexus Th Pricing. People Actually Buy These?

[ScubaBuddha]

$418k for a $99k LS600hl? $300k for a $67k LS460? $88k for a $29k CT200h? How are these silly mark-ups justified? Just pure greed or what?

[MoonRiverOasis]

How tax works:

http://www.thaivisa.com/forum/topic/435479-taxes-on-cars-in-thailand/

Note that the grey market has much better prices than these official imports.

[FarangBuddha]

Why don't people still don't get it....it's not greedy dealer markups but the Thai tax structure that makes many imported luxury items very expensive. (Actually, it's a good form of progressive taxation.). Just like for wine, if you feel the need to drive a Lexus in Thailand, please contribute a sizable chunk of the grey folding stuff to the Thai treasury

As to grey-market imports, what buyer protections as to warranty do you get...or don't you get any (from the OEM) and are there any hassles registering such a car?

Edited October 26, 2011 by FarangBuddha

[MoonRiverOasis]

Why don't people still don't get it....it's not greedy dealer markups but the Thai tax structure that makes many imported luxury items very expensive. (Actually, it's a good form of progressive taxation.). Just like for wine, if you feel the need to drive a Lexus in Thailand, please contribute a sizable chunk of the grey folding stuff to the Thai treasury

As to grey-market imports, what buyer protections as to warranty do you get...or don't you get any (from the OEM) and are there any hassles registering such a car?

Well, it's not just taxes - supporting 3 high-end dealerships with sales of just 20 units/month each takes a reasonable mark-up to keep everyone employed, run marketing programs, and generate healthy amounts of ROI for the investors..

As for gray market importers, most offer a 2-year warranty (some more, some less), and the bigger ones have dealerships (and service depts) to rival the prestige brands. There's a new one springing up every few weeks though now, so there will definitely be some good and bad in the mix.

AFAIK, no brand will support a gray market import with a factory warranty anymore (Benz used to do this, but that was cancelled in August). Some brands do offer a special service program for gray market imports, at a cost though.

Edited October 26, 2011 by MoonRiverOasis

[Familyonthemove]

I know it's a result of the Thai tax system on imported cars, but I feel that you'd have to either have no regard for value for money or an excessively high regard for perceived status to buy an imported car in Thailand.

If you would like a mid sized BMW or Mercedes saloon, go for a Honda Accord .... it's not quite as good, but it's close to the quality and drive and it's less than half the price if you avoid the V6 models. If you want a Lexus, go for a top spec Toyota and save a fortune.

If you feel a need for an SUV then go for a Pajero Sport or Fortuna .... again perhaps not up to the ride standards of some European models, but an X3 is not 5 times better than a Fortuna, and off road it's 5 times worse.

And cars like the new Fiesta or soon to be launched Focus are a direct rival to the imported Golfs, Volvo hatch-backs and Minis in their home markets.

[MoonRiverOasis]

If you would like a mid sized BMW or Mercedes saloon, go for a Honda Accord ....

Just a side note that most mid-sized BMW's and Benz's are assembled in Thailand, thus not attracting the 80% import duty.

[MoonRiverOasis]

I know it's a result of the Thai tax system on imported cars, but I feel that you'd have to either have no regard for value for money or an excessively high regard for perceived status to buy an imported car in Thailand.

You also have to consider that resale values are also much better in TH, so while the barrier to entry is higher, the end result from a cost of ownership respect isn't too bad compared to the West.

IMHO, if you have the means and the appreciation, there's nothing wrong with buying an import.. Just make sure it's got plenty of HP and is also a Hybrid (so only 10% excise tax), which means it only attracts a grand total of 116% tax, instead of the full whack 328%

Note: a locally assembled car with >220HP attracts 138% in taxes...

Edited October 26, 2011 by MoonRiverOasis

[Familyonthemove]

I know it's a result of the Thai tax system on imported cars, but I feel that you'd have to either have no regard for value for money or an excessively high regard for perceived status to buy an imported car in Thailand.

You also have to consider that resale values are also much better in TH, so while the barrier to entry is higher, the end result from a cost of ownership respect isn't too bad compared to the West.

IMHO, if you have the means and the appreciation, there's nothing wrong with buying an import.. Just make sure it's got plenty of HP and is also a Hybrid (so only 10% excise tax), which means it only attracts a grand total of 116% tax, instead of the full whack 328%

Thanks - I didn't know about the reduced tax on a Hybrid. But I'm not sure I'd want to take a hybrid through a flooded road?

[MoonRiverOasis]

Thanks - I didn't know about the reduced tax on a Hybrid. But I'm not sure I'd want to take a hybrid through a flooded road?

Me neither - that's why my Cayenne Hybrid is safely parked on a 4th floor carpark, and I'm getting around in the wife's Pajero

[hehehoho]

I bought a Lexus to belittle the neighbour, as he can't afford one.

[MoonRiverOasis]

I bought a Lexus to belittle the neighbour, as he can't afford one.

And you posted that here just to prove you're narcissitic.

[Naam]

Who is stupid enough to pay $418,000 for a $99,000 car?

those who were clever enough to make $418,000 and therefore can afford to be stupid enough

[heykki]

You also forgot that plenty of people buy expensive cars just because they CAN. Someone with a net worth in hundreds of millions (THB) couldn't care much whether the depreciation of a new car is one mil instead of just a half.

[Naam]

Familyonthemove said:

If you would like a mid sized BMW or Mercedes saloon, go for a Honda Accord...

...whether you like the Accord or not.

and if you would like to marry a tall redhead with freckles and big boobs but find they are rare and expensive in Thailand go for a short darkhaired one without freckles and small boobs...

[Familyonthemove]

You also forgot that plenty of people buy expensive cars just because they CAN. Someone with a net worth in hundreds of millions (THB) couldn't care much whether the depreciation of a new car is one mil instead of just a half.

Yes - I agree with this and it explains the Ferraris and Bentleys in Bangkok, but it's the Golfs and Lexus (Lexi?) that baffled me, but perhaps as suggested by an earleir poster, it's the depreciation factor that closes the difference. Used cars here do seem to be very expensive

[seedy]

Made a quick trip from CNX to Pattaya Saturday, say a Rolls Royce on Sukhumvit.

[heykki]

You also forgot that plenty of people buy expensive cars just because they CAN. Someone with a net worth in hundreds of millions (THB) couldn't care much whether the depreciation of a new car is one mil instead of just a half.

Yes - I agree with this and it explains the Ferraris and Bentleys in Bangkok, but it's the Golfs and Lexus (Lexi?) that baffled me, but perhaps as suggested by an earleir poster, it's the depreciation factor that closes the difference. Used cars here do seem to be very expensive

You're right. If you were here when the original Beetle came out you would notice how disproportionately many Bangkokians bought that car - and it probably wasn't the best deal back then. So yea, perhaps it is this urge to be different/original that's driving the purchases of these outrageously expensive imports. Who can blame them? I know I wouldn't drive a Camry if I had a billion baht.

[kokesaat]

If I walked into a car dealer in the US, and the dealer said: The tax on this truck is 8% and the tax on this car is 25%-35%. I'd definitely be buying the truck, no matter how much money I had to burn. It never ceases to amaze me that most expats (and Thais, I think) don't really understand how much they're contributing to the tax coffers whenever they buy a car in Thailand. While we could easily afford a nice Honda CIVIC, we have no desire to pay so much in tax. Our Toyota VIGO is a comfy enough vehicle, it gets 34mpg, and is at the low low end of the tax scale. And to boot, we have an ordinary license plate.......no magic 9999.

[hehehoho]

And to boot, we have an ordinary license plate.......no magic 9999.

That's quite dangerous.

Best you get one with numbers that will protect the vehicle from accidents.

I'm sure a local monk will give them to you for a cash donation.

[ScubaBuddha]

... sizable chunk of the grey folding stuff to the Thai treasury

.... they're contributing to the tax coffers whenever they buy a car in Thailand.

That is what I meant by greed. I think it's pretty well established that very little of that money will go back to the Thai people. It's times like these that make me wonder how many klongs can be de-weeded or how many pumps can be purchased with 8 million baht, the tax on a single top spec Lexus, BMW, or Porsche?

[MoonRiverOasis]

... sizable chunk of the grey folding stuff to the Thai treasury

.... they're contributing to the tax coffers whenever they buy a car in Thailand.

That is what I meant by greed. I think it's pretty well established that very little of that money will go back to the Thai people. It's times like these that make me wonder how many klongs can be de-weeded or how many pumps can be purchased with 8 million baht, the tax on a single top spec Lexus, BMW, or Porsche?

The country is currently being run with 350 Billion Baht deficit economy so if you bought one top-spec Lexus, you'd be helping with 1/43,750th of that

[wandrinstar]

... sizable chunk of the grey folding stuff to the Thai treasury

.... they're contributing to the tax coffers whenever they buy a car in Thailand.

That is what I meant by greed. I think it's pretty well established that very little of that money will go back to the Thai people. It's times like these that make me wonder how many klongs can be de-weeded or how many pumps can be purchased with 8 million baht, the tax on a single top spec Lexus, BMW, or Porsche?

The country is currently being run with 350 Billion Baht deficit economy so if you bought one top-spec Lexus, you'd be helping with 1/43,750th of that

Do i spot a Red Shirt bleating.

[Thailaw]

... sizable chunk of the grey folding stuff to the Thai treasury

.... they're contributing to the tax coffers whenever they buy a car in Thailand.

That is what I meant by greed. I think it's pretty well established that very little of that money will go back to the Thai people. It's times like these that make me wonder how many klongs can be de-weeded or how many pumps can be purchased with 8 million baht, the tax on a single top spec Lexus, BMW, or Porsche?

The country is currently being run with 350 Billion Baht deficit economy so if you bought one top-spec Lexus, you'd be helping with 1/43,750th of that

The taxes charged on imported cars are not designed to raise revenue. They are designed to discourage (prevent) the sale of imported cars in Thailand and encourage (force) people to buy cars produced/assembled in Thailand (and to encourage car manufacturers to set up assembly plants here in Thailand). If the tax rates on imported cars were reduced by 66% the tax revenues generated would increase 5 fold, albeit offset in part by reduced tax revenues from the reduced sales of domestically produced cars. Protectionism and political influence are alive and well in Thailand.

[Naam]

The country is currently being run with 350 Billion Baht deficit economy so if you bought one top-spec Lexus, you'd be helping with 1/43,750th of that

for the record: in comparison to Thailands GDP and GDP growth rate this deficit is well manageable and quite adequate for an "emerging" country. governments / politicians of a number of industrialised "first world" countries would jump with joy if they could manage that kind of low budget deficit.

[MoonRiverOasis]

Do i spot a Red Shirt bleating.

Sorry, but in the presence of no good choice, I abstain from making one

The taxes charged on imported cars are not designed to raise revenue. They are designed to discourage (prevent) the sale of imported cars in Thailand and encourage (force) people to buy cars produced/assembled in Thailand (and to encourage car manufacturers to set up assembly plants here in Thailand). If the tax rates on imported cars were reduced by 66% the tax revenues generated would increase 5 fold, albeit offset in part by reduced tax revenues from the reduced sales of domestically produced cars. Protectionism and political influence are alive and well in Thailand.

Correct. It was not me that suggested taxes on imported cars were intended purely as revenue raisers

[MoonRiverOasis]

The country is currently being run with 350 Billion Baht deficit economy so if you bought one top-spec Lexus, you'd be helping with 1/43,750th of that

for the record: in comparison to Thailands GDP and GDP growth rate this deficit is well manageable and quite adequate for an "emerging" country. governments / politicians of a number of industrialised "first world" countries would jump with joy if they could manage that kind of low budget deficit.

Tell it to the guy that doesn't understand (i.e. the guy that thinks that 8M Baht is going to have a profound impact on the Thai economy)

Edited October 27, 2011 by MoonRiverOasis

[Naam]

If I walked into a car dealer in the US, and the dealer said: The tax on this truck is 8% and the tax on this car is 25%-35%. I'd definitely be buying the truck, no matter how much money I had to burn. It never ceases to amaze me that most expats (and Thais, I think) don't really understand how much they're contributing to the tax coffers whenever they buy a car in Thailand. While we could easily afford a nice Honda CIVIC, we have no desire to pay so much in tax. Our Toyota VIGO is a comfy enough vehicle, it gets 34mpg, and is at the low low end of the tax scale. And to boot, we have an ordinary license plate.......no magic 9999.

it never ceases to amaze me why people bother and even bitch about the spending habits of other people or the cars others own. the car i like most (out of the three we own) consumes up to 38 liters of 95 octane premium gasoline per 100 kilometers depending how it is driven. that works out to 6.2 miles per U.S. Gallon and guess what... i don't envy Vigo drivers nor do i have the desire to buy a Vigo.