Why Are Cars So Expensive In Thailand?

[airconsult]

Occasionally I amuse myself by checking what current prices in other markets are.

The other day it came up as the Wish was just end-warranty, and the Toyota dealership wanted me to trade it in on a camry or prius. Base models about 1.3m for the camry, 1.2 for the prius.

I was a little startled to discover later that the 2012 camry started at 22,000USD elsewhere - 660,000thb. We could argue all day about the need for high import duties to protect thai factory workers, but why is it that the US price is so cheap? I checked the Aust price (since the camry sold there is made in thailand), and it roughly comes to 1.3m thb again, even though they would pay the 10% import duty there.

With the cost of labour obviously not being an issue here it's shocking to see the prices on locally made cars. I guess I should point out too that a locally made (in UK) Jaguar XF comes to about 1.5m thb when just currency conversion takes place. Wish I could persuade them to build cars here....

[dave_boo]

For one thing the Camry sold in the States is made in the States, Kentucky to be exact.

There could be options differences between the cheaper Stateside model also.

[airconsult]

For one thing the Camry sold in the States is made in the States, Kentucky to be exact.

There could be options differences between the cheaper Stateside model also.

Ok, assuming the factory equipment is the same..... If I could make a quick guess, I'd say that Kentucky Toyota workers are paid more than Thai workers.

Assuming Toyota Thailand is being generous, they might pay 12,000thb per month - 400usd.

[katabeachbum]

a Camry 2,0 is charged 25% excicetax, interior tax, plus 7% vat when sold in TH included in MSRP, which should include all registration charges and 1st class Insurance

and cars are dirt cheap in US, but more expensive to keep due to Insurance costs and depreciation

in my homecountry a Camry 2,0 would cost approx 2,5 million baht, but as none in europe want camry its not sold there

[MoonRiverOasis]

a Camry 2,0 is charged 25% excicetax, interior tax, plus 7% vat when sold in TH included in MSRP, which should include all registration charges and 1st class Insurance

and cars are dirt cheap in US, but more expensive to keep due to Insurance costs and depreciation

in my homecountry a Camry 2,0 would cost approx 2,5 million baht, but as none in europe want camry its not sold there

Uh huh, but we must also remember that 25% excise tax isn't 25% at all, it's 34.5%, and then you need to compound an extra 10% to that for interior tax, and whack the sum of all that with a further 7% VAT.

The end result for something like a Camry is more than 40.6% in taxes (because the VAT is added to the retail price which includes dealer margin) - so long as it was domestically assembled from at least 50% Thai sourced parts...

OP, more info here: http://www.thaivisa....rs-in-thailand/

Edited February 6, 2012 by MoonRiverOasis

[MoonRiverOasis]

I checked the Aust price (since the camry sold there is made in thailand), and it roughly comes to 1.3m thb again, even though they would pay the 10% import duty there.

Actually, the Camry sold in Australia is manufactured in Australia. Import taxes from Thailand to Australia are 0% under TAFTA, and for others without a FTA, Ozland charges 5% import tax.

Also, if comparing as close as possible (i.e. not the new 2012 Camry which isn't sold here yet), the equiv. of the base spec 1.3M Baht Thai Camry sells for $26K AUD, which is ~860K Baht, but in Oz it comes with the 2.4L engine, not the 2.0L Thailand gets.

Edited February 6, 2012 by MoonRiverOasis

[Big Guns]

a Camry 2,0 is charged 25% excicetax, interior tax, plus 7% vat when sold in TH included in MSRP, which should include all registration charges and 1st class Insurance

and cars are dirt cheap in US, but more expensive to keep due to Insurance costs and depreciation

in my homecountry a Camry 2,0 would cost approx 2,5 million baht, but as none in europe want camry its not sold there

You come from rip off Scandiwegia. Everything's expensive there apart from pickled herring

[MoonRiverOasis]

a Camry 2,0 is charged 25% excicetax, interior tax, plus 7% vat when sold in TH included in MSRP, which should include all registration charges and 1st class Insurance

and cars are dirt cheap in US, but more expensive to keep due to Insurance costs and depreciation

in my homecountry a Camry 2,0 would cost approx 2,5 million baht, but as none in europe want camry its not sold there

You come from rip off Scandiwegia. Everything's expensive there apart from pickled herring

Well, we're all here now, so evenly ripped off.

[Big Guns]

a Camry 2,0 is charged 25% excicetax, interior tax, plus 7% vat when sold in TH included in MSRP, which should include all registration charges and 1st class Insurance

and cars are dirt cheap in US, but more expensive to keep due to Insurance costs and depreciation

in my homecountry a Camry 2,0 would cost approx 2,5 million baht, but as none in europe want camry its not sold there

You come from rip off Scandiwegia. Everything's expensive there apart from pickled herring

Well, we're all here now, so evenly ripped off.

It's not all bad. Diesel and petrol is cheaper than the UK as are pickup trucks and the Kawasaki bikes built in Rayong

[sezze]

Do not compare prices of cars from outside Thailand to inside .US got very cheap cars , quite a bit cheaper then Europe . Thailand is very expensive , especially 2nd hand cars are extremely expensive , made in Thailand or not . That is how it is and you basically have to live with it . Service and repairs are cheap , and so is fuel ( maybe not for US but comparing to Europe it is ) .

Importing a car is not doable , unless you want to pay a fortune on import duties and taxes .

So , if you want to buy a car in Thailand , forget your outside prices and deal with the Thai pricing standard .

[mogandave]

Because cars are for the rich. Pickups, vans and buses are about the same price as in the US.

[kartman]

Once your in the 'Club' the fees are overall much cheaper, just more expensive to join and you can sell your membership at a higher price when you want to leave.

[Javabear]

I went through the Toyota Thailand website a few years ago and built a Camry online. I loaded it up with all the bells and whistles and by the time I did the currency conversion it was over $88,000 USD. Mind you this was through the Toyota Thailand website so presumably this vehicle would have been available here.

[ignis]

Also if you try like for like make a difference on the exchange rate...Baht is high now.

My 1st car here and then looked at the difference 74 baht = 1 GBP, so my top model Honda Jazz cost here in UK GBP around 8,000 GBP, the same spec but smaller engine made in Swindon UK cost just over 12,000 GBP...

I live here so never look at UK prices as of no interest........ No idea of the exchange rate 40 something I believe, which would almost double the price

[katabeachbum]

I went through the Toyota Thailand website a few years ago and built a Camry online. I loaded it up with all the bells and whistles and by the time I did the currency conversion it was over $88,000 USD. Mind you this was through the Toyota Thailand website so presumably this vehicle would have been available here.

thats interesting

TH 3,5 comes in one spec only, Q, and there are no options available except pearl white color

[stingray]

How much is a speeding ticket in the US, when you drive with 200kmh?

[MESmith]

How much is a speeding ticket in the US, when you drive with 200kmh?

So the fines go towards subsidizing new car prices? Interesting.....

[stingray]

Also if you try like for like make a difference on the exchange rate...Baht is high now.

My 1st car here and then looked at the difference 74 baht = 1 GBP, so my top model Honda Jazz cost here in UK GBP around 8,000 GBP, the same spec but smaller engine made in Swindon UK cost just over 12,000 GBP...

I live here so never look at UK prices as of no interest........ No idea of the exchange rate 40 something I believe, which would almost double the price

The Exchange rate was 25 Baht for one USD when i came here. I bought my first car at 450'000 Baht so paid 18'000 USD for my firstcar, a 82' used Camaro here in Thailand. So noone should complain aboutthe exchange rates.

[Javabear]

I went through the Toyota Thailand website a few years ago and built a Camry online. I loaded it up with all the bells and whistles and by the time I did the currency conversion it was over $88,000 USD. Mind you this was through the Toyota Thailand website so presumably this vehicle would have been available here.

thats interesting

TH 3,5 comes in one spec only, Q, and there are no options available except pearl white color

As I said, this was a few years ago.

[Javabear]

How much is a speeding ticket in the US, when you drive with 200kmh?

Plan on spending a night as a guest of the city, county, or state and then paying however much the judge tells you to pay the next day. Some places may even confiscate your car.

Edited February 11, 2012 by Javabear

[Javabear]

Also if you try like for like make a difference on the exchange rate...Baht is high now.

My 1st car here and then looked at the difference 74 baht = 1 GBP, so my top model Honda Jazz cost here in UK GBP around 8,000 GBP, the same spec but smaller engine made in Swindon UK cost just over 12,000 GBP...

I live here so never look at UK prices as of no interest........ No idea of the exchange rate 40 something I believe, which would almost double the price

The Exchange rate was 25 Baht for one USD when i came here. I bought my first car at 450'000 Baht so paid 18'000 USD for my firstcar, a 82' used Camaro here in Thailand. So noone should complain aboutthe exchange rates.

I had a 1982 Camaro Z28 in the US for a few years. What a piece of garbage that was.

[katabeachbum]

I went through the Toyota Thailand website a few years ago and built a Camry online. I loaded it up with all the bells and whistles and by the time I did the currency conversion it was over $88,000 USD. Mind you this was through the Toyota Thailand website so presumably this vehicle would have been available here.

thats interesting

TH 3,5 comes in one spec only, Q, and there are no options available except pearl white color

As I said, this was a few years ago.

I got my 2007 Camry, todays body, in late 2006. As a 2,4 it had 3 levels, no options except white pearl. The 3,5 had no options, except white pearl. Hasnt changed since

This is the way Toyota runs its Th operation, very tight logistic.

[katabeachbum]

How much is a speeding ticket in the US, when you drive with 200kmh?

Plan on spending a night as a guest of the city, county, or state and then paying however much the judge tells you to pay the next day. Some places may even confiscate your car.

hehehe, 1996 driving from NY to Atlanta to check out some used Porsches, kept a very modest 140kmh/some 80mph cruisingspeed on the excellent roads. Pulled over, cop with gun in hand, "your gonna get yourself killed at those speeds". Dont remember the fine

Driving in the US aint fun and its slooow

[stingray]

How much is a speeding ticket in the US, when you drive with 200kmh?

Plan on spending a night as a guest of the city, county, or state and then paying however much the judge tells you to pay the next day. Some places may even confiscate your car.

hehehe, 1996 driving from NY to Atlanta to check out some used Porsches, kept a very modest 140kmh/some 80mph cruisingspeed on the excellent roads. Pulled over, cop with gun in hand, "your gonna get yourself killed at those speeds". Dont remember the fine

Driving in the US aint fun and its slooow

That's exactly what i'm talking about. Therefore it's better to driving in Thailand, even cars are much more expensive, but police tickets, spareparts, labour, insurance, spend a night in a hotel on your roadtrip, in fact almost everything is dirt cheap in compare the US.

I lived in the US for a while before, doesn't need a 300hp car to drive 55 miles per hour, scared to get caugt by the cops, anytime.

[mogandave]

55? You must have been there in the '70s

[katabeachbum]

How much is a speeding ticket in the US, when you drive with 200kmh?

Plan on spending a night as a guest of the city, county, or state and then paying however much the judge tells you to pay the next day. Some places may even confiscate your car.

hehehe, 1996 driving from NY to Atlanta to check out some used Porsches, kept a very modest 140kmh/some 80mph cruisingspeed on the excellent roads. Pulled over, cop with gun in hand, "your gonna get yourself killed at those speeds". Dont remember the fine

Driving in the US aint fun and its slooow

That's exactly what i'm talking about. Therefore it's better to driving in Thailand, even cars are much more expensive, but police tickets, spareparts, labour, insurance, spend a night in a hotel on your roadtrip, in fact almost everything is dirt cheap in compare the US.

I lived in the US for a while before, doesn't need a 300hp car to drive 55 miles per hour, scared to get caugt by the cops, anytime.

Thats why they can sell freaking Prius

[funcat]

I agree,that driving in US can be stressful with so many caps everywhere and if one wants to drive fast have to go to...Montana ...but I use to have a feeling,that buying a new car was like buying a new pair of shoes !!! Here is like buying a house ...

[katabeachbum]

I agree,that driving in US can be stressful with so many caps everywhere and if one wants to drive fast have to go to...Montana ...but I use to have a feeling,that buying a new car was like buying a new pair of shoes !!! Here is like buying a house ...

true, but while shoes are worthless 3 years later, a Thai house (read car) is still worth 60-70% of purchase price. Hard to beat

[VocalNeal]

I agree,that driving in US can be stressful with so many caps everywhere

This I have to agree with.

Caps while driving, caps in shopping malls, caps in restaurants, cap in the cinema and the list goes on.

[funcat]

I agree,that driving in US can be stressful with so many caps everywhere and if one wants to drive fast have to go to...Montana ...but I use to have a feeling,that buying a new car was like buying a new pair of shoes !!! Here is like buying a house ...

true, but while shoes are worthless 3 years later, a Thai house (read car) is still worth 60-70% of purchase price. Hard to beat

That works good for those who buy new and sell soon after...in US your new car is worth less 20% as soon as you leave the dealership...however I would take "to buy a new shoes" approach over "to buy a new house"one anytime...