Thai Cabinet Approves Ban On Imports Of Used Vehicles

[Thai at Heart]

Any idea how many refurbed second hand cars from the flood are currently on the market?

[blackthorn2005]

"The ban also aims to prevent or minimize the smuggling of parts used to assemble vehicles that can then be sold as new."

The way I also read it is they are stopping used parts from entering as well. So if you need a special part from abroad seems you could be fked.

I haven't read the new law but I am aware of quite a few shops here that sell imported used parts for Japanese cars at rates much lower than the OEM parts from dealers. These "used" parts are taken from relatively new vehicles in Japan (and Singapore) that did not pass strict road worthiness tests and then exported to Thailand and other parts of the world. The large auto manufacturers are understandably upset.

A lot of parts here are 'recycled' ie from write offs!

[yumidesign]

motorcycles, sedans, pick-ups and vehicles that carry more than seven passengers.

So what else is left? Is Thailand the only country in the world with such a bizar law ?

Well they helpfully left sportscars out of the list...

i did notice this too, their inclusion would have upset too many in the the powers that be sector and the hangers on.

[ttelise]

Haha, dumb asses. Cannot see the forest for the trees.

[pisico]

The initiative is viewed as being beneficial ......for the sake of public safety......

Oh gosh, it took me five minutes to pick myself up off the floor from laughing so hard...for sake of public safety the govt says...I'm sure this restriction on the import of used vehicles will make a major reduction in all the dangerously maintained and loaded vehicles on Thailand's roads everyday. Oh gosh, excuse me, I'm falling to the floor again in laughter....

It's true. They worry about public safety (in their minds). They just don't show it.

Lame ban to create the image they give a hoot about people's safety.

[Billmont]

I suppose this will effect someone coming to Thailand to retire. As I understand it a retiree could (up until now) bring in all his belongings, furniture etc including one car, all tax free proving it was within six months of the retiree's visa stamp. Now will the car be excluded, not even permitted if one wanted to pay the Tax?

Also are the Taksin haters late risers as I read every post and did not see anyone blaming Taksin for this latest proposed law!

[kalbo123]

Just sold my classic car, should have waited longer, think this will drive the prices of classic cars/ motorbikes up big time.

[BigBikeBKK]

Second hand auto parts business is a multi-million dollar business.

If this law is enforced Thailand is going to put a lot of people out of work.

TiT, cut off their nose to spite their face

[KKK]

Old clapped out junk that you could easy buy for $500-$1000 in USA, Australia or Europe you have to pay $6000+ in Thailand.

This is pretty obiously it's call supply and demend.

In the 'west' you have generally weathier people, who have been told time and time again the new is better and they can afford it, so they buy new often, this leaves plenty of second hand cars in a devaluted market place for them.

In Thailand you have alot of people on very very very basic wages, they still need cars, most people can afford to purchase new ones, or even near new, they have to WAIT until it's been handed down 4-5 times before they can get move up from a motorbike.

So, Supply of Second hard cars is scarse (relavity) plus Demand for Second hard cards is high (relavity)... PUSHING up the prices!

If you look at the second hard market overall in Thailand is much higher for most products than the west.

Please excuse my bad spelling.

Sorry but I disagree. Most second hand car prices are high , not because of supply or demand, but because sellers think their car is still worth the same price they paid for it three years ago, in to days market. Put simply the seller wants to sell it today for roughly the same price he / she paid for it. The concept of depreciation has yet to visit these shores.

NO. The price of second hand cars is high because the price of new cars are high. I mean you wouldn't expect a 1 year old Benz to sell for the same or lower price than a 1 year old Toyota would you? The price of 2nd hand is relative to the new price. Depreciation is taken into account; if it wasn't why would anybody buy a 2nd hand car when a new one costs the same. The amount of depreciation applied here vs the west I do not know and really has no bearing on the matter as this is Thailand not some western country. But I have to agree that I find the tax on cars to be far too high.

[BigSkip]

Just another way of forcing us to buy what they make here at inflated prices

[Markaew]

another example of why the Thai economy is in better shape than most western economies. simply block all competition.

it help also to attend economic meetings and talk about the dangers of protectionism.

about time the west started to learn from the east.

Another example? <deleted>?

The Thai economy is in reasonable shape because of the women here.

[BigSkip]

Second hand auto parts business is a multi-million dollar business.

If this law is enforced Thailand is going to put a lot of people out of work.

TiT, cut off their nose to spite their face

Must be New Yorker......(cut off their nose to spite their face ) Thanks for bringing back a old home state favorite!

[animatic]

ANd what about classic cars and trucks.

You can NOT get unused parts for a '65 MG or a '62 BelAire Chevy.

Throwing the baby out with the bathwater. the usual over reaction,

because they can't understand the real problem, or can't control the realproblem.

[Markaew]

Old clapped out junk that you could easy buy for $500-$1000 in USA, Australia or Europe you have to pay $6000+ in Thailand.

This is pretty obiously it's call supply and demend.

In the 'west' you have generally weathier people, who have been told time and time again the new is better and they can afford it, so they buy new often, this leaves plenty of second hand cars in a devaluted market place for them.

In Thailand you have alot of people on very very very basic wages, they still need cars, most people can afford to purchase new ones, or even near new, they have to WAIT until it's been handed down 4-5 times before they can get move up from a motorbike.

So, Supply of Second hard cars is scarse (relavity) plus Demand for Second hard cards is high (relavity)... PUSHING up the prices!

If you look at the second hard market overall in Thailand is much higher for most products than the west.

Please excuse my bad spelling.

Sorry but I disagree. Most second hand car prices are high , not because of supply or demand, but because sellers think their car is still worth the same price they paid for it three years ago, in to days market. Put simply the seller wants to sell it today for roughly the same price he / she paid for it. The concept of depreciation has yet to visit these shores.

I would seriously reconsider any idea of buying a second hand vehicle unless it was foreigner owned. You may be buying a car that looks like new on the outside but the engine never had the oil changed or checked. Quite likely it ran out of oil and has engine damage. Thais just don't think about maintenance. Turn the key and go. When it dies then walk away.

Edited April 18, 2012 by Markaew

[Businessman]

Well this sucks. Here they aspire to be "Detroit" of Asia, but they only make pick ups and ugly eco boxes. When I go to Detroit I can choose from hundreds of different and interesting models at bargain basement prices. Here I get the same-same at astronomical prices. How can they even think that they are a real Detroit clone? Show me a decent motor bike over 250 cc here in this Asian Detroit. Its tragic

[Zpete]

Old clapped out junk that you could easy buy for $500-$1000 in USA, Australia or Europe you have to pay $6000+ in Thailand.

This is pretty obiously it's call supply and demend.

In the 'west' you have generally weathier people, who have been told time and time again the new is better and they can afford it, so they buy new often, this leaves plenty of second hand cars in a devaluted market place for them.

In Thailand you have alot of people on very very very basic wages, they still need cars, most people can afford to purchase new ones, or even near new, they have to WAIT until it's been handed down 4-5 times before they can get move up from a motorbike.

So, Supply of Second hard cars is scarse (relavity) plus Demand for Second hard cards is high (relavity)... PUSHING up the prices!

If you look at the second hard market overall in Thailand is much higher for most products than the west.

Please excuse my bad spelling.

New Zealand has a thriving used car import industry.

Mostly from Japan, initially, but also Sth Africa and Singapore, much more reasonably priced.

I always thought a similar thing in Thailand would rid the roads of clapped out heaps I see, as it did in NZ.

Also it kept new car dealers, and the used car industry honest.

The gummint still collected import taxes etc.

Mind you, NO cars are made in NZ, imports cheaper.

[Scorpio1949]

If ALL foreigners would leave this country where you get screwed cheated and robbed my every government department that sees a chance the country would be in big problems loosing a lot of money but they know we are a big community but they also know we don't want to give up our lives here. Would actually be great to see everyone moving to a better country close to here and there are better countries. I for sure am looking at possibilities being screwed so many times but one foreigner moving does not impress and most foreigners simply just like talking and complaining here in this forum and not move ...................

Perhaps letting Taksin return without any penalty will help the Taksin haters move

[moe666]

I suppose this will effect someone coming to Thailand to retire. As I understand it a retiree could (up until now) bring in all his belongings, furniture etc including one car, all tax free proving it was within six months of the retiree's visa stamp. Now will the car be excluded, not even permitted if one wanted to pay the Tax?

Also are the Taksin haters late risers as I read every post and did not see anyone blaming Taksin for this latest proposed law!

As you understand it wrong a reiree cannot bring stuff in free. hai wife yes working here yes, retiree no.

[moe666]

If ALL foreigners would leave this country where you get screwed cheated and robbed my every government department that sees a chance the country would be in big problems loosing a lot of money but they know we are a big community but they also know we don't want to give up our lives here. Would actually be great to see everyone moving to a better country close to here and there are better countries. I for sure am looking at possibilities being screwed so many times but one foreigner moving does not impress and most foreigners simply just like talking and complaining here in this forum and not move ...................

Perhaps letting Taksin return without any penalty will help the Taksin haters move

I guess you are one of the complainers and not a mover, having said that I have been coming here since 1970 never been riped off yet I guess you hang with the wrong people.

[Businessman]

Just sold my classic car, should have waited longer, think this will drive the prices of classic cars/ motorbikes up big time.

no, you are lucky you sold it. I for one would not give you one baht for a car I cannot fix. No import parts, no repairs!

Edited April 18, 2012 by Businessman

[Aatsi]

Why not ban used car sales at the same time

[chinook]

So expats cannot bring their motorbikes over now?

[Markaew]

I have a legally imported bike for sale which isn't available in the local market.............it just doubled in price

They can stop the title transfer. I have one as well and transferring the title (green book) was nearly impossible. It took all day and met resistance from a line of people but I got it through with no money passed under the table. That was a year ago.

[Thai at Heart]

Typical sldegehammer to crack a nut.

The issue was people dodging taxes on supercars using corruption in the customs department. Instead of solving that issue, they have caused another headache completely. I can't help feeling that this is down to the probably 10's if not 100's thousands of secondhand cars on the market after the flood. As though stopping a few imports will help to firm up the price of a water damaged Vios.

I have often wondered about the second hand market here, and why it doesn't follow the depreciation rates seen in the rest of the world, and I can't help thinking it is down to a manipulation from the finance companies to allow you o have enough value remaining in the car after 5 years to go off and finance another one. When 7, 8 or 9 year cars are still selling for 40% of their original sale price, there is something very odd with the market.

Is there a burgeoining market in export of second hand cars here that no one knows about? If so to where? Never heard about it, but how can it be that people believe that second hand cars are in short supply here when the sale of new ones keeps going up year after year? There must be an explanation somewhere as to why 2nd hand cars hold their value so well here, it isn't as though the maintenance is so good is it now.

[geriatrickid]

Look I don't profess to be an expert on economics.

But thishis just seems plain ludicrous.

Can someone explain the reasoning to me behind this decision.

It doesn't seem to make any sesne.

It is intended to support the very important automobile industry. The purchase of used vehicles does not create jobs as does the purchase of new vehicles.Toyota and Mistsubishi/ Isuzu have an estimated 65% of the total vehicle market.Honda,, Ford and Mazda have major investments in the Thai automotive industry. It's not just new cars but parts as well and again Thailand has a big segment.

I don't like the law but I can see why it was enacted. It's all about supporting the auto industry that was hit hard by the floods.

The reality is that this law will not hurt the vast majority of Thais that will typically purchase a locally made product. When someone imports a Mercedes or BMW it creates jobs in Germany not in Thailand and the money flows out of Thailand. Another benefit, although unintended is that the newer vehicles are usually more fuel efficient and less polluting than vehicles from 5 years ago or even 3 years ago.

Personally, I think if some auto manufacturer without a manufacturing presence in Thailand wants to file a trade treaty violation complaint, they just might have a case. It's protectionism. I offer the opinion with the caveat that I am biased as I do not agree with the law.

[Markaew]

If ALL foreigners would leave this country where you get screwed cheated and robbed my every government department that sees a chance the country would be in big problems loosing a lot of money but they know we are a big community but they also know we don't want to give up our lives here. Would actually be great to see everyone moving to a better country close to here and there are better countries. I for sure am looking at possibilities being screwed so many times but one foreigner moving does not impress and most foreigners simply just like talking and complaining here in this forum and not move ...................

Perhaps letting Taksin return without any penalty will help the Taksin haters move

I guess you are one of the complainers and not a mover, having said that I have been coming here since 1970 never been riped off yet I guess you hang with the wrong people.

You just don't know you have been ripped off. Every time you buy something you are being ripped off. Double pricing.

[AllanB]

One day the west are going to wake up to what is going on in Asia, with regard to restrictive trade practices, wake up and adopt reciprocal policies. That will stuff businesses in places like Thailand. Eg. put 130% tax on a Thai built pickup sold in Europe and the factories here will close and the economy fail overnight.

The baht will be worth nothing and living here for expats very cheap..... amid the economic carnage.

[trainman34014]

I see Reliant 3 wheeler's and Bubble Cars are not on the list. Time to start an import business that would <snip> up a few Thai brain's !

Seriously though; what I wonder is how the Asean agreement affects all this protectionism in Thailand. I probably need to read more but if it's going to be an open borders EU style arrangement will it not be easier for people like Proton to flood cars into the Kingdom from just over the border without incurring huge import levi's?

Edited April 18, 2012 by metisdead

[tartempion]

Thus only cars assembled in Thailand are worthwhile buying.

Forget a VW Polo, whose most basic version in Europe comes with ABS and security belts for driver, passenger, side airbags and curtain airbags.

Same for a basic Nissan Micra (here March) basic March here come with NO ABS, just driver's airbag.

If you opt for a top March you will get ABS thrown in and TWO airbags., WOW

Who needs car security in Thailand? Songkran 2055 death toll was 285?

[KeyserSoze01]

Just another way of forcing us to buy what they make here at inflated prices

Exactly. Killing the used auto import business will drive up the sales of used cars in Thailand, reducing the number of used cars available on the market. This, in their minds, will drive up the sales of new cars manufactured in Thailand. How else are they going to become the Detroit of Asia.