Thai Cabinet Approves Ban On Imports Of Used Vehicles

[JohnAllan]

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.

The amount of depreciation, like anything in Thailand, is dictated by Thais' [usually distorted] view of reality - and the need of purchasers' to prove they can afford it - whatever 'it' is. Property is a prime example: no matter the state of the market [think 1997] if a Thai seller thinks a house, or condo, is worth X-Baht, he will invariably stick with that price, no matter what. Remember, properties in 1997 that were worth, in that market, nowhere close to the asking price, would still be on the market some five, even ten, years afterwards, at the same, unobtainable, price.

[mortenaa]

Why check the facts? He said "... with virtually less than 40% of transactions (probably) being VAT taxed..." - and as you just stated (pointlessly perhaps) was that they don't pay VAT - so which 'fact' is incorrect? Are you suggesting that these food vendors earn more than 1.8m and do pay VAT? You seem to have implied the word "illegally", it was not said though. The taxes "could" be captured from such businesses (it would also then force them to register which is required for much smaller sums of turn over) and then tax coffers would be more level and less need to hit soft targets that damage relations and stiffle choice. VAT is unique (perhaps) as it is passed directly to the consumer - so som tam goes up 7% and the tax man gets to see black ink on his statements for a change.

I was just helping you checking the facts whether food stalls were subject to VAT or not. I was not arguing anything else.

[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.

How stupid can a response be ? I get ripped off at Tesco when I do shopping ? Further I try to avoid doing business with foreigners and most of the time my GF does the bigger shopping so what's the use of your posting ?

For your information; I never hang out dude !!!!!!!!!

It's a bit early for that level of hostility. I would expect that level later in the day after you had a few beers or have you started already? Obviously, you are not double priced in Tesco. I stand corrected. You not get laid today? Just asking.

[BigBikeBKK]

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.

Nonsense- if the green book was legal it's a piece of cake to transfer an imported vehicle. Wonder if the value of my Gixxer K5 and other imports might actually go UP as a result of this ridiculous new law?

Are you speaking from a voice of experience or are you speculating? If you have transferred a bike, we clearly did not go to the same place.

The K5 in my previous post is my bike and I transferred it into my name in less than an hour at the Morchit Land Transport Office. It was no different than the dozen or so other vehicles I've bought and sold here in the last 5 years. Since the green book is 100% legit and all taxes paid and noted why do you think I should have had a problem? If YOU had a problem I'm sure it's because there was something wrong with your paperwork.

[Markaew]

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.

Nonsense- if the green book was legal it's a piece of cake to transfer an imported vehicle. Wonder if the value of my Gixxer K5 and other imports might actually go UP as a result of this ridiculous new law?

Are you speaking from a voice of experience or are you speculating? If you have transferred a bike, we clearly did not go to the same place.

The K5 in my previous post is my bike and I transferred it into my name in less than an hour at the Morchit Land Transport Office. It was no different than the dozen or so other vehicles I've bought and sold here in the last 5 years. Since the green book is 100% legit and all taxes paid and noted why do you think I should have had a problem? If YOU had a problem I'm sure it's because there was something wrong with your paperwork.

Actually, I had the wife go to the office the day before and ask about everything that was required. I showed up with all the documents and they changed the list of items multiple times throughout the day. Green book was in order and legal.

[BigBikeBKK]

Are you speaking from a voice of experience or are you speculating? If you have transferred a bike, we clearly did not go to the same place.

I can speak from a general point of view, and my experience with different government agencies in Thailand. I guess a "gift" was expected, but not delivered. Meaning does who actually presented gifts were to go first in line. Or maybe they just didn't like you?

It's funny, but despite all the tales of back handers and under the table payments, I have yet to grease anyone at any Thai Land Transport Office. I've bought/sold vehicles in Chiang Mai, Fang, Khon Kaen and Bangkok and I always have a few bills handy just in case and I've even tried to "tip" some of the more friendly and efficient inspectors and administrative staff I've come across, but to date, some dozen cars / bikes / trailers later they have always refused...

[wolf5370]

It's a bit early for that level of hostility. I would expect that level later in the day after you had a few beers or have you started already? Obviously, you are not double priced in Tesco. I stand corrected. You not get laid today? Just asking.

What you can get laid in Tesco and it's at Thai price [just joking]

[jocko]

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.

The Thai way is the right way that is the reason and that means for averything.

[Whale]

Big car manufacturers 1 - Corrupt Customs and Excise Officials 0

Car buying public - not invited to the game

[LTGTR]

Motorcycles,not scooters,assembled in Thailand cost more in Thailand than they do in the US,even after the cost of shipping them 9-12 time zones afar-literally on the other side of the world.Thai logic-go figure!

[Thai at Heart]

Why check the facts? He said "... with virtually less than 40% of transactions (probably) being VAT taxed..." - and as you just stated (pointlessly perhaps) was that they don't pay VAT - so which 'fact' is incorrect? Are you suggesting that these food vendors earn more than 1.8m and do pay VAT? You seem to have implied the word "illegally", it was not said though. The taxes "could" be captured from such businesses (it would also then force them to register which is required for much smaller sums of turn over) and then tax coffers would be more level and less need to hit soft targets that damage relations and stiffle choice. VAT is unique (perhaps) as it is passed directly to the consumer - so som tam goes up 7% and the tax man gets to see black ink on his statements for a change.

I was just helping you checking the facts whether food stalls were subject to VAT or not. I was not arguing anything else.

Does it make any real difference if "probably" 40, or 50% aren't transacted under VAT, as a total of all transactions in the country. I will change the statement to say a very large percentage of transactions in Thailand aren't conducted with VAT included. It is OK that some aren't considered rateable for Vat, however, when VAT makes up the largest percentage of tax take in the country and it is only rated at 7%, it reflects very well that evasion on other types of taxeable incomes is very low. Other countries where VAT is over 15% still don't have VAT as their highest take.

I for one like the Chinese system very much, they run a lottery on their VAT receipts and basically you pay your bill and ask for the receipt because you can win a little bit back of your bill. It keeps the money turning around and attempts to get companies into the system because it is such a significant amount.

[GentlemanJim]

Well it is quite amusing that the genre of cars most open to abuse either by avoiding tax or for totally ripping importers off has been left out of this ban. The humble sports car/ Super Car. I imagine some hi/so super car affectionados made it clear that they would not tolerate a ban on their super status toys. It seems here that only way for someone to display how important or successful they are is not to exude leadership or charisma or professionalism but to be the only one around who can acquire a particular brand of car.

[overherebc]

Anyone paying attention to newspaper report that states the ban is on secondhand spares

[Time Traveller]

The antique car club is not going to be happy about this.

[gbswales]

There should be some special Thai word for "Thai logic"

If you can no longer import used vehicles this means that internal demand for second had vehicles will have to be met by the supply chain of new vehicles which have been legally imported. As the ration of second hand car buyers must be many times the number of new car buyers - this can only lead to a shortage of second hand vehicles! This in turn will lead to a price hike by the traders facing increased demand which will reduce the potential for poorer Thai families to own cars.

Now if they had introduced a safety inspection for used imported vehicles (or even the ones here legally already!) it might do some good but this makes absolutely no sense and will disspoportionately affect ordinary people. The brand new Rollers are still welcomed along with "rich tourists" only

[iks77]

Do i read that right that you still are allowed to import trucks of any kind except pickups?

We wanted to get some Mercedes Sprinter because carrying goods on the back of pickups is a pain...

[hellodolly]

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

Now what in the world would make some one stay here if they believed it was like you claim it is.

And what other tropical country do you have in mind for them to go to where they will not be cheated? Give us a example of this garden of Eden you are talking about. Many of us have our bags packed and are eagerly awaiting your revelation.

[a10ams]

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 retiree cannot bring stuff in free. Thai wife yes working here yes, retiree no.

Am I missing out on something here? Are you suggesting that my Thai wife (we've been married five years) can import my car free from the UK, (which I bought six years ago)?

[Thai at Heart]

Out of curiosity, how is it that the first we hear about this is after the cabinet have settled the issue. Why isn't this debated at all?

[Semper]

"Ban on imports of used vehicles"

Big deal. How often does the normal expat import their second hand vehicles anyway? How about never, so what's the fuss about?

[overherebc]

Do i read that right that you still are allowed to import trucks of any kind except pickups?

We wanted to get some Mercedes Sprinter because carrying goods on the back of pickups is a pain...

One source says cars trucks etc. Another says used parts for.

Anyone out there actually know the truth ?

[Markaew]

Out of curiosity, how is it that the first we hear about this is after the cabinet have settled the issue. Why isn't this debated at all?

That was a joke. Right?

[ALFREDO]

Not imported-second hand=...." especially motorcycles with large engine sizes, were being used for street racing...."

Where does such -Large engine size races happen?- I want to see and until now I never heard of such thing.

Read only from Gangs with their small sized engines. 125, maybe 150 cc.

[Thai at Heart]

Out of curiosity, how is it that the first we hear about this is after the cabinet have settled the issue. Why isn't this debated at all?

That was a joke. Right?

Yes and no. How can it come completely out of the blue? Maybe someone did table it in the parliament, in which case, how come no one whatsoever mentioned it in the papers?

I mean, they go on about road safety, and all this b.s. why didn't they just say they were going to close a tax loophole.

[EvilDrSomkid]

Anyone paying attention to newspaper report that states the ban is on secondhand spares

Link? I did not see it stated that second car PARTS import is banned. It said that second hand cars cannot be registered.

Does that mean that half cuts from Japan cannot be imported anymore? Not the way I read it.

As long as you don't try to register the VEHICLE, it is OK. Could be we do not have the full text.

Either way I agree that this new law is complete garbage. Another nonsensical law being implemented.

Yet again this so-called goverment is pandering to their rich cronies.

Pheu Thai really means pheu khon thai ruay. (for rich thai people) in other words, you not a rich thai? F*** **u.

[ericjt]

I spent 50 years in the motor trade in Australia, buying and selling new and used cars with some very big motor dealers, and being a motor dealer with my own dealership, I know a lot about the importing of used cars from other countries, Australia went through this and now dealers can only import used cars that are sold new in Australia, the problems with importing used cars from another country and a model or type of car that is not sold in the country is many, the main one is parts, if the imported car has an accident or needs a replacement part, no dealer in that country will carry parts for a car not sold new in that country, to get parts from an overseas country is a huge problem some times taking months or not getting parts at all,

the imported car would bought overseas for lot less than a similar type of car, size and age, that could be bought for in the country it is being imported to, if you try to sell the imported car the dealers will pay less than they can buy another one from overseas, that means a huge loss if you sell the car, making the car almost unsaleable,

another big problem is stolen cars or Cut & Shut cars, Cut & Shut is when two cars are damaged, one with a front end and one with a rear end damage, the two are cut in half and the two good ends put together to make one car, insurance in Australia is very difficult to get on imported second hand cars, don't know about about here,

most people would not know what they were buying with a used car, most people think they know about cars because just owning a car makes them experts but that is far from the facts.

I would not buy a second hand car that is not sold new in any country, there are a lot more problems but this just a few.

Great post, Merlen. Very informative.

[overherebc]

Am I allowed to cut and paste from the newspaper ?

If not this is what I read today,

The government has banned the import of used body parts for passenger cars and motorcycles to prevent tax evasion while the Transport Minister has banned the registration of cars assembled fro spare parts

[metisdead]

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[gudtymchuk]

So the "Big Guy" wont be bring his Rolls Royce with him when he makes his grand entrance in a couple of months? Or maybe it will be included in the amnesty package.

[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

Now what in the world would make some one stay here if they believed it was like you claim it is.

And what other tropical country do you have in mind for them to go to where they will not be cheated? Give us a example of this garden of Eden you are talking about. Many of us have our bags packed and are eagerly awaiting your revelation.

Why should I have all F&^%^^*& morons here tell a good place to move to ?