Why Are Second Hand Cars So Expensive?

[stefan2519]

This thread should be pinned!

[bkkjames]

It is very easy for a Thai to borrow some of the money needed from a friend, buy a used car/truck/motorbike, go straight to one of the hundreds of "car loan" companies and borrow a lot of money against the car/truck/motorbike at 1.25% interest per month, pay back their friend, and have a vehicle on "finance" where they could not normally qualify for finance through a dealer.

These "car loan" companies do not worry about your income etc. the loans are purely secured against the vehicle.

And that is one of the primary reasons for second hand motors being so high, i know this because one of these companies rent's one of my shops!

hmm perhaps true. I dispute the last paragraph, despite assurances that me being married, work permit, have Thai Credit History for over a decade in good standing etc etc would not need a guarantor by the car salesperson, the finance company came back and said 'need'. Granted this was through a proper finance company and not a loan shark.

Edited August 29, 2012 by bkkjames

[anon210]

It is very easy for a Thai to borrow some of the money needed from a friend, buy a used car/truck/motorbike, go straight to one of the hundreds of "car loan" companies and borrow a lot of money against the car/truck/motorbike at 1.25% interest per month, pay back their friend, and have a vehicle on "finance" where they could not normally qualify for finance through a dealer.

These "car loan" companies do not worry about your income etc. the loans are purely secured against the vehicle.

And that is one of the primary reasons for second hand motors being so high, i know this because one of these companies rent's one of my shops!

hmm perhaps true. I dispute the last paragraph, despite assurances that me being married, work permit, have Thai Credit History for over a decade in good standing etc etc would not need a guarantor by the car salesperson, the finance company came back and said 'need'. Granted this was through a proper finance company and not a loan shark.

Just the wrong finance company, probably. SCB (to take an example) are more flexible, and if your credit history is faultless and you have a work permit, there is not even need of being married. In my case, whenever a dealer mentioned the word "guarantor", I just walked away. Playing on competition helps to get the good financing company. Now this being said, I always applied for very short finance periods (2 yrs max), so I was probably a low risk.

[Plucky]

Which are the best value vehicles? pick ups?

[bkkjames]

It is very easy for a Thai to borrow some of the money needed from a friend, buy a used car/truck/motorbike, go straight to one of the hundreds of "car loan" companies and borrow a lot of money against the car/truck/motorbike at 1.25% interest per month, pay back their friend, and have a vehicle on "finance" where they could not normally qualify for finance through a dealer.

These "car loan" companies do not worry about your income etc. the loans are purely secured against the vehicle.

And that is one of the primary reasons for second hand motors being so high, i know this because one of these companies rent's one of my shops!

hmm perhaps true. I dispute the last paragraph, despite assurances that me being married, work permit, have Thai Credit History for over a decade in good standing etc etc would not need a guarantor by the car salesperson, the finance company came back and said 'need'. Granted this was through a proper finance company and not a loan shark.

Just the wrong finance company, probably. SCB (to take an example) are more flexible, and if your credit history is faultless and you have a work permit, there is not even need of being married. In my case, whenever a dealer mentioned the word "guarantor", I just walked away. Playing on competition helps to get the good financing company. Now this being said, I always applied for very short finance periods (2 yrs max), so I was probably a low risk.

perhaps true. I walked away. Am of the opinion that the cars sales person played up the 'no need' line to get you to the starting line then moved the goal posts in the hope that I would just get one of my wife's family members to sign on.

[LennyW]

It is very easy for a Thai to borrow some of the money needed from a friend, buy a used car/truck/motorbike, go straight to one of the hundreds of "car loan" companies and borrow a lot of money against the car/truck/motorbike at 1.25% interest per month, pay back their friend, and have a vehicle on "finance" where they could not normally qualify for finance through a dealer.

These "car loan" companies do not worry about your income etc. the loans are purely secured against the vehicle.

And that is one of the primary reasons for second hand motors being so high, i know this because one of these companies rent's one of my shops!

hmm perhaps true. I dispute the last paragraph, despite assurances that me being married, work permit, have Thai Credit History for over a decade in good standing etc etc would not need a guarantor by the car salesperson, the finance company came back and said 'need'. Granted this was through a proper finance company and not a loan shark.

I think you misunderstood..... the type of companies i am referring to are not the ones that work hand in hand with with the dealers to offer finance, whereby the ability to repay a loan has to be calculated/assessed,...

No, these are the companies that give loans based solely against the vehicle....... an owner goes in to the shop with their log book, the lender agrees a price, a brief contract is signed, and then......... off they go to the Land Transport Office where the paperwork is checked against the vehicle chassis number and book and the paperwork is submitted for ownership of the vehicle to be transferred to the lender and then the money is paid out the same day!! Totally different to proper finance or bank loan, more like "official" loan sharks! as their shops are quite visible and advertised.

If you buy a second hand car from a Thai that is a few years old, check the log book and chances are you will see an owner then a finance company then back to the same owner (once the debt is repaid).

Very easy for anyone with a vehicle and matching log book to do, this is why second hand vehicles command high prices.

[stevenl]

Which are the best value vehicles? pick ups?

Second hand? IMO the cars that are good cars but not very popular in Thailand. So with pickups that would be all brands except for Isuzu and Toyota.

[WebBangkok]

I like it.

I am thinking about selling our 3 year old Camry and looking at how much I can get for it, I can get a new Civic and still have some change left over.

[bkkjames]

I like it.

I am thinking about selling our 3 year old Camry and looking at how much I can get for it, I can get a new Civic and still have some change left over.

is that the one with the bullet holes and blood stains lol?

[funcat]

I like it.

I am thinking about selling our 3 year old Camry and looking at how much I can get for it, I can get a new Civic and still have some change left over.

is that the one with the bullet holes and blood stains lol?

[uptheos]

They are so.......shiny.

[WebBangkok]

I like it.

I am thinking about selling our 3 year old Camry and looking at how much I can get for it, I can get a new Civic and still have some change left over.

is that the one with the bullet holes and blood stains lol?

lol specially modified Camry

[bkkjames]

I like it.

I am thinking about selling our 3 year old Camry and looking at how much I can get for it, I can get a new Civic and still have some change left over.

is that the one with the bullet holes and blood stains lol?

lol specially modified Camry

yakuza certified

[stingray]

Thais just don't want to sell their cars cheap and hate loosing money on it.So the offer stays high and obviously people still buy it else the prices would have come down. I find the prices crazy but they are what they are here.

I have bought a new car twice here, i don't know enough about cars to buy second hand. Just worried i got one with flood damage or other damages and then your in trouble. Also there is not much difference between new and second hand, so better to buy new.

A new car cost sometimes 4 times the money, what it would cost in the "normal world". Therefore second hand are also more expensive. Cheap labour helps to restore a car again. Restorations in the "normal world" can't be done anymore, because of high labour costs. Another thing: Cars are limited (small choices of cars),

For example: Where can you find a Camaro or a Hummer? New one cost close to 6 Million. Therefore a 15 year old second hand still cost much over a million.

Maybe a little bit extreme, my example, but similar situation if somone like to have a Toyota Celica.

New one cost a couple million, therefore a 1995 model still cost 500 to 600'k In the "normal world" a 95 celica cost not ovet 1500 Dollar (with road certificate and safety check).

Even new marked cars like toyota Vios are 30% more expensive as in europe.

Next thing: Cars are "overfinanced". If the finance or bank reposess a 6 month old car, the outstanding balance incl, the interests are over the new price. Noone want to take responsibility for that, so the car hangs in the used car tent around with a price tag similar than a new one, until someone comes and buy it. It takes sometime over a year. But Thais don't calculate storage costs.

Facit: It's a different world and if we live there we have to accept it. Even if we don't like. In Europe cars are cheap, but insurance, roadtax and labour gonna kill the budget.

[funcat]

I found this ad:

"For Sale

2000 Isuzu Dragon Eye Pickup, Manual, 2-door with extra cab

12 years old, central locking, 145,000km, good condition

Sale Price: 100,000 baht plus 42 monthly payments of 7,365 baht (42 x 7365 = 309,330)"

...that's over 400K..!! Talking about holding a value...or "slightly" overpriced ?!

[anon210]

I found this ad:

"For Sale

2000 Isuzu Dragon Eye Pickup, Manual, 2-door with extra cab

12 years old, central locking, 145,000km, good condition

Sale Price: 100,000 baht plus 42 monthly payments of 7,365 baht (42 x 7365 = 309,330)"

...that's over 400K..!! Talking about holding a value...or "slightly" overpriced ?!

Let me guess... a tent making it available on low monthly payments to a poor Thai? That boils down to about 3.5 yrs finance, and its real market value without finance would be closer to 250-300 K (at least my guess).

[uptheos]

I found this ad:

"For Sale

2000 Isuzu Dragon Eye Pickup, Manual, 2-door with extra cab

12 years old, central locking, 145,000km, good condition

Sale Price: 100,000 baht plus 42 monthly payments of 7,365 baht (42 x 7365 = 309,330)"

...that's over 400K..!! Talking about holding a value...or "slightly" overpriced ?!

Let me guess... a tent making it available on low monthly payments to a poor Thai?

No, Chiang Mai Community Classifieds targeting foreigners

https://mail.google.com/mail/?ui=2&ik=8f9c219e02&view=lg&msg=1399c214a3ccd4e4

[anon210]

I found this ad:

"For Sale

2000 Isuzu Dragon Eye Pickup, Manual, 2-door with extra cab

12 years old, central locking, 145,000km, good condition

Sale Price: 100,000 baht plus 42 monthly payments of 7,365 baht (42 x 7365 = 309,330)"

...that's over 400K..!! Talking about holding a value...or "slightly" overpriced ?!

Let me guess... a tent making it available on low monthly payments to a poor Thai?

No, Chiang Mai Community Classifieds targeting foreigners

https://mail.google....399c214a3ccd4e4

I seriously doubt about an individual making a car available on monthly finance to a foreigner over 3 years; Most likely again a tent targeting not impoverished thai, but impoverished farangs.

[funcat]

I found this ad:

"For Sale

2000 Isuzu Dragon Eye Pickup, Manual, 2-door with extra cab

12 years old, central locking, 145,000km, good condition

Sale Price: 100,000 baht plus 42 monthly payments of 7,365 baht (42 x 7365 = 309,330)"

...that's over 400K..!! Talking about holding a value...or "slightly" overpriced ?!

Let me guess... a tent making it available on low monthly payments to a poor Thai?

No, Chiang Mai Community Classifieds targeting foreigners

https://mail.google....399c214a3ccd4e4

Yes,that's a private ad...they probably bought it from the tent before....but anyway, Isuzu Dragon Eye Pickup is probably the highest valued second hand pickup in here...and than Toyota Tiger....

[steelepulse]

Just browsing through the local phuket gazette classifieds and there's a fortuner model year 2006 for only 895,000. How much did they cost new 6 years ago?

[Plucky]

What pick up can u pick up cheap second hand without picking up a total wreck?

[stevenl]

What pick up can u pick up cheap second hand without picking up a total wreck?

Go for any of the non popular brands: Mitsubishi, Mazda, Nissan, Ford. Much more car for the money than you'll get from Toyota or Isuzu.

[ITGabs]

it's not like in NZ

[thaicruze]

Just browsing through the local phuket gazette classifieds and there's a fortuner model year 2006 for only 895,000. How much did they cost new 6 years ago?

4WD Fortuner 3.0L 2006 - 865,000 one2car

4WD Fortuner 3.0 L 2012 - 1,396,000 one2car

4WD Fortuner EXCLUSIVE 3.0L (whatever that means) 2006 - 960,000 one2car

[thaicruze]

Porsche Boxter 2006 2.7L - 4,000,000 one2car

Porsche Boxter 2012 2.7L - 6,950,000 one2car

[Khun Jean]

What pick up can u pick up cheap second hand without picking up a total wreck?

Go for any of the non popular brands: Mitsubishi, Mazda, Nissan, Ford. Much more car for the money than you'll get from Toyota or Isuzu.

And when assembled by Thairung you can knock another 100.000 from the price.

Edited September 9, 2012 by Khun Jean

[kartman]

What pick up can u pick up cheap second hand without picking up a total wreck?

Go for any of the non popular brands: Mitsubishi, Mazda, Nissan, Ford. Much more car for the money than you'll get from Toyota or Isuzu.

And when assembled by Thairung you can knock another 100.000 from the price.

What Thairung Pick ups are worth / priced 100,000 baht less than competitors pick ups ?.

Edited September 9, 2012 by kartman

[bdw]

Quick simply nuts.

What ?

[kurnell]

I bought a 2nd hand Fortuner 4 years ago for 750k. I am pretty sure I can still get 750k if I sell it now.

[ThaiBob]

My Thai friend just bought 2007 Toyota Yaris for 430,000 with 85,000 km from used car dealer. I thought the price was over the top but he didn't think so. He got financing and he had a car he liked. For the price he is paying he could have purchased a new car. He argued new "more expensive" and "have to wait". I think that may be deciding factor for many Thais. The same dealer had a used 2012 Toyota Altis TRD with "red plates" and 10,000km for 980,000 baht. The exact same car I purchased new last year for 919,000. My car now has 15,000 km but it makes me wonder what my car is worth?