Typical Mark-Up Of Used Cars For Sale In Thai Auto Dealerships

[Isaanman]

I hope to purchase a second hand car in BKK next week. I have gotten a feel from this forum how much car dealerships are typically willing to discount the sticker price on new vehicles for sale in Thailand. But, I do not have any idea about how much (percentage of price or otherwise) these dealers mark up the price and, therefore, are willing to lower their initial asking price on a used vehicle (say . . . in the 250,000 baht range). Does anyone have an experience in this matter they can offer to help give me some kind of guage I can use to make a reasonable offer and not push them too far or settle for too little of a discounted price? Thank you in advance.

[soundman]

All s/h car dealers have different strategies, however as a general rule of thumb, the more interest you show in a particular vehicle, the less discount you will be able to negotiate.

That said, some car dealers don't discount at all and are prepared to let a car sit and rot rather than taking 500B off the asking price, while others work on the volume principle.

Thai negotiation = patience.

[kartman]

Also in the 250,000baht dealers don't forget you could be dealing with Lackeys so after patiently negotiating your small discount a phone call to the 'big man' has to be made resulting in a price more than the origional as your the wrong colour

[Riley'sLife]

As a guide the volume s/h dealers usually look for 20,000 to 30,000 profit on each vehicle they sell. As Soundman has already stated, the discount you will get will be less on popular low km, one owner, vehicles with f.s.h., and anything you show you are very keen to buy!

Beware that clocking is normal, as is replacing parts with inferior and cheaper origin. Only buy from a tent if you have a good working knowledge as there are more unscrupulous dealers than honest ones. Even buying late model repossessions direct from the Finance Co is not always what it seems. Many borrowers strip parts from the vehicles before they are repossessed. My wife's cousin's car was total'd at just 60kms and rebuilt. It will be sold soon but there will be no way for the buyer to know its history. S/h cars are a huge risk here for the buyer.

All considered, it's wise to buy direct from someone you know and trust and that has looked after their car well, or buy new. If you still want to buy s/h try to take someone with you who knows both about vehicles, and the tricks dealers get up to - worth a couple of thousand baht to do.

Hope that helps a bit, and isn't too negative. Whatever you decide I hope you enjoy your new ride, and keep safe!!

[aussiebebe]

I agree strongly with the above poster regarding the perils of buying second hand in Thailand. For a little more money than you plan to spend (+100,000) there are cheap new cars such as the base-model Nissan March, heck, even a Cherry QQ would be preferable to an offering from the Thai used car market, in my opinion. Waiting and saving actually saves you money; 1st class insurance, 3-year warranty, better fuel efficiency, better safety features, lower maintenance costs.

[ignis]

From experience and what I have seen, Privately owned non Thai makes....... Many keep there cars for 10 + years, one owner, one driver, low km, and a good buy...

​Some places buy cars for cash, some places sell on commission only,,,,,,,, Tent that buy for cash may well have that car sat in there tent for years, so there markup will be higher as they have to leave room to discount it a bit every year.. It appear here that there is very little difference in price for a car with 250,000 km on the clock or the one sat next to it with 25,000 km.

Ask to look at the green book see how many owners......... many older one owner cars will have all the paperwork going back to when they 1st bought the car

[steveromagnino]

_{on 250,000b margin is probably in the 40-50,000b range at the most. If you can get them down 10% you would probably be doing pretty well.}

_{If you are negotiating, usually if you get finance through them, you can negotiate down a bit as they make money on that as well.}

_{Getting the car tested is something I would insist on, there are places in Srinakarin car test or something like that who can check the car; norm is you agree to test it, and if you don't buy you pay for the test otherwise it is either deducted off the price or split evenly (or depending maybe you pay). If you cannot test...I wouldn't buy.}

[mogandave]

I doubt there is a margin per-say, what they sell it for should have little to do with what they pay for it.

That said, I think 25% is pretty fair.

[pianoman]

^{My GF wants to sell her 4 year old Nissan standard Cab pickup truck... Bought it New for 580,000, serviced regularly and well maintained... Researching on the internet sites for Used Vehicles in Thailand we find them selling for between 350,000 and 380,000 baht... The Local "Dealers" were offering her between 250,000 to 290,000 baht, so looking to profit in the 100,000 baht range, which seems a bit extreme to me... Plus one of the Salesman at one Dealer told us that they will probably have to Loan / Finance for their customer @ 25% or greater interest rate...}

^Pianoman

[mogandave]

So if she took 290K for it and the dealer spent nothing on it and sold it the same day for 380K, that's 90K, or 31% (not including overhead and whatever other costs they have) How many cars a day are they selling?

Of course it that 90K is profit that'll have to pay income tax on that.

So 60K margin from a 290K purchase (20%), assuming they get top dollar for it.

They are in business to make money, and there is nothing stopping anyone from selling their own car. Is it any different in any other county?