Nearly 1.2M People Tap Thai Govt's First Car Scheme Rebate

[brianP]

That should read 1.1 million Thai people as I believe the scheme is not open to foreigners of course there will be quite a few foreigners who will be footing the bill but not collecting the rebate!

The only way for the farang to get the fair prices and rebates is with a trustworthy Thai Wife, watch for the VAT charges that businesses sneak in if even a hint of farang is in the equation. Getting the info and frame of mind installed in that brain, that is the question.

[theajarn]

Where do all these billions of dollars come from?

It's the sort of money that could have gone an awful long way to putting in a proper permanent bus lane in throughout Bangkok. Not one that can be ignored, but one that is strictly enforced. Would get the buses flowing well and would snarl up private vehicles even more. Incentive for people to start using public transport more.

Bus lanes don't vote during elections.

[thaikahuna]

One debt collection agency forecasts 20% of loans will go bad so how many months can grandma have the vehicle with the down payment and instalements to collect the rebate and have free motoring? .

That number seems a bit low.

Not to mention 1.2 million more idiots with no driving experience clogging the already clogged roads.

If this government had any brains (that's debateable) they would make them prove they paid off the car before givng the money out. Why won't they do that? It makes sense and the politicans can't profit from it.

[Konini]

Where do all these billions of dollars come from?

From selling the rice stockpile of course, silly

[Colabamumbai]

That should read 1.1 million Thai people as I believe the scheme is not open to foreigners of course there will be quite a few foreigners who will be footing the bill but not collecting the rebate!

And if the girlfriend gets her way I will be one of them and will try and see if the rebates can be deposited in my name.

[smileplur]

And if the girlfriend gets her way I will be one of them and will try and see if the rebates can be deposited in my name.

Welcome to the club! I just got back from the Excise Department to file for our rebate. It was painless. It took about 10 minutes of our Saturday afternoon.

[cheeryble]

Actually the farang will certainly benefit on the second hand car market which will be flooded with compact cars in the future and whose prices will presumably be reduced about the same proportion as the rebate.

But yes, the whole thing beggars belief it could not be more moronic.

I wonder if those Thais who can't afford a car realise that ultimately they're subsidising those who can.

ps: you think the government negotiated with the car companies to get rebated a %age on each car? They should have.

Edited December 22, 2012 by cheeryble

[Colabamumbai]

With a work permit, but with Thai bank financing,small down payment would the car have to go in the girlfriends name? I don't keep money in accts in Tland.

2. Either way in her name or mine, could I get the rebate in my name, or in hers only?

3. Can I ask what you bought? What you paid? roughly, if you would care to share, you may aid my invaluably, and possibly others, as I have to look at cars this week, it will be the Christmas present. Thanks

[nokbird]

I believe iot takes about 6 months after the car is collected by the collectors for payment failure to be available to be auctioned off again.

[saengsureeya]

One debt collection agency forecasts 20% of loans will go bad so how many months can grandma have the vehicle with the down payment and instalements to collect the rebate and have free motoring? .

AFAIK, the rebate will be paid out, spread out, over 5 years. So if the car loan can't be paid after a few months, the rebate payments will stop.

[rixalex]

One debt collection agency forecasts 20% of loans will go bad so how many months can grandma have the vehicle with the down payment and instalements to collect the rebate and have free motoring? .

AFAIK, the rebate will be paid out, spread out, over 5 years. So if the car loan can't be paid after a few months, the rebate payments will stop.

Nope. Payment is made in one lump sum, about a year after rebate application is submitted.

[lomatopo]

Problem for me though was, as i said, that the scheme didn't open up a new group of customers that didn't previously exist, it merely encouraged an old group of customers to buy sooner than they may of otherwise. Yes there was the stipulation of being a first time buyer, but that could easily be got around by registering the car in the name of someone else in the family. Everyone i know of who has taken advantage of this scheme has done precisely that.

So i predict what the result will be, once you look at the overall and bigger picture of small car sales over three or four years since the scheme, is that there will be a spike in sales this year and next, and then a trailing off. Rather than having sales spread over the course of three or four years, what we will have is the same number of cars being sold, but with a big spike and then a big dip. Do you really think the cost to the tax payer of having that big spike is really going to be worth it? Do you not think that

1) the scheme could have been much better planned to help those who actually need help buying a car, buy one?

2) other schemes, like those ricardo mentions, would have been a much better way to spend tax payers' money?

I only know five people who have taken advantage of the rebate program. Four were genuine first-time buyers/owners who paid cash in full, primarily because of the rebates. The fifth was driving a ~ 2001 Corolla, but I think a relative "owned" that vehicle. I honestly can't say if the rebates pulled a sale in for these people, or created a new sale? Maybe 60% for a new sale, and 40% for an accelerated sale.

Again, I think it was a great program which benefited many people. Maybe we can re-visit it in three or four years and see how your predictions fared?

[bigbamboo]

Problem for me though was, as i said, that the scheme didn't open up a new group of customers that didn't previously exist, it merely encouraged an old group of customers to buy sooner than they may of otherwise. Yes there was the stipulation of being a first time buyer, but that could easily be got around by registering the car in the name of someone else in the family. Everyone i know of who has taken advantage of this scheme has done precisely that.

So i predict what the result will be, once you look at the overall and bigger picture of small car sales over three or four years since the scheme, is that there will be a spike in sales this year and next, and then a trailing off. Rather than having sales spread over the course of three or four years, what we will have is the same number of cars being sold, but with a big spike and then a big dip. Do you really think the cost to the tax payer of having that big spike is really going to be worth it? Do you not think that

1) the scheme could have been much better planned to help those who actually need help buying a car, buy one?

2) other schemes, like those ricardo mentions, would have been a much better way to spend tax payers' money?

I only know five people who have taken advantage of the rebate program. Four were genuine first-time buyers/owners who paid cash in full, primarily because of the rebates. The fifth was driving a ~ 2001 Corolla, but I think a relative "owned" that vehicle. I honestly can't say if the rebates pulled a sale in for these people, or created a new sale? Maybe 60% for a new sale, and 40% for an accelerated sale.

Again, I think it was a great program which benefited many people. Maybe we can re-visit it in three or four years and see how your predictions fared?

What's wrong with buying a cheaper second hand car you can afford.... like most first time buyers all over the world do?

[rixalex]

Problem for me though was, as i said, that the scheme didn't open up a new group of customers that didn't previously exist, it merely encouraged an old group of customers to buy sooner than they may of otherwise. Yes there was the stipulation of being a first time buyer, but that could easily be got around by registering the car in the name of someone else in the family. Everyone i know of who has taken advantage of this scheme has done precisely that.

So i predict what the result will be, once you look at the overall and bigger picture of small car sales over three or four years since the scheme, is that there will be a spike in sales this year and next, and then a trailing off. Rather than having sales spread over the course of three or four years, what we will have is the same number of cars being sold, but with a big spike and then a big dip. Do you really think the cost to the tax payer of having that big spike is really going to be worth it? Do you not think that

1) the scheme could have been much better planned to help those who actually need help buying a car, buy one?

2) other schemes, like those ricardo mentions, would have been a much better way to spend tax payers' money?

I only know five people who have taken advantage of the rebate program. Four were genuine first-time buyers/owners who paid cash in full, primarily because of the rebates. The fifth was driving a ~ 2001 Corolla, but I think a relative "owned" that vehicle. I honestly can't say if the rebates pulled a sale in for these people, or created a new sale? Maybe 60% for a new sale, and 40% for an accelerated sale.

Again, I think it was a great program which benefited many people. Maybe we can re-visit it in three or four years and see how your predictions fared?

To repeat:

Do you not think that

1) the scheme could have been much better planned to help those who actually need help buying a car, buy one?

2) other schemes, like those ricardo mentions, would have been a much better way to spend tax payers' money?

[longtom]

One debt collection agency forecasts 20% of loans will go bad so how many months can grandma have the vehicle with the down payment and instalements to collect the rebate and have free motoring? .

AFAIK, the rebate will be paid out, spread out, over 5 years. So if the car loan can't be paid after a few months, the rebate payments will stop.

Nope. Payment is made in one lump sum, about a year after rebate application is submitted.

Nope, my friend is mightily pi@@ed off because he's getting the rebate paid out over 5 years (he's paying the car in installements over 5 years), the first rate should arrive in about 2 months. Only when you pay the car in 'cash' you get the rebate in one payment, apparently.

[smileplur]

One debt collection agency forecasts 20% of loans will go bad so how many months can grandma have the vehicle with the down payment and instalements to collect the rebate and have free motoring? .

AFAIK, the rebate will be paid out, spread out, over 5 years. So if the car loan can't be paid after a few months, the rebate payments will stop.

Nope. Payment is made in one lump sum, about a year after rebate application is submitted.

Nope, my friend is mightily pi@@ed off because he's getting the rebate paid out over 5 years (he's paying the car in installements over 5 years), the first rate should arrive in about 2 months. Only when you pay the car in 'cash' you get the rebate in one payment, apparently.

It sucks to be your friend. We also have 5 year financing, but our payments of the 100,000 baht will begin from 3 months after the application and requirements are met. The 100,000 is paid out in 4 equal installments of 25,000 baht each with a deposit every 3 months. The full 100,000 will have been paid within a year.

[hellodolly]

If there are more cars on the road per year, the Bangkok City officials think about 'building more roads', building more roads means more construction, more construction more traffic jams, because those road projects along with those other Mega projects take 5-10 years to finish or more,…

,… ah did I forget to. Mention that all above this increases greenhouse gases into the atmosphere which means more unregulated weather aka natural tsunami-flood-and-drought-deterioration-master-disaster???

Thailand builds more than they invest in the necessary infrastructure.

You forgot more opportunity for corruption.

[cup-O-coffee]

The second hand Vios market should be booming next year.

You are aware that you must own the car for a period of 5 years or you are required to return the money.

Agreed, but did any human law, law of conscience or even a piece of paper with signatures on it ever stop a Thai from satisfying a feeling or an emotion when it struck them? I think it was the Buddha, who was the last person in these parts to deny a feeling or an emotion, and do what's right without thinking about himself. He wasn't even Thai. He became famous here, though, but not for those reasons. But I digress.

[Colabamumbai]

Problem for me though was, as i said, that the scheme didn't open up a new group of customers that didn't previously exist, it merely encouraged an old group of customers to buy sooner than they may of otherwise. Yes there was the stipulation of being a first time buyer, but that could easily be got around by registering the car in the name of someone else in the family. Everyone i know of who has taken advantage of this scheme has done precisely that.

So i predict what the result will be, once you look at the overall and bigger picture of small car sales over three or four years since the scheme, is that there will be a spike in sales this year and next, and then a trailing off. Rather than having sales spread over the course of three or four years, what we will have is the same number of cars being sold, but with a big spike and then a big dip. Do you really think the cost to the tax payer of having that big spike is really going to be worth it? Do you not think that

1) the scheme could have been much better planned to help those who actually need help buying a car, buy one?

2) other schemes, like those ricardo mentions, would have been a much better way to spend tax payers' money?

I only know five people who have taken advantage of the rebate program. Four were genuine first-time buyers/owners who paid cash in full, primarily because of the rebates. The fifth was driving a ~ 2001 Corolla, but I think a relative "owned" that vehicle. I honestly can't say if the rebates pulled a sale in for these people, or created a new sale? Maybe 60% for a new sale, and 40% for an accelerated sale.

Again, I think it was a great program which benefited many people. Maybe we can re-visit it in three or four years and see how your predictions fared?

What's wrong with buying a cheaper second hand car you can afford.... like most first time buyers all over the world do?

Do you know a Thai girl that would be happy driving a second hand car? and after looking at a 17 year old Izuzu Truck for 300,000 Baht, why would I want to buy used? I would be happy to drive a used car. Thai women want to be seen in the biggest and best. Merry Christmas.

[sausageandmash]

My wife checked it out the other day. I don't just say these things for the sake of it, so for the last time of telling, YES IT DOES!

I'm happy to say that isn't true. The scheme includes expats with work permits.

No it doesn't.

Edited December 27, 2012 by sausageandmash

[rixalex]

My wife checked it out the other day. I don't just say these things for the sake of it, so for the last time of telling, YES IT DOES!

I'm happy to say that isn't true. The scheme includes expats with work permits.

No it doesn't.

Either your wife's information is wrong, or things have changed with regards this scheme. I went over it with a fine tooth comb when it was introduced, looked at all the fine print, spoke to a number of Bangkok dealers, spoke to relevant government employees, researched on the net, and everyone and everything said "no" to foreigners being included. When i hear from a foreigner who has done it, i'll believe it. Do you know anyone, sausage and mash?

If anyone wants to give it a go, just remember, the way it works for Thais is you buy the car first, go to the government office with all your paperwork, submit it, and then wait one year and hope your application is approved. They certainly don't give you any indication at the application stage of whether you'll be successful. If a foreigner wants to give it a go, and if they don't refuse the application on the spot - which is what they would do at the office i enquired at in Bangkok - they'll still have a years wait to see if they are successful, by which time it will be too late to do anything about it. Bit of a gamble i'd say. Still i guess if you don't have the name of a Thai you can register the car in, or if the money isn't that important, you might like to chance your arm.

[nong38]

I expect 2013 will see a lot of "new" used cars hitting the street as payments cannot be met, perhaps that cause a fall in the ridiculously high second hand prices being quoted. Still it was good whilst it lasted

[Buchholz]

I expect 2013 will see a lot of "new" used cars hitting the street as payments cannot be met

Deputy Finance Minister Tanusak Lekuthai announced today that the government was seeking to assist first time car buyers who are now unable to make payments on their new cars..

He said he would meet with Office of the Comptroller General to see if talks can be held with car financing companies in order to see if some breaks can be extended to these buyers.

The program has resulted in 4 Billion Baht in tax rebates that have been paid out.

.

Edited February 15, 2013 by Buchholz

[A_Traveller]

Back in '97 I wrote [and yes I know others used a similar turn of phrase] in a report that a key element of the then crisis was the propensity for Thai consumers to borrow money they couldn't afford to buy things they didn't want, to impress people they didn't like.

plus ça changem , plus c'est la même chose

Edited February 15, 2013 by A_Traveller

[rubl]

I expect 2013 will see a lot of "new" used cars hitting the street as payments cannot be met

Deputy Finance Minister Tanusak Lekuthai announced today that the government was seeking to assist first time car buyers who are now unable to make payments on their new cars..

He said he would meet with Office of the Comptroller General to see if talks can be held with car financing companies in order to see if some breaks can be extended to these buyers.

The program has resulted in 4 Billion Baht in tax rebates that have been paid out.

Shouldn't that be "resulted in tax rebates of which 4 billion Baht had already been paid out"

2012-12-29

"First-car tax rebates expected to hit Bt85 bn"

[Thereisnoif]

An economic and ecological monstrosity .

Traffic in BKK is now silly on a daily basis.

[FarangTalk]

An economic and ecological monstrosity .

Traffic in BKK is now silly on a daily basis.

It was always thus. Now worse.

[rubl]

An economic and ecological monstrosity .

Traffic in BKK is now silly on a daily basis.

It was always thus. Now worse.

I still remember, with a certain fondness, the first or two years after the mid-1997 crash. That and the Company office moving from Bangna-Trad to BKK All Seasons Place. A difference of two to three hours every working day

[alanferdi]

Where do all these billions of dollars come from?

sugardaddies the tourist buziness

[alanferdi]

Where do all these billions of dollars come from?

sugardaddies the tourist buziness

then thereafter monkey business,.., reposses and pay collection agency. who are these colection agencies? hmmmm many red plate rentals popping up.