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

[mrtoad]

If people. Are already struggling to make payments now, give it another 12 months and the PTP will have to bail out its core support who are living way beyond their means. Of course, there a re plenty of well off Thais taking advantage of this tax break as well.

[culicine]

An economic and ecological monstrosity .

Traffic in BKK is now silly on a daily basis.

It was always thus. Now worse.

And it's only just started....most of the vehicles haven't been delivered yet....give a good distance to red plates now; many are new drivers who really don't know what they are doing.

Why give breaks to those who can't pay? Repossess the car and recover the tax money. Didn't car companies check peoples finances before they got the car - suzuki wanted copies of my wife's pay slips. So why can't people pay?

[hellodolly]

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.

.

What to believe

Buchholz say 4 billion baht has been paid out.

rixalex says they have to wait a year.

[hellodolly]

An economic and ecological monstrosity .

Traffic in BKK is now silly on a daily basis.

Not sure but was the scheme for first time new car buyers.

Or First time car buyers.

In other words how many more vehicles did they really add to the trafic. Last time I checked no one was driving two cars at the same time.

[keemapoot]

What to believe

Buchholz say 4 billion baht has been paid out.

rixalex says they have to wait a year.

They probably have "booked" the 4 billion but not yet paid out. Everyone has to wait for a year to collect the rebate. I suspect all the defaults will start happening on the 13th month onwards.

[rubl]

What to believe

Buchholz say 4 billion baht has been paid out.

rixalex says they have to wait a year.

They probably have "booked" the 4 billion but not yet paid out. Everyone has to wait for a year to collect the rebate. I suspect all the defaults will start happening on the 13th month onwards.

The first tax rebate payments were made in October 2012. That's a year AFTER the scheme started. Since then more and more rebates are payed out. The last info I found is that the total program may lead to THB 85 billion payouts. The scheme ended on the 31st of December, 2012. I'm not sure if the one-year period (after which rebates are payed out) starts at date of sale, or date of delivery.

[Osiris]

What to believe

Buchholz say 4 billion baht has been paid out.

rixalex says they have to wait a year.

They probably have "booked" the 4 billion but not yet paid out. Everyone has to wait for a year to collect the rebate. I suspect all the defaults will start happening on the 13th month onwards.

With a flood of used cars now in the market, and all of the other considerations, a cheaper, barely used car market should appear soon after the defaults start. I feel sorry for those who bought at the top, but it doesn't mean I won't take advantage somewhere close to the filter of this fishbowl...burp!

[keemapoot]

With a flood of used cars now in the market, and all of the other considerations, a cheaper, barely used car market should appear soon after the defaults start. I feel sorry for those who bought at the top, but it doesn't mean I won't take advantage somewhere close to the filter of this fishbowl...burp!

Not so sure we'll see any cheaper prices in the used car market. I suspect the banks will do as they've always done, and just let the tent dealers take years to resell them on credit forbidding lower the price.

The sad reality in many cases may be the responsible Thai family members and friends who acted as "guarantors" for car loans to these new buyers. The first-time buyer somehow scrapes up 100k as down payment, drives the car for a year and makes payments of approx. 100k, then receives the 100k rebate from the government, then dumps the car and defaults, having driven the car free for a year essentially. The government chases the new buyer for the return of the 100k rebate, and the finance company chases both the buyer and guarantor for the loan ruining both their credit ratings. Fun.

[rixalex]

With a flood of used cars now in the market, and all of the other considerations, a cheaper, barely used car market should appear soon after the defaults start. I feel sorry for those who bought at the top, but it doesn't mean I won't take advantage somewhere close to the filter of this fishbowl...burp!

Not so sure we'll see any cheaper prices in the used car market. I suspect the banks will do as they've always done, and just let the tent dealers take years to resell them on credit forbidding lower the price.

The sad reality in many cases may be the responsible Thai family members and friends who acted as "guarantors" for car loans to these new buyers. The first-time buyer somehow scrapes up 100k as down payment, drives the car for a year and makes payments of approx. 100k, then receives the 100k rebate from the government, then dumps the car and defaults, having driven the car free for a year essentially. The government chases the new buyer for the return of the 100k rebate, and the finance company chases both the buyer and guarantor for the loan ruining both their credit ratings. Fun.

Why oh why the government didn't set things up so that those buying on finance weren't given the tax rebate directly, but made to use the tax rebate to pay back on the finance, i really don't know. Of course the finance companies prefer people to not pay back sooner but never mind about what they want, the important thing was for people to be able to keep up repayments, and unfortunately there are some whose money management skills aren't very good and who will end up spending the tax rebate buying something else. Surely it wouldn't have been difficult to transfer the tax rebate not to the customer, but to the finance company. Bad planning... but i guess that's what happens when you dream up policies on the back of fag packets a couple of weeks before an election in order to win votes, without thinking about implementation and effects.

Edited February 16, 2013 by rixalex

[rixalex]

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.

.

What to believe

Buchholz say 4 billion baht has been paid out.

rixalex says they have to wait a year.

I don't know how accurate the 4 billion baht figure is, but obviously a lot of money has been paid out because the policy is more than a year old and many people who bought their car when the scheme was introduced have been given the tax rebate already, with a lot more people to come.

A lot of money has been paid out. You do have to wait a year.

[Buchholz]

An economic and ecological monstrosity .

Traffic in BKK is now silly on a daily basis.

It was always thus. Now worse.

And it's only just started....most of the vehicles haven't been delivered yet....give a good distance to red plates now; many are new drivers who really don't know what they are doing.

Why give breaks to those who can't pay? Repossess the car and recover the tax money. Didn't car companies check peoples finances before they got the car - suzuki wanted copies of my wife's pay slips. So why can't people pay?

If they are typical of 2 different young couples I know that bought their new cars under the program. Both were already deep in debt from the new homes they both bought. Like your wife, they dutifully provided all documentation from their salaries, as well as pre-existing debts, to get their new cars. I was surprised they were approved as they both were bad off in terms of debt load on their income.

They are both struggling to keep payments on their vehicles (one is getting a lump sum from family members just to pay off back payments for several months, the other is trying to get a delay on their payments, without success). Relative to their income, their car payments are way higher than what is recommended as a percent. Car payments exceeded their mortgage one of them, for example.

Repossession is around the corner for them as it has already has been for many. The 2nd hand car lot inventories are bursting.

Also, absolutely correct on the red plate give-a-wide-berth warning. The number of first time drivers is also bursting.

.

.

Edited February 17, 2013 by Buchholz

[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.

.

What to believe

Buchholz say 4 billion baht has been paid out.

rixalex says they have to wait a year.

I don't know how accurate the 4 billion baht figure is, but obviously a lot of money has been paid out because the policy is more than a year old and many people who bought their car when the scheme was introduced have been given the tax rebate already, with a lot more people to come.

A lot of money has been paid out. You do have to wait a year.

Yes, it is a one year wait.

From October 2012, when the one year wait was first completed, until now, the 4 billion baht has been paid out to 50,000 eligible rebaters.

There are 1,200,000 people eligible for the program that ran until December.

The Deputy Finance Minister said that by this coming September, that 70% of total will be receiving their rebates.

The total cost, as rubl cited above, to the taxpayer (VAT included) is staggering.

85,000,000,000.00 Baht

.

Edited February 17, 2013 by Buchholz

[Thereisnoif]

What to believe

Buchholz say 4 billion baht has been paid out.

rixalex says they have to wait a year.

They probably have "booked" the 4 billion but not yet paid out. Everyone has to wait for a year to collect the rebate. I suspect all the defaults will start happening on the 13th month onwards.

With a flood of used cars now in the market, and all of the other considerations, a cheaper, barely used car market should appear soon after the defaults start. I feel sorry for those who bought at the top, but it doesn't mean I won't take advantage somewhere close to the filter of this fishbowl...burp!

Logically yes, but this is Thailand, logic doesn't apply . The higher the supply, the higher the prices .

Edited February 17, 2013 by metisdead
: Repaired the reply.

[kimamey]

An economic and ecological monstrosity .

Traffic in BKK is now silly on a daily basis.

It was always thus. Now worse.

And it's only just started....most of the vehicles haven't been delivered yet....give a good distance to red plates now; many are new drivers who really don't know what they are doing.

Why give breaks to those who can't pay? Repossess the car and recover the tax money. Didn't car companies check peoples finances before they got the car - suzuki wanted copies of my wife's pay slips. So why can't people pay?

If they are typical of 2 different young couples I know that bought their new cars under the program. Both were already deep in debt from the new homes they both bought. Like your wife, they dutifully provided all documentation from their salaries, as well as pre-existing debts, to get their new cars. I was surprised they were approved as they both were bad off in terms of debt load on their income.

They are both struggling to keep payments on their vehicles (one is getting a lump sum from family members just to pay off back payments for several months, the other is trying to get a delay on their payments, without success). Relative to their income, their car payments are way higher than what is recommended as a percent. Car payments exceeded their mortgage one of them, for example.

Repossession is around the corner for them as it has already has been for many. The 2nd hand car lot inventories are bursting.

Also, absolutely correct on the red plate give-a-wide-berth warning. The number of first time drivers is also bursting.

.

.

I don't think a lot of them have got red plates as there aren't enough. We had to drive with no plates for 7 months due to the very Thai way of dealing with plates.

I'm not sure just avoiding new cars with red or no plates will help either. There seems to be plenty of experienced lunatic drivers as well.

[Buchholz]

There seems to be plenty of experienced lunatic drivers as well.

well, there is that....

.

[Osiris]

What to believe

Buchholz say 4 billion baht has been paid out.

rixalex says they have to wait a year.

They probably have "booked" the 4 billion but not yet paid out. Everyone has to wait for a year to collect the rebate. I suspect all the defaults will start happening on the 13th month onwards.

With a flood of used cars now in the market, and all of the other considerations, a cheaper, barely used car market should appear soon after the defaults start. I feel sorry for those who bought at the top, but it doesn't mean I won't take advantage somewhere close to the filter of this fishbowl...burp!

Logically yes, but this is Thailand, logic doesn't apply . The higher the supply, the higher the prices .

One of my students picked up a used car for 40,000 two weeks ago. Granted, it's older, but the deals are there, if you know where to look...

[sfbandung]

We're buying a Mu 7. It will be in the wife's name. Can we (she!) claim the 100k?

[Buchholz]

We're buying a Mu 7. It will be in the wife's name. Can we (she!) claim the 100k?

Sorry, but you missed it by 7 weeks.

Posted 2012-12-14

The populist scheme... ends on December 31 [2012].

.

[sfbandung]

We're buying a Mu 7. It will be in the wife's name. Can we (she!) claim the 100k?

Sorry, but you missed it by 7 weeks.

Posted 2012-12-14

The populist scheme... ends on December 31 [2012].

http://www.thaivisa....s/#entry5929447

.

Ok ta. There you go.

[keemapoot]

We're buying a Mu 7. It will be in the wife's name. Can we (she!) claim the 100k?

Sorry, but you missed it by 7 weeks.

Posted 2012-12-14

The populist scheme... ends on December 31 [2012].

http://www.thaivisa....s/#entry5929447

.

Ok ta. There you go.

Don't think your MU 7 would have qualified anyway, as not a pickup or car under 1 million baht. So, no worries.

[Buchholz]

The first tax rebate payments were made in October 2012. That's a year AFTER the scheme started. Since then more and more rebates are paid out.

The last info I found is that the total program may lead to THB 85 billion payouts.

Ok ta. There you go.

Perhaps you might be able to take some solace from the high probability that at least some of the 1,250,000 purchasers who did buy in time and are waiting for their 85,000,000,000.00 Baht... may similarly wind up with the same 0 rebate you have.

.