Brand New Car - No Money For Petrol

[jbrain]

The new car scheme repossessions will go into overdrive soon enough. Once the tax has been given back and spent or used to pay off money borrowed for the first 12 months payments. It should only damage the sub 1500cc >1mil segment of the market tho.

Somone I know got 8500 per month finance with a reported salary of 12000. They live in rented accommodation too. It took the bank all of 48hrs to approve.

How about me ?

I got a 11.300 Baht finance and I have NO income, and the Thai lady who signed guarantee has also NO income ( never had ) and has a finance on a car as well.

Right. So ya both paying the loans off with fresh air then.

Sent from my GT-I9300 using Thaivisa Connect Thailand mobile app

Not really, but it is money where the finance company has no access to if I default on the loan, which I have no intention for of course, but a finance company in a civilised country would never approve such a finance.

[Kitsune]

My neighbor does not have furniture, his family is in rags, kids don't not eat everyday but a brand new SUV is proudly parked outside the house, in replacement of another one which was not big enough.

Off course it also had to be bigger than the other neighbor that got his last month.

It's the new competition in our tiny soi : Who has the bigger SUV?

Needless to say it's hell when 2 SUV are trying to drive through

Edited June 9, 2013 by Kitsune

[pattayadingo]

To me, a motor is a motor. If it is reliable, does the job I want it to do and gets me from A-B and back again, that is all I want. In saying that, I've had ladies who constantly crowed about what motors some family members had. The status of having a new motor seemed to outweigh anything else and they were regularly compared to my motor that was older but paid for in cash.

They are like children in this way. Snobbery. But it was surprising how many of those new motors simply dissappeared never to be seen again.

It reminds me of when my son was at school and each child had to outdo the other by wearing the latest fashion trend trainers or whatever. They used to take the piss out of those whose parents could not afford the cost. Wearing the latest fashion icons certainly did not make them better people, like cars / trucks here do not make them better people.

[Phronesis]

When the vehicle debt bubble explodes here there will be blood in the streets.

Thais think that new cars don't depreciate, and in times past that was largely the case.

But now, as many have already observed in this thread, used car lots and auction yards are now filling at an alarming rate.

The net result is that the price of used cars will drop sharply...and Mr Somchai wont be able to flick his financed car on when he can't make the payments.

POP....

[lomatopo]

When the vehicle debt bubble explodes here there will be blood in the streets.

According to you, "used car lots and auction yards are now filling at an alarming rate", this vehicle debt bubble has already exploded. When will the blood flow? Whose blood will be flowing? Or are you just being hysterical?

But now, as many have already observed in this thread, used car lots and auction yards are now filling at an alarming rate.

Is this something you've observed? I honestly haven't. What constitutes an "alarming rate" in your mind?

The net result is that the price of used cars will drop sharply...and Mr Somchai wont be able to flick his financed car on when he can't make the payments.

If the car was eligible for the rebate program then it cannot be sold anyway, so this scenario seems remote, if not impossible.

POP

Oh, OK, your version of an "explosion" is really a barely audible pop.

Edited June 9, 2013 by lomatopo

[frankold]

Yes it couldn't be sold if it were part if the rebate program but it could certainly be repossessed by the bank.

Then whats the bank going to do with these cars sell them @ toysrus?

[mrtoad]

I don't think the second hand car market is about too crash to the degree that some are hoping. I agree that the prices are still high in comparison to say the UK, but many of those complain about the prices, are probably those that are dreaming of the 70 baht otthe pund days - it ain't going to happen anytime soon.

[jbrain]

Quote

But now, as many have already observed in this thread, used car lots and auction yards are now filling at an alarming rate.

Is this something you've observed? I honestly haven't. What constitutes an "alarming rate" in your mind?

Look around you, the second hand car dealers are popping out of the ground like mushrooms these days. Only between North and Central Pattaya on Sukumvit at least 7 have been added in the past month alone.

[lomatopo]

Quote

Look around you, the second hand car dealers are popping out of the ground like mushrooms these days. Only between North and Central Pattaya on Sukumvit at least 7 have been added in the past month alone.

I live in Bangkok, in the city during the week, and just outside the City during the week-end so will take your word for it that there are at least seven new 2nd-hand car dealers in Pattaya.

I guess people are saying that banks have already initiated mass repossessions, and then somehow moved these into the retail distribution chain? Is that your contention? All of these cars for sale in Pattaya are 2011/12 models? And you can verify that prices are being driven down due to the over-supply?

There is a very, very large auction lot near my home - it doesn't appear to be filling up very quickly but maybe banks are using other auction lots?

Yes it couldn't be sold if it were part if the rebate program but it could certainly be repossessed by the bank.

Understood, however my reply was to a poster who was implying that the purchaser may be intent on selling the automobile to get out from under, rather than describing a repossession scenario.

Edited June 9, 2013 by lomatopo

[ABCer]

I don't think either idea is good. Running people into debt can't be good. I know a school teacher with a master's degree in Isaan who is some kind of curriculum manager. She makes 30k pm. She has a new house and a new pickup. She helps her parents some. She can barely afford to live. She doesn't know what the interest rates are on either the new home scheme or the new car scheme. This sounds more like welfare for the bankers to me.

I get a lot of posts deleted because "this topic isn't about the US," but I'll mention it and see what happens. Bill Clinton signed a bill in the late 90's that essentially said that everyone should be able to buy a new home. Financing was put in place to assure it. IMHO that was the beginning of the bundling of sub prime mortgages and the beginning of the whole real estate run up and crash. Easy financing for people who didn't qualify by traditional standards.

Someone above mentioned checking out the car auctions. I think that soon you can also check out the foreclosed homes.

From my observations Thais are going into debt for cars, homes, cell phones, TV's and credit cards and they have no experience in handling money. I see trouble. I hope the best for them.

NS, liked your post with regards to Thai situation.

Not so much your references to US. Some model of love for plain folk from the 'Gov't by the people for the people'!

'Helping' the world to get to American model of 'democracy' at huge cost to own plain folk...

'Helping' the Banks and Corporations with plain folk (taxpayers) money...

Denying plain folk medical care except for their Insurance money...

Making plain folk afraid of the Gov't (CIA, FBI, IRS, Police) when it should be the other way around...

I do not pretend to be 'ever sure', but the present US model is not the one to follow.

[krisb]

Hey op, aren't you the same guy who made millions from some internet business and then retired to Chiang Mai?

Forgive me if I'm wrong but was sure it was you?

[Morakot]

Don't think Honda Civic qualified for the tax rebate scheme.

Don't think so either. The OP is taken/ takes us for a ride.

Edited June 11, 2013 by Morakot

[frankold]

Hey op, aren't you the same guy who made millions from some internet business and then retired to Chiang Mai?

Forgive me if I'm wrong but was sure it was you?

The dot com bubble must have burst? :-D

[frankold]

Back to the op and car market in general. If you speak to any car sales tents they will tell you that finance companies are really tightening up who they will give loans too and are taking a long time to approve anyone. Apparently there is currently a historic high of the amount of people defaulting and getting well behind with their payments.

It seems all these irresponsible loans they've been giving out are now starting to bite.

[Berkshire]

I do not believe homeownership has a Thai friend who bought a new car. I don't even believe homeownership has any Thai friends. Classic troll thread.

What a bunch of gullible twits you guys are.

[Scully]

Hey op, aren't you the same guy who made millions from some internet business and then retired to Chiang Mai?

Forgive me if I'm wrong but was sure it was you?

Yes and a friend would surely loan some money to his friend so he can use his car, not come on the internet and bash him for his financial mistake.

There are many Thais that put down deposits on cars and miss the repayments not because they can't afford it but they know it takes months for the companies to come and collect the car. They have a brand new car and with no credit ratings in Thailand or car dealership lenders not sharing information the Thai can then do the same again and again.

I know a lady that does this, she pays the deposit and first couple of months payments and last time it took ten months for the car to be taken back. Fourty thousand baht for a new car for ten months is quite a good deal, when are the lenders going to wake up ?.

[benalibina]

I do not believe homeownership has a Thai friend who bought a new car. I don't even believe homeownership has any Thai friends. Classic troll thread. What a bunch of gullible twits you guys are.

Its not about the OP but the topic !!

Give the guy some credits that even you read the thread and commented on it. A negative for him but nevertheless......

[frankold]

I do not believe homeownership has a Thai friend who bought a new car.  I don't even believe homeownership has any Thai friends.  Classic troll thread.

 

What a bunch of gullible twits you guys are.

I guess you don't have many friends either if you've got nothing better to do than following his posts...

[rubberduck]

A brandnew 1mil luxury Honda Civic SUV ? + Wow! that's a car for RICH people who drive it to a golf course or an antics aution.

In my country the 'old money' welth drive in much less like a Toyota Aygo, luxury cars are just for the 'new money' who want to show off.

But this guy even HAS money, hahaha. Talking about life management, what a complete loser

[rubberduck]

Ofcourse the last sentence in my post must be 'HASN'T' but due to a bug in this mobile app it does not allow modifying a post.

[Berkshire]

I do not believe homeownership has a Thai friend who bought a new car. I don't even believe homeownership has any Thai friends. Classic troll thread. What a bunch of gullible twits you guys are.

Its not about the OP but the topic !!

Give the guy some credits that even you read the thread and commented on it. A negative for him but nevertheless......

So you guys want to discuss something that doesn't even exist? Sure, just make up any topic out of thin air about something that never happened (preferably with a negative slant towards the Thais), and the TV membership will be happy to chime in. Seems to occur on TV with worrisome regularity.

[boosta]

Maybe even the majority of the threads. If we required "proof" before advising TV would die overnight.

[Jasun]

Never let the truth get in the way of a good thread.

[boosta]

As with the other kind of TV, entertainment, information and even some valuable wisdom once in a while, don't require a basis in reality.

[frankold]

 

I do not believe homeownership has a Thai friend who bought a new car.  I don't even believe homeownership has any Thai friends.  Classic troll thread. What a bunch of gullible twits you guys are.

Its not about the OP but the topic !!

Give the guy some credits that even you read the thread and commented on it. A negative for him but nevertheless......

 

 

So you guys want to discuss something that doesn't even exist?  Sure, just make up any topic out of thin air about something that never happened (preferably with a negative slant towards the Thais), and the TV membership will be happy to chime in.  Seems to occur on TV with worrisome regularity. 

Erm. So all these people who are defaulting and have loans of 70-80% of their salary are filling their cars with what exactly? Thin air?

I think you'll find its quite a common scenario.

[Berkshire]

I do not believe homeownership has a Thai friend who bought a new car. I don't even believe homeownership has any Thai friends. Classic troll thread. What a bunch of gullible twits you guys are.

Its not about the OP but the topic !!

Give the guy some credits that even you read the thread and commented on it. A negative for him but nevertheless......

So you guys want to discuss something that doesn't even exist? Sure, just make up any topic out of thin air about something that never happened (preferably with a negative slant towards the Thais), and the TV membership will be happy to chime in. Seems to occur on TV with worrisome regularity.

Erm. So all these people who are defaulting and have loans of 70-80% of their salary are filling their cars with what exactly? Thin air?

I think you'll find its quite a common scenario.

Really? Well I know quite a few Thais. Many of them own cars. And yes, a small number have a difficult time keeping up with payments. Some can't/won't buy insurance. But I've never met one who couldn't afford the petrol. Not one. Zero. Nada.

[boosta]

I think it's fair to say that given the face issue we wouldn't personally come across many Thais in such a situation that would actually disclose it to us.

Unless we've positioned ourselves as a potential knight in shining armor. . .

[frankold]

Berkshire. Whats your point exactly?

Your friends can't afford the payments or insurance. BUT have a car.

The op's reference couldn't afford gasoline. BUT has a car.

Whats the point ya trying to make? That its better to have money for gasoline than it is to have money to pay the loan off and insure their motor?

What are your clued up, sharp as a tac mates gonna do when the bank comes and takes the car off them or they have an accident? Continue to buy gasoline coz they can?

[Berkshire]

Berkshire. Whats your point exactly?

Your friends can't afford the payments or insurance. BUT have a car.

The op's reference couldn't afford gasoline. BUT has a car.

Whats the point ya trying to make? That its better to have money for gasoline than it is to have money to pay the loan off and insure their motor?

What are your clued up, sharp as a tac mates gonna do when the bank comes and takes the car off them or they have an accident? Continue to buy gasoline coz they can?

The point is the OP is making this sh*t up to put down the Thais. But frankly, even if it were true, it's not a "Thai thing." In the USA, there are millions of Americans buying homes that they can't afford. And buying cars that they can't afford. And maxing out their credit cards, essentially living a life style that they can't afford. More so than in Thailand. Western consumerism at it's finest.

So homeownership is suggesting that there's a Thai (one Thai, which means all Thais) who's living beyond his means. Duh! Living beyond one's means is a western concept, perfected by farangs. But if I recall, homeownership is the guy claiming to be worth millions of pounds. And he's putting down a guy less fortunate? He's just a bit dodgy in my book.

[Munger]

I do not believe homeownership has a Thai friend who bought a new car. I don't even believe homeownership has any Thai friends. Classic troll thread. What a bunch of gullible twits you guys are.

Its not about the OP but the topic !!

Give the guy some credits that even you read the thread and commented on it. A negative for him but nevertheless......

So you guys want to discuss something that doesn't even exist? Sure, just make up any topic out of thin air about something that never happened (preferably with a negative slant towards the Thais), and the TV membership will be happy to chime in. Seems to occur on TV with worrisome regularity.

Can I ask you" Berkshire", how many hours do you spend every day on this forum defending Thais, and why ?