Cars dealers suffer from Yingluck's populist policy

[francescoassisi]

The Thai car market was until recently an equipment market...it is now transitioning to a more sophisticated second and multiple times buyer market. This is reflected in the widening range of vehicles avaiable and the numbers on the road.

A lot of the second hand value of a car is determined by the cost of keeping it on the road the two being inversely proportional to each other, there is also the possible return on the money invested in the unit.

With more cars around one might expect a dramatic reduction in price of second hand cars, but my guess is that as they maintain condition, and running costs are low, plus potential returns are quite high, this will maintain quite a high value on second hand cars.

Edited September 7, 2013 by francescoassisi