160,000 'First Car' cancellations

[Regyai]

Yes, a bad plan. I know a teacher with a master's degree in Isaan who bought a new house on the no-down new house scheme, and a new pickup on that scheme, and some furniture on a credit card. She also has a smartphone and can barely afford to eat. Her salary is 30k pm.

She has no clue what her interest rates are, or how long it will take her to pay off her debt.

Curiously she sounds American

[Kalbo]

We bought a new Honda April 2012, STILL waiting for 63,000thb rebate to be paid. EXCUSE after EXCUSE, visits to Sri Racha Office ..next month, next month... Has anyone here received their REBATE, & if YEs, how long did it take to process??

Thanks

Yes, I received exactly B100,000 back, 13 months to the day after buying the girlfriends car (Mazda 2). No hassle at all.

[cloudhopper]

There are 2 outcomes of this policy that will seriously damage the auto industry this year. 1) Supply of second hand but good condition cars will increase forcing prices down 2) Demand brought forward to those who would have bought anyway will reduce current demand. And all this along with a global reduction in consumption.

[mackayae]

Remember a part of this plan was to boost car sales to "repay" the car manufacturers for the flooding of industrial estates fiasco and the govt. false assurances that it would never happen.

Another big part of the plan was to garner popularity and hence votes for Pheua Thai.

So, one cannot say the scheme did not meet its objectives.

Whether it was good for the country and its fiscal health is debatable.

The cancelled order figure is interesting but without detailed information tells us little. Of much more interest to me, would be the loan default/repossession rate after 2 years compared with the same rate for cars not on the scheme.

I was talking to our local Honda dealer a few weeks ago. He said since the assembly plant went online after the flood, the assembly plant has been working 3 shifts. The market is saturated but they are still producing at this high rate. Honda Thailand has allocated the new cars to each dealer based on their past sales. Our dealer, being #2 in the country, gets there high allotment. There are new unsold cars in every nook and cranny in their service centers. This sounds like a government payback to Honda Thailand. The bubble has to burst sometime.

[Redhead27]

At least there won't be 160 000 more cars to clog up the roads.

[aussieinthailand]

Another bad plan by the Shinawatre gov't - gone more rotten.

I think you are wrong,

The pane is quite good, it was to stimulate the car market, which is what it did,

If people can not afford to make repayments on new cars then they should not buy them, that's what is call being responsible, and if people do buy and can't afford the car repayment's then i think that would be a "bad plan"

I also think you and the rest of the Shinawatre bashers would blame them if your ice-cream was to cold,

[XINLOI]

My GF & I just got BHt 91000 back for a Vigo bought last year. Thank you Yingluck.

My wife and I, got 98000 back for the pickup, we purchased on the plan.

[diggledunc]

We bought a new Honda April 2012, STILL waiting for 63,000thb rebate to be paid. EXCUSE after EXCUSE, visits to Sri Racha Office ..next month, next month... Has anyone here received their REBATE, & if YEs, how long did it take to process??

Thanks

Yes got it last November about 13 months after the car was delivered. Had to go to the office as I am sure you did. No hassle no chasing.

[aussieinthailand]

Another bad plan by the Shinawatre gov't - gone more rotten.

Yes, another failed populist plan.

Did the government really not think that this would encourage people to get into even more debt than they couldn't handle ? I have to think they knew the potential but just didn't care as long as they got favourable publicity.

Mind you i have to say that the public can be their own worst enemies and many jump into these easy loans schemes without ever considering there will be a monthly day of reckoning when the re-payments are due. The usual Thai trait of not thinking things through.

" The usual Thai trait of not thinking things through "

did you think those words through before you wrote them down???

well for me here are a two well thought through words, Ethnic profiling, if you truly feel this way to Thai people then WHY are you here?

[FLHR]

Yes, a bad plan. I know a teacher with a master's degree in Isaan who bought a new house on the no-down new house scheme, and a new pickup on that scheme, and some furniture on a credit card. She also has a smartphone and can barely afford to eat. Her salary is 30k pm.

She has no clue what her interest rates are, or how long it will take her to pay off her debt.

I hear ya on that! Sadly, they really don't think past what that borrowed money's putting in their driveway or home. When you explain to them the life of debt they're creating, it's like it really doesn't matter. Really a bummer when you see someone you care about going down this path!

[carib102]

We bought a new Honda April 2012, STILL waiting for 63,000thb rebate to be paid. EXCUSE after EXCUSE, visits to Sri Racha Office ..next month, next month... Has anyone here received their REBATE, & if YEs, how long did it take to process??

Thanks

We also purchased our vehicle in April 2012 and received the rebate in July 2013. A few months late and yes we also received several rounds of excuses, mostly along the lines of "we have way more rebates to process than expected". Ultimately though we did receive the rebate. Good luck to you and I'm sure the money is forthcoming.

[MarkCyr]

It seems like a Shinawatra legacy. First Thaksin spreads money in the form of micro-loans that just got a lot of people in debt that they couldn't repay...and now Yingluck has washed-and-rinsed that concept for her own purposes...and again many Thais will be left screwed.

And yes, I know. Caveat Emptor. Buyer beware. But in any country, the rising middle class (or aspiring middle class) wants all that great stuff that is considered "daily-essential." Cars, phones, etc. Even in countries like the UK or the US, which ostensibly provide a decent education to the masses, people get in trouble when credit is too easy. Now factor in the Thai tendency to think more about today and less about tomorrow, and you have the perfect storm.

The Sinawatras are Thais. They know the problems they are creating for fellow Thais -- or maybe they don't as they are too rich -- but SOMEBODY in their advisory staff should be thinking about the plight of the people. It's beyond shameful.

[carib102]

There are 2 outcomes of this policy that will seriously damage the auto industry this year. 1) Supply of second hand but good condition cars will increase forcing prices down 2) Demand brought forward to those who would have bought anyway will reduce current demand. And all this along with a global reduction in consumption.

It's already happening. The wife had me stop to talk to a Mazda sales guy at a display last month. Mazda is offering $0 down and they will pay your loan for the first 12 months right now. Anything to get people into new cars and increase their turnover. I wasn't surprised as I have seen quite a few new Mazda 2 and Mazda 3's driving around lately. I'm sure you've seen the same. I'm also seeing quite a few new Coopers driving around...wonder what kind of incentives they are offering

[Halion]

Remember a part of this plan was to boost car sales to "repay" the car manufacturers for the flooding of industrial estates fiasco and the govt. false assurances that it would never happen.

Another big part of the plan was to garner popularity and hence votes for Pheua Thai.

So, one cannot say the scheme did not meet its objectives.

Whether it was good for the country and its fiscal health is debatable.

The cancelled order figure is interesting but without detailed information tells us little. Of much more interest to me, would be the loan default/repossession rate after 2 years compared with the same rate for cars not on the scheme.

100% accurate.

[WhizBang]

This incentive plan was flawed from the start,

Many who applied and got their loan are now desperate to get out of the debt.

Now lets wait and see what happens with the government trying to repay 2 tn

I learned a long time ago, that when a Thai asks to 'borrow' money, or asks you to 'lend' them money, what they really mean is GIVE them money. They have zero intention of actually paying you back.

Now my automatic answer, when asked, is, 'Sorry, I have no extra money at the moment.'

I wonder if the PTP want to do the loans through Thai banks for the same reason. Later when repayment become very inconvenient, they will just stop making the payments.

[Neilly]

I learned very early on not to loan Thai friends or colleagues any money as it never comes back. No difference with this stupid scheme.

[slapout]

Another bad plan by the Shinawatre gov't - gone more rotten.

I think you are wrong,

The pane is quite good, it was to stimulate the car market, which is what it did,

If people can not afford to make repayments on new cars then they should not buy them, that's what is call being responsible, and if people do buy and can't afford the car repayment's then i think that would be a "bad plan"

I also think you and the rest of the Shinawatre bashers would blame them if your ice-cream was to cold,

When the government budget is paid for by taxes collected on purchases, you chase votes by supporting a foreign business by cancelling taxes on their product and then want to put the same tax payers in hock for the next few decades, its not ice cream it is sour milk.

This brillent plan for election has been modified as has the rice program, the rubber program, milk, corn, health care, corporate taxes, etc have proven to be too big a burden on the Thai inflow/outflow of funds.It would appear even the government, has accepted they screwed up "big time", but refuse to admit this to the public.

[aussieinthailand]

Another bad plan by the Shinawatre gov't - gone more rotten.

I would not call the plan neither rotten or bad... 1 million seems a pretty good number of new sales which otherwise would not bave been realized for the car industry in only one year...

Yes, great, 1,000,000 more cars on the road, many of which are in an already overcrowded city, paid for by loans that people can't afford to pay back. Same goes with the housing rebate (or whatever they called it). Short-sighted would be an understatement for those policies and their effects.

So you think that NO other gov, in any other developed country's has done this or other stimulus polices??? wake up and have a think about it mate.

[NeverSure]

I think I read that the Thai has to keep the car for 5 years or forfeit the rebate. Is that true? If so a repo would be a double whammy?

[trainman34014]

Yes, a bad plan. I know a teacher with a master's degree in Isaan who bought a new house on the no-down new house scheme, and a new pickup on that scheme, and some furniture on a credit card. She also has a smartphone and can barely afford to eat. Her salary is 30k pm.

She has no clue what her interest rates are, or how long it will take her to pay off her debt.

Obviously the Lady is no maths teacher then !

[Bcgardener]

There are 2 outcomes of this policy that will seriously damage the auto industry this year. 1) Supply of second hand but good condition cars will increase forcing prices down 2) Demand brought forward to those who would have bought anyway will reduce current demand. And all this along with a global reduction in consumption.

A friend is currently looking to buy a new car and trade in his 3 year old Toyota. The trade in prices he is being quoted are much lower than what he expected with all dealers giving the same excuse. They expect the second hand market to be flooded with near new cars and prices to drop in the very near future as people default on their car loans for cars purchased under the first car scheme.

[shaurene]

Remember a part of this plan was to boost car sales to "repay" the car manufacturers for the flooding of industrial estates fiasco and the govt. false assurances that it would never happen.

Another big part of the plan was to garner popularity and hence votes for Pheua Thai.

So, one cannot say the scheme did not meet its objectives.

Whether it was good for the country and its fiscal health is debatable.

The cancelled order figure is interesting but without detailed information tells us little. Of much more interest to me, would be the loan default/repossession rate after 2 years compared with the same rate for cars not on the scheme.

A lot of over produced cars, could be quite a few new car bargains going soon me thinks, I may up grade my car.

[kotsak]

NeverSure, on 23 Sept 2013 - 10:08, said:

I think I read that the Thai has to keep the car for 5 years or forfeit the rebate. Is that true? If so a repo would be a double whammy?

Correct..

[Robbie Dye]

My bet is a colossal drop in the price of second hand cars 1500 cc or under by next year as people try to sell !

[peterpop]

Yes, a bad plan. I know a teacher with a master's degree in Isaan who bought a new house on the no-down new house scheme, and a new pickup on that scheme, and some furniture on a credit card. She also has a smartphone and can barely afford to eat. Her salary is 30k pm.

She has no clue what her interest rates are, or how long it will take her to pay off her debt.

This all reminds me of home in UK. But of course we expect the Thai people to be much more sophisticated. Chai Mai!

[Tatsujin]

Another bad plan by the Shinawatre gov't - gone more rotten.

I would not call the plan neither rotten or bad... 1 million seems a pretty good number of new sales which otherwise would not bave been realized for the car industry in only one year...

Yes, great, 1,000,000 more cars on the road, many of which are in an already overcrowded city, paid for by loans that people can't afford to pay back. Same goes with the housing rebate (or whatever they called it). Short-sighted would be an understatement for those policies and their effects.

So you think that NO other gov, in any other developed country's has done this or other stimulus polices??? wake up and have a think about it mate.

Who's talking about other countries? We're talking about Thailand. What other countries have done and how successful they've been is irrelevant.

The cheap car/cheap house policies were badly thought out populist policies that have put a lot of people in debt. Their own fault of course, but all part of the master plan.

[tingtong]

I think I read that the Thai has to keep the car for 5 years or forfeit the rebate. Is that true? If so a repo would be a double whammy?

That's what my wife told me too.

[plonker123]

Another "bird brain" scheme to win votes

[little mary sunshine]

Some people have no brains when it comes to monthly payments....Simple rule to live by.......If the

monthly installments on cars or credit cards exceed 20% of your monthly income...YOU CAN'T AFFORD IT !!!!!!!!!!!

[jbrain]

So 160.000 orders were cancelled because the buyers had the common sense to figure out if they were able to make the payments.,

Now wait untill the figures are released from the people who hadn't common sense and defaulted on the finances .