160,000 'First Car' cancellations

[arthurwait]

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

What get everyone in debt look the generous peoples government and leave the next government to look bad and clean it up. Worked for Labour.

[hotrod4098]

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 consumptiosecond

second hand cars hard to sell.no one want them...new car 60 x 12000..720000..after 2 years the car is worth 480000..finance owing..576000....loss of 96000...on going...so cant not give the car back..to clear the debt...then they may chase the land

[dunque]

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.

Well, if the Thai banks had any sense they would buy a rating from Moodys and flog the loans to US banks - they buy anything

[tetleythedog]

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.

Yes there are too many cars here. But to be constructive, i would rather see people driving new cars that are at least roadworthy, The problems, and most of the accidents are from ill maintained vehicles (not to mention drivers who can't drive!).

One of the biggest problems are the amount of second hand/used cars here. Wherever you go you see hundreds of used cars for sale at ridiculously high prices. I was told that the interest rate on older cars (if through credit) is/can be 10% !!! All they are doing is making a huge cross for their own backs. If they have sold a million new cars ............do they have a million other people driving their old cars ? How much space is needed to park 1,000,000 cars?

The only other question is .....................has anyone received their tax rebate for these cars yet?

We (my wife and i) bought a new car about 15/16 months ago..........haven't seen a Baht yet !

[oyster]

I wonder how many of these people that did drive these cars home, will lose that home to the bank when they no longer can afford to pay the loan.

How many friends/relatives will be in the same trouble because they co-signed for the loan?

That is the disaster waiting to happen, sell the dream, set up the loan, stake the house/farm/land as equity; and wait....... this has been a tried and tested game plan in the west for years. It is not progress, it is not advancement, it is a well manipulated plan by banks and politicians, to strip naive trusting people of what little wealth they have and keep them poor. Repo the car ? why take a second hand car when you can have the asset. The slogan that started the ball rolling in the UK sixties was "Live now - pay later"......... plain and simple it is a con, if any 'normal' person ran the same scam they would be jailed ( unless of course they were a politician, banker, or finance company.) As the Romans used to say Caveat Emptor..... still applies, even more so. Chok dee

[kkerry]

The only other question is .....................has anyone received their tax rebate for these cars yet?

you could always try reading some of the previous replies in this topic...

[metisdead]

Just a reminder that posts using derogatory nicknames or intentional misspelling of people’s names will be deleted. If you don’t want your post to be deleted, spell people’s names correctly.

[chrisinth]

In my opinion we are only seeing the beginning of it.

It is one thing to "own" a new car on credit and with government incentives, but a complete different story running and maintaining one. When this sinks in, you will see a lot more numbers of "owners" defaulting on payments and a similar number of repossessions.

Watch the second-hand car market in the near future, it has already begun to change but is only getting started..................

[Tigre101]

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

Absolutely.

Promised tablets for all school children of all ages, Promised 15,000 Baht monthly salary to all university graduates, Promised 300 Baht minimum wage, etc.

All fraught with broken promises. The Shinawatra house of cards is collapsing under the weight of reality.

[Thai at Heart]

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

Absolutely.

Promised tablets for all school children of all ages, Promised 15,000 Baht monthly salary to all university graduates, Promised 300 Baht minimum wage, etc.

All fraught with broken promises. The Shinawatra house of cards is collapsing under the weight of reality.

What can they say?

Solly?

[MaiChai]

Thailand the hub of populist bubbles?

PT needs to go on a basic economics course?

Economics For Thai Politician Dummys?

[Jay Sata]

Thai's idea of borrowing is that they never budget or plan to pay it back.

Live for today and mai penrai

[caughtintheact]

Every cloud has a silver lining and this one is that there are 160,000 cars not on the overcrowded roads.

But is it a silver lining to have over 1 million more cars on the road? And don't bet that those cars that were cancelled will not be sold anyway, will appear on the roads, and that silver liniing is non-existent.

[Noistar]

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,

You mention the word 'responsible'.

Not a national trait IMO.

One could wonder what a 'responsible' government is trying to achieve by encouraging more buying of what cannot be afforded.

My ice cream just melts in this heat.

[Noistar]

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

Absolutely.

Promised tablets for all school children of all ages, Promised 15,000 Baht monthly salary to all university graduates, Promised 300 Baht minimum wage, etc.

All fraught with broken promises. The Shinawatra house of cards is collapsing under the weight of reality.

What can they say?

Solly?

Do the electorate know, or more importantly, care?

[recycler]

The Automotive Industry Club complaining to the government about cancelled cars is just another way of saying that they are stupid. Many orders are cancelled even without such a promotion. With their brain switched on they could have foreseen that there might be a bit more than the usual cancellations due to the tax rebate. It also doesn't require a great visionary to predict that many of the cars that did get delivered will be in repo auctions having a negative influence on the sofar high price of second hand cars.

Bottom line is that with the tax reduction the government did succeed in stimulating the car industry after the damage they suffered from the floods.

[Noistar]

The Automotive Industry Club complaining to the government about cancelled cars is just another way of saying that they are stupid. Many orders are cancelled even without such a promotion. With their brain switched on they could have foreseen that there might be a bit more than the usual cancellations due to the tax rebate. It also doesn't require a great visionary to predict that many of the cars that did get delivered will be in repo auctions having a negative influence on the sofar high price of second hand cars.

Bottom line is that with the tax reduction the government did succeed in stimulating the car industry after the damage they suffered from the floods.

A poisoned chalice success?

[lee68]

I wonder how many of these people that did drive these cars home, will lose that home to the bank when they no longer can afford to pay the loan.

How many friends/relatives will be in the same trouble because they co-signed for the loan?

My stepson came to me to go guarantor for a car loan,after asking him some pretty basic questions,like how he was going to pay the loan off,when he only earns 15000bt a month and the loan is 9000 a month,and how was he going to pay all his other bills,i decided not to help him.But alas he got somebody else to sign for him and got a car.now he is being chased for the loan money and wants me to bail him out,no chance,tough love son.

[Noistar]

I wonder how many of these people that did drive these cars home, will lose that home to the bank when they no longer can afford to pay the loan.

How many friends/relatives will be in the same trouble because they co-signed for the loan?

That is the disaster waiting to happen, sell the dream, set up the loan, stake the house/farm/land as equity; and wait....... this has been a tried and tested game plan in the west for years. It is not progress, it is not advancement, it is a well manipulated plan by banks and politicians, to strip naive trusting people of what little wealth they have and keep them poor. Repo the car ? why take a second hand car when you can have the asset. The slogan that started the ball rolling in the UK sixties was "Live now - pay later"......... plain and simple it is a con, if any 'normal' person ran the same scam they would be jailed ( unless of course they were a politician, banker, or finance company.) As the Romans used to say Caveat Emptor..... still applies, even more so. Chok dee

It does appear that the Thai philosophy is "Thailand is different". Why learn from lessons in the past when it's so much easier to re-learn them now?

[recycler]

I wonder how many of these people that did drive these cars home, will lose that home to the bank when they no longer can afford to pay the loan.

How many friends/relatives will be in the same trouble because they co-signed for the loan?

My stepson came to me to go guarantor for a car loan,after asking him some pretty basic questions,like how he was going to pay the loan off,when he only earns 15000bt a month and the loan is 9000 a month,and how was he going to pay all his other bills,i decided not to help him.But alas he got somebody else to sign for him and got a car.now he is being chased for the loan money and wants me to bail him out,no chance,tough love son.

This is not just your stepson and his guarantor being stupid, it's even more stupid of the finance company that gives the loan, don't they check anything?

[lee68]

I wonder how many of these people that did drive these cars home, will lose that home to the bank when they no longer can afford to pay the loan.

How many friends/relatives will be in the same trouble because they co-signed for the loan?

My stepson came to me to go guarantor for a car loan,after asking him some pretty basic questions,like how he was going to pay the loan off,when he only earns 15000bt a month and the loan is 9000 a month,and how was he going to pay all his other bills,i decided not to help him.But alas he got somebody else to sign for him and got a car.now he is being chased for the loan money and wants me to bail him out,no chance,tough love son.

This is not just your stepson and his guarantor being stupid, it's even more stupid of the finance company that gives the loan, don't they check anything?

I could not believe it when he got the loan,

[dcutman]

I wonder how many of these people that did drive these cars home, will lose that home to the bank when they no longer can afford to pay the loan.

How many friends/relatives will be in the same trouble because they co-signed for the loan?

My stepson came to me to go guarantor for a car loan,after asking him some pretty basic questions,like how he was going to pay the loan off,when he only earns 15000bt a month and the loan is 9000 a month,and how was he going to pay all his other bills,i decided not to help him.But alas he got somebody else to sign for him and got a car.now he is being chased for the loan money and wants me to bail him out,no chance,tough love son.

This is not just your stepson and his guarantor being stupid, it's even more stupid of the finance company that gives the loan, don't they check anything?

A 60% loan to income ratio for a car is pretty some pretty loose standards. From what I understand, they do verify income and employment, but they dont give you a lie detector test, when asking important questions. So it all comes down to honesty.

[Bpuumike]

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.

Indeed.

Tomorrow??

[CanInBKK]

......came to me to go guarantor for a car loan,after asking him some pretty basic questions,like how he was going to pay the loan off,when he only earns 15000bt a month and the loan is 9000 a month,and how was he going to pay all his other bills,i decided not to help him.But alas he got somebody else to sign for him and got a car.now he is being chased for the loan money and wants me to bail him out,no chance,tough love son.

This is not just your stepson and his guarantor being stupid, it's even more stupid of the finance company that gives the loan, don't they check anything?

It's bit removed from you (referring to the first quoted poster) but do you know the guarantor's qualifications? Maybe their salary is 100k/month with debt servicing ratio of near zero (no outstanding loans prior to the co-signed loan). In this case the finance company had no reason to decline the loan.....who knows?

All I can say from here is that I have no right to make flying accusations based entirely on opinion and not on fact.

Edited September 24, 2013 by CanInBKK

[marcusd]

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.

I actually disagree. I think it is a great plan that saved many jobs after the flooding. Got old rubbish off the road.

Lets be fair here... the government is as bad as You can get but a good policy adopted from the west.

Edgar is BAD are the banks who do the actial lending or loan sharks...giving false hopes to those who want a bit better in life.

Sent from my GT-N7000B using Thaivisa Connect Thailand mobile app

[kartman]

How did it get old rubbish off the roads?

[Spare]

How did it get old rubbish off the roads?

Leave it there with the key attached, and door open.

[Munger]

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?

Take a chill pill, then grow some skin "AUSSIE"

[Munger]

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?

The truth hurts eh.........Thais really dont think too much at all about stuff like this.

It sure has hit a raw nerve. Is aussieinthailand a thai or a aussie that wants to be a thai (wanabethai) ?

[philw]

I wonder how many of these people that did drive these cars home, will lose that home to the bank when they no longer can afford to pay the loan.

How many friends/relatives will be in the same trouble because they co-signed for the loan?

My stepson came to me to go guarantor for a car loan,after asking him some pretty basic questions,like how he was going to pay the loan off,when he only earns 15000bt a month and the loan is 9000 a month,and how was he going to pay all his other bills,i decided not to help him.But alas he got somebody else to sign for him and got a car.now he is being chased for the loan money and wants me to bail him out,no chance,tough love son.

What a world you must live in...........

Full of love, compassion, family loyalty, financial commonsense ( like helping with a bigger deposit, helping him choose a cheaper car, finding a way to buy 2nd hand-------the options go on and on.).

Nice family.

Edited September 24, 2013 by philw