Car-crazy Thailand, the "Detroit of Southeast Asia"

[Frank James]

Detroit doesn't have a 'governor'. There is a mayor, former NBA star Dave Bing, trying his best to save what was once one of America's greatest cities.

As for the topic here, the first time buyer kickback scheme probably seemed like a good idea at the time, but they forgot to factor in that most Thais have zero experience with how credit works.

[sunshine51]

"Car-crazy Thailand, the "Detroit of Southeast Asia"

That's a pretty lame headline to use for a comparison.

A lot of Detroit looks like this today...including once

famous auto assembly plants....

Have a look at these websites for more pix & words;

http://www.weather.com/travel/modern-ruins-abandoned-detroit-photos-20130715

http://www.theguardian.com/world/gallery/2013/jul/19/detroit-goes-bankrupt-in-pictures

Crying shame in my way of thinking....

[cpofc]

WOW I sure didn't see this coming. I have a friend that makes 9000 bt a month and he bought a car. His car payment is 10,500 bt per month.

How the hell can a bank lend money for a car when they know that he does not make enough money to pay for the car.

What thai do just boggles the mind.

Yes, fancy the Thais living beyond their means.

They had excellent teachers though.

What was it they called it? The GFC?

Is it any wonder people complain that Thailand is not quite the LOS it used to be. When you have a large portion of the population suffering from Debt Stress.

[rotary]

WOW I sure didn't see this coming. I have a friend that makes 9000 bt a month and he bought a car. His car payment is 10,500 bt per month.

How the hell can a bank lend money for a car when they know that he does not make enough money to pay for the car.

What thai do just boggles the mind.

Agreed thats wild, what is the loan company thinking? In the USA I had a 50 year old friend who bought a house on a 30 year loan, wonder what that US bank was thinking? Banks world wide boggle my mind sometimes being too conservative but sometimes being too wild.

[billd766]

As far as I understand the tax rebate situation the original owner (not the finance company) is the one that got the 100,000 baht tax rebate at the end of the first year.

If the car is sold on during the five year period a proportion (I assume 20% per year) has to be repaid to the govenment tax office.

If the buyer cannot afford the repayments then the finance company will reposess the vehicle and will try to sell it on.

The difference in price between what they get for it and the outstanding balance will have to be repaid by the original buyer.

If I am correct then the original buyer owes a tax debt to the government AND still owes the finance company money plus they have no vehicle.

Deep doo doo.

[hellodolly]

How long until we can see a fair and reasonably priced second-hand car market?

looooooooooooooong times, ..... it may seem like Thailand has alot of cars but thats due to poor infarstructure/roads, it is still way behind the west with only 160 per 1000 households , in the west its around half or more , hence the high prices, ....supply and demand, 99% of people want a car . it will take about 15 years or more before they even start to fall in price , i bought a 10 yr old bmw a few years back for = 50,000baht, the same car here in los would sell for 400,000B , , recently bought a 6 yr old mercedes for = 100,000b , i guess 1million + in los ,...........CRAZY !,.........AS ANOTHER POSTER HAS SAID , Thais don't realize cars depreciate in value , , that's why they would prefere a nice car before nice home i guess , plus the fact they will be seen by many in a car, by very few in their home !...............FACE !

Surprising in the western world how cheap cars are in the wrecking yards.

[expat888]

WOW I sure didn't see this coming. I have a friend that makes 9000 bt a month and he bought a car. His car payment is 10,500 bt per month.

How the hell can a bank lend money for a car when they know that he does not make enough money to pay for the car.

What thai do just boggles the mind.

Someone signs for them. Incomes to debt ratios are unimportant.

[expat888]

Detroit's governor is an authoritarian tyrant with regressive social and infrastructure policies, so I can see the connection.

Also, Detroit is bankrupt.

[lee b]

How many cars on thai roads are actually paid for?

[ThaiFelix]

Can someone help me with some info. I am thinking of buying a new Suzuki Carry. If I was to buy it for cash and put in my wifes name (Thai) and she has never had a car before, does this mean she will get a rebate?? Can someone direct me to a link with the info?

[OMGImInPattaya]

How long until we can see a fair and reasonably priced second-hand car market?

Maybe sooner than you think. A friend wanted to sell her 2 year old Honda Brio to a tent and was offered around 300k...barely half the purchase price.

[overherebc]

If my memory serves me right the original story said that over 100,000 had cancelled their orders NOT had defaulted on their loans.

I would go for both.

160,000 have cancelled.

100,000 have defaulted.

[mortenaa]

I have a DVD, climate control, reclining seats and a driver....try walking several km when you have a massive hangover and it is pissing down. Death to walking.

Reclining seats in the rear?

[kurnell]

I have a DVD, climate control, reclining seats and a driver....try walking several km when you have a massive hangover and it is pissing down. Death to walking.

Reclining seats in the rear?

Would you like a picture?

[bangkokstick]

Sad that it was only possible to buy cheap ugly cars, no chance to have any good second hand almost new car :-)

[tingtongteesood]

Thailand, the "Detroit of Southeast Asia"

If by this you mean that it is sinking fast and will soon be a sad ghost town shell of its former self due to political idiocy and rampant corruption by those in power - yep, heading that way....

[Kananga]

I would rather sit for an hour in traffic than walk several kms to the nearest train station, followed by a bike ride home. Long live the car.

I would rather live next to a BTS station. Long live common sense.

[kurnell]

I would rather sit for an hour in traffic than walk several kms to the nearest train station, followed by a bike ride home. Long live the car.

I would rather live next to a BTS station. Long live common sense.

Not may detached houses near the BTS station. Long live space and a garden

[bkk_mike]

How long until we can see a fair and reasonably priced second-hand car market?

I hope it happens soon, I am shocked that anywhere in the world you can pick up a 2nd hand car for $1000. For instance, before I left England there was a nice BMW for $1600.

Yet, here I saw a 20 year old Nissan going for the same price!!! Jokers.

I know there is import tax but the 2nd hand car market is just ludicrous and does not reflect depreciation whatsoever.

Thailand is a country where there doesn't appear to be anything like an MOT or roadworthiness test.

Similarly, cars don't rust like they do in places like the UK because they don't have to salt the roads in winter.

And labour costs for repairs and servicing here are next to nothing compared to our home countries.

But the real reason second hand cars aren't cheap here is because you can't import second hand cars from other countries. Japan's equivalent of the MOT is really expensive and so second hand cars in Japan drop in value really quickly. Those cars tend to get exported to other right hand drive countries with slightly better used car prices (New Zealand, Ireland, etc.). If Thailand allowed those cars to be shipped to Thailand, used car prices here would drop immediately.

[edwinchester]

Can someone help me with some info.  I am thinking of buying a new Suzuki Carry.  If I was to buy it for cash and put in my wifes name (Thai) and she has never had a car before, does this mean she will get a rebate??  Can someone direct me to a link with the info?

Scheme finished last March.

Sent from my GT-I9003 using Thaivisa Connect Thailand mobile app

[i claudius]

Some Thais have nice apartments and houses, but you never see a book around in any Thai homes.

You have obviously never been in our house my wife is an avid reader of western novels John Grisham and the like ,and she hates the thai love story ones

[hotrod4098]

How long until we can see a fair and reasonably priced second-hand car market?

Maybe sooner than you think. A friend wanted to sell her 2 year old Honda Brio to a tent and was offered around 300k...barely half the purchase price.

l

ford escort 1.8 ghia..lost 200000 after 2 years...loss is ongoing..

[Yunla]

Detroit doesn't have a 'governor'. There is a mayor, former NBA star Dave Bing, trying his best to save what was once one of America's greatest cities.

As for the topic here, the first time buyer kickback scheme probably seemed like a good idea at the time, but they forgot to factor in that most Thais have zero experience with how credit works.

Yeah but the Governor of Michigan, in which Detroit its the biggest city, he is pulling some real nasty rabbits out of the hat and Detroit is getting the worst of the mauling. But I agree 100% with you about Detroit, it is a legend, and not only that but the factories they have there (which were bankrupted and asset-stripped by the wall street gang) could have been privatised instead and refurbished to build new things not just cars. Those factories were already converted to build military vehicles etc. earlier in the 20thC, they are huge and well built factories which could have been overhauled and used to build any number of modern machines, not just cars. But the industries were left to face bankruptcy, while derivatives fatcats got bailed out. And then those same crooks were involved in asset stripping what remained. Those factories should have been supported and refurbished for new or existing industries, and could easily have been.

On Thailand, they need less congestion, and safer roads, and better public transport. Obviously it is good if they are building and exporting cars though.

Edited September 27, 2013 by Yunla