The price of used cars

[FarangTalk]

It's easy to get a bank note for a new car.  How hard is it to get a loan for a used car?

 

Just asking.  Any help would be greatly apppreciated.

 

Fang

Harder than for new cars especially for luxury models in my experience. More expensive also; interest is higher. Dealerships seem far easier to deal with than directly with the finance companies.

We bought second hand and were required to pay a 50% deposit and have another Thai guarantor, despite me earning at least 20x the guarantor's salary and my gf having a business. They kept moving the goalposts and wasting time while promising terms they couldn't deliver. Deposit the finance company wanted went from 100,000 to 350,000 to 500,000 in 3 phone calls.

They annoyed me so much I took cash in the next month and settled the loan. The finance company repeatedly asked us; wanting to know where our car was parked and were generally unhelpful with abysmal customer service.

Sent from my SM-N900 using Thaivisa Connect Thailand mobile app

[IMHO]

0% finance on new cars at the moment too

You do of course understand that this means that the interest that they would have expected to earn is now built into the purchase price of the car (package) so you loose the option of paying off the loan early to reduce the interest element of the deal?

Dealers earn most from a finance deal and least from a person paying cash in one hit, nice for a burst of cash but less margin on the deal. With the 0% finance they get to keep the car in their name, get the cash turn over while the buyer is paying and get the car back to sell should the buyer get into "difficulties". Again the original selling price and the monthly payments will have been calculated to cover the costs/risk of recovery and resale.

The package will probably include dealer insurance cover, which is seldom the good deal for consumers that many think it is.

Other threads here has highlighted the captive limitations that dealer insurance brings with it.

What the large print promises does the small print take away !

Buying new is great if no one smashes into it.

This is Thailand.

These campaigns are sponsored by the factory, not the dealer, and in all cases, have not effected the sticker price. In fact, for the first time in 15 years, they're actually giving cash discounts off sticker.

[essexman]

^{Well I think the price for a second hand car in Thailand is not far to expensive. 2 years ago my Brother-in-law paid 490,000 baht for a 8 year old Toyota saloon. I just paid 482,000 baht for a new Honda Brio Amaze.}

[pablodiablo]

when will these idiots learn? turn over = profit = reduced import tax= more people buying cars more jobs serviceing the cars more fuel revenue more transport drivers and on and on thailand dosen;t produce anything worth a shit and even if it did no one will deal with them becouse of the trade imbalance its like ok, i will sell to you on great terms, but if you want to sell to me im going to tax the hell out of you, and make your product so uncompetitive no one will buy it! love thailand but just dont understand why they never see the big picture.

[Spoonman]

when will these idiots learn? turn over = profit = reduced import tax= more people buying cars more jobs serviceing the cars more fuel revenue more transport drivers and on and on thailand dosen;t produce anything worth a shit and even if it did no one will deal with them becouse of the trade imbalance its like ok, i will sell to you on great terms, but if you want to sell to me im going to tax the hell out of you, and make your product so uncompetitive no one will buy it! love thailand but just dont understand why they never see the big picture.

They are protecting there own automotive industry as it will go down the pan if they allow cheap imports.

[IMHO]

when will these idiots learn? turn over = profit = reduced import tax= more people buying cars more jobs serviceing the cars more fuel revenue more transport drivers and on and on thailand dosen;t produce anything worth a shit and even if it did no one will deal with them becouse of the trade imbalance its like ok, i will sell to you on great terms, but if you want to sell to me im going to tax the hell out of you, and make your product so uncompetitive no one will buy it! love thailand but just dont understand why they never see the big picture.

They are protecting there own automotive industry as it will go down the pan if they allow cheap imports.

Yep. They could open it up, but then it would just fail in a similar spectacular fashion to Australia and Vietnam. I vote for TH retaining it's car industry

[FarangTalk]

when will these idiots learn? turn over = profit = reduced import tax= more people buying cars more jobs serviceing the cars more fuel revenue more transport drivers and on and on thailand dosen;t produce anything worth a shit and even if it did no one will deal with them becouse of the trade imbalance its like ok, i will sell to you on great terms, but if you want to sell to me im going to tax the hell out of you, and make your product so uncompetitive no one will buy it! love thailand but just dont understand why they never see the big picture.

They are protecting there own automotive industry as it will go down the pan if they allow cheap imports.

Yep. They could open it up, but then it would just fail in a similar spectacular fashion to Australia and Vietnam. I vote for TH retaining it's car industry

I disagree. Thailand builds cars for export and the range is quite wide while retaining a reasonable cost of manufacture and reliability. If Thailand remains as competitive as it currently is there is no danger of a spectacular collapse. Indeed if that is to happen it will be down to politics/governance or natural disaster IMO.

Most of the premium models (BMW, MB) sold here are assembled in Thailand however the quality of materials isn't available therefore they exceed the allowed amount of imported parts to qualify for government tax cuts. The prices of those models certainly could be reduced with further tax incentives and the premium brands would assemble more of their range here, creating more choice, more revenue and more jobs.

Opening the market further to certain imports could create more choice and competitiveness and may even encourage more manufacturers to base here. It would certainly affect the corruption endemic in the import sector and that is the sole reason it will never happen and why taxes are so high. Too many influential, lazy, greedy fingers in that pie for anything to change.

Australia's problem is that it's cars were always built with and for the local market in mind. Labour was and is too expensive and is controlled by the unions. The rest of the World stopped wanting old-technology V8s and fast utes decades ago even if they wanted them in the first place.

Sad to see the death of the locally built Ford models and the announcement of the phasing out of the Holden Ute in favour of Thai built pick-ups and imports in Australia but it was an inevitability with costs so high and demand for those models so low internationally.

[Ace of Pop]

Japanese imports i seem to recall had an effect on the American Motor Industry. They all but wiped out MoCy sales in Europe too.

[FarangTalk]

Japanese imports i seem to recall had an effect on the American Motor Industry. They all but wiped out MoCy sales in Europe too.

Absolutely and an inability to move with the times and recognise what the market requires are both fundamental to success.

[FarangTalk]

End of the road for Ford Falcon and Holden Commodore in 2016

http://www.news.com.au/business/companies/end-of-the-road-for-ford-falcon-and-holden-commodore-in-2016/story-fnda1bsz-1226554833139

[IMHO]

End of the road for Ford Falcon and Holden Commodore in 2016

http://www.news.com.au/business/companies/end-of-the-road-for-ford-falcon-and-holden-commodore-in-2016/story-fnda1bsz-1226554833139

Oooold news

The primary issue facing the Thai motor industry is a labour shortage, but that's a whole lot better than a jobs shortage

The Australian car industry was doomed to failure the moment they dropped import taxes to just 5%.

The Vietnamese industry is collapsing already on the decision to scrap import duties in 2016.

Philippines which was once a strong manufacturing nation is standing by.

Indonesia is on the rise and hungry for a cut of any and everyone's action.

Malaysia is already landing deals that everyone expected Thailand to bag.

Thailand should remove it's industry protections for the reasons that it would put even more cars on the road (I guess you haven't been here long enough to feel the effects of the 1st car buyer sheme), and create more jobs that can't be filled?

[pokerspiv]

It's not just imports, it's also that tastes have changed, and people who want large family cars are now increasingly going for Hiluxes instead of Falcons + Commodores.

[Spoonman]

I wish they would allow imports at a decent rate as I would have me a V8 Commodore ute as a daily hack and an R34 for a weekend toy in the blink of an eye.

Edited October 29, 2013 by Spoonman

[FarangTalk]

End of the road for Ford Falcon and Holden Commodore in 2016

http://www.news.com.au/business/companies/end-of-the-road-for-ford-falcon-and-holden-commodore-in-2016/story-fnda1bsz-1226554833139

Oooold news

The primary issue facing the Thai motor industry is a labour shortage, but that's a whole lot better than a jobs shortage

The Australian car industry was doomed to failure the moment they dropped import taxes to just 5%.

The Vietnamese industry is collapsing already on the decision to scrap import duties in 2016.

Philippines which was once a strong manufacturing nation is standing by.

Indonesia is on the rise and hungry for a cut of any and everyone's action.

Malaysia is already landing deals that everyone expected Thailand to bag.

Thailand should remove it's industry protections for the reasons that it would put even more cars on the road (I guess you haven't been here long enough to feel the effects of the 1st car buyer sheme), and create more jobs that can't be filled?

I've been here 15+ years and the effects of the scheme in Bangkok have not been noticeable other than an increase in traffic on the expressways at certain times of the day.

The sheer volume of traffic has no doubt increased but visibly it is much the same as it ever was IMO.

If you want to talk jobs there's 15 motorcy taxi drivers at the end of my street that are all apparently 'employed' yet they don't seem to have the amount of fares to keep busy.

That's the problem with Thai statistics, most of them are just made up from thin air and not rooted in any economic reality whatsoever.

It's not just imports, it's also that tastes have changed, and people who want large family cars are now increasingly going for Hiluxes instead of Falcons + Commodores.

Aussies have always had poor taste.

[ignis]

Re tastes have changed, here even more so...

When I came here Pickups and 4 door cars, my 1st car here was new, + brand new to Thailand a Honda Jazz, the only person in the Village with a hatchback, 10 years on, other than Pickups there are very few 4 door cars, most have been replaced with hatchbacks, and the odd 4x4 type.

[IMHO]

Aussies had no choice but to try and stick it out with Commodore, Falcon, Territory and Camry/Aurion production, as the reduction to 5% import duties immediately meant they simply couldn't be competitive against imports. It's not that Holden, Ford, Mitsubishi or Toyota Australia were short sighted and failed to produce cars that were trending in sales - they simply knew they couldn't make the business case for more popular models work.

They all lobbied the gov't for change, warning that the industry was going to die as a result.. The gov't response was to give them handouts rather than policy changes. So be it, Australia elected the govt so Australia decided they didn't want a car manufacturing industry.

[Jitar]

End of the road for Ford Falcon and Holden Commodore in 2016

http://www.news.com.au/business/companies/end-of-the-road-for-ford-falcon-and-holden-commodore-in-2016/story-fnda1bsz-1226554833139

Oooold news

The primary issue facing the Thai motor industry is a labour shortage, but that's a whole lot better than a jobs shortage

The Australian car industry was doomed to failure the moment they dropped import taxes to just 5%.

The Vietnamese industry is collapsing already on the decision to scrap import duties in 2016.

Philippines which was once a strong manufacturing nation is standing by.

Indonesia is on the rise and hungry for a cut of any and everyone's action.

Malaysia is already landing deals that everyone expected Thailand to bag.

Thailand should remove it's industry protections for the reasons that it would put even more cars on the road (I guess you haven't been here long enough to feel the effects of the 1st car buyer sheme), and create more jobs that can't be filled?

Some slightly less Ooooold news from an alternative perspective: http://www.toyota.com.au/news/toyota-news-toyota-australia-invests-in-local-manufacturing

Despite Toyota's announcement car manufacturing in Australia is in a bad way. The manufacturers are all foreign owned so their strategies are for the benefit of their shareholders, not Australia. They relied on subsidies and high levels of import protection up to the mid 90's. They survived OK for a while after import duties reduced, but the appreciation of the A$ in the last decade made imported cars more competitive leading to the collapse of Falcon and Commodore sales. Australian market prices and tastes changed and none of the local manufacturers did much to re-position their locally made products. Ford reduced the damage with the Territory SUV for a while but all Holden seem to hope for is inheriting a few Falcon sales.

Ford, GM and Toyota negotiate the best government assistance and subsidies they can wherever they operate. They have all elected to make the more popular small cars and pickups elsewhere, leaving Australia manufacturing large sedans in smaller and smaller numbers.

Manufacturing has always been a struggle in Australia. Most western countries struggle with high Labour costs, Australia has the added disadvantage of a remote and small local market base. Right now it's easier to make money out digging up coal and iron ore.

The Thais, Indonesians and Malaysians are all aware of this and they are buying their car industries with import protection and subsidies just like Australia did. It's not such a great deal for car buyers but pretty sweet for the governments, so not likely to change any time soon.

[pokerspiv]

I for one am not really sure why Australia needs a local manufacturing industry. It's impossible for it to be competitive with our high wages and tiny market, and most people are pretty happy to buy imported cars. I'd rather have my tax refund and buy a Japanese car, if some GM executive has to join the dole queue as a result I'm not going to shed any tears.

Edited October 30, 2013 by pokerspiv

[Spoonman]

I for one am not really sure why Australia needs a local manufacturing industry. It's impossible for it to be competitive with our high wages and tiny market, and most people are pretty happy to buy imported cars. I'd rather have my tax refund and buy a Japanese car, if some GM executive has to join the dole queue as a result I'm not going to shed any tears.

Thats the rub though, The GM executive is not the one joining the dole but rather the 10's of 1000's of industry related employee's that are because the company they work for that used to supply the auto industry have now shut their doors....

How much of that tax check do you reckon will be diverted to all those new people on the dole cue.

[pokerspiv]

More jobs are created by letting people keep and spend their own earnings than by relying on dubious government programs to create work.

[Spoonman]

More jobs are created by letting people keep and spend their own earnings than by relying on dubious government programs to create work.

is that the savings the newly unemployed have to spend before the govment allow them on the dole ?

[IMHO]

Australia's new car industry has been larger than Thailand's from 1998-2012, and will match it again or beat it this year. It's not the US, JP or EU, but it's also not a small market. It is horribly over serviced though, and yes, wages in the country are simply insanity - not just compared to Asia, but compared to USA, Canada etc.

Lucky for Thailand, we don't have governments with such stupid fiscal policies.. oh wait.. doh!

[Big Guns]

Protectionism is not a viable solution long term for any market, be it tariffs or subsidies. Just look at how well the rice pledging scheme worked out. Its basic economics that countries should specialise in what they are best at. Thailand is part of the global economy and if motor manufacturers in Thailand cannot compete against foreign competition then they shouldn't be here. The Thai market is fortunate in that consumers are not sufficiently educated and aware of the fact that they are being consistently ripped off in terms of price, variety and specification of cars.

[wilcopops]

you just need to look at the massive increase in second-hand car dealerships in the last 10 years to realise that the number of cars in Thailand has increased exponentially. Supply is easily meeting demand so prices should come down. admittedly it is never as simple as supply and demand on its own but I'd say that here it is a key factor.

ASEAN and free trade agreements should further bring down the prices too.

Edited December 9, 2013 by wilcopops

[wilcopops]

Australia's new car industry has been larger than Thailand's from 1998-2012, and will match it again or beat it this year. It's not the US, JP or EU, but it's also not a small market. It is horribly over serviced though, and yes, wages in the country are simply insanity - not just compared to Asia, but compared to USA, Canada etc.

Lucky for Thailand, we don't have governments with such stupid fiscal policies.. oh wait.. doh!

Don't know where you get that from...or is that a figure relating only to saloon cars.? This year Thailand expects to make 2.5 million vehicles...I think holden are aiming for 20.000?

Thailand is the 3rd largest manufacturer of commercial vehicles behind US and China.

[IMHO]

Australia's new car industry has been larger than Thailand's from 1998-2012, and will match it again or beat it this year. It's not the US, JP or EU, but it's also not a small market. It is horribly over serviced though, and yes, wages in the country are simply insanity - not just compared to Asia, but compared to USA, Canada etc.

Lucky for Thailand, we don't have governments with such stupid fiscal policies.. oh wait.. doh!

Don't know where you get that from...or is that a figure relating only to saloon cars.? This year Thailand expects to make 2.5 million vehicles...I think holden are aiming for 20.000?

Thailand is the 3rd largest manufacturer of commercial vehicles behind US and China.

I'm talking about overall domestic sales, not production.

[wilcopops]

Australia's new car industry has been larger than Thailand's from 1998-2012, and will match it again or beat it this year. It's not the US, JP or EU, but it's also not a small market. It is horribly over serviced though, and yes, wages in the country are simply insanity - not just compared to Asia, but compared to USA, Canada etc.

Lucky for Thailand, we don't have governments with such stupid fiscal policies.. oh wait.. doh!

Don't know where you get that from...or is that a figure relating only to saloon cars.? This year Thailand expects to make 2.5 million vehicles...I think holden are aiming for 20.000?

Thailand is the 3rd largest manufacturer of commercial vehicles behind US and China.

I'm talking about overall domestic sales, not production.

Well that's not accurate either is it? and a completely meaningless comparison. Company lives or dies by the amounts of units it sells, where is not the point.....apart from the fact that Holden could hardly export a single unit.

so in answer to your statement...

"Australia's new car industry has been larger than Thailand's from 1998-2012," - The Thai industry is MUCH LARGER than the Aussie one.

Edited December 13, 2013 by wilcopops

[Spoonman]

Australia's new car industry has been larger than Thailand's from 1998-2012, and will match it again or beat it this year. It's not the US, JP or EU, but it's also not a small market. It is horribly over serviced though, and yes, wages in the country are simply insanity - not just compared to Asia, but compared to USA, Canada etc.

Lucky for Thailand, we don't have governments with such stupid fiscal policies.. oh wait.. doh!

Don't know where you get that from...or is that a figure relating only to saloon cars.? This year Thailand expects to make 2.5 million vehicles...I think holden are aiming for 20.000?

Thailand is the 3rd largest manufacturer of commercial vehicles behind US and China.

I'm talking about overall domestic sales, not production.

Well that's not accurate either is it? and a completely meaningless comparison. Company lives or dies by the amounts of units it sells, where is not the point.....apart from the fact that Holden could hardly export a single unit.

so in answer to your statement...

"Australia's new car industry has been larger than Thailand's from 1998-2012," - The Thai industry is MUCH LARGER than the Aussie one.

According to the Holden website they have exported 780,000 vehicles in 50 years and 4 million engine in 27 years so averaging out the figures that is 15,000 vehicle's and 148,000 exported every year, slightly more than a "single unit" wouldn't you say wilcopops.

Edited December 14, 2013 by Spoonman

[jaideeguy]

All I know is that I'm trying to sell my well maintained 7yr old Colorado with low kilometers and full options and the dealers won't give me but a little over half the blue book value. Have heard and can see that the tents are overstocked and the new car dealers have full storage lots....................but the idiots don't want to lower prices or offer many promotions.

Ready to buy a new Chev Spin, but the tent guys keep insulting me and I'm almost ready to stop trying and stop playing the game they make you play...............

[funcat]

Looks like the prices for the second hand cars dropped some....but dealers still want to make 'same same' markup profits...