Anybody who knows how the finance business works in Thailand with regards to motorcycle financing.

People finance motorcycles with loan from the vendors finance company. The fees are sky high with nearly double price for 3 years (33% per year on the full amount.

Apparently many poor people do not pay back, the word is that you can whenever you want give back the motorcycle to the shop and then you do not have to pay anything more.

Actually what happen is that the shop sells the motorcycle for whatever the can get, pay off the finance company with that amount minus fees and the rest of the debt is booked by the finance company on the customer as a claim.

As the customer have no assets there will never be any further payments but he can go to the next vendor and buy a new financed motorcycle. How is this business possible? Is it by financed by the large interest rates, seem to me like a bad business.

Is there not a national system in place in Thailand to claim debts and to offer finance information on individuals like most western countries have? The only message people not paying getting is a balance sheet each year that they throw away. I believe this is a ticking bomb.

The Auctions sell off many of the motorcycles ,most less than 2 years old ,and many just one year old .