Previous Car deal in Thailand

[ronthai]

Can somebody explain to me in plain simple English what that deal was?

A Thai friend of mine did buy a car with that deal. ( Just found out today)

It seems to be a TAX-Return deal, but most Thais do not pay tax as she does not also.

She has a pickup now that she can not drive (she doesn't drive a bike) and maybe sometimes the brother drives the car, but he is never around and for the past 9 months the car was for 1 month in Pattaya and now back again in "Isaan" home mamma/pappa who also not drive, again, while she is always in Pattaya.

I just don't get it, Thais like her got DONE in buying a car they don't need, can not afford (well she pays it every month)-(17.000+ baht a month payments) for having a peace of metal with wheels that is useless for them. OH, It probably makes them look a bit more HI-SO

It is just such a waste of money.

Any advice I could give her, YES Sell, but then what?

Really big 4 door pickup, apparently cost new 980.000baht, I think toyota something, I am not really a car guy.

Damn how stupid can they get.

[CharlieH]

No, at the time it was like FREE money, they buy a car, pay a small down payment, and then get around 100k or more back off the government, then they give the car back or sell it and walk away with the 100k+.

Needless to say that was quickly stopped, as yet another vote winning scheme not thought out.

[chuckd]

The 7% VAT is rolled into the dealer's price for the car.

In other words, a car valued by the motor company as being worth 500,000 baht is actually sold for 535,000 baht with the appropriate amount paid to the tax authorities after the car is sold.

The manufacturer's sticker price includes the VAT, so everybody that buys a car pays tax.

[taotoo]

The 7% VAT is rolled into the dealer's price for the car.

In other words, a car valued by the motor company as being worth 500,000 baht is actually sold for 535,000 baht with the appropriate amount paid to the tax authorities after the car is sold.

The manufacturer's sticker price includes the VAT, so everybody that buys a car pays tax.

I presume the OP is talking about an income tax rebate.

[taotoo]

No, at the time it was like FREE money, they buy a car, pay a small down payment, and then get around 100k or more back off the government, then they give the car back or sell it and walk away with the 100k+.

Needless to say that was quickly stopped, as yet another vote winning scheme not thought out.

I thought you didn't get the cash if you sold it within a certain number of years. Maybe they sell them without transferring it into the new owner's name or something.

[jayjayjayjay]

Circa early 2012 Tax rebates begin under first-car scheme The Finance Ministry yesterday started paying tax rebates to first-car owners. So far 250,000 buyers have applied for rebates worth Bt18 billion. Toyota Vios, Mazda2 and Honda Brio cars and Isuzu and Toyota pickup trucks are the preferred brands under the scheme.

The new-auto market is expected to reach an all-time high of 1.2 million units this year, thanks to stimulus programmes such as the first-car-buyer scheme as well as the launch of many new or redesigned models.

Deputy Finance Minister Viroon Tejapaibul transferred Bt3.56 million to 47 car buyers who have met the eligibility requirement of owning their car for one year.

The project started on September 16 last year and comes to an end on December 31 this year.

The Comptroller-Generals' Department transfers funds to Krung Thai Bank, which deposits the money into the accounts of the recipients every 5th and 20th of the month.

The government has set aside Bt7 billion to cover tax rebates for the new fiscal year beginning yesterday. If the budget is not enough, the government will tap the central fund to top it up.

"Don't worry about it. We have a strong fiscal position as we have treasury reserves worth more than Bt500 billion," Viroon said in response to concerns over the loss of such a large amount of tax revenue.

The incentive programme will meet the target of 500,000 units and tax rebates of about Bt30 billion, he added.

Somchai Poonsawasdi, director-general of the Excise Department, said that as of yesterday, there were 250,744 car buyers applying for Bt18 billion in tax rebates.

Passenger cars had the lion's share with 141,000 units, followed by standard pickups with 54,000. The rest are double-cab pickups.

Car sales under the scheme are expected to beat the target, he said.

According to auto companies, many buyers of B-segment cars with 1,500cc engines, double-cab pickups and eco-cars have applied for the tax rebate.

For example, 70 per cent of Toyota Vios buyers and 60 per cent of Mazda2 buyers have applied for excise-tax rebates up to the limit of Bt100,000 per car.

Eco-car buyers are also participating even though their rebates are lower because of the lower excise-tax rate on this type of vehicle. For example, Honda Brio buyers would get back slightly more than Bt70,000.

Eco-friendly vehicles such as the Honda Jazz Hybrid, which enjoys a low 10-per cent excise rate, also qualify, with a rebate of about Bt50,000 on offer.

The government started with the target of 500,000 vehicles and Bt30 billion in rebates. However, it extended the December 31 delivery deadline to next year to help carmakers whose production suffered from parts-supply disruption caused by last year's flood, so the figures are expected to increase dramatically.