why are used cars so dam expensive in LOS?

[jack71]

Its a simple question I dont know the answer to. Ive been looking at used pick up trucks and some of the prices are crazy. For another 150,000 I can get a new one.

Are the thai's simply greedy or illogical- or both?

[Spoonman]

Are you short the extra Bt.150,000 to buy a new one ?

When it comes time to sell your car you will be happy at the prices.

Edited July 6, 2014 by Spoonman

[KittenKong]

Why are many things so expensive in Thailand? Wages are lower, costs are lower, VAT is lower, many vendors sit around all day doing little and selling less yet prices are often higher. It's magical.

As for vehicles, many people seem to be saying that resale prices have taken a hit since the ill-conceived new car tax break. I dont know if that is true or not, or what effect it really has on pick-ups when the tax break was only for small cars for first-timers.

I do think that the more middle-men you can avoid in Thailand the better off you will be. They all like to take a big cut and there can be more than one of them involved in a transaction.

[Sophon]

Why are many things so expensive in Thailand? Wages are lower, costs are lower, VAT is lower, many vendors sit around all day doing little and selling less yet prices are often higher. It's magical.

As for vehicles, many people seem to be saying that resale prices have taken a hit since the ill-conceived new car tax break. I dont know if that is true or not, or what effect it really has on pick-ups when the tax break was only for small cars for first-timers.

I do think that the more middle-men you can avoid in Thailand the better off you will be. They all like to take a big cut and there can be more than one of them involved in a transaction.

The tax break was also for pick-ups with a list price of less than 1 million.

Sphon

[OMGImInPattaya]

I guess it's just your frame if reference...one could just as easily ask why used cars are so cheap in other markets. In any case, you just enter the market with your first purchase and then you're in...you buy high and you sell high.

[overherebc]

I guess it's just your frame if reference...one could just as easily ask why used cars are so cheap in other markets. In any case, you just enter the market with your first purchase and then you're in...you buy high and you sell high.

And,

because losing big money when you sell your car is the same as losing big face, you could never admit it was a big loss.

[playboy]

Because car in Thailand is not only car but it is their love , their status and their face. Better buy new car anyhow.

[srn89]

I don't think Kitten Kong is correct as i know of someone who purchased a Mazda 4 Door pick up under the Government scheme mentioned

[CWMcMurray]

I believe the reasoning is due to the hight duty and tax...

The duty and tax acts as base to which the value of car's 'blue book value' is added

So let's say you buy a car for 1 million THB new ...

Let's say that 400,000 is tax and 600,000 is 'car value'

Then let's say when time to sell, 'car value' is now 300,000...

2nd hand car price... 300,000 + 400,000 = 700,000 selling price for second hand car

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[wilcopops]

I think it's better to say that Thai vehicles have a "high second-hand value". The price people will pay is largely in proportion to how much the vehicle is WORTH to them. For example - you can rent out a car that year and get an income in proportion to the investment.

government subsidies to the motor industry, the overall reliability, the fact that corrosion is almost unheard of and the running costs are extremely low all add to the value to a second-hand car.

if you come from Europe or the States you are used to second-hand cars being worth nothing - in Europe this is largely due to the massive overheads in running a car.

Australia used to (maybe still does) have very high prices on second hand cars and most "developing countries do as well.

To write them off as "expensive" though isn't getting the whole picture as you will find a rather pleasant lack of price deterioration when you come to sell.

One caveat.......as the Thai automotive market transitions from "equipment" to "replacement" and with the advent of ASEAN and other FTAs, the value of second-hand cars is bound to drop; this process has already begun.

there is also meant to be a change in the way that car tax is calculated - on emissions rather than engine size - this should start on Jan 1 2016. This may affect the pricing of a lot of new and old vehicles.

Edited July 7, 2014 by wilcopops

[wilcopops]

I believe the reasoning is due to the hight duty and tax...

The duty and tax acts as base to which the value of car's 'blue book value' is added

So let's say you buy a car for 1 million THB new ...

Let's say that 400,000 is tax and 600,000 is 'car value'

Then let's say when time to sell, 'car value' is now 300,000...

2nd hand car price... 300,000 + 400,000 = 700,000 selling price for second hand car

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What duties are you referring to?

[DinoSabanovic]

I bought new Hilux 2009 for 640.000 thb (new limited edition). So, because of problems in my family back at home I had to sell it. I got 500.000 thb for 1.5 year old car with 30.000 km . There is no way I could get that in Croatia.

Now I have New Mirage for 2 years now. Before purchase of Mirage I was looking at second hand cars in the same class. New Nissan was (just an example, don't know exact price) 500.000 thb and 1 year old same car with 10.000 km was 490.000 thb

By some logic it is better to add little and get brand new car. My opinion.

[GeorgeO]

Why are many things so expensive in Thailand? Wages are lower, costs are lower, VAT is lower, many vendors sit around all day doing little and selling less yet prices are often higher. It's magical.

As for vehicles, many people seem to be saying that resale prices have taken a hit since the ill-conceived new car tax break. I dont know if that is true or not, or what effect it really has on pick-ups when the tax break was only for small cars for first-timers.

I do think that the more middle-men you can avoid in Thailand the better off you will be. They all like to take a big cut and there can be more than one of them involved in a transaction.

Despite the fact that the 'first time buyer' scam scheme was aimed at small car buyers, it has drastically hit the second-hand car market for all models. Just two weeks ago, I asked for a valuation on my three-year-old Camry Extremo and was given a price of THB 600,000, despite the fact that it had cost me THB 1,350,000.

Having bought, and subsequently traded in, a Honda Civis prior to the first-time-buyer fiasco, I was able to get over 80% of the original cost back after 24 months. In the absence of the destruction of the second-hand car market, I would have expected around THB 750,000-800,000 for my Camry.

So, in answer to the OP, second-hand cars are now nowhere near as expensive as they used to be; indeed, I am now looking out for a low mileage 'repo' from the first-time-buyer scheme.

[DinoSabanovic]

I believe the reasoning is due to the hight duty and tax...

The duty and tax acts as base to which the value of car's 'blue book value' is added

So let's say you buy a car for 1 million THB new ...

Let's say that 400,000 is tax and 600,000 is 'car value'

Then let's say when time to sell, 'car value' is now 300,000...

2nd hand car price... 300,000 + 400,000 = 700,000 selling price for second hand car

Sent from my iPhone using Tapatalk

What duties are you referring to?

"I will sell your car but give me some (allot) of sale money."

[wilcopops]

I believe the reasoning is due to the hight duty and tax...

The duty and tax acts as base to which the value of car's 'blue book value' is added

So let's say you buy a car for 1 million THB new ...

Let's say that 400,000 is tax and 600,000 is 'car value'

Then let's say when time to sell, 'car value' is now 300,000...

2nd hand car price... 300,000 + 400,000 = 700,000 selling price for second hand car

Sent from my iPhone using Tapatalk

What duties are you referring to?

"I will sell your car but give me some (allot) of sale money."

Sorry? that seems totally incomprehensible to me.

[DinoSabanovic]

Why are many things so expensive in Thailand? Wages are lower, costs are lower, VAT is lower, many vendors sit around all day doing little and selling less yet prices are often higher. It's magical.

As for vehicles, many people seem to be saying that resale prices have taken a hit since the ill-conceived new car tax break. I dont know if that is true or not, or what effect it really has on pick-ups when the tax break was only for small cars for first-timers.

I do think that the more middle-men you can avoid in Thailand the better off you will be. They all like to take a big cut and there can be more than one of them involved in a transaction.

Despite the fact that the 'first time buyer' scam scheme was aimed at small car buyers, it has drastically hit the second-hand car market for all models. Just two weeks ago, I asked for a valuation on my three-year-old Camry Extremo and was given a price of THB 600,000, despite the fact that it had cost me THB 1,350,000.

Having bought, and subsequently traded in, a Honda Civis prior to the first-time-buyer fiasco, I was able to get over 80% of the original cost back after 24 months. In the absence of the destruction of the second-hand car market, I would have expected around THB 750,000-800,000 for my Camry.

So, in answer to the OP, second-hand cars are now nowhere near as expensive as they used to be; indeed, I am now looking out for a low mileage 'repo' from the first-time-buyer scheme.

You asked for valuation at second hand car dealer ? If yes, then I'm 99% sure that he will add some, so total price will be 900.000. Trust me

[DinoSabanovic]

I believe the reasoning is due to the hight duty and tax...

The duty and tax acts as base to which the value of car's 'blue book value' is added

So let's say you buy a car for 1 million THB new ...

Let's say that 400,000 is tax and 600,000 is 'car value'

Then let's say when time to sell, 'car value' is now 300,000...

2nd hand car price... 300,000 + 400,000 = 700,000 selling price for second hand car

Sent from my iPhone using Tapatalk

What duties are you referring to?

"I will sell your car but give me some (allot) of sale money."

Sorry? that seems totally incomprehensible to me.

One person ask another to sell car for him. That person will want some money, and that is not little. If you have 2-3 hands, that price will go up.

If you want second hand car and know what you doing, get it directly from seller/owner.

[The Usual Suspect]

All Thai "reasoning and justification" aside, I still find the prices for older used vehicles ridiculous. Case in point: I'm looking for an old truck to use around the house and farm (not something fancy to have a "big face" in the village). The wife and I are driving down the road and see an old, beat up, pick up truck for sale in front of someone's house. She pulls around and parks where the sellers can't see me and goes up to get a "Thai price" on the truck. She comes back and tells me they want 250,000 baht!!! Of course, I'm bumfuddled at the price, so just out of curiosity I go take a look at this quarter million gem. What a joke! This truck looked like it was ready for a tow truck's ride to the junk yard. There wasn't a square foot of body that wasn't dented, scratched, or rusted. What little paint was left was oxidized and flaking off. All but one of the windows had hairline cracks, the windshield was the worst. The back gate was held closed with two bungee cords. The interior looked like it had been used for a dog house. The drive train was in the same condition as the rest of the truck.....trashed. Needless to say, no sale. Ironically, I could have bought that same truck in the U.S. for the equivalent of 9,000 baht. The craziest thing though, is that since then I've come across several more just like the first one, high priced junk. Yesterday I had a bit of luck though, and found one for 79,000 that I'm considering. It looks like hell but it runs well.

[sstuff3]

The car market in Thailand is a "protected market". The import duty on foreign built automobiles is kept high to protect their manufacturing bases here and to encourage people to buy the car built in Thailand. Similarly, the ban on all imports of used or secondhand cars is with the same aim. This protection, keeps the local factories operating and the high resale value facilitates the justification to buy new.

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[ferguston]

Many Thais use their vehicles (and land/houses) as collateral to borrow money. The lender places an inflated value on the vehicle which is then reflected in the "second hand" value of the vehicle when the owner wishes to sell it.

Insurance companies also place higher values on vehicles. My 2008 basic,manual,Jazz has an insured value of 320,000 baht, far higher than a similar Jazz back in my home country. This valuation,to the owner, is what they will expect when they come to sell the vehicle.This again affects the second hand price.

These factors permeate through the second hand market affecting all vehicles. My wife's 1990 Nissan Sunny is still worth 40,000 baht!

[stevenl]

Why people are comparing the value of their car here to back home is beyond me. Whether new or second hand, the value is what you pay for it, the value back home has no bearing at all on that.

[NoshowJones]

Are you short the extra Bt.150,000 to buy a new one ?

When it comes time to sell your car you will be happy at the prices.

Oh dear, what a dreadful avatar.

[VocalNeal]

Why are many things so expensive in Thailand? Wages are lower, costs are lower, VAT is lower, many vendors sit around all day doing little and selling less yet prices are often higher. It's magical.

Rice is cheap.

Roadside food is cheap, see rice.

Beer is cheap although not as cheap as Laos or Indonesia.

"Entertainment" is cheap.

"Cheap stuff" is cheap.

So basics are cheap. Anything else is the same price or more than in the "west" (or Australia if you are pointing the other way while reading this)

Just my observations.

Edited July 7, 2014 by VocalNeal

[KittenKong]

I don't think Kitten Kong is correct as i know of someone who purchased a Mazda 4 Door pick up under the Government scheme mentioned

Fair enough. I did say that I thought it was only for small cars. It would have been more sensible had it been.

It was a very stupid scheme anyway. Cost a fortune to put in place, caused huge waiting lists, ran up credit for those who can least afford it and created a big pool of unwanted used cars which has reduced demand for new vehicles and upset manufacturers. Nearly on a par with the daft free tablet scheme and the rice price pledge.

[cchina184]

Supply and demand.

I almost gagged at what I had to pay for a crappy little smoking Honda in New Zealand a few years ago, about 3 times what I would have paid in at home. So it's not just Thailand. But what I did find here, much to my delight, is the new cars and motorcycles made here are cheap compared to back home. And if used is what you need, wait for an expat exodus and go for the jugular. Don't get get your knickers in a knot over this. They'll do the same for you when you need to leave in a month with a portfolio of junk to unload. Great bargains are here, but it takes some effort and patience to find them.

[Chris Lawrence]

All Thai "reasoning and justification" aside, I still find the prices for older used vehicles ridiculous. Case in point: I'm looking for an old truck to use around the house and farm (not something fancy to have a "big face" in the village). The wife and I are driving down the road and see an old, beat up, pick up truck for sale in front of someone's house. She pulls around and parks where the sellers can't see me and goes up to get a "Thai price" on the truck. She comes back and tells me they want 250,000 baht!!! Of course, I'm bumfuddled at the price, so just out of curiosity I go take a look at this quarter million gem. What a joke! This truck looked like it was ready for a tow truck's ride to the junk yard. There wasn't a square foot of body that wasn't dented, scratched, or rusted. What little paint was left was oxidized and flaking off. All but one of the windows had hairline cracks, the windshield was the worst. The back gate was held closed with two bungee cords. The interior looked like it had been used for a dog house. The drive train was in the same condition as the rest of the truck.....trashed. Needless to say, no sale. Ironically, I could have bought that same truck in the U.S. for the equivalent of 9,000 baht. The craziest thing though, is that since then I've come across several more just like the first one, high priced junk. Yesterday I had a bit of luck though, and found one for 79,000 that I'm considering. It looks like hell but it runs well.

Sounds as though they new you were coming.

[KittenKong]

Why are many things so expensive in Thailand? Wages are lower, costs are lower, VAT is lower, many vendors sit around all day doing little and selling less yet prices are often higher. It's magical.

Rice is cheap.

Roadside food is cheap, see rice.

Beer is cheap although not as cheap as Laos or Indonesia.

"Entertainment" is cheap.

"Cheap stuff" is cheap.

So basics are cheap. Anything else is the same price or more than in the "west" (or Australia if you are pointing the other way while reading this)

Actually beer isnt cheap at all. I can buy it for much less in Europe than I pay for it here. Even rice isnt very cheap here when compared to other rice-producing nations or even when bought in Europe. Many other locally-grown foods are also much more expensive here than elsewhere.

What is (fairly) cheap are things that are labour-intensive (haircuts, plumbers, eating out, housing, car servicing etc). Things that are bought in a packet from a shop are often overpriced.

[KittenKong]

But what I did find here, much to my delight, is the new cars and motorcycles made here are cheap compared to back home.

I bought a locally-made pick-up new and I didn't think it was very cheap. I also had to work quite hard to get a discount worth having.

[cchina184]

But what I did find here, much to my delight, is the new cars and motorcycles made here are cheap compared to back home.

I bought a locally-made pick-up new and I didn't think it was very cheap. I also had to work quite hard to get a discount worth having.

Guess it depends on where you're from. About 10-15 percent lower than same for me at home. The young lady I dealt with at the Toyota place made negotiation a piece of cake compared the wall of predatory creeps I had to deal with the last time I bought a Toyota at home. I felt like a lamb chop at a wolf convention.

[stevenl]

I don't think Kitten Kong is correct as i know of someone who purchased a Mazda 4 Door pick up under the Government scheme mentioned

Fair enough. I did say that I thought it was only for small cars. It would have been more sensible had it been.

Yes, it was stupid, but no, you did not say 'I thought'. You said:

As for vehicles, many people seem to be saying that resale prices have taken a hit since the ill-conceived new car tax break. I dont know if that is true or not, or what effect it really has on pick-ups when the tax break was only for small cars for first-timers.