why are used cars so dam expensive in LOS?

[condor001]

The OP is correct. Used car prices are crazy. Damn close to new. And new are cheap if you buy domestic made toyota, mazda, dord, etc. We quit looking for a good used, because we don't want to chase down an expat desperate and leaving. The idea that high resale prices are a good thing is just plane silly. We plan on driving ours until the wheels fall off, hopefully 10+ years. You cannot explain the crazy used prices because of duties, or loan values IMHO. They are just crazy. And then I hear Thai's don't want to buy used houses. Must have new. I stopped trying the figure some logic here. I just try to use the system to my advantage where I can save a buck in the long run. We bought used pool villa and new car on the new buyer program. Both were much cheaper than I could buy back home.

[NanLaew]

A friend of mine just offloaded his well maintained but slightly high mileage, dark-gray metallic 2007 CR-V. Cost him about 1.12m new (smaller engined version) and the best offer he could get was 455k.

The tents all told him what we all know that the 'first time buyer' program impacted the used-car market but notably not the pickup truck market. Cars newer than 2008 will get a better price but older than that, forget about it. He was also told that Toyota and Honda and pickups are the best value retainers and the others, especially NIssan, Ford, Mazda, Suzuki and Chevy have a greater depreciation. Oh yes, and if you want to get as much as possible when you sell it, make sure it is silver, white or black. The Thais are very unadventurous when it comes to colors.

Although 'destroyed' appears to apply to the new car sales when talking about the 'first time buyer' debacle, I consider it introduced a much needed correction in the used car market. Second-hand prices were always unrealistically high, even for old clunkers. Most Thai owners would possibly stick with dealer service and maintenance until the warranties expired and then pass on regular services or give them to Somchai's brother-in-law if anything needed fixing. At least now, when it comes to sedans, the chances are the prices will reflect the real value.

If the OP is still seeking a reasonably priced used-car, he needs to be looking for a white 2007 Honda Accord with average mileage. Good luck on finding one with a verifiable service history though.

[Anon999]

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.

Can't believe that to be true. My Lancer Ralliart that has just 92,000 kms on it after 7 years and in excellent condition is valued at 340,000 baht. The tent price is 200,000 baht so even allowing for a 40% mark up that's only 280,000, a long way south of the insurance value. Either that or their mark up here is around 70%?

[CroBiker]

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.

500k is great deal indeed. Used car dealer would offer no more than 450k. Pozdrav zemljak

[rethaier]

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.

Really? I bought a used truck for 240,000 and was lucky to get 150,000 after one year.

[khunPer]

I come from a country with ridiculous high car taxes (and other taxes as well) and found the prices for new cars in Thailand either pretty similar or lower than at ”home”. However 2nd-hand cars are more expensive here, which may well be caused by the lower labour cost keeping it worth having an older car running – in my home country I shall be happy and jump up and down if I find a repairman working for just the equivalent of 2,000 baht an hour, here I may have a whole days work or two done for that money…

Also poster “CWMcMurray” talking about duty and tax may make some sense, if duty and tax are not reduced to equalling the value on older cars.

However, be happy when you sell your old car; it seems cheaper to always drive a new car in Thailand – meaning selling after a couple of years or less than five and replace with a new – than doing that in some European countries, where reinvesting in a new car every two to four years time is considered better than keeping an older car running.

By the way, my first car in Thailand was a 2nd hand and very cheap car, just considered to be some temporary instead of renting until I moved permanently down here. Used to rent a old bumpy Suzuki Caribbean Jeep permanently for 15k a month and if I could find something like two years rent (i.e. 350k) and keep it going for three years, or get some money back when selling after two years or less, it would be cheaper. Old small Suzuki jeeps were around 400k 2nd hands, and compared to a new priced around 550k that seemed too expensive. Looked at some about 4 years old Thai build Toyota diesel vans close to 400k, too much when a new is priced 500-600k and they had more than 300k kilometres on the clock. But then I saw a nice mint condition stationary with only 100k on the clock for 350k baht, a short test drive (never much gasoline on the cars in shops) proved Okay and like a dream compared to the rented Suzuki jeep, negotiated the price down to 325k, cashed, paid and happily drove out heading for nearest gasoline station. Only there I noticed a small sign on the back saying 4.0 L – ops, looked like drinking some gasoline. It was an 11 year old Chrysler Jeep Cherokee, actually many a big boys dream car, and it was so good (even it did use some gasoline) that it stayed with me for more than 8 years until gasoline price had doubled, then it was time for replacement to a more economic new car (November 2013). Done the job for 325/8 equalling 40k a year. Even with some service (not that much), and extra for the extended fuel consumption, it had been cheap. I asked my usual service garage if they know of some who might be interested? Oh yes, sold instantly for 140k cash – back home I should have paid to get rid of an 19½ year old fuel-drinker – so (325 –140)/8 = 23k a year; seems like you can be lucky when buying a 2nd hand car here...

Edited July 7, 2014 by khunPer

[steve73]

Most ten year old cars in UK/Europe are almost worthless due to annual compliance/safety & emmisions Tests... and with high labour rates, the cost of keeping an old car on the road becomed prohibitive. As a result depreciation of around 15-20% per year is commonplace (even more in the early years).

In T/L, the annual safety "check" is often limited to comparing the VIN plate to the blue book. Any repair/maintenance is usually very cheap, so even the very oldest cars don't get retired or scrapped - just passed further up country & off the tarmac'd highways. Depreciation is often less than 5-10% per year, and older cars hardly at all (limited to just the cost of keeping them on the road - with little regard for nice-to-have's like lights, windows, bodywork, etc...)

I have noticed that the secondhand market is starting to struggle in very recent years, with prices for actual sales being significantly less than are initially being asked. Dealers/Tents can aim to make as much as 30-40% mark-up, with little stock being shifted.

Definitely best to buy or sell direct if you know what you're doing, and are prepared to waste plenty of time with "tyre-kickers".

[wilcopops]

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.

Really? I bought a used truck for 240,000 and was lucky to get 150,000 after one year.

As so often happens people mistake personal experience fora genuine overview of the whole market.

[bkk_mike]

There are three main issues.

The initial taxes on the vehicles - especially with imported ones.

The blocking of the import of used cars from abroad (or the market would flood with Japanese cars)

The negligible cost of keeping cars on the road here. (Virtually the only rust I've ever seen here is on pickups, presumably ones used to carry salt or pineapples), the inspections are cheap, and any maintenance charges are cheap.

A thing is only worth what someone is willing to pay for it, but historically, it's been a sellers market because of the relatively short supply of vehicles. That should fall off a cliff in a few years (except possibly on the high end, as there will still be "face" to having a Mercedes or BMW, and those weren't in the scheme).

At the moment, you have to return the tax rebate in order to sell, so a lot of people are continuing to keep their cars, even if it's a struggle. Once they can sell without having to return the rebate, expect a lot of cars to appear on the market, and average prices to drop even more than they have now. The only thing supporting them will be the high cost of buying new...

[Phuketboy]

It's not just second hand cars, it's new cars as well. Cars are just very expensive here. However, like it's already been stated, when you sell, you get a high price also, more than what you would in other countries, so your overall loss is less. It's not a great market for options either. By this i mean if your looking for something spectacular, powerful or something that looks great forget it. Unless you're into your pickups or high end cars (high end are at least 3 times more expensive than anywhere else) you will have to settle for a girls car like a honda or toyota with no power what so ever.

[morpheusatloppers]

Most ten year old cars in UK/Europe are almost worthless due to annual compliance/safety & emmisions Tests... and with high labour rates, the cost of keeping an old car on the road becomed prohibitive. As a result depreciation of around 15-20% per year is commonplace (even more in the early years).

In T/L, the annual safety "check" is often limited to comparing the VIN plate to the blue book. Any repair/maintenance is usually very cheap, so even the very oldest cars don't get retired or scrapped - just passed further up country & off the tarmac'd highways. Depreciation is often less than 5-10% per year, and older cars hardly at all (limited to just the cost of keeping them on the road - with little regard for nice-to-have's like lights, windows, bodywork, etc...)

I have noticed that the secondhand market is starting to struggle in very recent years, with prices for actual sales being significantly less than are initially being asked. Dealers/Tents can aim to make as much as 30-40% mark-up, with little stock being shifted.

Definitely best to buy or sell direct if you know what you're doing, and are prepared to waste plenty of time with "tyre-kickers".

At LAST - just before the end of this thread - someone comes up with the ANSWER to the question posed. Of COURSE it's that annual compliance/safety/emmissions test. In Britain, it's called the MOT (Ministry Of Transport) test.

Initially a VOLUNTARY scheme brought in around the early Sixties, to answer the problem of pre-war bangers (clunkers) it progressed (as these things inevitably do) to becoming not only becoming mandatory - but growing from brakes and steering to EVERYTHING - including stuff that had NO relation to safety.

In tests, NEW cars just off the assembly line have been failed by MOT stations!

Thus today, getting your car through the MOT in Britain is likely to cost MORE than the value of the car - in a mere ten years. Thus the wasteful West JUNKS 'em. So much for ecology.

Whereas here, the test is far closer to reasonable practicality - and labour costs are low - thus second-hand prices remain reasonable also. It's not that prices are too high here - rather that they are ridiculously LOW back in Europe.

My 20-year-old classic Mitzu Gallant Ultima (every ten years, cars go from round to square, then back - but only ROUND ones become desirable) cost four grand sterling when she was 8 - and is still worth about three grand NOW.

In Britain, I'd have trouble GIVING it away...

[wilcopops]

It's not just second hand cars, it's new cars as well. Cars are just very expensive here. However, like it's already been stated, when you sell, you get a high price also, more than what you would in other countries, so your overall loss is less. It's not a great market for options either. By this i mean if your looking for something spectacular, powerful or something that looks great forget it. Unless you're into your pickups or high end cars (high end are at least 3 times more expensive than anywhere else) you will have to settle for a girls car like a honda or toyota with no power what so ever.

No - new cars are not particularly expensive....unless you want an import.

[wilcopops]

MoT is required after 3 years in UK. Mostly it is safety or public health.

In UK the highest part of owning a car is probably MoT or insurance. Far more than buying a second-hand car.

however the current situation in UK seems to be that any running vehicle with a long MoT and current tax (you can;t tax a car without an MoT and insurance) is worth about £1000 or 50,000 baht, which makes them about one fifth of the price of the equivalent Thai vehicle. However, couple that annual road tax, MoT insurance and the cost of repairs and fuel, driving fines etc and it starts to look like less of a bargain.

have you seen the proposed maximum for speeding in there UK? = £10.000!!!

Put all this together and you get some idea of why UK has some of the "safest" roads in the world.

Edited July 7, 2014 by wilcopops

[dotpoom]

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.

I suppose second hand cars are so cheap in ....let's say Europe.....is because the standards are so high in order to pass an M.O.T. test etc. No "bangers" allowed on the roads now. I'v seen people pay the traveling community to take away cars that would cost 150,000 Bt. here in Thailand, plus you cannot leave a car now lying up on a public road

[Shiver]

Would the bank finance not factor into the price? If the finance person is on commission they'll do the best to get your application passed, so there may be more approvals than there really should be, then after 3 months the car is repossessed because payments can't be kept up, but the bank has an asset on it's books that it can't sell for less than it owes them (and likely they'll have already put the loan future profits on its books from day 1), so it wouldn't surprise me if a lot of the available second hand cars are bank owned, and they want to keep the price up?

If not the whole answer, I'm sure it must factor in there somewhere.

[wilcopops]

Would the bank finance not factor into the price? If the finance person is on commission they'll do the best to get your application passed, so there may be more approvals than there really should be, then after 3 months the car is repossessed because payments can't be kept up, but the bank has an asset on it's books that it can't sell for less than it owes them (and likely they'll have already put the loan future profits on its books from day 1), so it wouldn't surprise me if a lot of the available second hand cars are bank owned, and they want to keep the price up?

If not the whole answer, I'm sure it must factor in there somewhere.

Unlikely - In Thaialnd the repo market is up because of the 100k baht discount on new cars that brought about a surge in PRODUCTION as well as sales and now a surge in defaults on payments....... the result was a drop in second-hand prices.

In most countries defaults on finance are pretty constant and one of the problems in getting finance is the company factors in depreciation (plus a little extra) when giving the loan in the first place. They don't have enough clout to influence the market that much....they often don't get their money back on the car itself - they sell their repossessed cars thru auction and just get the bare minimum market price.......dealers love auctions and repo cars.

[KittenKong]

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.

Negotiation does depend on which brand and dealer you choose. I found that Pattaya dealers basically would not budge on the price at all and were prepared to watch me walk away, until I got cheaper quotes from Bangkok dealers for the same vehicle at which point they very grudgingly matched the other quotes and "freebies" packages. But it was like getting blood out of a stone.

Having done this once I will never use a Pattaya dealer for anything again, including warranty servicing. I now drive to the dealership in the next town where the general reception and level of service is just so much better.

[KittenKong]

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

Sorry. I thought I said I thought. Maybe I just thought it.

I'll certainly have to think about that.

[wabothai]

Don't bother to buy used.

Used car market is one big rip off.

Buy new !!!

[wilcopops]

Don't bother to buy used.

Used car market is one big rip off.

Buy new !!!

absolute nonsense - pure prejudice on this poster's part.

[craigt3365]

A few off topic posts have been removed from view.

[culicine]

Cars may be a bit more expensive here, but running costs are rather cheap. Honda charges 300 baht an hour for service. My local garage in Oz charged 40 an hour over 20 years ago. I bet its double that now. Over the course of the cars life, including resale, it's much cheaper to run a car in Thailand than in a western economy.

Edited July 8, 2014 by culicine

[Spoonman]

Cars may be a bit more expensive here, but running costs are rather cheap. Honda charges 300 baht an hour for service. My local garage in Oz charged 40 an hour over 20 years ago. I bet its double that now. Over the course of the cars life, including resale, it's much cheaper to run a car in Thailand than in a western economy.

the local garage in OZ will now be charging between $120.00 and $160.00 per hour now.... $30.00 of that goes to the actual mechanic.

[sirineou]

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.

Yea,, but that does not answer the question.

Why are used cars so expensive? If Used cars are close in price to new cars, why would some one buy a used car? and if so , then people would have a hard time selling their used cars, forcing them to lower their price.

It is called supply and demand

So,,, the question remains, Why are used cars so expensive in Thailand?

[wilcopops]

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.

Yea,, but that does not answer the question.

Why are used cars so expensive? If Used cars are close in price to new cars, why would some one buy a used car? and if so , then people would have a hard time selling their used cars, forcing them to lower their price.

It is called supply and demand

So,,, the question remains, Why are used cars so expensive in Thailand?

You've had several answers to that already. Subject done to death?

[OMGImInPattaya]

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.

Yea,, but that does not answer the question.

Why are used cars so expensive? If Used cars are close in price to new cars, why would some one buy a used car? and if so , then people would have a hard time selling their used cars, forcing them to lower their price.

It is called supply and demand

So,,, the question remains, Why are used cars so expensive in Thailand?

I never understand questions like why prices in Thailand are so high and low...as you yourself state, generally, prices are set by supply and demand. In relation to cars, I would imagine that's the case as well. Is there some particular price you have in mind for which used cars are supposed to sell for?

[wilcopops]

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.

Yea,, but that does not answer the question.

Why are used cars so expensive? If Used cars are close in price to new cars, why would some one buy a used car? and if so , then people would have a hard time selling their used cars, forcing them to lower their price.

It is called supply and demand

So,,, the question remains, Why are used cars so expensive in Thailand?

I never understand questions like why prices in Thailand are so high and low...as you yourself state, generally, prices are set by supply and demand. In relation to cars, I would imagine that's the case as well. Is there some particular price you have in mind for which used cars are supposed to sell for?

Agreed here except that supply and demand is not as straightforward as some would have it......government regs, regional differences in environment and many other factors all impact on prices.

[OMGImInPattaya]

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.

Yea,, but that does not answer the question.

Why are used cars so expensive? If Used cars are close in price to new cars, why would some one buy a used car? and if so , then people would have a hard time selling their used cars, forcing them to lower their price.

It is called supply and demand

So,,, the question remains, Why are used cars so expensive in Thailand?

I never understand questions like why prices in Thailand are so high and low...as you yourself state, generally, prices are set by supply and demand. In relation to cars, I would imagine that's the case as well. Is there some particular price you have in mind for which used cars are supposed to sell for?

Agreed here except that supply and demand is not as straightforward as some would have it......government regs, regional differences in environment and many other factors all impact on prices.

Of course, there are very purely free markets. But let's take the used car subject of this thread, the price for new vehicles is somewhat cartel like and of course taxes have a big impact but you have the new car price if "X" baht. Ok, now in the used market it's "x-y." The question is what's the "y" amount or percent and how this y is determined. I would guestimate it's market set as the used car market is more competitive than new, as there are many more buyers and sellers. I would argue that used car prices are not high or low but just market set. Compared to car markets elsewhere there are relative differences but, in the Thai market, they are what they are.

[belg]

its kept high so hopefully not every idiot can afford to drive

oh sorry, they just take out 20 year loans to buy their cars

[liddelljohn]

I bought a 1990 Isuzu TFR pickup in 1997 with 140,633kms on the clock ,,for 240,000Baht drove it around until 2013 when it had 642,067kms on it then sold it for 130.000 baht ....its still on the road new owner is very happy in the UK it would have been worth nothing .