First car deal defaults jump 25 folds: Thai Excise Dept

[webfact]

First car deal defaults jump 25 folds

[

BANGKOK: -- The number of first-time car buyers who have failed to continue paying instalments to leasing companies has increased sharply from 10-20 cases last year to over 500 cases this year or a jump of 25 folds, said Mr Somchai Poonsawat, director-general of Excise Department.

He added that there are over 12,000 cases at risk of defaults and their cars seized by leasing companies after the car buyers under the government-sponsored first-car purchase programme have failed to pay several instalments.

As for the buyers who have already claimed tax refund from the Excise Department and have defaulted their instalment payments, Mr Somchai said his department had asked the Comptroller Department to file lawsuits against 21 buyers to reclaim the excise tax.

Although the first car purchase programme ended in 2012, there are about 114,000 potential buyers who have entered the programme but who have not exercised their right due to financial constraint, Mr Somchai said that they could still exercise their right to buy their first cars.

Altogether 1.25 million people have registered to enter the programme and 1.06 million of them have bought their first cars and have claimed tax refund from the government.

Source: http://englishnews.thaipbs.or.th/first-car-deal-defaults-jump-25-folds/


-- Thai PBS 2014-08-15

[ginjag]

Another one bites the dust, along with ??????

[worgeordie]

So that means all the populist policies have failed,but some people

made a lot of money out of them, so thats OK?.

regards Worgeordie

[kalbo123]

that means it was a big succes if only 500 people do not meet payments....

they have sold over a million of cars.

again big succes!

Edited August 15, 2014 by kalbo123

[Sena Dave]

It appears that we have been defaulted on , the missus bought a 1.5 in December 2012 with the promise of 100,000 back from the government and we still have nothing

[ginjag]

that means it was a big succes if only 500 people do not meet payments....

they have sold hundred thousands of cars.

again big succes!

A success for who ?? the poor ?? government ??? thousands of cars on the market, could bring down second hand prices though.

[kalbo123]

So that means all the populist policies have failed,but some people

made a lot of money out of them, so thats OK?.

regards Worgeordie

Why failed?

Because 500 out of million can not pay the monthly payments?

[kalbo123]

that means it was a big succes if only 500 people do not meet payments....

they have sold hundred thousands of cars.

again big succes!

A success for who ?? the poor ?? government ??? thousands of cars on the market, could bring down second hand prices though.

you name it,

the poor,

the first car owners.

the manufactures of the cars and the workers,

the cars sellers and staff.

the oil compagnies

the insurance compagnies

etc etc

[PS2]

that means it was a big succes if only 500 people do not meet payments....

they have sold hundred thousands of cars.

again big succes!

A success for who ?? the poor ?? government ??? thousands of cars on the market, could bring down second hand prices though.

you name it,

the poor,

the first car owners.

the manufactures of the cars and the workers,

the cars sellers and staff.

the oil compagnies

the insurance compagnies

etc etc

The rich....new car and new house.

Continue reading.

It states 500 so far this year and "He added that there are over 12,000 cases at risk of defaults"

And the last government stopped paying the 100.000 baht same time as the stopped paying the farmers.

[frollywolly]

The first car buyers programme was always going to end in disaster. There will be 50,000 - 100,000+ defaulters in this scheme

[Spoonman]

It appears that we have been defaulted on , the missus bought a 1.5 in December 2012 with the promise of 100,000 back from the government and we still have nothing

The missus has never previously had a car in her name ?

[Sena Dave]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

It appears that we have been defaulted on , the missus bought a 1.5 in December 2012 with the promise of 100,000 back from the government and we still have nothing

The missus has never previously had a car in her name ?

Nope she passed her test in 2012 and we got a fiesta for her. She went with a bit of an angry mob to Bangkok in April this year and they promised everyone would get their money. Ive read up about it once and apparently it should happen in this tax year. To be honest its not really hurting us financially but I imagine it is hurting some people. It also doesn't instill much confidence if future "Schemes" are introduced

[silverhawk_usa]

Now the car companies complain their sales are down. That's 1.25 million buyers that have been taken off the market for a few years to come.

[bdenner]

No surprise here, the scheme was always doomed to failure. - Gotta wunda about the mentality of some/most of the economists (hanging off the purse strings of the auto manufacturers (sic)) advising the government into such stupidity. Past performance proves they could not come up with such a far fetched scheme by themselves.

Anyway, great for the 2nd hand car market and those looking for a bargain.

EDIT: this does not only apply to cars. -- Here in Isaan there is a mountain of (mostly) Kabulta tractors being "snatched back" by the banks. Cannot say if there was a government subsidy but there has been some very aggressive sales by the tractor manufacturers.

Edited August 15, 2014 by bdenner

[Payboy]

So, 500 defaulting and the rest still learning to drive.

[thailiketoo]

The first car buyers programme was always going to end in disaster. There will be 50,000 - 100,000+ defaulters in this scheme

If only 500 defaulted it is a rousing success not a disaster. Better check your math.

[thailiketoo]

No surprise here, the scheme was always doomed to failure. - Gotta wunda about the mentality of some/most of the economists (hanging off the purse strings of the auto manufacturers (sic)) advising the government into such stupidity. Past performance proves they could not come up with such a far fetched scheme by themselves.

Anyway, great for the 2nd hand car market and those looking for a bargain.

EDIT: this does not only apply to cars. -- Here in Isaan there is a mountain of (mostly) Kabulta tractors being "snatched back" by the banks. Cannot say if there was a government subsidy but there has been some very aggressive sales by the tractor manufacturers.

Can't you read? 500 defaults. That is no where near a failure. It is a rousing success whose headline is meant to distort the truth and English language.

[frollywolly]

No surprise here, the scheme was always doomed to failure. - Gotta wunda about the mentality of some/most of the economists (hanging off the purse strings of the auto manufacturers (sic)) advising the government into such stupidity. Past performance proves they could not come up with such a far fetched scheme by themselves.

Anyway, great for the 2nd hand car market and those looking for a bargain.

EDIT: this does not only apply to cars. -- Here in Isaan there is a mountain of (mostly) Kabulta tractors being "snatched back" by the banks. Cannot say if there was a government subsidy but there has been some very aggressive sales by the tractor manufacturers.

Can't you read? 500 defaults. That is no where near a failure. It is a rousing success whose headline is meant to distort the truth and English language.

With 12,000 at risk of default!

Give it another 12 mnths and that figure will triple. Cars and repayments that cannot be maintained. A secondhand market that collapses.

You must be Thai. Not looking to the future, just the now.

[thailiketoo]

No surprise here, the scheme was always doomed to failure. - Gotta wunda about the mentality of some/most of the economists (hanging off the purse strings of the auto manufacturers (sic)) advising the government into such stupidity. Past performance proves they could not come up with such a far fetched scheme by themselves.

Anyway, great for the 2nd hand car market and those looking for a bargain.

EDIT: this does not only apply to cars. -- Here in Isaan there is a mountain of (mostly) Kabulta tractors being "snatched back" by the banks. Cannot say if there was a government subsidy but there has been some very aggressive sales by the tractor manufacturers.

Can't you read? 500 defaults. That is no where near a failure. It is a rousing success whose headline is meant to distort the truth and English language.

With 12,000 at risk of default!

Give it another 12 mnths and that figure will triple. Cars and repayments that cannot be maintained. A secondhand market that collapses.

You must be Thai. Not looking to the future, just the now.

You must be Thai. Can't divide. Tell us what percent have defaulted? Now tell us what would be a bad percent? What would be a good percent? What would be a normal %.

Are you anti math or something? 500 or 12,000 out of 1.6 million is great. 1% is 10,000

In a big grown up country like USA........

The first mortgage default rate fell from 1.58 percent in January to 1.48 percent in February, while the bank card rate declined from 3.41 percent to 3.37 percent. The second mortgage and auto loan default rates showed margins increases, rising from 0.69 and 1.10 percent in January to 0.71 percent and 1.11 percent, respectively, in February.

Edited August 15, 2014 by thailiketoo

[Saraphee]

This "deal" should only be considered a success when all buyers have completed their payments, or sold the car concerned.

It will then be possible to set equivalent new car sales against those interpolated figures and assess whether there is any new market penetration.

Until this is practical there can be a no objective judgment.

[Sena Dave]

This "deal" should only be considered a success when all buyers have completed their payments, or sold the car concerned

And paid back the people the 100000 they were promised

[thailiketoo]

This "deal" should only be considered a success when all buyers have completed their payments, or sold the car concerned.

It will then be possible to set equivalent new car sales against those interpolated figures and assess whether there is any new market penetration.

Until this is practical there can be a no objective judgment.

All buyers never complete their sales. In the USA in 2013 default rates for auto loans were 1.22%

[kimamey]

No surprise here, the scheme was always doomed to failure. - Gotta wunda about the mentality of some/most of the economists (hanging off the purse strings of the auto manufacturers (sic)) advising the government into such stupidity. Past performance proves they could not come up with such a far fetched scheme by themselves.

Anyway, great for the 2nd hand car market and those looking for a bargain.

EDIT: this does not only apply to cars. -- Here in Isaan there is a mountain of (mostly) Kabulta tractors being "snatched back" by the banks. Cannot say if there was a government subsidy but there has been some very aggressive sales by the tractor manufacturers.

This type of scheme is nothing new. The US and UK had already done something similar except they based theirs on exchanging an old car (over 10 years old in the UK) for a more efficient new one so gaining on fuel economy and environmental issues and no increase in vehicle numbers. Much more difficult to defraud than the Thai 'put it in your grandmother's grandfather's elderly bedridden aunt's name' method used here. It's true the numbers aren't that high yet but they are a big increase from previously but we'll have to wait and see what happens.

I'm in Isaan but I haven't noticed tractors being taken back but maybe I look at girls more than agricultural equipment.

They may not have been directly subsidised but rice farmers suddenly had a lot more money coming in because of the rice scheme. Some probably drank or gambled it but I expect many thought it would be a good idea to invest in new machinery based on the higher income. I've said before that there was nothing really wrong about the rice scheme except the price was way too high and not sustainable. A lower price that could be maintained for a few years to enable farmers to plan ahead and maybe some in the form of grants for machinery so it isn't spent on drink and gambling.

[ginjag]

that means it was a big succes if only 500 people do not meet payments....

they have sold hundred thousands of cars.

again big succes!

A success for who ?? the poor ?? government ??? thousands of cars on the market, could bring down second hand prices though.

you name it,

the poor,

the first car owners.

the manufactures of the cars and the workers,

the cars sellers and staff.

the oil compagnies

the insurance compagnies

etc etc

OK I will try.

1 quote the poor-------------------what poor people were able to afford a 500,000 baht car when their house is only worth 50,000.

2 quote First car owners...........Are still awaiting the money back.

3....quote manufacturers............boost in sales---then---- but all sales are down now due to the selling quickly for the scheme, job losses, go-slow.

4..................................................same

5 quote oil companies...............never loose.

6 quote insurance companies ...never lose.

Not quite that simple is it.

[Dogmatix]

What a stupid scheme.

- Create a large number of sales to people who couldn't afford cars. Now they have lost their cars and their credit histories are ruined.

- Brought forward many sales which makes the manufacturers and sellers' business slump after that.

- Caused a lot of bad loans to banks and finance companies.

- Caused the second hand car market to go into a slump.

- Caused greater pollution and traffic jams.

- Made the roads more dangerous.

Yingluck should face another criminal case for this.

Edited August 15, 2014 by Dogmatix

[thailiketoo]

What a stupid scheme.

- Create a large number of sales to people who couldn't afford cars. Now they have lost their cars and their credit histories are ruined.

- Brought forward many sales which makes the manufacturers and sellers' business slump after that.

- Caused a lot of bad loans to banks and finance companies.

- Caused the second hand car market to go into a slump.

- Caused greater pollution and traffic jams.

- Made the roads more dangerous.

Yingluck should face another criminal case for this.

500 people defaulted out of over a million. Are you OK. That is a great percent. What can't you read?

[thailiketoo]

OK I will try.

1 quote the poor-------------------what poor people were able to afford a 500,000 baht car when their house is only worth 50,000.

2 quote First car owners...........Are still awaiting the money back.

3....quote manufacturers............boost in sales---then---- but all sales are down now due to the selling quickly for the scheme, job losses, go-slow.

4..................................................same

5 quote oil companies...............never loose.

6 quote insurance companies ...never lose.

Not quite that simple is it.

1% default would have been over 10,000 and that would have been good but only 500 defaulted which is great. It was a great idea.

[ginjag]

OK I will try.

1 quote the poor-------------------what poor people were able to afford a 500,000 baht car when their house is only worth 50,000.

2 quote First car owners...........Are still awaiting the money back.

3....quote manufacturers............boost in sales---then---- but all sales are down now due to the selling quickly for the scheme, job losses, go-slow.

4..................................................same

5 quote oil companies...............never loose.

6 quote insurance companies ...never lose.

Not quite that simple is it.

1% default would have been over 10,000 and that would have been good but only 500 defaulted which is great. It was a great idea.

Your pro Shin agenda, has nothing to do with my post Why use mine to answer the main topic-----have you lost your way or is it you have joined the wind up gang.

[topt]

This "deal" should only be considered a success when all buyers have completed their payments, or sold the car concerned

And paid back the people the 100000 they were promised

The actual figure was "up to a 100,000" - and for the record my gf was paid (72k from memory) so for us it was a success...........

Also you are not supposed to sell the car for 5 years or you have to repay the cashback so you are going to have to wait a while for those kind of stats.

[thailiketoo]

OK I will try.

1 quote the poor-------------------what poor people were able to afford a 500,000 baht car when their house is only worth 50,000.

2 quote First car owners...........Are still awaiting the money back.

3....quote manufacturers............boost in sales---then---- but all sales are down now due to the selling quickly for the scheme, job losses, go-slow.

4..................................................same

5 quote oil companies...............never loose.

6 quote insurance companies ...never lose.

Not quite that simple is it.

1% default would have been over 10,000 and that would have been good but only 500 defaulted which is great. It was a great idea.

Your pro Shin agenda, has nothing to do with my post Why use mine to answer the main topic-----have you lost your way or is it you have joined the wind up gang.

You wrote, "1 quote the poor-------------------what poor people were able to afford a 500,000 baht car when their house is only worth 50,000."

The answer more than a million poor people who did not default on their loans. 500 out of 1,000,000 is a minuscule, negotiable almost non existent rate of default. Apparently you are 99.99% wrong.

You wrote, "3....quote manufacturers............boost in sales---then---- but all sales are down now due to the selling quickly for the scheme, job losses, go-slow." Increase in sales means more people employed and more money for the economy. Slow down? Link it.

You wrote, "5 quote oil companies...............never loose." If they did they would go out of business. Why would you want them to lose?

The same for insurance companies. They are in business to make money. They employ people. They drive the economic engine. You want them to lose money? Why?

Edited August 15, 2014 by thailiketoo