First car deal defaults jump 25 folds: Thai Excise Dept

[ttthailand]

Where might I be able to buy one of these cars that the bank took back?

[thailiketoo]

Concerning the number of defaults my reading of the OP is that there are 12,500 defaults so far, 500 of which are confirmed as never going to pay another payment.

Lie. The OP, "He added that there are over 12,000 cases at risk of defaults"

[ginjag]

Where might I be able to buy one of these cars that the bank took back?

By the amount of input and super knowledge on the subject why ask the posters ?? go find out if you want to buy. Or enquire at your bank ??

[JesseFrank]

Concerning the number of defaults my reading of the OP is that there are 12,500 defaults so far, 500 of which are confirmed as never going to pay another payment.

Lie. The OP, "He added that there are over 12,000 cases at risk of defaults"

How do they determine which ones are at risk ?

Are it those that haven't paid for 11 months instead of 12 needed to be seen as a default ?

[PS2]

Concerning the number of defaults my reading of the OP is that there are 12,500 defaults so far, 500 of which are confirmed as never going to pay another payment.

Lie. The OP, "He added that there are over 12,000 cases at risk of defaults"

"said Mr Somchai Poonsawat, director-general of Excise Department."

Is the excise department that gives out loans?

[SiggiCM]

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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

how she could bought a car, she just became 18 in dezember

[media]

Another of Yinglucks pathetic scheme that wasted the countries money. Unbelievable.
She should do time !

[janpharma]

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.

Prices going down in Thailand? Joking? Usually if they can't sell they raise the prices over here (although it makes no sense of course)...

[belg]

500 is very little, 50.000 would be a bit more important ...

will the second hand car price go down you think ?

[thailiketoo]

Another of Yinglucks pathetic scheme that wasted the countries money. Unbelievable.

She should do time !

Is she also responsible for the very low rate of defaults of 500 out of more than a million?

[thailiketoo]

500 is very little, 50.000 would be a bit more important ...

will the second hand car price go down you think ?

When I first heard of the scheme I thought there would be a lot of defaults and the price of used cars would crash. I even told my wife who wanted a new car to hold off till the bank started to repo the cars. It hasn't happened. I was quite surprised.

[The Deerhunter]

Concerning the number of defaults my reading of the OP is that there are 12,500 defaults so far, 500 of which are confirmed as never going to pay another payment.

Lie. The OP, "He added that there are over 12,000 cases at risk of defaults"

With rice prices falling & rural incomes collapsing, do you think the car payment defaulting will improve or get worse?

[Nigeone]

This forum from my brief experience of Thai Visa and figures in Thailand is a first..It is the only topic I have read that figures given out by any source of authority gives out statistics and they are believed...Pray what makes these correct ??!!! as it's been often pointed out on other topics figures are seriously flawed..I dont believe these figures of 500 or whatever...as I said earlier the lines off 1 year old cars in Lamphun would suggest otherwise..just my opinion mind !

Edited August 16, 2014 by Nigeone

[alanrchase]

Concerning the number of defaults my reading of the OP is that there are 12,500 defaults so far, 500 of which are confirmed as never going to pay another payment.

Lie. The OP, "He added that there are over 12,000 cases at risk of defaults"

12000 have not made a payment in several months. That is a default is it not?

[thailiketoo]

Concerning the number of defaults my reading of the OP is that there are 12,500 defaults so far, 500 of which are confirmed as never going to pay another payment.

Lie. The OP, "He added that there are over 12,000 cases at risk of defaults"

With rice prices falling & rural incomes collapsing, do you think the car payment defaulting will improve or get worse?

Agriculture is 18% of the GDP what percent is rice? What percent of the car buyers are rice farmers? 5, 10%?

[thailiketoo]

Concerning the number of defaults my reading of the OP is that there are 12,500 defaults so far, 500 of which are confirmed as never going to pay another payment.

Lie. The OP, "He added that there are over 12,000 cases at risk of defaults"

12000 have not made a payment in several months. That is a default is it not?

No, 500 have defaulted 12,000 are at risk of default. If you have a problem with argue with the OP not me.

[Nigeone]

Concerning the number of defaults my reading of the OP is that there are 12,500 defaults so far, 500 of which are confirmed as never going to pay another payment.

Lie. The OP, "He added that there are over 12,000 cases at risk of defaults"

With rice prices falling & rural incomes collapsing, do you think the car payment defaulting will improve or get worse?

Agriculture is 18% of the GDP what percent is rice? What percent of the car buyers are rice farmers? 5, 10%?

The other issue that will add to the problems which will just be starting to hurt is the 50% rise in daily rate last year..200bht to 300bht..this will have given some of these car buyers a false sense of wealth ..I have tried to explain to many Thai's that thought it was brilliant that it's not possible to raise wages and there not to be a knock on effect at a later date...I would feel the price rises and increased wages having to be paid will be starting to hurt now...

Edited August 16, 2014 by Nigeone

[thailiketoo]

Agriculture is 18% of the GDP what percent is rice? What percent of the car buyers are rice farmers? 5, 10%?

The other issue that will add to the problems which will just be starting to hurt is the 50% rise in daily rate last year..200bht to 300bht..this will have given some of these car buyers a false sense of wealth ..I have tried to explain to many Thai's that thought it was brilliant that it's not possible to raise wages and there not to be a knock on effect at a later date...I would feel the price rises and increased wages having to be paid will be starting to hurt now...

So which family would be likely to default? A. 4, contributing family members making 300 per hour or B. 4, contributing family members making 200 baht per hour?

I guess one would have to know how many Thais were effected by the new minimum wage. All of the industrial workers that I know were already making more than that.

[Alwyn]

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

and you know this because?

[JesseFrank]

Agriculture is 18% of the GDP what percent is rice? What percent of the car buyers are rice farmers? 5, 10%?

The other issue that will add to the problems which will just be starting to hurt is the 50% rise in daily rate last year..200bht to 300bht..this will have given some of these car buyers a false sense of wealth ..I have tried to explain to many Thai's that thought it was brilliant that it's not possible to raise wages and there not to be a knock on effect at a later date...I would feel the price rises and increased wages having to be paid will be starting to hurt now...

So which family would be likely to default? A. 4, contributing family members making 300 per hour or B. 4, contributing family members making 200 baht per hour?

I guess one would have to know how many Thais were effected by the new minimum wage. All of the industrial workers that I know were already making more than that.

Family members making 300 and 200 Baht an hour . I don't know too many in my home country that make that kind of money.

You just made it clear that you're taking out of your behind.

Edited August 16, 2014 by JesseFrank

[Sena Dave]

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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

how she could bought a car, she just became 18 in dezember

Yeah thats right mate ,well funny

[Alwyn]

Agriculture is 18% of the GDP what percent is rice? What percent of the car buyers are rice farmers? 5, 10%?

The other issue that will add to the problems which will just be starting to hurt is the 50% rise in daily rate last year..200bht to 300bht..this will have given some of these car buyers a false sense of wealth ..I have tried to explain to many Thai's that thought it was brilliant that it's not possible to raise wages and there not to be a knock on effect at a later date...I would feel the price rises and increased wages having to be paid will be starting to hurt now...

So which family would be likely to default? A. 4, contributing family members making 300 per hour or B. 4, contributing family members making 200 baht per hour?

I guess one would have to know how many Thais were effected by the new minimum wage. All of the industrial workers that I know were already making more than that.

The minimum wage is 300 baht per hour? Not per day? Wow

All of the industrial workers you know were already making more than the minimum wage? That's why it's called "minimum wage", of course people are making more already, what's that got to do with anything? Do you think the government should ask your mate what they're earnining and set the minimum wage above that or something?

[Jip66]

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.

frollywolly was predicting, the article also said there are 12,000 at risk of defaulting as well, I predict this is only the tip of the iceberg, lets speculate that all the rice farmers bought a new truck for their farm under this scheme, the rice farmers did not get paid in the rice scheme and are now at risk of defaulting on their new car scheme, who knows where this could end....

[jimbeam1]

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.

Thai logic pushes up prices.

jb1

[jimbeam1]

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.

frollywolly was predicting, the article also said there are 12,000 at risk of defaulting as well, I predict this is only the tip of the iceberg, lets speculate that all the rice farmers bought a new truck for their farm under this scheme, the rice farmers did not get paid in the rice scheme and are now at risk of defaulting on their new car scheme, who knows where this could end....

A new 1500cc truck?

jb1

[JesseFrank]

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.

frollywolly was predicting, the article also said there are 12,000 at risk of defaulting as well, I predict this is only the tip of the iceberg, lets speculate that all the rice farmers bought a new truck for their farm under this scheme, the rice farmers did not get paid in the rice scheme and are now at risk of defaulting on their new car scheme, who knows where this could end....

A new 1500cc truck?

jb1

I think trucks were included in the scheme

Edited August 16, 2014 by JesseFrank

[HUAHIN62]

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.

Do your maths again. If 36 000 default out of 1,2 million it will still be less than the average for vehicle finance in the country. It will be lower than the NPL on the banks books and would have provided 1,176 million people with the opportunity to own a vehicle, plus it achieved the goal of stimulating the vehicle industry after the 2011 flood.

[Robert24]

They auction alone in the Chiang Mai province about 500 reposessed cars per month because people defaulted on their loan payments. Now this obviously includes secondhand cars and cars purchased outside the mentioned car scheme. But still to only have 500 defaults this year from the mentioned car scheme is unbelievably low.

[frollywolly]

Too many people were buying cars because they thought they would get money back for free from the government. They were not looking at their repayments and whether they could afford the vehicle. We can sell sell the car later and make more money!!

I know people who cannot drive and they bought a car.

Plain crazy stuff.

[SOTIRIOS]

....typical of everything the previous government touched....

...anything to get a phoney title of 'automobile manufacturer hub'......

...so many officials....and officers.....and doctors in this land too....or everyone knows one....all sensational.....all pretend.....