Auto credit sales on decline

[webfact]

Auto credit sales on decline

BANGKOK, 27 April 2016, (NNT) - According to the Bank of Ayudhya, the commercial sector will likely grow by 3.2% this year, an increase from last year's 2.8%.

The comment was made by the Bank's head of Krungsri Auto Group, Pairote Cheunkrut, who credited the sector's improved performance prospect to the government's investment plan during the latter half of the year.

Despite the positive outlook of the sector, Mr. Pairote predicted that auto credit sales this year would likely drop 10% to 455 billion baht. He explained that the lingering effects of household debt and the auto tax hike are the major elements of the decline. The head of Krungsri Auto Group said the two negative factors will also likely cause non-performing loans to increase to 2.32% this year.

Mr. Pairote projected that 720,000 new cars and one million used vehicles will be sold this year. He pointed out that the latter figure would mark a recovery in the second-hand car market.


-- NNT 2016-04-27

[jamesbrock]

Is there any wonder?

http://www.just-auto.com/analysis/thailand-looks-to-end-first-time-buyer-overhang_id163604.aspx

[trogers]

Those first time car buyers are now suffering on two fronts: still servicing outstanding loans, and fall in the value of used cars.

They took that poisoned candy from their favourite politician.

[bangkokfrog]

...the commercial sector will likely grow by 3.2% this year, ...(but) auto credit sales this year would likely drop 10%???

This guy is clearly hedging his bets to avoid a one week attitude adjustment holiday.

[carstenp]

...the commercial sector will likely grow by 3.2% this year, ...(but) auto credit sales this year would likely drop 10%???

This guy is clearly hedging his bets to avoid a one week attitude adjustment holiday.

logic... more is paying with cash, no need credit

[Srikcir]

Despite the positive outlook of the sector

What positive outlook?

In the first week of April 2016 three state banks have gradually lowered interest rates on loans as the consumer confidence index continues to fall for a third consecutive month. This drop is the lowest in a five month period.

The Center for Economic and Business Forecast says the cutting of interest rates by banks has signaled that the country is now facing economic slowdown.

But let's all think positive.

[trogers]

Despite the positive outlook of the sector

What positive outlook?

In the first week of April 2016 three state banks have gradually lowered interest rates on loans as the consumer confidence index continues to fall for a third consecutive month. This drop is the lowest in a five month period.

The Center for Economic and Business Forecast says the cutting of interest rates by banks has signaled that the country is now facing economic slowdown.

But let's all think positive.

The positive outlook is the reduction in household debts.

The period of gluttony on borrowed money is over.

[johnarth]

I have just spent last couple of days looking used car prices Thailand, Thailand used cars are $1,000s dearer than Australian used cars, why?Is this Thailand thinking second hand car to dear, better to buy new one? soon Thailand be like all other countries that made new cars, thousands of acres of new cars just sitting there.( over production) anyone want to bet I am wrong?

[elgordo38]

...the commercial sector will likely grow by 3.2% this year, ...(but) auto credit sales this year would likely drop 10%???

This guy is clearly hedging his bets to avoid a one week attitude adjustment holiday.

Your living in a topsy turvy world. The mentality is the same as in the west what looks really bad is really good buy now.

[elgordo38]

...the commercial sector will likely grow by 3.2% this year, ...(but) auto credit sales this year would likely drop 10%???

This guy is clearly hedging his bets to avoid a one week attitude adjustment holiday.

logic... more is paying with cash, no need credit

The way the economy is I would wonder where the cash is coming from?? We live in a credit subsidized world. Cash? Borrowing is just another way of life that the west exported to the east. The cracks are starting to show.

[elgordo38]

I have just spent last couple of days looking used car prices Thailand, Thailand used cars are $1,000s dearer than Australian used cars, why?Is this Thailand thinking second hand car to dear, better to buy new one? soon Thailand be like all other countries that made new cars, thousands of acres of new cars just sitting there.( over production) anyone want to bet I am wrong?

I would not bet against you on this one. Its one reason car production is booming in the west and I imagine its the same. Fields and fields of new unsold new car baking in the sunlight.

[jadee]

Is there any wonder?

http://www.just-auto.com/analysis/thailand-looks-to-end-first-time-buyer-overhang_id163604.aspx

That's a fascinating article, thanks for sharing. I thought the rebates from the 2011 car tax rebate scheme had already been paid but it says 'most participants in the scheme eligible to claim the tax rebates in 2017 and 2018'.

Do you think the government may default and refuse to pay as it's from the last government?

[bangkokfrog]

I have just spent last couple of days looking used car prices Thailand, Thailand used cars are $1,000s dearer than Australian used cars, why?Is this Thailand thinking second hand car to dear, better to buy new one? soon Thailand be like all other countries that made new cars, thousands of acres of new cars just sitting there.( over production) anyone want to bet I am wrong?

Like you, I am amazed at how high used car prices are in Thailand compared to other countries. But I don't think that it is used car prices being so high that encourages people to buy new ones... it is all about the extra "face" one gets from driving a shiny new car with pretty red plates. I think the answer is that if used car prices reflected their true value, it would show up how ridiculously expensive new car prices are compared to the real value of the vehicles.

It's probably just like the real estate market here... tightly controlled and manipulated by banks and others with a vested interest to try to delay the inevitable.. a bubble burst in a repeat of 1997.

[kimamey]

Is there any wonder?

http://www.just-auto.com/analysis/thailand-looks-to-end-first-time-buyer-overhang_id163604.aspx

That's a fascinating article, thanks for sharing. I thought the rebates from the 2011 car tax rebate scheme had already been paid but it says 'most participants in the scheme eligible to claim the tax rebates in 2017 and 2018'.

Do you think the government may default and refuse to pay as it's from the last government?

That's what I thought. My wife bought a new Honda Jazz in 2012. She waited 6 months for the car due to the floods and another 7 months for 2 licence plates because... wel this is Thailand. We got the rebate after a year. I think towards the end there was some delay in payments due to lack of money despite the rebate being money that had already been paid. I've got no idea why anyone would be applying for a rebate after so long.