Outstanding auto loans expected to rise 6% this year

[snoop1130]

Outstanding auto loans expected to rise 6% this year

By Sucheera Pinijparakarn

The Nation

 

The Thai Hire Purchase Association expects total outstanding auto loans this year to grow by 6 per cent to Bt2.1 trillion, of which Bt1.6 trillion will be for new vehicles and around Bt450 billion for used cars and trucks, said chairman Anuchart Deeprasert.

 

Pickups and related vehicles will be the key drivers to the lending, growing by at least 5 per cent, against growth of 2-3 per cent in lending for passenger-car purchases.

 

Pickup-based vehicles, especially PPVs (pickup passenger vehicles), are in high demand as business operators want them for both commercial and family use. 

 

Full Story: http://www.nationmultimedia.com/news/breakingnews/30307407

 

-- © Copyright The Nation 2017-2-27

[bangrak]

Huh? 'Pickup passenger vehicles'? 'PPVs', what's that? Is there now a specific category for pick-up trucks to be allowed to carry passengers at the back? ...Then probably with re-inforced structures, 'roll cage', safe benches, and safety belts, is it? Nah, joking. But hey, 4 on a motorcy no helmets on, then why not 12 and more at the back of a pick-up truck, or in those 'flying coffins' called vans...? Go wonder about the number of casualties then... Overloaded van crashes head-on with a pick-up truck carrying an even less 'secured' bunch of 'passengers', and, in one 'strike' one gets over 20 persons killed or badly hurt... But who cares, surely not 'the authorities', life is cheap in third-world(!)-Thailand...!

[bangkok101]

and when pm prayut eradicates prostitution in LOST (land of smiling thieves)  nobody will pay their car loans and the toilet flushes for good.

[Happyman58]

Bank Application for car loan in Thailand for 1.5 million car loan

 

Name:  Address: Non permanent: Employment:  None  Income: Hand out from government 800 baht per month Security Assests: None

Expenditure per Month: Who cares  Debt owing: Who cares Ability to make payments : None

 

Loan approved 

[Cake Monster]

With the Auto Sector in Thailand going through a really bad patch at the moment, which is hurting  the economy, the manufacturers of the vehicles, along with the dealers, and banks, are offering insane loans and credit lines to people that really should not be allowed these facilities.

It is easy now to obtain a 50,000 Baht down payment for a new car / pickup, and the balance over a period of 7 years ( yes ! 7 years ). And for sure the idiots that take out these loans will be offered more money to personalise their new purchase with Alloy wheels, Low profile Tires, Spoiler Wing,and a multitude of stickers plastered all over it.

I am no expert on working out the APR rates on these loans, but a vehicles bought new at 800,000 baht will probably end up costing something close to 2.5 Million after the 7 year period is completed.

All this money loaned out to people that will then have an asset worth about 200,000 Baht after 7 years and they will only actually use the thing for around 5 % of the time they own it.

Credit such as this caused the 2008 Global crash, and Thailand should now better after the 1997 collapse of their economy.

 

[trogers]

1 hour ago, Cake Monster said:

With the Auto Sector in Thailand going through a really bad patch at the moment, which is hurting  the economy, the manufacturers of the vehicles, along with the dealers, and banks, are offering insane loans and credit lines to people that really should not be allowed these facilities.

It is easy now to obtain a 50,000 Baht down payment for a new car / pickup, and the balance over a period of 7 years ( yes ! 7 years ). And for sure the idiots that take out these loans will be offered more money to personalise their new purchase with Alloy wheels, Low profile Tires, Spoiler Wing,and a multitude of stickers plastered all over it.

I am no expert on working out the APR rates on these loans, but a vehicles bought new at 800,000 baht will probably end up costing something close to 2.5 Million after the 7 year period is completed.

All this money loaned out to people that will then have an asset worth about 200,000 Baht after 7 years and they will only actually use the thing for around 5 % of the time they own it.

Credit such as this caused the 2008 Global crash, and Thailand should now better after the 1997 collapse of their economy.

 

The arithmetic is too confusing for Somchai. All he wants to know is how much he has to pay every month for the rest of his life...to sign on the dotted line...

[Briggsy]

1 hour ago, Cake Monster said:

With the Auto Sector in Thailand going through a really bad patch at the moment, which is hurting  the economy, the manufacturers of the vehicles, along with the dealers, and banks, are offering insane loans and credit lines to people that really should not be allowed these facilities.

It is easy now to obtain a 50,000 Baht down payment for a new car / pickup, and the balance over a period of 7 years ( yes ! 7 years ). And for sure the idiots that take out these loans will be offered more money to personalise their new purchase with Alloy wheels, Low profile Tires, Spoiler Wing,and a multitude of stickers plastered all over it.

I am no expert on working out the APR rates on these loans, but a vehicles bought new at 800,000 baht will probably end up costing something close to 2.5 Million after the 7 year period is completed.

All this money loaned out to people that will then have an asset worth about 200,000 Baht after 7 years and they will only actually use the thing for around 5 % of the time they own it.

Credit such as this caused the 2008 Global crash, and Thailand should now better after the 1997 collapse of their economy.

 

I suppose this irresponsible lending / borrowing can continue until all those plots of land which were grabbed for free 60 or 70 years ago have ended up in the hands of the banks or connected families. At that point, the lending may well dry up. Still a fair way to go yet.

[elgordo38]

15 hours ago, snoop1130 said:

Pickups and related vehicles will be the key drivers to the lending, growing by at least 5 per cent, against growth of 2-3 per cent in lending for passenger-car purchases.

Best to keep the bankers on board on this one. Banks world wide are tightening up their lending practices. Banks lend on the premise that they will be paid back. 

[elgordo38]

10 minutes ago, trogers said:

The arithmetic is too confusing for Somchai. All he wants to know is how much he has to pay every month for the rest of his life...to sign on the dotted line...

I know in the west you can piggy back loans. If your old car is not yet paid for pick out a new one and piggy back the balance on the new car loan. Should not be a problem till you get to vehicle number 7 or 8

[trogers]

13 minutes ago, elgordo38 said:

I know in the west you can piggy back loans. If your old car is not yet paid for pick out a new one and piggy back the balance on the new car loan. Should not be a problem till you get to vehicle number 7 or 8

It makes one rich in the eyes of others, in actuality, rich with debts...

[elgordo38]

9 minutes ago, trogers said:

It makes one rich in the eyes of others, in actuality, rich with debts...

Non transparency at its best. I see all these well dressed Chinese tourists with kids entow sporting huge Nikons and Canons just overwhelming plastic prosperity.

[Cake Monster]

Its all to do with the Thai social thing of FACE

Show to your neighbours, and family, and friends your new found wealth of a new car, and their first question to you will be How much did it cost ?

However, not a single one will ask you how much you have to pay each month, and for how long.

I personally know of a couple that bought a new pickup truck and really struggled to pay for the thing over a 5 year loan period

However, to their credit they made all the payments, and the truck now belongs to them. But heres the rub. They are so poor they cannot afford to put the Diesel in it for daily use, and it does about 50 km a month for a regular Hospital trip.

The  truck is now over 6 years old and has only 13,000 k on  the clock.

How rich, and how much face do these people have ?

 

 

[kowpot]

2 hours ago, Cake Monster said:

With the Auto Sector in Thailand going through a really bad patch at the moment, which is hurting  the economy, the manufacturers of the vehicles, along with the dealers, and banks, are offering insane loans and credit lines to people that really should not be allowed these facilities.

It is easy now to obtain a 50,000 Baht down payment for a new car / pickup, and the balance over a period of 7 years ( yes ! 7 years ). And for sure the idiots that take out these loans will be offered more money to personalise their new purchase with Alloy wheels, Low profile Tires, Spoiler Wing,and a multitude of stickers plastered all over it.

I am no expert on working out the APR rates on these loans, but a vehicles bought new at 800,000 baht will probably end up costing something close to 2.5 Million after the 7 year period is completed.

All this money loaned out to people that will then have an asset worth about 200,000 Baht after 7 years and they will only actually use the thing for around 5 % of the time they own it.

Credit such as this caused the 2008 Global crash, and Thailand should now better after the 1997 collapse of their economy.

 

Thais really don't care how much it cost. Even after 7 yrs they figure they can still sell it for what they paid for it. They will give some lame excuse like it was washed every week, so it is still new.

[JGV]

Huge quantity of new vehicles in Sattahip courtesy of the THai military generous loan conditions - amazing to see all these cars costing half a million baht or more but salaries supposedly about 20 thousand a month

Do the Maths or read between the lines

How many loans will forfeit down the road