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Sheryl

Advice on buying a new car in Thailand

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Posted (edited)
4 hours ago, Sheryl said:

 

 

I would add that there is no truth at all to the idea that it is currently a buyer's market, at least not for Honda in the central provinces and Bangkok. I suspect those saying this are just making an assumption and have not actually bought a car recently. All the dealerships I went to were packed and doing brisk business, which may have to do with the fact that they were  closed for 3 months during lockdown leading to a backlog in consumer demand.

 

And of course not at all true that "cash is king", cash as far as car dealers in Thailand are concerned is a negative factor that makes a sale less attractive.

 

 

 

A good outcome.

I am a partner in a used car business in the UK (mostly a 'sleeping partner' because I usually spend half the year in Thailand but actually working at the moment due to being stuck in UK!).

We have a 40-car pitch and service/MoT workshop. We work with several finance companies and typically receive 5-10% commission on a finance acceptance. We receive a higher commission if the customer pays a higher interest rate. In a typical month we would receive over £3000 commission which is enough to cover power, water, internet and waste etc bills. Its a vital income stream.  In fact you could say finance customers subsidise cash buyers....    I would imagine commissions in Thailand are not dissimilar.

Over 80% of cars in the UK are bought with finance, probably higher in Thailand. The last thing I want is a customer paying cash. The worst ones are the punters that turn up holding a bundle of cash expecting 20% off. Watching too many TV shows I think.....   Not only will they get nothing off but we actively avoid taking physical cash (money laundering regs and risk of counterfeit notes).

The car market in the UK is currently very strong and prices at an all time high. Cars are in short supply. Pent up demand following lockdown and the government has been handing out a lot of money.

I do expect a downturn though, as the impact of job losses makes itself felt. There will be lots of defaults. UK and Thailand both I think...

 

Edited by HauptmannUK
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19 hours ago, Lancashirelad said:

@HauptmannUK I thought you seemed to know what you were talking about. 😀  No doubt you're already aware, but seems like you might be getting less finance commission in the near future: https://www.bbc.co.uk/news/business-50052375

Yes, this has been rumbling along for a couple of years now and will be implemented soon.  Actually we don't think our commission will change much, its more to crack down on the dodgy players who only quote '£X per week' and never the APR and then bounce the customer onto a high APR to maximise commission.

No doubt worse goes on in Thailand, from my observation..

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