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Shouldn't a Mazda be cheaper in Thailand than USA?


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So I'll be buying a car for my wife when I visit in April. We both like the Mazda CX30 but the price quote she is getting from the dealer is 989,000 baht whereas here in America I could get one for around 750,000 (plus tax, etc)

 

Shouldn't it be cheaper in Thailand? Unless I'm mistaken it's manufactured there. Is the dealer just throwing out a high number because they think my wife won't know any better? 

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You raise a very good question, but the answer can be found in the probability of import fees for the parts to build the cars.  Yet I believe they shifted production to Japan back a few years ago due to the Baht soaring. 

Edited by ThailandRyan
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2 minutes ago, ThailandRyan said:

You raise a very good question, but the answer can be found in the probability of import fees for the parts to build the cars.  

 

But wouldn't that cost get passed on to the American market?

 

At the very least there is extra expense in the transport overseas from Thailand.

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Just now, shootrrdave said:

 

But wouldn't that cost get passed on to the American market?

 

At the very least there is extra expense in the transport overseas from Thailand.

Thailands import fees are astronomical.  The price to buy a Mercedes here is 3 times higher than in the US.  Same with Audi, Porsche and any other luxury car.  Mid level import cars are about 20% higher from what I have seen.

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2 minutes ago, ThailandRyan said:

Thailands import fees are astronomical.  The price to buy a Mercedes here is 3 times higher than in the US.  Same with Audi, Porsche and any other luxury car.  Mid level import cars are about 20% higher from what I have seen.

 

But are those cars being assembled in Thailand or brought in already finished? 

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10 minutes ago, shootrrdave said:

 

But wouldn't that cost get passed on to the American market?

 

At the very least there is extra expense in the transport overseas from Thailand.

 

Oops, a little more googling has shed some light. I hadn't actually thought to check where the American version came from. The answer is Mexico. 

 

I had just assumed it came from Asia.

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Car manufacturers put their prices on their websites so you can look on Mazda's Thai website. They will show the basic list prices, which are the same at all dealerships, with some leeway in whatever options, deals etc. each dealership is willing to provide. 

https://www.mazda.co.th/cars/mazda-cx30/choose-your-grade/

On that page, go down and click on the models and you'll see the prices and the 2.0C is indeed 989,000, with the others over 1 million. It's then up to your wife to see what she can extract from the dealer. Often it's just a lot of extra freebie options rather than a discount. 

Edited by KhaoNiaw
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Not a lot (if any) duty importing auto parts for assembly. If BOI they would likely import parts free.

 

Excise tax. Compare the price of a new Mercedes manufactured in Thailand to one sold in the US.

 

 

Edited by Yellowtail
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4 minutes ago, KhaoNiaw said:

Car manufacturers put their prices on their websites so you can look on Mazda's Thai website. They will show the basic list prices, which are the same at all dealerships, with some leeway in whatever options, deals etc. each dealership is willing to provide. 

https://www.mazda.co.th/cars/mazda-cx30/choose-your-grade/

On that page, go down and click on the models and you'll see the prices and the 2.0C is indeed 989,000, with the others over 1 million. It's then up to your wife to see what she can extract from the dealer. Often it's just a lot of extra freebie options rather than a discount. 

 

Well that explains another issue I was having. Evidently the American market is getting the newer 2.5 motor and Thailand is not. 

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Since february 2020, Mazda CX30 is produced locally at AutoAlliance Thailand Ltd.. So the sale price here in Thailand has nothing to do with the insane high import taxes for foreign cars.

 

The price for the car could and should be cheaper here, but obviously, the car market is not really competitive. To my knowledge, the car market in the USA is the most competitive one, and car prices are the lowest you usually get worldwide. It is a huge market, and every manufacturer is eager to reach good sale volumes.

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So if it's a matter of getting "free" stuff from the dealer to sweeten the deal can someone tell me the cost/ value of the insurance they are providing?

 

And out of curiosity how much is the tax that's built into the price? 

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2 minutes ago, shootrrdave said:

So if it's a matter of getting "free" stuff from the dealer to sweeten the deal can someone tell me the cost/ value of the insurance they are providing?

 

And out of curiosity how much is the tax that's built into the price? 

 

Google Thailand excise tax on cars and go from there. 

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1 hour ago, shootrrdave said:

Shouldn't it be cheaper in Thailand?

No, why should it? Production cost is quite irrelevant. They determined that by selling it for 989k they make the most profit, so this is what they do.

Edited by jackdd
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It's been a few years since I bought a new car in Thailand, but at that time (any maybe now as well?), VAT was included in the list price. So there's 7% right there. In the US, sales tax is not included in the list price so depending upon where you live, this would add anywhere from 6-11% to the final cost after you make your deal with the dealer. Where I live it's 8.5%, so it's a significant chunk. To add insult to injury, all of the car dealers in my state have joined together to implement a "dealer fee" on top of the list price, which runs between $800-1,000. Then there's the freight fee - about another $800-$1,000.  The point of all this is that in the US, the manufacturers list price doesn't include potentially several thousand dollars of additional charges, while in Thailand, the list price is typically "all in".

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1 hour ago, ThailandRyan said:

Thailands import fees are astronomical.  The price to buy a Mercedes here is 3 times higher than in the US.  Same with Audi, Porsche and any other luxury car.  Mid level import cars are about 20% higher from what I have seen.

Depends on the engine size, horsepower etc.  Porsche 911s are about 385%.  A Mazda MX5 is close to 200%

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1 hour ago, shootrrdave said:

So if it's a matter of getting "free" stuff from the dealer to sweeten the deal can someone tell me the cost/ value of the insurance they are providing?

 

And out of curiosity how much is the tax that's built into the price? 

Tax structire is now mased on emissions, as below.

Emissions-based car tax approved

Probably these taxes are higher in Thailand than the US.

I think you mean there is 5 years warranty, rather than 5 years of first class insurance. You probably get the first year free. Then there ar the freebies like floor mats, window tint, coating, and other bits and pieces. 

But consider that cars in Thailand are relatively cheap to service and resale is high - not sure if one gets free servicing / parts on cars in the US. I think it would even out over several years when compared to cthe total cost of ownership in the US. 

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6 minutes ago, DavisH said:

Tax structire is now mased on emissions, as below.

Emissions-based car tax approved

Probably these taxes are higher in Thailand than the US.

I think you mean there is 5 years warranty, rather than 5 years of first class insurance. You probably get the first year free. Then there ar the freebies like floor mats, window tint, coating, and other bits and pieces. 

But consider that cars in Thailand are relatively cheap to service and resale is high - not sure if one gets free servicing / parts on cars in the US. I think it would even out over several years when compared to cthe total cost of ownership in the US. 

 

MazdaCX-30 2.0 C AT

Price  =  989,000  

down payment 20% =  197,800

Finance  money  =  791,200

 

Pay  48  installments  =  18,033  Per  installment    (interest  2.35%)

 

Pay  60  installments  =  14,802  Per  installment    (interest  2.45%)

 

Pay  72  installments  =  12,769  Per  installment    (interest  2.70%)

 

Pay  84  installments  =  11,529  Per  installment    (interest  3.20%)

 

Free...

 

1. First  class  insurance

2.  insulator

3.  License  plate  frame

4.  Polishing  the  car  paint  

5.  Free  car  insurance  for  5  years

6.  Car check  labor  cost  3  time                  10,000/20,000/30,000  kilometer

7.  Optical film

8.  Rust  proof  spray

9.  Emergency  assistance  service

10.  5  liters  of  oil

11.  Free check  PDI  

12.  discount  20,800  baht

13.  Belt cover

14.  Free  Apple  carplay

15.  Free  Vat  7%

16.  Car  registration  fee  5,300  baht

 

Before  receiving  the  car to  pay down payment  20%  =  197,800-20,800(discount  20,800  baht)  = 177,000  baht 2.  You pay  =  177,000  baht 

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You buy most any car in the US and pay, let's say, 8% sales tax.  You buy a car in Thailand, and you can pay between 4% and 30+% depending on the make, model, engine size, etc.

When we bought our Toyota Revo in 2018, the tax was 4%.   I didn't see any cars for less than 10%.  Toyota shows the tax rate on the bottom of the price sticker on each vehicle.

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No idea about Mazda's but bear in mind that specification can vary massively between cars for the Thai market and others - even for cars badged as the same variant.  An LX in Thailand may not be the same as an LX in Europe for example.  Someone posted on here recently about significant differences between Honda's in Thailand compared with the same model in the US.

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It is the same with BMW. They are now, according to BMW, assembled in Thailand but they are still around 100% more expensive than in Europe.

I reckon no matter what they should cost the dealers will up the price as high as possible.

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The beauty of buying a vehicle in Thailand is (pretty much) what the dealer tells you the price is, that's the price.....the whole kit and cabootle.   Tax, license, registration, first year insurance (most all the time), plus added extras (depending on dealers) like first class tint, truck bed, etc.   When you shake hands on a deal in the US, you're just starting. 

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This is the window price on the Toyota Revo that we bought in 2018.  Tax is shown on the lower right near the bottom.  Sticker price 645,000........we drove out paying 645,000 plus 40,000 of freebies plus free service for the first year.   

Side note:  60,000km later, our truck averages 37mpg (conservative driving) and we've had no issues.  

20180602_085855.jpg

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Car prices here are crazy. I don't know how normal Thais afford them.  A reasonable Thai salary is say 300,000 a year. So the 1 million car is 3.3 years salary. What's a US salary $50,000 - 1.5 million baht. So the car is 8 months salary.

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10 hours ago, shootrrdave said:

 

MazdaCX-30 2.0 C AT

Price  =  989,000  

down payment 20% =  197,800

Finance  money  =  791,200

 

Pay  48  installments  =  18,033  Per  installment    (interest  2.35%)

 

Pay  60  installments  =  14,802  Per  installment    (interest  2.45%)

 

Pay  72  installments  =  12,769  Per  installment    (interest  2.70%)

 

Pay  84  installments  =  11,529  Per  installment    (interest  3.20%)

 

Free...

 

1. First  class  insurance

2.  insulator

3.  License  plate  frame

4.  Polishing  the  car  paint  

5.  Free  car  insurance  for  5  years

6.  Car check  labor  cost  3  time                  10,000/20,000/30,000  kilometer

7.  Optical film

8.  Rust  proof  spray

9.  Emergency  assistance  service

10.  5  liters  of  oil

11.  Free check  PDI  

12.  discount  20,800  baht

13.  Belt cover

14.  Free  Apple  carplay

15.  Free  Vat  7%

16.  Car  registration  fee  5,300  baht

 

Before  receiving  the  car to  pay down payment  20%  =  197,800-20,800(discount  20,800  baht)  = 177,000  baht 2.  You pay  =  177,000  baht 

I suspect the free 5 year insurance is the 5 year warranty that mazda usually gives. Check on that, as the free 1st class insurance is listed separately. 

 

I wonder why they list the 5 liters of oil. No car comes without oil, so that is a strange thing to add. 

I see car polish is added there. Hit them up for the free ceramic / glass coating - but you will have to pay each 6 months for them to redo it. he same with the rust proof spray - that is usually redone each 6 months (if it's the black coating underneath that I'm thinking of. 

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7 minutes ago, Henryford said:

Car prices here are crazy. I don't know how normal Thais afford them.  A reasonable Thai salary is say 300,000 a year. So the 1 million car is 3.3 years salary. What's a US salary $50,000 - 1.5 million baht. So the car is 8 months salary.

Many live with their families and share costs. I see many Thai teachers these days driving new cars - generally eco cars or b segment cars. They would prefer to live in a shack and have a nice shiny car, rather than vice versa. They will take you anywhere in their new car..except their house:). Those with their own businesses are probably not up front with their income and hence the tax they should be paying either. Plenty of savings to be made there. 

Edited by DavisH
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11 hours ago, shootrrdave said:

 

No idea. That's why I'm asking?...lol

You have to shop around some cheap deals by dealers could be last years model that still have in stock.

When buying in Thailand the price is the price.

To compare as you are with US is pointless.

 

To think on it a different way is how much do you lose on a new car in US and how much is lost in Thailand, secondhand cars here are expensive IMHO.

 

What you can buy secondhand here for say 100,000 baht in the UK you'd have to give it away to be rid of it. 😂

 

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