Auction Company Gears Up For Jump In Seized Vehicles

[KaptainRob]

Source https://thainewsroom.com/2023/06/28/auction-company-gears-up-for-jump-in-seized-vehicles-amid-spike-in-defaults/

 

AMID a spike in non-performing loans (NPLs) and risky debts with this likely leading to an increase in seized vehicles Union Auction Plc (AUCT) has now joined hands with garages to increase their lots to cope with the upcoming influx, Matichon newspaper said this evening (June 28).

Mr. Waranyu Sila, AUCT’s CEO, said despite the National Credit Bureau having said that car hire purchase loan default is expected to jump leading to 1 million vehicles being seized over four months, this is unlikely to soar this rapidly from an annual total of around 200,000 vehicles because finance companies tend to offer debt restructuring plans to defaulting clients.

Moreover this big a spike would impact the overall auto industry as it would lead to prices of new vehicles falling while having a wide effect on the national economy.

Even so Waranyu does expect a 20% increase in the number of used cars seized from last year’s total with finance firms usually not seizing a large number of vehicles in one go and steadily doing so.

Continue reading >HERE<

 

[Vigo]

The auto sector has been taking  excessive profits since Covid.  First they told us that  price increases were due to vehicle shortages because of component part backlogs (e.g. computer chips). This had a trickle down effect  onto the used car market. Now we are told that the used vehicle market  will swell and prices will be impacted  and hurt the economy.

I prefer to consider it as a normalization in pricing and an easing of the price gouging that has been going on worldwide. The finance companies and auto dealers made a fortune on these financing plans. Now, prudent consumers may be able to access slightly used vehicles at a more affordable cost.

[KaptainRob]

19 hours ago, Vigo said:

The finance companies and auto dealers made a fortune on these financing plans. Now, prudent consumers may be able to access slightly used vehicles at a more affordable cost.

Bangkok Post report today > https://www.bangkokpost.com/business/2602366/thai-banks-top-asean-bad-debt-rankings.

Quote

Thailand's top three banks have combined non-performing loans (NPLs) of more than US$9.6 billion, the highest in Southeast Asia, but Thai banks overall still have a high level of reserves for bad debts,...
 

That's USD, not Baht.

When hard times hit, Thai's either hand their new car back or hold on to the old clunker.  There's very few with the cash or borrowing ability to purchase near new 2nd hand outright.  Finance companies might move a small % of near-new returns by offering 'as new' finance.

In theory, car yards should be full of discounted late model vehicles, but try finding one.

[Marc26]

1 hour ago, KaptainRob said:

Bangkok Post report today > https://www.bangkokpost.com/business/2602366/thai-banks-top-asean-bad-debt-rankings.

That's USD, not Baht.

When hard times hit, Thai's either hand their new car back or hold on to the old clunker.  There's very few with the cash or borrowing ability to purchase near new 2nd hand outright.  Finance companies might move a small % of near-new returns by offering 'as new' finance.

In theory, car yards should be full of discounted late model vehicles, but try finding one.

It's shocking how expensive used cars are in Thailand 

 

When you are a kid in the US your 1st car is usually a car for 50-75k baht

 

 

I looked for a decent used car for my stepson and the prices were outrageous 

 

 

Maybe better if you are on the ground 

[oldschooler]

On 6/30/2023 at 5:17 AM, Marc26 said:

It's shocking how expensive used cars are in Thailand 

When you are a kid in the US your 1st car is usually a car for 50-75k baht

I looked for a decent used car for my stepson and the prices were outrageous 

Maybe better if you are on the ground 

Imported New Car = 200% yes that’s two hundred per cent Luxury Tax.

Takes maybe ten years to “ lose” that in used price.

Best to look for firesale desperate expat car sales.
saw a very old but reconditioned 1990 Volvo for 90k baht..

I am forced to indulge my Thai lady with Beetle. 
After much market research and negotiation still recently paid 650,000 baht for 2010 1.6i in very good condition. Estimated 200k baht in UK…

collectible car here but not in West of course 

[Marc26]

2 hours ago, oldschooler said:

Imported New Car = 200% yes that’s two hundred per cent Luxury Tax.

Takes maybe ten years to “ lose” that in used price.

Best to look for firesale desperate expat car sales.
saw a very old but reconditioned 1990 Volvo for 90k baht..

I am forced to indulge my Thai lady with Beetle. 
After much market research and negotiation still recently paid 650,000 baht for 2010 1.6i in very good condition. Estimated 200k baht in UK…

collectible car here but not in West of course 

Yes if(and when) I am on the ground that will always be my MO

 

Looking for a farang fire sale.

 

I've seen many of them in my time in Thailand