Used car prices?

Discussion in 'General Discussion' started by Paul.Vientiane, Oct 18, 2012.

  1. Paul.Vientiane

    Paul.Vientiane Member

    Messages:
    140
    Likes Received:
    4
    Apart from the diabolical driving standards here having the effect of making car prices artificially high, does anyone know why used car prices are this high. Most vehicles I have seen are of very questionable origin and levels of maintenance. I saw a Suzuki Jimny for sale at 5,500USD, is this a typo?, the vehicle had covered over 100,000kms and was the base model. Its accurate price is 2 - 2,400 USD (on a good day)the vehicle had white/blue plates so tax would not have been paid either. I saw a Mitsubishi Pajero advertised at 12,000 USD - that MUST be a typo, it should read $1,200. I sold a Mitsubishi Shogun (same car) in the UK before we left and the best offer was 1000GBP, it was a 1997 with 200,000 miles (320,000kms).
     
  2. Petrus47

    Petrus47 Moderator Staff Member

    Messages:
    749
    Likes Received:
    68
    Recently I heard that the import of second hand cars is now forbidden; maybe in order to stop the growing number of cars causing more and more traffic jam every day?
    I personnaly had white/blue plates that I managed to change to the standard yellow/black and because the car previously belonged to a lao guy, I did not have to pay any tax.
    It is a refurbished, I think, more than 30 years old Jeep.
    There are some "mini-markets" where you can see advertising for second hand cars, not mentionning the present forum.
     
  3. JK

    JK Jack of all trades, Master of none

    Messages:
    333
    Likes Received:
    31
    I don't think the driving standards, or lack thereof, have much at all to do with the prices of used vehicles here. Taxes and not much competition are the main factors keeping the used vehicle prices at higher levels than many foreigners are used to seeing. In the US, if there is a certain type of vehicle you would like to purchase used you can generally find tens if not hundreds or thousands of the same vehicle for sale relatively close by to choose from. You also pay tax yearly on vehicles in the US, which, over the life of the car, can actually add up to more than what they charge up front here in Laos. Maintenance issues exist in every country so it would probably be wise to take any vehicle you are planning on purchasing to a mechanic prior to laying out the cash. The problem here is that many local mechanics don't see a problem until something is broken and the car won't drive or turn on, etc. Preventative type maintenance is really up to the owner to make sure it is done, and in my limited experience here, it isn't done often. This is a different market than most foreigners are used to and you just have to adjust or use pedal power.


    I also have heard that the government has stopped allowing used vehicles into the country. Many theories as to why but no real accurate information to give you.


    Paul, you mention prices of suzukis and mitsubishis... have you taken a gander at what they are asking for used toyotas? I've seen people asking for more money than what a new vigo would cost for their 7 year old 100km truck... amazing to me.


    We have also recently been looking at the dealership as many are beginning to offer financing. We have discovered that the dealerships are not amortizing the loan over time, rather you pay the same interest amount the first month as you do the last, effectively doubling the already relatively high interest rate being advertised in some cases. Several of our Lao friends were excited as they believed they were getting a good deal on the purchase of a new car through some of these programs only to be let down when shown how the interest was computed and what they would actually end up paying for the car. Some of these lending practices have been deemed illegal in the US... probably very little oversight here...


    To end on a good note, however, you can always look on the bright side as it relates to used car prices. You can buy a used car here, drive it for several years and sell it for what you originally paid for it... and sometimes more than what you originally paid...
     
  4. Petrus47

    Petrus47 Moderator Staff Member

    Messages:
    749
    Likes Received:
    68
    Another explanation of high prices comes with the high level of taxe you pay when you register your car.
    I've heard someting like 90 percent.
    The owner simply wants to get his money back.
    When you buy a second hand car you don't have to pay the tax again.
     
  5. Paul.Vientiane

    Paul.Vientiane Member

    Messages:
    140
    Likes Received:
    4
    The last car I had in the UK before we decided to return here to live was a Ford Explorer which had covered 150 000 miles (240,000kms), was mechanically perfect as I had just replaced the whole timing chain, the cassettes and guides both front and rear. That car, (Ruby) was my second wife, my best friend, my mate - if I could have taken it for a beer, I would have!. The Lao government wanted 140% of the value THEY decided to put on it. They said it was worth $8000 - (I think they are all on the whacky backy or sniffing substances they shouldnt) I found out that they had added an extra 40% because it was right hand drive too. I sold the car in the UK and it broke my heart but I do keep track of her via the MID database, the best offer was a mere 2000GBP. Another thing that really "bugs" me here is that all the cars I have seen as "for sale" do not have prices on either - whether this is to make it easier for the proprietor to fleece the foreigner by charging what he likes I know not, but just as the old saying goes "If they wont say how much it is, its either too expensive or they dont need the business" I went "pretend" shopping with my wife (a Lao citizen) to a dealers in DongPalep village just as a trial, I went on my own and "pretended' to be interested in a Toyota Fortuner, my wife visited next day. My wife's price was 500 Dollars less than the one I was given. The car finance being offered is a scam compared to the U.S and the U.K where most of these "sharks" have been closed down or imprisoned. The other down side to this "scheme" is that the dealer wants your house as security - nothing unusual in that except if you are a foreigner you more than likely are renting a property which makes finance out of the question. That might actually be a blessing in disguise really as the interest rate or APR would work out at 1750% over a typical 5 year plan. The only way to take advantage of this is to have the finance but clear it immediately - like a Visa card. I would like either an Abrams (for day to day driving) and an M1 battle tank (for the rush hour). I think maybe a Leopard or 75 ton King Tiger for leisure trips to NK. The Thai driving is just cretinous but NK isnt as choked as VTE!!!!
     
  6. navydoubs1

    navydoubs1 Member

    Messages:
    166
    Likes Received:
    2
    Paul,


    I have the same issue, at the mo im renting a little byd, because buying is just nuts!


    $12000 for a 94 shogun that in the uk would be $1500 at most.
     
  7. codemonkey

    codemonkey Active Member

    Messages:
    113
    Likes Received:
    25
    navydoubs1,


    I am very interested in this, where do you rent your byd and how much do you pay per month? Thanks.
     
  8. Paul.Vientiane

    Paul.Vientiane Member

    Messages:
    140
    Likes Received:
    4
    So am I, I wouldnt buy anything here - renting vehicles seems the most sensible option. Please please please do give us the details. I used to own an old Suzuki Vitara, it was my first car - I sold it for scrap and got 150 quid, it was a 1994 JX. The best offer was 100 quid originally but I threw in a set of nearly new tyres!. I really begin to ask "do people really really pay these stupid prices?" I think maybe they are just "chancers" to see if anyone is dum enough to pay it. I would really really be interested in renting a car though. Do tell.
     
  9. Jfunk

    Jfunk New Member

    Messages:
    1
    Likes Received:
    0
    I understand the high taxes and lack of second hand car market are the main reasons for the high prices, but I think you're being overly pessimistic here, a good deal can be found.


    2 years ago I bought a 2002 Hyndai Santa Fe for $10,000. At the time I checked the used car websites in Australia and there wasn't much difference. Just checked again and a similar car is still going for about $8000-$9000. Not bad if you ask me.... and the maintenance and parts are a lot cheaper here!!
     
  10. navydoubs1

    navydoubs1 Member

    Messages:
    166
    Likes Received:
    2
    Disagree JFunk, the prices are nuts, although i agree the santa fee was a good deal.
    The import tax is the problem. My BYD is through a fixer. I wont give his name out as he may not appreciate it.
    They can be bought new for very little though.
    Just along from La Ong Dao there is a dealer.
    I really fancy a Beetle. I had one as my first car and would love another. So if anyone sees one less than 3k let me know.
    Paul you would think they are chancers but it really is that expensive.
     
  11. Paul.Vientiane

    Paul.Vientiane Member

    Messages:
    140
    Likes Received:
    4
    I guess I am just going to have to get used to shanks's pony and my Kolao Sonata for a while longer. Even if I had a million Dollars I wouldnt pay these prices for old out of date cars or very questionable road-worthiness.
     

Share This Page