Sales down by 20-50%

Chankit Trakoolwilai

The Nation

Sales by used-car dealers fell 20-50 per cent year on year in the first quarter, with more buyers opting for new vehicles that run on alternative fuels like E20 gasohol.

A survey conducted recently by The Nation showed that almost all second-hand outlets suffered a drop in the period.

According to bookings made at the Bangkok Motor Show from March 28 to April 6, 18,098 new vehicles were sold, reflecting a 30.36-per-cent surge from the 13,883 units sold at the show last year.

"But most buyers have decided to buy new cars rather than used ones, because they fear their fuel expenses would rise, as petrol prices have surged steadily over the past two years," said Thanapat Pornpongmaneekul, manager director of Twotwocentre, a used-car agent on Bang Na-Trat Road.

His company's trades have fallen from 10 a month to just five, or a 50-per-cent drop from last year.

PM Car Centre owner Prasert Yoogaew said his firm's sales had dropped nearly 60 per cent from 20 a month last year to just eight a month in the past quarter.

Jiw Auto Car in Bangkok's Lat Phrao district also recorded softer monthly sales, falling from 15 to only seven. Thong Chai 5 on Bang Na-Trat Road recorded a smaller decline, from seven five monthly. The prevailing view seems to be that new cars can use cheaper fuels like E20 gasohol, said Thanachart Bank senior vice president Anuchart Deeprasert.

He said cars that can use E20 also cost less, because they were subsidised by the government through lower taxes.

The new units can also cut petrol bills Bt6 a litre.

"They are expected to be more cost-effective than used cars over the long run," said Anuchart.

Tisco Bank executive vice president Sakchai Peechapat said demand for used cars had eased, because prices have become competitive.

Today's drivers are also better informed.

"We believe the purchasing power of buyers has risen, but they now favour cars that conserve energy and run on efficient technology," he said.