Lenders not hopeful of much interest in Bitec first-car event
Hire-purchase operators are offering low down payments and low interest rates as promotions to attract buyers participating in the government's first-car scheme, at a four-day event starting today at Bitec Bang Na.
However, lenders say they will not set targets for the number of loans they will see during the event, as the severe flooding in much of the country means many people are in no mood to buy a new vehicle.
Pairote Cheunkrut, managing director of Ayudhya Capital Auto Lease, or Krungsri Auto, said the company was ready to join the event today, even though lenders had not received confirmation that they can sell repossessed vehicles under the government’s first-purchase programme.
Under the scheme, buyers must own the car for five years, during which time they cannot transfer ownership to anyone.
Pairote said the company would not set strict conditions for borrowers who apply for a loan for their first car or truck.
At a first-car event today at Bitec, Krungsri Auto will offer down payments of only 9 per cent and 90-month loans. The promotion ends on Friday.
The company will use its existing auto-loan promotions for the first-car scheme as well, Pairote said.
He noted that the company, for the moment, did not expect many loans from the event, as people are more concerned about the flood crisis than about buying vehicles.
Pinyawat Chandharakantanon, managing director of KTB Leasing, said the company was offering zero down payments, 84-month instalment plans and an interest rate of only 2.35 per cent, compared with the market rate of 2.6 per cent for auto loans.
The company is ready to approve customers who meet the loan requirements at the Bitec event, he said.
However, KTB Leasing also has no projection on how many loans it |will secure from the event because |this is not a good time for this project, with most people worrying about the flooding.
Chalit Silsrikul, executive vice president of Tisco Bank, said it might not offer special promotions unless the Cabinet today settles the issue of what lenders can do if borrowers default during the five-year ownership period mandated by the scheme. Lenders may not be allowed to sell repossessed cars, which would be a burden on them, he said.
“Tisco will not offer any special promotions but we will join the event by offering existing promotions such as 9-per-cent down payments,” he said.
He agreed that the serious flooding would affect the sentiment of |buyers.
Kasikorn Leasing Co reported that it would not join the Bitec event.
