Drop in car sales sees auto-loan drives toned down
AUTO-LOAN campaigns at the 33rd Thailand International Motor Expo are not so attractive, reflecting the sombre sentiment of consumers and the dearth of new models. Thawee Teerasoontornwong, executive chairman of Kasikorn Leasing, said yesterday that car sales last month dropped considerably from previous months because people are in no mood to spend. This is expected to carry into this month.
Motor Expo is the venue for car sales and special promotions but lenders have toned down their campaigns.
KLeasing’s campaigns are designed to help dealers more than end users.
Car producers have postponed unveiling new models at the auto show. But the market hopes that the new models will be launched early next year and that attractive campaigns will follow, Thawee said.
At the event, KLeasing is offering an interest-free down payment instalment plan via K-Credit Card for up to six months and a free Bt1,990 car cam to applicants for K-Auto Finance this month with delivery by February 28.
Thanachart Bank is highlighting a one-year interest back loan for customers showing good discipline.
Teerachart Chiracharasporn, head of products and marketing for the bank’s automobile-lending unit, said the bank’s campaign is aimed at helping customers embrace discipline in paying off debts.
The one year of interest back to customers is more than enough to attract customers.
Customers are required to open a deposit account with the bank and apply for automatic transfers and T-Connect or PromptPay to get the right to a full year of interest transferred to their account when the loan matures. The campaign runs to January 31.
The bank is promoting the low interest rate at the event but the rate will vary with the model, he added.
December is the high season for car sales. The market projects sales of 80,000-100,000 units.
TBank hopes to acquire 20 per cent of the market this month, he said.
Rungroj Jarasvijitkul, head of product and marketing for retail banking at Tisco Bank, said the bank has brought the same campaigns from the Motor Show in March to the Motor Expo, as the bank believes those campaigns are appealing enough to enhance entice customers.
Tisco Bank is marketing a zero-rate loan with a 10-per-cent down payment and 84 monthly instalments.
The overall auto loan market is not resuming its normal cruising speed, but December is the peak season.
Sales should rise to the 80,000-unit rate from 60,000 units in the previous months.
Domestic new car sales are expected to drop 5 per cent to 760,000 units this year.
However, 5 per cent is better than the decline of 10 per cent forecast by the market early this year.
Krungsri Auto is pitching a minimum down payment, extended loan term with no need for guarantors for Thai customers, plus special rewards.
Customers applying for a Krungsri auto loan at the event can avail of a down payment starting at 5 per cent, maximum 48-month loan and free Tesco Lotus gift voucher, valued up to Bt1,300.
For the Krungsri Big Bike and Krungsri Motorcycle campaigns, the minimum down payment is 10 per cent and the maximum term is 48 months.