Pattaya Auto Dealer Faces Sales Slump Amid Stricter Financing

Pattaya —

On July 3rd, 2024, The Pattaya News interviewed Mr. Paisan Kasemsantitham, the executive of Zunn Auto Center Pattaya, who discussed the severe challenges his second-hand car dealership faces due to stringent lending measures imposed by financial institutions.

Paisan explained that the high levels of non-performing loans have forced banks to implement stricter lending rules, significantly reducing the sales of second-hand cars. Before the Covid-19 pandemic, the company sold 50-60 cars monthly across three branches. Now, they sell 20 or fewer.

In response to these challenges, the company has been compelled to downsize from three branches to one, thereby reducing monthly expenses from 200,000-300,000 baht per branch. Additionally, they have decreased their car stock from 150-200 vehicles to only 70-80, sometimes selling at a loss to stay afloat, remarked Paisan.
The stricter lending criteria, which now require a spotless credit history and stable income, have made it much harder for many customers, particularly cash-paid workers, to access credit. This has significantly impacted sales, said Paisan.
Furthermore, the importation of electric vehicles in 2023-2024 has disrupted the second-hand car market, causing resale prices to plummet. Some dealerships have started avoiding certain brands to prevent losses. The combination of stringent lending measures and the rise of electric vehicles has created a perfect storm for the second-hand car market, concluded Paisan.

Kittisak Phalaharn
Kittisak has a passion for outgoings no matter how tough it will be, he will travel with an adventurous style. As for his interests in fantasy, detective genres in novels and sports science books are parts of his soul. He works for Pattaya News as the latest writer.