Sunday, January 5, 2014

Thai Auto lenders expect flat growth this year


After two years of healthy loan growth thanks to the government's first-car tax-break scheme, new lending for car purchases will likely be flat this year.

Anuchart Deeprasert, chairman of the Thai Hire-Purchase Association, said sales of new vehicles this year were expected to be 1.2 million units or fewer. About 85 per cent of car buyers finance their purchases with hire-purchase (lease-to-own) lenders, so if car sales are flat, auto loans will be as well, he said. Financial institutions are also expected to tighten up loan approvals because the prospects for the economy this year are not bright, and the unclear political situation does not help.

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