AMID a spike in non-performing loans (NPLs) and risky debts with this likely leading to an increase in seized vehicles Union Auction Plc (AUCT) has now joined hands with garages to increase their lots to cope with the upcoming influx, Matichon newspaper said this evening (June 28).
Mr. Waranyu Sila, AUCT’s CEO, said despite the National Credit Bureau having said that car hire purchase loan default is expected to jump leading to 1 million vehicles being seized over four months, this is unlikely to soar this rapidly from an annual total of around 200,000 vehicles because finance companies tend to offer debt restructuring plans to defaulting clients.
Moreover this big a spike would impact the overall auto industry as it would lead to prices of new vehicles falling while having a wide effect on the national economy.
Even so Waranyu does expect a 20% increase in the number of used cars seized from last year’s total with finance firms usually not seizing a large number of vehicles in one go and steadily doing so.
With this market expanding in a highly competitive environment Union Auction has arranged additional parking space for the influx of more seized vehicles with 10 more lots or car pick-up points being opened nationwide this year.
Some parked used cars. Top photo: Thai Rath, Front Page photo: Matichon