Seree Kraipilas, a 30-year-old industrial engineer, for years has looked into buying a seven-seat passenger vehicle as his first car.
New-car showrooms are busy but used-car dealers say their premises are nearly empty.
Now, with the Pheu Thai-led government's first-car tax rebate, he says he may consider a model that fits the scheme.
"I really want to buy a car that is comfortable enough for my big family," he said, "and the one I looked at has an engine capacity of 2,900cc. But unfortunately it does not fall into the categories that allow the tax rebate."
After changing jobs, the native of Sakon Nakhon says the scheme makes it easier for him to buy a car next year. His monthly income of 26,000 baht enables him to service instalments of 9,000 to 10,000 baht on top of 4,500 baht a month on a mortgage loan.
"But I'm thinking of switching to a model that fits the scheme, such as a smaller sedan or a pickup truck," Mr Seree said. "I want to make the most of the benefits provided under this programme by choosing the model that suits my family the best."
The programme offers buyers an excise tax rebate of up to 100,000 baht. It initially encompassed all types of vehicles but was later adjusted to include only passenger cars with an engine capacity of no more than 1,500cc or pickups priced below one million baht.
After receiving complaints from importers and automakers whose models did not qualify, the government says it will alter the plan to include 1,600cc models and imported vehicles, pending cabinet approval this week.
Pitak Pruittisarikorn, the director of Asian Honda Motor, said customers have put off decisions while they wait for clear conditions. Honda has called for all models to be included in the programme.
"Currently the market is so confused. Consumers are wondering which model they should buy," said Mr Pitak, also a vice-chairman of the Federation of Thai Industries' Automotive Industry Club.
"In order to create no more confusion, I think they should make just one revision of the plan by including all types of vehicles in the tax rebate."
Piengjai Keawsuwan, the president of the Thai Automotive Industry Association, said the group's members believe a "lump-sum amount" should be offered for all qualified vehicles without a condition of engine capacity, ensuring fairness for every automaker.
She said the proposal suits consumers better too, as they will buy the model they really want without worrying about how big a tax rebate they will get.
"For instance," said Ms Piengjai, "some might change from pickup trucks or small sedans to expensive models so that they can get a tax rebate of 100,000 baht, but actually they are not able to service the high monthly instalment. This could lead to problems later on."
Excise tax on pickup trucks is 3%, thus buyers can get roughly 20,000 baht for the rebate, while the rebate for a small eco-car model is 40,000 baht.
Ms Piengjai, also the vice-president of Siam Nissan Automobile, said automakers were concerned about "fake demand" as a consequence of the scheme. A sudden increase in orders could hamstring production. "Besides, the chance is there for defaults on payments to auto leasing companies."
Meanwhile, the first-car scheme has hurt the used-car market because the rebate would narrow the price gap between a new and used version of popular small cars. Used-car centres on Ratchadaphisek Road have been nearly empty of customers since the middle of the month.
Charnwut Chonprasertsuk, the owner of Soon Rod Dee Ratchada, said visitor numbers had fallen by half this month, even though the 25-year-old centre sells only pickups.
"I don't think grassroots people are the ones who benefit most from the scheme," said Mr Charnwut. "Actually, it's buyers of city cars and some do not service instalments by themselves but their parents help.
"The government just introduced this programme to gain votes without careful consideration of how to implement it effectively."
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