The general public transportation product is unreliable in the majority of elements of Thailand. Using a car is important for several Thais and expats who live here. Sure Bangkok has the BTS and MRT. And many major towns and cities use a van network and local buses or songthaews. However these don’t serve the requirements of everyone. I won’t argue that the BTS and MRT are perfect systems, but they’re inadequate for the requirements the town. And they’re only appropriate for those living in the central zone. Many expats are living in areas including Chonburi, Phuket and Chiang Mai, where subway lines and sky trains are still a distant dream.
Sweating within a bus, risking safety within a public van, and waiting on unscheduled buses means that many individuals opt to invest in a car, particularly those living outside Bangkok. The quality of life and freedom that owning car for cash will give you will make a massive difference. Imagine traveling on a bus or in a taxi having a baby or praying to some higher power that your particular van driver can get you to your destination safely.
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How to start
When I bought my first car I had millions of questions. I wasn’t “into” cars and didn’t know much in regards to the industry and how things worked. A lot of people head to their dads for car advice, and so i traveled to mine. I had been lucky because my father worked in the vehicle industry more than 25 years and then he provided plenty of advice. I purchased a vehicle I used to be content with. However, here in Thailand things work differently. So I used the advice from my dad plus from a couple of great local sources: Damien Kerneis, Co-Founding father of SiamCarDeal, and Wasawad Wasuthasawat, Country Manager at Carsome.co.th.
In addition, i used plenty of online sources and through this informative article I will give you quotes, figures, and links to useful sites to assist you to invest in a car in Thailand.
Why Buy a Car?
Location influences your must purchase a car. I’m unclear lots of people located in Central Bangkok could justify using a car as there is good public transport. There’s also a lot of traffic which will make driving a nightmare.
If you wish to travel beyond the downtown area for business, it becomes a necessity to get private transportation. Possessing a car may appear beneficial to weekend trips beyond the big city, but you need to take into consideration the frequency of which you would utilize the car and when it might increase your standard of living.
Should you have chose to buy a car, your physical location can help determine which kind of car would best meet your requirements. Should you travel long distances from your rural area then a larger car for cruising around will make sense. If you live inside the city, choosing a small compact car to produce traversing through traffic easier is definitely the better choice. You can adhere to the Thai trend and acquire a tremendous pickup truck, wherever your home is.
Pickup truck is actually a number one selection for many Thai families.
Long Term vs Temporary
An important factor for several expats to take into account is whether or not they are staying in america for a long- or short-length of time.
Long-term expats acquire more reason to purchase an automobile since it is a tremendous financial investment in Thailand. Those married, here on retirement visas, or individuals with full-time jobs who stay for the long term may benefit from having a car.
Those here for a short period should take into account the resale value of their car and exactly how easy it’ll be to sell. As you’ll see there is a substantial amount of paperwork involved when selling an automobile. For those for a shorter time, it is probably not the best choice. You must also consider that if you must leave Thailand with a certain date the car should be sold by then that may cause problems should you be rushing to locate a buyer.
There is always the option for leasing a car for a time period of a couple of months as much as a year or relying on local public transport and taxis. I wouldn’t buy a car if you aren’t likely to be in Thailand for over a year-unless you are living in a rural area.
If you’re looking for a brand which holds it value then your best choice is actually a Honda or Toyota or perhaps the top models from Japanese car makers.
One common reason for buying a car in Thailand is perfect for when you have children and don’t wish to depend on public transportation. I wouldn’t desire to take a baby on the bus or in a taxi. I feel it could be irresponsible along with a car is the safest way to transport your loved ones in case you are out of reach from the MRT and BTS in Bangkok.
Parents.com have listed their top cars released in 2016 for families. A list may be worth a peek since many models can be purchased in Thailand.
New Cars vs Used Cars
One of the biggest choices you’ll need to make is whether you need to buy a new or used car. You can find advantages and drawbacks to both. A lot of people would rather buy new as a result of lower maintenance costs and frequent special offers. But there is also a thriving second hand car market in Thailand. And the chance of buying off their expats in Thailand means you can proceed through the majority of the process in English.
Whenever you get a new car, there are a variety of advantages. You can get a lot of extras thrown in if you are proficient at negotiating. Here in Thailand, most dealers often sell with the recommended list prices nevertheless the extras are where you may attempt to get added value. It’s normal to have the first year’s insurance covered or tinted windows, as an example.
If you buy new, you’ll have peace of mind knowing you happen to be first owner of your car, so there shouldn’t be any surprises at a later time. Investing in a new car entails you possess more finance options available, and you’ll have the opportunity to speak towards the dealership regarding your personal situation.
During my research with this article, people claimed that the dealership where they bought their car also offered them better part-exchanges on new car purchases. The partnership in between the customer and dealer allows expats to inquire about more questions with the experts before, during, and following the shopping process. As you’ll see underneath the buying process isn’t always easy but by making use of an authorized dealer you’ll be working with salespeople who have experience negotiating with expats.
The key good thing about a pre-owned car is basically that you get a cheaper list of wheels. There is a likelihood of a bargain in Thailand, nevertheless in general used cars hold their value well and expense greater than you will pay in western countries.
You will also have the option to purchase a used car from your licensed dealer meaning you’ll better the likelihood of getting a service package or insurance. Used cars can be purchased from a variety of sources and a few of them offer the cheapest prices in the marketplace.
One negative for used cars is the 7% VAT that’s included with the bill if you pick coming from a showroom or second hand car dealer, or make use of a loan to finance the investment. To avoid this payment you can buy in cash coming from a private seller. Buying from the private seller who has looked after their car is an excellent option. Thai people call these “house cars.”
Exploring the roads of Thailand I saw two trends. The 1st was the amount of pickup trucks as well as the second was the popularity of Honda and Toyota cars.
Coming from the UK in which the roads are packed with Fords and Renaults, I put the quantity of Hondas and Toyotas down to the Thai passion for Japanese products. However I soon discovered other reasons for his or her popularity. Honda and Toyota are 2 of the car brands which can be produced in Thailand and also have lower taxes and selling prices than imports. Tax can also be the reason for the large number of pickup trucks. These cars possess a reduced excise tax, causing them to be a common choice for many people.
Another reason why for your interest in these brands may be the availability of certified mechanics. Every town could have a garage to fix these cars and also the parts are really easy to find. Even third-party garages will probably be knowledgeable of top-brand cars.
Wasawad Wasuthasawat said, “black and white” were the two most popular colors for cars and would be a good choice if you were trying to sell your automobile after a number of years.
Regardless of the model, black are white are two most in-demand colors in Thailand.
Researching shows Toyota, Honda, Isuzu, Mitsubishi, Mazda, Nissan, Suzuki, Ford, Chevrolet, and MG are manufactured in Thailand and they are priced much better than other brands. BMW and Mercedes are assembled in Thailand but use imported parts which will make them more pricey than they’d be throughout Europe or perhaps in America. Imported finished cars and trucks are at the mercy of a 300% tax, which makes them three times more pricey than in Europe or America.
“The Corolla or Altis is probably the best-selling models for the public,” Damien Kerneis said. “It holds its value well and it is easy to find spares.” Since this is the style of most taxis in Bangkok, it is going without saying that these cars are a wonderful option for those on a budget checking out getting their very own wheels in Thailand.
There are various options in relation to getting a car, used or new, in Thailand. Traditional dealerships are popular however, there is also an ever-growing list of online selections for investing in a car.
The dealership was the initial place I visited when buying a car in Thailand. I felt reassured by going to an official dealership and felt I would personally receive better service plus more legal fallback if there are any problems. Furthermore, it seemed quicker to get finance using an authorized dealership than depending on alternative methods, which are listed later in this article.
I went into the process of buying without the need of a preference towards brand. My issue was budget. I want to have got a BMW, but depending on Thailand prices they are not value for the investment-and solution of my cost range. Visiting a dealership meant I was able to chose a cheaper brand, take a look at all of their variety of models, and discuss pricing options. The benefit is that we now have car dealerships in all the big towns and cities. Within ten kilometers of my condo in Bangkok, as an example, I was able to visit a wide array of car dealerships.
Another advantage of the dealership is that you could see new and used cars and make a price comparison and conditions. Most official dealerships likewise have promotions, and give warranties and extras on not merely new cars, but used cars too.
You also have the choice to test drive an auto for those who have a Thai driving license, a license out of your home country, or an international license.
Just like many places in Thailand, at dealerships salespeople will treat you as outlined by the way you look. After I walked in wearing a scruffy T-shirt and shorts I got little attention. But once I went together with jeans, a collar shirt, and dress shoes I needed salespeople jumping over themselves to help you me. Maybe it was just random luck-or bad customer service at some dealerships-but there is a correlation between your two.
The Bangkok International Motor Show is amongst the most popular places for Thais to purchase a brand new car. Sales through the 2015 show were likely to be over 40,000 and that is a lot for that 7-day event. Often discounts are shown and there are wonderful promotions. 2017’s event was held at the Impact Arena around the outskirts of Bangkok prior to Songkran.
Before, the case has become criticized as being more details on the pretty models, but following the recent Junta takeover everything has been toned down and also the cars have become taking center stage again.
Additionally it is common to see mini shows inside the numerous shopping malls around Thailand. My local mall, Fashion Island, may have one or more car company showcasing new models every few weeks. They have got huge signs offering discounts however it is not clear if they are the same deals you’d get at the dealership. One good thing about these events at the mall is that there is certainly less pressure to acquire and also you have the opportunity to view and sit in a vehicle.
Regenthomecar, an example of a car tent in Thailand
Among my Thai friends told me I was able to purchase a car with the tent which confused me. I googled “car tent” and found pictures of tents covering cars. It wasn’t until I came across this post where I discovered a car tent is a used-car dealership.
Many cars have limited warranties and several can be purchased “as seen” so you need to have a true knowledge of cars to acquire a good buy. Tricks including winding along the mileage and putting different parts into cars do carry on so buyer beware.
Many car tents work jointly with a finance company as well as a loan can be arranged on the spot. It’s best to generate a payment and drive the car away. It’s not unheard of for car tents to change parts when a customer pays a deposit and returns later for the car. Also, when you pay by cash the price tag on the car can be more than if financing, since some car tents get commission from supplying loans.
If you are looking to get a car to help you from point A to point B then trying to find bargains at a car tent happens to be an option.
Car auctions are fantastic fun to observe. The atmosphere is exciting and that i discover it intriguing to learn the tactics of the bidders trying exercise their top price. Buying a car through auction is something I might be skeptical to try for a number of reasons though.
The problem is that you have to compete against other bidders and may end up paying a lot more than you’re ready to from the heat of battle. At auctions you’ll need to make quick decisions and may not obtain a full description of the vehicle or have limited possibilities to inspect it. I wouldn’t buy a car from auction unless I had full knowledge of the car and can inspect the vehicle first, ensuring it was in good order.
However, it is possible to sometimes get yourself a bargain with an auction if others aren’t interested in a car you need. People that have understanding of cars can be confident that they could spot a good deal when they see one.
If you’re interested in car auctions, take a look at Union-Auction and Manheim, which both have listings for car auctions in Thai and English. Both sites give pictures and descriptions for your cars available and list fees you have to pay.
Manheim affords the following information about fees and some useful tips on their FAQ page.
A buyers administration fee of 8,560 baht (including VAT 7%) is applicable to all lots purchased in the financiers vehicle auction and also the salvage vehicle auction. The buyer’s fee for burnt out vehicles is 4,000 baht and also for motorcycles it’s 1,650 baht. For trucks it’s 12,500 baht. If you buy a financiers or salvage vehicle using Simulcast, one more buyer’s fee of 1,420 baht applies. If you purchase a motorcycle using Simulcast, an additional buyer’s fee of 250 baht applies. Full payment in cash or bank check is essential by 4pm the working day after the sale. VAT is included unless otherwise indicated. Check into site, in auction catalogues, or with cashiers for fees applicable in your vehicle.
The auction can be a fun, exciting, fast process. So here’s some tips to help you succeed.
Set a budget
Examine the car you would want to invest in, for example the documents
Pay by internet bank transfer for the safest approach to payment
All cars can be purchased “as is, where is;” you will find no returns
See the terms and conditions
Ensure there is the correct name registered for your auction
Bid clearly and don’t wait until the last minute.
A simple look on Google shows there are several car auctions in Thailand therefore you could possibly get a local independent auction near to you.
Investing in a car on the web is becoming more popular nowadays. Many sites have popped up in Thailand to cater to the desires of Internet shoppers. These web sites cater toward the sales of used cars, but some websites offer sales newest cars, or links to special deals from dealerships.
In addition there are many listings on forums and social media marketing that may match you track of a seller. The saying “Buyer Beware” is important here, because there might be limited recourse when the buyer purchases a vehicle as seen and turns out to be a lemon.
For an excellent source of online cars in Thailand take a look at the next sites:
This web site is user friendly and clear. You enter quick and easy specifics about your finances, location, and make and model and you have a listing of results. Besides the license plate number, you get everything in English, and the lists offers you pictures and contact variety of the owner. Keep in mind this page is perfect for people enthusiastic about buying used cars.
The internet site is useful if you are looking to get a guide price and locate information regarding your nearest dealer. A serious selling point of this website is that they list cars for sale in dealerships, both new and used. This means that you may pick up a good deal from the dealer and not merely from the private individual.
One other option for online purchases is to consider sites like kaidee.com and bahtsold.com, that offers secondhand goods including cars. Craiglist also offers a website for used cars in Thailand. Again, buyer beware and know that you’re unlikely to acquire any support from the seller after the purchase is made.
Once I would buy my first car around 10 years ago my father went directly to the newsagents and picked up a copy of Auto Trader magazine. It listed a huge number of used cars available for purchase and was like his bible. You can make a price comparison and specs to see what was a fair price for a variety of models.
Nowadays, lots of this business has moved online but it’s still possible to find offline car listings here in Thailand. National and local newspapers have car sections with private listings, that are worth a style if you wish to go this route.
One of my colleagues bought up an auto coming from a private listing at his condo. The seller had left a flyer along with the sale progressed quickly since they lived a couple of rooms away from the other person.
Also, many cars from the street have for sale posters or stickers to them. You may even view a available for sale brochure to the car you’re searching for. There’s no exact science to buying a car, but fate might give you for your dream car around the soi you’re walking down.
When you’ve decided to go ahead and then make your purchase you have a few hoops to leap through. For the way you purchased the automobile will depend on the amount of these you’ll must do. When selecting a brand new car it’s likely that the dealer will appear after most, if not completely, of your paperwork for you. However, when purchasing a second hand car, you’ll need to be more mitts on if buying from the private individual.
After choosing the best dealer you need to reserve the automobile by paying a deposit, usually 5,000 – 10,000 baht. The real reason for this is that cars in Thailand are often intended to order. You should get the receipt after paying the deposit, stating everything relating to your new car including: model, color, delivery date, and all sorts of freebies you got through the negotiation. Sometimes, it could take up to six months to the car to be sent to you.
When the car arrives, you have to examine the car from bumper to bumper. Be sure to carry it to get a test drive and view that all freebies are included. Examine the warranty for your manufacture date, inspection dates, and customer details. Ensure things are perfect before accepting the automobile. If you can, bring an automobile expert along. Also, make a note of the engine number to ensure that this is actually the same car you inspected.
You ought to receive all documents on on that day including vehicle insurance, CPTL, car manual, the temporal red book, as well as the tax sticker.
New cars will need special red license plates which will be replaced with the official white plates in a few months. The cost of these temporary ones is approximately 2,500 baht but you may be refunded whenever you change over to the white plates. Failure to transfer through the red temporary plates for the white official ones may result in a fine in case you are stopped by the police. Lots of people do love to keep red plates on simply to show that they have a fresh car.
You will definitely get you’re official blue ownership book a few days after or on a single day you receive the white plates. Should you finance the car you’ll have a copy of the blue book. The finance company will likely be listed as being the owner from the car. The blue book and car will probably be transferred in your name after the loan pays off.
When driving with red license plates there are a few things you must be aware of. First, you should always make your ownership and transfer documents with you. In the event the police decide to stop you then you’re liable to pay a fine when you can’t prove ownership. Second, with red plates you are limited to driving during daylight hours and in the province the auto is registered to.
All car registration paperwork is dealt with from the Department of Land Transport. The dealer must do it for you personally once every one of the following documents happen to be prepared:
Passport (signed copies of all visa pages and data page)
A signed copy of a work permit or a certificate of residency issued by the Immigration Bureau or the applicant’s embassy
A sound Thai driving license
Should you prefer a specific registration plate number, it can be done 2 months in advance before your vehicle arrives on the Department of Land Transport. A duplicate of the passport, residential certificate, as well as the car purchase contract are required. Though some car dealerships must be able to do that for a small fee.
Department of Land Transport in Bangkok Area 3
Second Hand Car
Before choosing a second hand car, examine the car’s Blue Book or its copy (in the event the car is financed) together with checking the car. The engine number should be the same as exactly what is on the blue book. This ensures the vehicle is one of the seller and prevents unexpected problems such as buying a stolen car. If a seller cannot show you the blue book, it’s easier to take your money elsewhere.
Although the required documents from your buyer are the same as registering a whole new car, the procedure of buying a used car may be separated by five common cases.
The first case is to find the car from the used car dealer similar to a car tent. Prices are typically higher than buying coming from a private seller but they’ll have every piece of information associated with the auto transfer and in many cases take care of the financial loan.
The 2nd case is to find from a private seller assuming you may have enough cash. You’ll need to handle all the paperwork yourself. A non-public seller provides documents like a signed copy of the ID Card, a signed copy in their house registration, Blue Book, the effectiveness of attorney, as well as the transfer of ownership. They enable the buyer complete the entire process once all things are paid for. Or else you as well as the seller can arrange a date and visit the Department of Land Transport together to perform the transfer.
The next case is that you have adequate cash although the car remains to be on finance. It’s recommended that you should go to the finance company alongside the seller and complete the acquisition contract and transaction there. The finance company should be the one to perform the paperwork and send an updated Blue Book with the name within 2 weeks.
If you wish to finance the automobile you have to pay a deposit upfront, normally at 5,000 baht-ensure that you sign the deposit contract. The owner should give you a few weeks to make the financial loan. Once it’s approved, you ought to get a check issued together with the seller’s name. Then, the vendor should supply you with the necessary documents for making the auto transfer. You can handle the remainder yourself or the seller can check out the Department of Land Transport together with you. When you can’t get a loan punctually, the vendor has right to accept deposit unless it’s negotiated beforehand.
If your car remains on finance and you have to get a loan to get the automobile, the most effective way is to go to the finance company and have them transfer the borrowed funds into the name. You could possibly still must pay a percentage towards the seller as well as a processing fee on the finance company though.
The transfer process takes several steps. The first task is usually to submit all paperwork and have it checked and stamped by an official. During this period, they can request you to come back in certain days if you bought a car from another province. When everything has been checked, you must keep coming back and inspect the vehicle. The inspection makes certain the vehicle matches the important points on the submitted forms and that you have not one other problems. Finally you will certainly be asked to come back to accumulate plates as well as the Blue Book.
If the car is transferred in the same province, everything ought to be finished within a few hours. If it’s moved to another province, it may need two or three days.
For a short look at doing the method yourself get more information at your account of registering an auto yourself in Chiang Mai. This report comes from four years ago nevertheless the process continues to be the same. The whole dexupky01 inside the article is 940 baht to register the automobile. It took a lot of time because the owner bought the car from Bangkok and registered the vehicle in Chiang Mai.
The transfer cost is different based on the estimated level of the sale importance of your vehicle. There’s a 105 baht for transferring fee along with a stamp fee of .005 baht from your estimated car price. For instance, in case the car is estimated at 300,000 baht, the whole transfer cost will be 1,605 baht (105 (300000 x .005)).
Finally, should you be unable to accomplish it yourself, you can give the strength of attorney to another one person to perform the paperwork for you.
Used cars registered inside a different province will need a new pair of plates. The expense of this is around 200-300 baht.
Certainly one of my biggest concerns when buying an auto was the location where the money would come from. In spite of the lowest priced models I would still should borrow to accomplish the sale.
It’s entirely possible that foreigners to get loans in Thailand to acquire an automobile but you will find strict restrictions. The foreigner need to have a bank account with good standing with a local bank. The foreigner demands a work permit or similar showing they’re here lasting. A lot of people stated that they have been successful obtaining a auto loan utilizing a tourist visa, nevertheless it has a tendency to take lots of effort, demands a greater deposit payment, and it is decided upon through the manager at each place.
For the first car a foreigner buys they will likely need a Thai guarantor. This is usually a relative or friend but they must be aware of the circumstance and what will happen if the foreigner defaults in the loan. For the purchase of all cars thereafter and where loan is via exactly the same source, a guarantor will not be needed. The exception to needing a guarantor takes place when the deposit payment is between 50-70%.
The final stipulation for getting a loan is the fact that the absolute minimum downpayment of around 20% is essential. Sometimes a bank will request a higher deposit in case you are new in the nation or have limited funds with your bank. In any case ensure you prepare copies of your respective work permit, passport, bank statement, and wage slips before you apply for a financial loan.
Reuters reported how the rate of loan defaults continues to be rising as a result of poor performance from the Thai economy and increasing household debt. Therefore, the conditions in order to get that loan have become stricter and also the bank may request a Thai guarantor according to your circumstances. One positive would be that the banks are able to loan money to foreigners for auto purchases, unlike when it comes to financing property. Additionally they offer special incentives such as % interest introductory offers.