People transportation system is unreliable generally in most aspects of Thailand. Using a car is necessary for most Thais and expats who live here. Sure Bangkok offers the BTS and MRT. And most major towns and cities have got a van network and native buses or songthaews. Nevertheless these don’t serve the requirements of everyone. I won’t debate that the BTS and MRT are excellent systems, but they’re inadequate for the requirements the city. And they’re only ideal for those residing in the central zone. Many expats live in areas for example Chonburi, Phuket and Chiang Mai, where subway lines and sky trains will still be a distant dream.
Sweating within a bus, risking safety in the public van, and waiting on unscheduled buses implies that many individuals choose to buy a car, particularly those living outside Bangkok. The grade of life and freedom that owning car for cash provides you with makes a massive difference. Imagine traveling with a bus or in a taxi having a baby or praying into a higher power that your van driver will bring you in your destination safely.
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How to begin
After I bought my first car I had a million questions. I wasn’t “into” cars and didn’t know much regarding the industry and just how things worked. The majority of people go to their dads for car advice, so I visited mine. I found myself lucky because my dad worked in the vehicle industry for over twenty-five years and that he provided a great deal of advice. I bought an automobile I found myself satisfied with. However, here in Thailand things work differently. Thus I used the advice from my father plus from several great local sources: Damien Kerneis, Co-Founding father of SiamCarDeal, and Wasawad Wasuthasawat, Country Manager at Carsome.co.th.
Furthermore, i used a great deal of online sources and through this informative article I will provide you with quotes, figures, and links to useful sites to assist you purchase a car in Thailand.
Why Get a Car?
Location influences your need to get a car. I’m unclear many individuals residing in Central Bangkok could justify using a car because there is good public transport. There’s also lots of traffic which would make driving a nightmare.
If you wish to travel beyond the downtown area for business, it gets absolutely essential to have private transportation. Developing a car might sound great for weekend trips away from the big city, but you have to think about how many times you might utilize the car and if it will improve your way of life.
For those who have chose to purchase a car, your physical location might help determine what kind of car would best satisfy your desires. Should you travel long distances from a rural area then a larger car for cruising around makes sense. If you reside in the city, selecting a small compact car to create traversing through traffic easier would be the better choice. You might keep to the Thai trend and buy a tremendous pickup truck, wherever you reside.
Pickup truck can be a number 1 option for many Thai families.
Long-term vs Short-term
A vital factor for several expats to consider is whether or not they are staying in the united states for a long- or short-time frame.
Long-term expats convey more reason to buy a vehicle as it is a significant financial investment in Thailand. Those married, here on retirement visas, or those with full-time jobs who stay for the long haul may benefit from using a car.
Those here for a short period need to consider the resale worth of their car and the way easy it’ll be to offer. As you’ll see there may be a considerable amount of paperwork involved when selling a car. For all those for a brief time, it is probably not the most suitable choice. You also have to take into account that if you must leave Thailand on a certain date the car has to be sold by then which could create problems if you are rushing to find a buyer.
There exists always the option of leasing an automobile for a period of a couple of months to a year or depending on local public transport and taxis. I wouldn’t get a car when you aren’t gonna be in Thailand for over a year-except if you are living in a rural area.
If you’re trying to find a brand which holds it value then this best option is a Honda or Toyota or perhaps the top models from Japanese car makers.
One common reason behind getting a car in Thailand is made for when you have a family group and don’t desire to depend on public transport. I wouldn’t want to have a baby on a bus or in a taxi. I feel it might be irresponsible as well as a car is definitely the safest strategy to transport your family members when you are unattainable from the MRT and BTS in Bangkok.
Parents.com have listed their top cars released in 2016 for families. A list will be worth a look as most models can be found in Thailand.
New Cars vs Used Cars
One of the greatest choices you’ll must make is whether you would like to buy a new or used car. You can find positives and negatives to both. Many individuals want to buy new due to lower maintenance costs and frequent special deals. But there is also a thriving used car market in Thailand. And the potential of buying off their expats in Thailand means you are able to proceed through many of the process in English.
When you invest in a new car, there are many of advantages. You may get a lot of extras thrown in in case you are great at negotiating. Here in Thailand, most dealers appear to sell on the recommended list prices nevertheless the extras are where you may make an effort to get added value. It’s normal to have your first year’s insurance covered or tinted windows, as an example.
If you opt for new, you’ll have satisfaction knowing you are the first owner from the car, so there shouldn’t be any surprises down the road. Buying a new car entails you may have more finance options available, and you’ll get the chance to speak on the dealership about your personal situation.
During my research for this article, people said that the dealership where they bought their car also offered them better part-exchanges on new car purchases. The partnership between your customer and dealer allows expats to inquire more questions with all the experts before, during, and following the buying process. As you’ll see below the shopping process isn’t easy but through the use of an authorized dealer you’ll be working with salespeople that have experience negotiating with expats.
The most important advantage of a pre-owned car is you get a cheaper group of wheels. There is a prospect of a great deal in Thailand, nevertheless in general used cars hold their value well and cost more than you might pay in western countries.
There is also the option to acquire a second hand car from a licensed dealer which suggests you’ll better the chances of you getting a service package or insurance. Used cars can be purchased from numerous sources and a number of them provide you with the cheapest prices in the marketplace.
One negative for used cars may be the 7% VAT that’s put into the bill if you pick from a showroom or second hand car dealer, or make use of a loan to finance the investment. To avoid this payment you can aquire in cash coming from a private seller. Buying from a private seller having looked after their car is a great option. Thai people call these “house cars.”
Exploring the roads of Thailand I saw two trends. The initial was the quantity of pickup trucks along with the second was the buzz of Honda and Toyota cars.
From the UK the location where the roads are filled with Fords and Renaults, I put the amount of Hondas and Toyotas down to the Thai love of Japanese products. Nevertheless I soon discovered other reasons for popularity. Honda and Toyota are a pair of the vehicle brands that are produced in Thailand and have lower taxes and selling prices than imports. Tax is likewise the real reason for the large number of pickup trucks. These cars use a reduced excise tax, which makes them a well known choice for many people.
One more reason for your popularity of both of these brands will be the option of certified mechanics. Every town can have a garage to repair these cars and also the parts are simple to come by. Even third-party garages will likely be knowledgeable of top-brand cars.
Wasawad Wasuthasawat said, “black and white” were two of the most popular colors for cars and might be a sensible choice if you were seeking to sell your automobile after several years.
Whatever 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 better than other brands. BMW and Mercedes are assembled in Thailand but use imported parts which can make them higher priced than they’d be throughout Europe or in America. Imported finished cars and trucks are susceptible to a 300% tax, making them thrice higher priced compared to Europe or America.
“The Corolla or Altis is among the best-selling models for most people,” Damien Kerneis said. “It holds its value well and it is possible to find spare parts.” As this is the style of most taxis in Bangkok, it goes without stating that these cars are a good option for those within a strict budget looking at getting their own wheels in Thailand.
There are various options when it comes to investing in a car, new or used, in Thailand. Traditional dealerships are popular but there is also an ever-growing selection of online options for buying 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 receive better service and a lot more legal fallback if there have been any problems. Additionally, it seemed easier to get finance with an authorized dealership than counting on alternative methods, which are listed later in this post.
I went into the whole process of buying without the need of a preference towards brand. My issue was budget. I would desire to have got a BMW, but according to Thailand prices they are not value for the money-and way out of my range of prices. Seeing a dealership meant I really could chose a cheaper brand, examine their whole range of models, and discuss pricing options. The main benefit is that we now have car dealerships in the big cities and towns. Within ten kilometers of my condo in Bangkok, as an example, I could possibly visit a wide range of car dealerships.
Another benefit of the dealership is you can see new and used cars and make a price comparison and conditions. Most official dealerships also have promotions, and give warranties and extras on not just new cars, but used cars too.
You might also need the choice to check drive an automobile in case you have a Thai driving license, a license from your own home country, or even an international license.
Similar to a multitude of locations in Thailand, at dealerships salespeople will treat you according to your appearance. As I walked in wearing a scruffy T-shirt and shorts I got little attention. But when I went in with jeans, a collar shirt, and dress shoes I had salespeople jumping over themselves to help you me. Maybe this became just random luck-or bad customer satisfaction at some dealerships-there is however a correlation involving the two.
The Bangkok International Motor Show is probably the most widely used places for Thais to get a new car. Sales from the 2015 show were expected to be over 40,000 which is a lot to the 7-day event. Often discounts are provided there are wonderful promotions. 2017’s event was held on the Impact Arena about the outskirts of Bangkok before Songkran.
In the past, the big event has become criticized as being more about the pretty models, but right after the recent Junta takeover everything has been toned down along with the cars are taking center stage again.
Additionally it is common to see mini shows from the numerous shopping centers around Thailand. My local mall, Fashion Island, offers one or more car company showcasing new models every couple of weeks. They may have huge signs offering discounts however it is not clear if these represent the same deals you’d get with the dealership. One advantage of these events with the mall is there exists less pressure to acquire and you also have the opportunity to find out and sit in the car.
Regenthomecar, an illustration of an automobile tent in Thailand
Among my Thai friends told me I could possibly buy a car at the tent which confused me. I googled “car tent” and discovered pictures of tents covering cars. It wasn’t until I came across this article where I found out a car tent is a used-car dealership.
Many cars come with limited warranties and several are sold “as seen” so you should have a genuine knowledge of cars to get a good buy. Tricks like winding along the mileage and putting different parts into cars do continue so buyer beware.
Many car tents work in conjunction with a finance company and a loan might be decided immediately. It’s best to produce a payment and drive the vehicle away. It’s not unusual for car tents to alter parts each time a customer pays a deposit and returns later for that car. Also, in the event you pay by cash the price of the auto might be beyond if financing, since some car tents get commission from giving out loans.
If you are looking for the car to get you from point A to point B then looking for bargains in a car tent could be an option.
Car auctions are wonderful fun to observe. The climate is exciting and so i find it intriguing to study the tactics of the bidders trying work out their top price. Purchasing a car through auction can be something I would be suspicious to use for several reasons though.
The problem is that you have to compete against other bidders and might wind up paying over you’re ready to inside the heat of battle. At auctions you’ll must make quick decisions and might not obtain a full description in the vehicle or have limited chances to inspect it. I wouldn’t buy a car from auction unless I needed full understanding of the automobile and may inspect the vehicle first, ensuring it had been in good order.
However, you can sometimes have a bargain in an auction if others aren’t interested in the car you want. Those that have understanding of cars can be confident that they may spot a bargain whenever they see one.
If you’re enthusiastic about car auctions, look at Union-Auction and Manheim, which have listings for car auctions in Thai and English. Both sites give pictures and descriptions to the cars available and list fees you need to pay.
Manheim affords the following info on fees as well as some useful tips on the FAQ page.
A buyers administration fee of 8,560 baht (including VAT 7%) applies to all lots bought in the financiers vehicle auction along with the salvage vehicle auction. The buyer’s fee for burnt out vehicles is 4,000 baht as well as for motorcycles it’s 1,650 baht. For trucks it’s 12,500 baht. Should you buy a financiers or salvage vehicle using Simulcast, an additional 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 necessary by 4pm the working day following the sale. VAT is included unless otherwise indicated. Check on site, in auction catalogues, or with cashiers for fees applicable to your vehicle.
The auction is actually a fun, exciting, fast process. So here’s some tips to help you succeed.
Set yourself a budget
Look into the car you want to bid on, for example the documents
Pay by internet bank transfer to the safest means of payment
All cars can be purchased “as is, where is;” you can find no returns
Browse the stipulations
Ensure there is the correct name registered for the auction
Bid clearly and don’t wait until the very last minute.
A fast look on yahoo shows there are several car auctions in Thailand so that you might be able to look for a local independent auction close to you.
Investing in a car on the internet is becoming more popular nowadays. Many sites have popped up in Thailand to serve the desires of Internet shoppers. These web sites cater toward the sales of used cars, but some websites offer sales of the latest cars, or links to deals from dealerships.
Additionally, there are many listings on forums and social websites which may match you on top of a seller. The saying “Buyer Beware” is essential here, because there may be limited recourse in the event the buyer purchases a car as seen and turns out to be a lemon.
For a good source of online cars in Thailand have a look at these sites:
This website is simple to operate and clear. You enter simple specifics about your financial allowance, location, and make and model and you get a list of results. Apart from the license plate number, you obtain all things in English, and also the lists offers you pictures and make contact with quantity of the vendor. Keep in mind this site is designed for people enthusiastic about buying used cars.
The web page is effective if you are searching to get a guide price and find information about your nearest dealer. A significant selling point of this website is they list cars for sale in dealerships, both new and used. Because of this you can pick-up a great deal from your dealer rather than just coming from a private individual.
The other option for online purchases is to check out sites like kaidee.com and bahtsold.com, that offers secondhand goods including cars. Craiglist also provides an internet site for used cars in Thailand. Again, buyer beware and realize that you’re unlikely to obtain any support through the seller following the purchase continues to be made.
After I was going to buy my first car around 15 years ago my dad went instantly to the newsagents and acquired a copy of Auto Trader magazine. It listed a huge number of used cars on the market and was like his bible. You might make a price comparison and specs to see that which was an acceptable price for different 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, which are worth a glance if you wish to go this route.
Among my colleagues bought up a car from the private listing at his condo. The vendor had left a flyer as well as the sale progressed quickly since they lived a few rooms clear of each other.
Also, many cars inside the street have available for sale posters or stickers on them. You could possibly even see a on the market brochure for your car you’re looking for. There’s no exact science to buying a car, but fate might provide you with to your dream car in the soi you’re walking down.
When you’ve decided to go ahead and then make your purchase you will have a few hoops to leap through. Depending on how you got the auto is determined by how much of the following you’ll must do. When selecting a whole new car it’s probable that the dealer will be after most, if not completely, in the paperwork to suit your needs. But once getting a second hand car, you’ll should be more practical if buying from your private individual.
After finding the right dealer you should reserve the auto if you are paying a deposit, usually 5,000 – ten thousand baht. The explanation for this is certainly that cars in Thailand are generally created to order. You ought to get the receipt after paying the deposit, stating everything concerning your new car including: model, color, delivery date, and all sorts of freebies you got in the negotiation. Sometimes, it may take around six months for the car to get shipped to you.
After the car arrives, you should check the car from bumper to bumper. Make sure to bring it for the test drive and check that freebies are included. Examine the warranty for that manufacture date, inspection dates, and customer details. Be sure things are all perfect before accepting the vehicle. If you can, bring a vehicle expert along with you. Also, jot down the engine number to ensure that here is the same car you inspected.
You must receive all documents on that day including vehicle insurance, CPTL, car manual, the temporal red book, and also the tax sticker.
New cars need to have special red license plates that will be substituted for the state white plates in certain months. The expense of these temporary ones is about 2,500 baht but you will end up refunded whenever you change over to the white plates. Failure to transfer through the red temporary plates for the white official ones can lead to a great when you are pulled over from the police. Lots of people do like to keep red plates on simply to show they may have a fresh car.
You will definitely get you’re official blue ownership book a few days after or on the same day you get the white plates. When you finance the car you’ll get yourself a copy in the blue book. The finance company will probably be listed because the owner from the car. The blue book and car is going to be transferred into your name once the loan is paid off.
When driving with red license plates there are several items you must be aware of. First, it is recommended to keep your ownership and transfer documents with you. If the police plan to hold you back then you’re liable to pay a fine in the event you can’t prove ownership. Second, with red plates you might be confined to driving during daylight hours as well as in the province the car is registered to.
All car registration paperwork is addressed through the Department of Land Transport. The dealer must do it for yourself once all of the following documents happen to be prepared:
Passport (signed copies of visa pages and information page)
A signed copy of the work permit or possibly a certificate of residency from the Immigration Bureau or maybe the applicant’s embassy
A real Thai driving license
Should you prefer a specific registration plate number, it can be done 2 months ahead of time before your automobile arrives at the Department of Land Transport. A duplicate of your own passport, residential certificate, and the car purchase contract are essential. Though some car dealerships will be able to do that for the small fee.
Department of Land Transport in Bangkok Area 3
Second Hand Car
Before choosing a second hand car, check the car’s Blue Book or its copy (if the car is financed) together with checking the automobile. The engine number ought to be the identical to what is listed on the blue book. This ensures the automobile is among the seller and prevents unexpected problems including buying a stolen car. If a seller cannot explain to you the blue book, it’s better to take your hard earned dollars elsewhere.
Even though required documents through the buyer are similar as registering a new car, the treatment of buying a pre-owned car might be separated by five common cases.
The initial case is to purchase the automobile from the used car dealer such as a car tent. Prices are typically greater than buying coming from a private seller but they’ll have all the information related to the vehicle transfer and also take care of the financial loan.
The 2nd case is to buy coming from a private seller assuming you might have enough cash. You’ll have to handle every one of the paperwork yourself. A non-public seller provides documents such as a signed copy with their ID Card, a signed copy with their house registration, Blue Book, the power of attorney, and the transfer of ownership. They then permit the buyer complete the whole process once all things are given money for. Or maybe you and the seller can arrange a date and visit the Department of Land Transport together to finish the transfer.
The 3rd case is that you have enough cash nevertheless the car remains on finance. It’s a smart idea to should check out the finance company together with the seller and finish the purchase contract and transaction there. The finance company needs to be the a person to perform paperwork and send an updated Blue Book with your name within 2 weeks.
If you wish to finance the auto you must pay a deposit in advance, normally at 5,000 baht-ensure that you sign the deposit contract. The seller should provide you with a couple of weeks for making the financial loan. Once it’s approved, you need to get a check issued with the seller’s name. Then, the seller should supply you with the necessary documents for making the automobile transfer. It is possible to handle the remainder yourself or perhaps the seller can proceed to the Department of Land Transport with you. If you can’t get yourself a loan on time, the seller has right to take the deposit unless it’s negotiated beforehand.
If a car remains to be on finance and you need to get that loan to acquire the vehicle, the simplest way is to see the finance company and have them transfer the borrowed funds to your name. You may still must pay a share to the seller along with a processing fee to the finance company though.
The transfer process takes several steps. The first step is always to submit all paperwork and obtain it checked and stamped by an official. At this point, they may have you come back in certain days if you purchased a car from another province. When everything has been checked, you need to keep coming back and inspect the automobile. The inspection makes sure the automobile matches the specifics on the submitted forms and that we now have not any other problems. Finally you may be asked to come back to recover plates and the Blue Book.
In case the car is transferred within the same province, everything should be finished within several hours. If it’s transferred to another province, it will require a few days.
For a glance at doing the process yourself go here for a free account of registering a car yourself in Chiang Mai. This report is from four years ago although the process remains the same. The whole dexupky01 within the article is 940 baht to register the automobile. It took time and effort as the owner bought the vehicle from Bangkok and registered the automobile in Chiang Mai.
The transfer expense is different in line with the estimated amount of the sale value of your vehicle. There’s a 105 baht for transferring fee and a stamp fee of .005 baht from your estimated car price. For instance, if the car is estimated at 300,000 baht, the entire transfer cost will be 1,605 baht (105 (300000 x .005)).
Finally, in case you are unable to make it happen yourself, you are able to give the power of attorney to a different one person to accomplish the paperwork for you personally.
Used cars registered in a different province need to have a fresh set of plates. The cost of this is certainly around 200-300 baht.
Among my biggest concerns when choosing an automobile was where the money would come from. In spite of the most affordable models I might still must borrow to accomplish the sale.
It’s possible for foreigners to acquire loans in Thailand to get an automobile but you will find strict restrictions. The foreigner need to have a checking account with good standing with a local bank. The foreigner requires a work permit or similar showing they’re here lasting. A lot of people stated they have been successful acquiring a auto loan employing a tourist visa, but it really appears to take plenty of effort, takes a greater deposit payment, and is also decided upon from the manager at every place.
For that first car a foreigner buys they will likely need to have a Thai guarantor. This can be a relative or friend but they should be aware of the specific situation and what will happen if the foreigner defaults in the loan. For the purchase of all cars thereafter and in which the loan is via the same source, a guarantor is just not needed. The exception to needing a guarantor takes place when the deposit payment is between 50-70%.
The very last stipulation for obtaining a loan is the fact a minimum advance payment of approximately 20% is needed. Sometimes a bank will ask for a higher downpayment in case you are new in america or have limited funds inside your bank. In any event ensure you prepare copies of your work permit, passport, bank statement, and wage slips before applying for a financial loan.
Reuters reported that the rate of loan defaults is rising as a result of poor performance of the Thai economy and increasing household debt. And so the conditions for obtaining financing are becoming stricter and the bank may request a Thai guarantor depending on your circumstances. One positive is the fact that banks are able to loan money to foreigners for auto purchases, unlike in relation to financing property. Additionally they offer special incentives including % interest introductory offers.