When moving to the warm kingdom, in addition to how to buy property in Thailand, foreigners also think about how to buy a car in Thailand. What licenses are needed, how to register a car, how much money they will have to spend and what pitfalls they can face. In this post, we talk about the nuances, purchasing options and list the rules for buying a car.
Content:
- Why should you buy a car in Thailand?
- Is it possible to buy a car in Thailand?
- What is cheaper: importing your car to Thailand or buying a local one?
- Taking your car to Thailand
- New car buying process in Thailand
- Costs of car registration in Thailand
- Fuel costs in Thailand
- Car registration documents in Thailand
- Rules for driving a car in Thailand
- Conclusions
Why should you buy a car in Thailand?
In the kingdom, public transport is not as well developed as in Europe. And if you decide to buy an apartment in Thailand, then you should take care of a personal vehicle so as not to depend on tuk-tuk routes and the ability to quickly take a taxi.
There is a metro in Bangkok, but there is no metro in the popular resort city of Pattaya. To move around the city, you can use:
- tuk-tuks (these are covered pickup trucks, in which passengers sit on benches opposite each other; tuk-tuks are a cheap means of transportation);
- taxi;
- motorbike and car rental.
The most cost-effective option is a tuk-tuk (also called songthaew), but it is not always convenient to use it. Tuk-tuks have a specific route, a fixed fare and usually vary in color. There are no clear stops: to get out of a tuk-tuk, you need to press a button, and then the driver will let the passenger out.
In addition, drivers can deceive naive tourists and expats. If you ask where you should get off in order to get to the right place, the driver may treat these questions as if you are hiring them as a personal driver and will ultimately demand a large sum for the trip.
Renting a bike and a car can be expensive for a person permanently residing in the country, the same can be said about a taxi. And if you need a car all the time, there is no point of driving someone else’s as it is better to buy your own car. In addition, a personal vehicle may be required for work or taking children to school. Therefore, many expats are starting to think about buying a car in Thailand.
Is it possible to buy a car in Thailand?
Expats are not prohibited from purchasing a car. To be eligible to own a car, it is important to obtain a non-immigrant Thai visa valid for at least one year or a valid work permit. These documents demonstrate your legal status and prove that you are going to stay in the kingdom for a long-term. There are several ways to find a car for sale.
- Through car dealerships. The most obvious way is suitable for those who want to buy a new car. You'll be able to view and test the latest and greatest models, and the prices will be competitive. Even in a salon, you can bargain with the seller, don’t be shy and try to bring down the price. The convenience is that all procedures for paying taxes and purchasing insurance can be carried out right here, saving your time.
- Through newspapers. If your option is a second-hand car, then it makes sense to look for cars for sale in local media.
- Through car auctions. This is a rather specific method, since you can spend a lot of time on it to no avail: you will have to compete with other potential buyers, and you won’t be able to inspect the car in advance. This option is not suitable for gambling people: there is a risk of overpaying simply because of the desire to be the last to have your word in the fight and win the “competition”;
- Through specialized websites for selling cars. In general, it is the same as looking for classified ads through newspapers, but online.
Driving license in Thailand
Before buying a car in Thailand, a foreigner is required to obtain a driving license. An International Driving Permit is required to drive a car. The document is valid for a year and is recognized in almost all popular tourist countries. Many foreigners obtain international licenses for traveling to different countries, so if they have them, there will be much fewer difficulties with driving.
If you do not have an international license, you can get a driving license in Thailand
based on your ID. To do this you will need to:
- make a certified translation of foreign licenses into English;
- get a Residence Certificate at the Consulate;
- obtain a medical certificate - this can be done at any private medical institution;
- provide documents to the Transport Department;
- undergo vision examination.
If you do not have a license at all, then you will need the same documents as listed above, but you will take your driver’s test directly on the spot - you will be assigned a time and date for the exam. This is the most difficult option, since local rules differ from European ones. It is worth considering that a driver’s license is required not only for driving a vehicle. The answer to the question of whether you need a license for a scooter in Thailand will also be positive.
What is cheaper: importing your car to Thailand or buying a local one?
There is no universal answer for this question for two reasons: the cost of imported cars in the country is high. The answer to the question of why cars are expensive in Thailand is quite simple. Import duty rates almost double the selling price.
However, transporting your own vehicle to the country is not cheap either. The transfer will cost a significant amount. Add to this the cost of customs clearance in Thailand—and we get the price of a practically new car. Below we are going to compare the process of buying and importing a vehicle.
As an alternative, you can consider purchasing a second-hand option. Buying a used car in Thailand that is several years old can be much cheaper. But there is a downside here too. The older the car is, the higher the transport tax is. For example, for a 10-year-old car the rate is 50%. We will talk about tax calculation below.
Taking your car to Thailand
When importing both new and used vehicles, the exact amount you will pay is calculated using a table based on engine size and power. For the least powerful vehicles, taxes and duties will total 187.47% of the CIF value. This figure increases as your car's power increases, reaching 328%. Thus, it will not be possible to clear a car through customs in Thailand on the cheap. In some cases, the amount of expenses may exceed the original cost of the car, which makes the process too pricey.
It is easiest for those who are planning a temporary stay in the country. The car purchase rules apply to vehicles imported for permanent use. If the intended use term does not exceed 6 months, you will not have to pay duties.
New car buying process in Thailand
Purchasing a new vehicle comes with a number of benefits from the dealer. For example, you can get a 3- to 5-year warranty on service, a free 1-year insurance. The process of buying a car includes following steps:
- you must make a deposit for the car you selected - after payment you will be given a receipt, which will describe in detail what kind of car you are buying (make, color, model, etc.), and will also include the list of additional services that must be provided to you if you decide to use them;
- usually new cars are bought on request, when the car arrives in the showroom, you need to check it. Pay attention to the registration plates, they must be red; this is a sign of a new car. A few months after purchase, they are replaced with white ones. If the car is in order, you can sign the purchase documents;
- you will receive a certificate of vehicle ownership, the so-called blue book of rights, only after installing permanent white license plates.
The main document for registering a car remains the purchase and sale agreement.
Costs of car registration in Thailand
All cars must have a tax sticker on their windshield and Compulsory Motor Insurance (CMI), which will be issued at the same time as road tax (must be renewed annually).
Registration fees vary depending on the type and age of the vehicle. On average, you will pay between ฿1,000 and ฿7,000 ($28–$199) per car. For example, the cost of renewing the registration of a Toyota Altis 1.8 is approximately ฿2,000 ($57).
When registering a car, you will have to pay tax for it. It is calculated individually depending on the car model.
The tax amount is determined based on the cylinder capacity of the vehicle. If you buy a new car, the tax will be calculated for you right at the dealership. It is paid together with insurance. The annual car tax in 2024 will average from ฿800 to ฿10,000 ($23–284).
Fuel costs in Thailand
There are two types of gasoline. The first is gasoline made from oil, which is called Gasoline. And the second is Gasohol, which is a mixture of real gasoline and ethanol made from plants. It is worse for a motorbike, but almost all Thais use only it as it is cheaper. A liter of category 91 gasoline costs ฿40 (~$1.15), 95 gasoline costs ฿48 (~$1.35), and diesel is sold for ฿33 (~$0.95).
Car registration documents in Thailand
To register with the Department of Transport, you need to submit the following documents and their copies:
- valid passport;
- visa;
- Immigration residence document, house register or work permit.
The new owner will be issued proof of ownership in the form of a registration book, which contains the name and address of the owner and details of the vehicle.
Rules for driving a car in Thailand
The rules are quite specific and require experience as Thailand has a left driving. This is largely due to the fact that driving rules in Southeast Asia have been directly influenced by Great Britain, which was a colonizer of many states. Narrow streets, numerous motorcycles and scooters, frequent traffic jams in large cities require concentration and prompt response.
Conclusions
Buying a car in Thailand may differ from a similar procedure in your country, and these nuances must be taken into account. Before starting to drive the car, it is important to study the automobile legislation of this country, its enforcement and prepare for driving by submitting all the necessary documents and by studying the theoretical basis.
Regardless of the chosen type of vehicle, purchasing will be more profitable compared to renting. If you were staying in the kingdom temporarily, it would be more reasonable to rent a car than to decide in the future how to bring your car back or quickly resell it.
Whether you have a vehicle or not, when moving to permanent residence, it is important to decide whether you are planning to buy an apartment or buy a villa in Thailand. Our ultimate real estate website will help you with this. We have selected the most attractive offers on the real estate market from trusted developers, housing search agencies and individuals. Start searching for your new home in the sunny kingdom today!