Cars in Thailand are quite expensive but remains a must-have asset to both locals and ex-pats either for commuting purpose or simply just going about their daily activities. These car prices are way higher when compared to that of western countries, and this is because of import duties and taxes imposed by the government.
Without any more hesitation, let’s dive into the cost of cars in Thailand.
In the United States, the cost of a new Honda civic (basic model) goes from $21, 250 to $22, 250, in Thailand this goes for 778,000 Baht (excluding tax and import duties fees). A popular model such as the Toyota Corolla XSE 2022 is priced at $23, 765 in the United States, in Thailand this goes for 882, 980 Thai Baht which is $25,453.46.
Furthermore, buying used cars in Thailand is unusually expensive, at least when compared to buying used cars in Germany or other western countries. A new car gotten for a specific price can be sold for almost the same price after being put to use for two years. Also, a car bought at 250, 000 Thai Baht, driven for 15 years can still be sold for around 70, 000 to 80, 000 Thai Baht which is insane.
Because of these outrageous costs of cars, some persons who want to relocate to Thailand often wonder if it would be a better idea to ship their cars over. Generally, this is a bad idea, a very bad one since the import duties and taxes on imported cars can sometimes be between 200 to 300 percent in addition to the cost of shipping into Thailand.
An alternative way of owning a car in Thailand is by purchasing a car in other parts of South East Asia, let’s say Malaysia or Cambodia, and then drive into Thailand. A low-end car can be gotten in Cambodia for a reasonable price and then transformed by an auto shop to appear more high-end.
What Is The Process Of Buying A Car In Thailand?
The thought of purchasing a new car can be exciting, especially for those for who it will be their first. However, in Thailand, the process can be a bit stressful especially if you are an ex-pat because aside from language being a barrier there are laws to adhere to. Below is a guide on how to purchase a car in Thailand to help you prepare for the buying process.
Deposits
Most new cars in Thailand are either made or imported to order, so it will be in your best interest to reserve the car of your choice by making a deposit. Generally, this deposit could be anywhere between 5,000 to 10,000 Thai Baht. You should expect a receipt carrying the details of your purchased car after making a deposit. Details such as the model and make of the car, the color, and delivery date. This receipt will serve as a written confirmation of your car reservation. In most cases, it can take up to 6 months for your ordered car to arrive, delivery times usually vary with different car dealers.
Thoroughly Inspect Your New Car
Do not forget to thoroughly inspect your new car from top to bottom on arrival. Inspect the outside and inside of the vehicle, how it drives, and its specifications. If you were offered any other additional services when making a deposit, make sure they are all verified too. The engine number, manufacture date, warranty, and inspection date need to be verified before accepting your delivery. Not Tech-savvy? The easiest way to do this is by bringing an expert for inspection, doing this can also lessen the chances of having any future issues.
Confirm Your Car Documents
A brand new car comes with necessary documents, check to see that they are all intact. These documents include a car manual, temporal red book, CPTI, car insurance documents, and tax sticker, ensure they are all in your possession the day it is delivered.
License Plates
Expect a red license plate as this is issued to newly purchased vehicles. It is a temporary license plate that’s meant to be replaced a few months after. The cost of this license plate is around 2,500 Thai Baht, however, expect a refund when your white license plate is ready. It is important to note that you could pay a fine to the authorities for not transferring the plates. With red license plates comes restrictions such as not being allowed to drive at night, not being allowed to drive out of the province where your car was purchased, and being able to drive on expressways. Getting a white license plate involves receiving an official blue book which signifies ownership on the same day or a few days after switching plates. Usually, when a car is not paid in full this blue book comes with the financial institution being the owner, when paid in full it will be replaced with your name on it.
Your car dealer is expected to have your registration paperwork taken to the Department of Land Transport with the following documents:
- Your passport
- Certificate of residency
- Valid Thai driving license
Non-resident expats are not allowed to own a car in Thailand.
Tax
Buyers are mandated by law to pay tax as this is part of the registration process. Your initial tax is determined by the make and model of your car and this is usually around 800 to 10,000 Thai Baht a year.
