How to buy a car in Thailand?

Buying a car in Thailand is allowed for both Thai people and foreigners. You can buy a new car or a second-hand.

 

Buying a new car

 

So, buying a new car also comes several benefits from the dealer. For instance, 3-5 years’ service warranty, free insurance for 1 year, more flexible car loan opportunities, and no unforeseen expenses and problems caused by previous car owner. Yet, we have to be aware that Thailand charges approximately 200% in tax and import duty on newly imported cars. To save money, you may look for cars brands who’s mostly manufactured in Thailand such as Toyota and Honda.

 

Conversely, if you buy cars that manufactured in Thailand, tax depends on the make and model of your car and can be between 800-10,000 baht per year. If it is a new car, your car dealer will be able to tell you in more detail how much tax you will be expected to pay.

To help you work this out yourself for older models you can use the following formula and example to help.

Tax is calculated by car cylinder capacity–or cc:

  • First 600 cc: 0.5 baht per CC

  • 601-1800 cc: 1.5 baht per CC

  • 1801+: 4 baht per CC

If the car is more than 5 years old you can calculate a tax deduction:

  • Year 6: 10%

  • Year 7: 20%

  • Year 8: 30%

  • Year 9: 40%

  • Year 10+: 50%

Here’s how to calculate. For example, an 11-year-old 2,000 CC is going to be (((600 x 0.5) + (1200 x 1.5) + (200 x 4). Then reduce 50% since it’s older than 10 years. The total would be (300+1800+800) – 50% = 1,450 baht.

After purchasing a new car, dealerships will help you register the car at the Department of Land and Transport (DLT). For non-Thai citizens, you will need to present a passport, non-immigrant visa, and work permit or your certificate/letter of residence issued by the Thai immigration or a Thai Embassy.

 

It usually takes a few days to complete car purchase procedure and require two-three visits to the dealership to complete paperwork. At first, your new car the license plate will be red, which is only temporary until the DLT and dealership has completed the registration process, which usually takes a month.

After completion, you have to change the red license plate to a white license plate registered to your car and name. You will also receive the “blue book” or in Thai “Lem tabian”. In a nutshell, this is the car passport to present ownership, name and address of the owner of the car.

If you decide to finance the car, the financer will hold onto the blue book until you pay off the loan. But you will receive a copy of the blue book, which you should keep in the glove compartment for future circumstances. In this case, the Consumer Protection Office has issued "Announcement of the Committee on Contracts regarding the hire purchase of automobiles and motorcycles is a regulated business agreement B.E. 2561" which came into force on July 1, 2018, which aims to protect those who hire cars or motorcycles.

Lastly, the DLT will provide a sticker which proves you have paid the annual car tax. This sticker should be placed on the windshield.

 

Buying a second hand car

 

Buying a secondhand car can save a lot of money compared to buying a new car, yet there are a few things you have to check before buying a used car. For instance, the car has not been in an accident or unpaid finances. Hence, going to a trustworthy dealership with good reputation will make the car buying experience and ownership of the car much smoother.

When purchasing a secondhand car, you will need to transfer the ownership of the car at the Department of Land and Transport (DLT). You will need to bring the below documents including signed copies which are passport, non-immigrant visa, and work permit or your certificate/letter of residence issued by the Thai immigration or a Thai Embassy.

The seller or registered owner of the car must bring below documents including signed copies which are passport, non-immigrant visa, work permit or your certificate/letter of residence issued by the Thai immigration or a Thai Embassy, household registration document or “tabien baan” if they are a Thai resident, the car passport “lem tabian” also called “Blue book” or a copy of the ‘car passport’ in case the car is bought with financing. The copy is known as the “Samnao Thabian Rot”. Double check the seller has made all his due payments to the lender, and when the car is over 7 years old, a tax sticker given by the Department of Land and Transport (DLT) will prove the car is still roadworthiness.

In summary, it is easy to purchase a car in Thailand. The car buying experience will be much smoother if you buy a car from an authorized showroom or trustworthy second hand car dealers.

Buying a car can be as difficult as buying many other products.  Think carefully before you decide to buy a car. Also, prepare all necessary papers and documents to be used for the purchase agreement. Here a list of basic elements buyers need to think of and prepare before they decide their final decision to buy a car.

 

First of all, the way of buying a new car in Thailand. Due to lots of factors and laws that should quite complex and various such as buying process, transferring, tax, insurance, and maintenance. Therefore, you should know the details of them for making a deal. Types or brands of a car is also important. Almost popular car brands that Thai people using are Asian’ Brand such as Toyota, Nissan, Honda, etc. Even though, there are also western brands in Thailand, for example, Mercedez-Benz, BMW, Ford, etc. There are not many western brands in Thailand due to the tax law. Tax is one factor that you have to pay during own a car. The tax depends on the design of your car. It costs around 10,000 baht per year. For more details, tax is calculated by a car cylinder or CC. For first 600 cc, it costs 0.5 baht per CC. For 601-1800 cc, it costs 1.5 baht per CC. And more than 1801, it costs 4 baht per CC. In case of the car is more than five years old, it can calculate a tax deduction. For year 6 - 10%, year 7 - 20%, year 8 - 30%, year 9 - 40%, and more than ten years - 50%. In case of a car that more than seven years old, DLT or a third-party representative for the cost nearly 300 baht. Moreover, imported cars are charges around two hundred percent tax and import duty in Thailand. Another factor is insurance. Insurance is one important thing for car users that Thailand force to have. There are two types or choices of car insurance in Thailand: Compulsory Third-Party Liability Insurance (CTPL) and Private Insurance. Compulsory Third-Party Liability Insurance, for CTPL, it covers only medical expenses with limited coverage. 80,000 baht for injury and 300,000 baht for death. CTPL or Por Ror Bor costs nearly 650 baht a year. For Private Insurance, provides better coverage than CTPL. It can be classified into five types using numbers 1,2, 2+, 3, 3+. For each insurance package has differences price. Therefore, you should choose an appropriate package for yours. Lastly, another factor is maintenance. Maintenance helpful car services center, fix and repair the car in a period of time you are car’s owner. The cost of it depend on each car brand company. It will take a higher price for European cars. One option for some people who want to save costs. Second-hand car or used car is one choice that response for those. There are few things that should be aware of. When you buy a second car, you need to transfer the ownership of the car at DLT.

 

The price of a car is not cheap, so the contract will be made when you buy a car. Also, every car needs to be registered at the Department of Land and Transport (DLT). After you buy a new car, the dealership will help you register the car at the Department of Land and Transport. For non-Thai citizens, it’s necessary to have a passport, non-immigrant visa, and work permit or certificate or letter of residence that made by Thai immigration or a Thai

Embassy. For second-hand car, don’t forget to bring a passport, non-immigrant visa, and work permit, certificate or letter of residence with signed copies the same as you buy a new car. Also, for second-hand cars, there are few things that should be aware of. When you buy a second car, you need to transfer the ownership of the car at DLT. Nevertheless, the seller, registered owner of the car, or a third party might use documents that were mentioned above. But there are added some of the papers such as household registration document if they are a Thai resident, and the car passport included a copy of it. In case of the car that is over seven years old, a tax sticker provided by DLT will check that it has passed the roadworthiness test. Also, the DLT will check the engine and chassis serial number of it. So, DLT wants to guarantee and make more confident to second hand’s customer.

 

When the car arrives, there are also some important documents and other things that you will get together with the car and also check the car conditions. You need to test the car and check the warranty for the manufacture date, inspection dates, and customer details. You will receive car insurance, CPTL, car mutual, the temporal red book, and the tax sticker. The DLT will give you a red temporary number plate which will be the official white plates instead of it after six weeks. The cost of these is approximately 2,500 baht. You will get an official blue ownership book a few days after or maybe on that day. This book will include your name, address, and your proof of ownership. Finally, the DLT will give you a sticker that shows you have paid your annual car tax. These are all you will get when you buy a car in Thailand.

In conclusion, buying a car in Thailand buyers needed to think carefully before buying one, due to lots of factors and laws that should quite complex and various such as buying process, transferring, tax, insurance, and maintenance. Therefore, you should know the details of them for making a deal. For tax, imported cars are charges around two hundred percent tax and import duty in Thailand. Also, Insurance is one important thing for car users that Thailand force to have. Also, a second-hand car is another option to save costs. After that necessary documents that used to buy a car are a passport, a non-immigrant visa, and work permit or certificate or a letter of residence made by Thai immigration or a Thai Embassy, for a second-hand car also use the copies of these with signed. Then the dealership will help you register the car at the Department of Land and Transport. Lastly, some other important documents after you bought a car, you will receive car insurance, CPTL, car mutual, the temporal red book, official blue book, and the tax sticker. Also, red temporary number plate which will be the official white plates instead of it after six weeks. These are all what you have to do and what you will get when you buy a car in Thailand. Then you can enjoy using your new car legally in Thailand.

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info@mila-law.com

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