Acquiring a vehicle in Thailand can pose challenges for foreigners due to a lack of readily available comprehensive information and the array of documents requested on the Ev2Gang. To address this, our guide aims to thoroughly explore the steps, methods, and tips involved in Buying a car in Thailand for foreigners.
Can I buy a car in Thailand as a foreigner?
Certainly. Foreigners can register a car in their own name without encountering legal restrictions. However, the process involves gathering a slightly more extensive set of documents compared to those required for Thai citizens. This article categorizes the necessary documentation into two groups based on the type of payment method chosen for the car purchase.
Buying a New Car
1. Cash Purchase
When acquiring a new car from the Automobile Company and opting for a cash transaction, the following documents are required:
- Passport (original and copy)
- International driving license
- Copy of Non-Immigrant VISA or temporary visa
- Copy of Work permit or Residence Certificate from the Immigration Office
- Residence Certificate(TM.16) from the Immigration Office (additional documentation may be needed)
- Vehicle ownership transfer form By Department of Land Transport
2. Installment Payment
For those choosing to pay in installments through a loan service provider, the necessary documents are the same as for a cash purchase (1.1). Additionally, a valid work permit in Thailand is essential. A Thai national must act as a guarantor, providing salary documents, a company certificate with a minimum of one year of working experience, and copies of account books for the past six months or more.
Upon completion of the car buying process, the Department of Land Transport issues a temporary red plate, which is later replaced with a white (regular) license plate within six weeks, along with a confirmation sticker indicating that the vehicle tax has been paid.
Buying a Used Car from a Thai Seller
Purchasing a used car in Thailand is a more straightforward process compared to acquiring a new one. The required documents are as follows:
- Passport (original and copy)
- International driving license
- Copy of Non-Immigrant VISA or temporary visa
- Copy of Work permit or certificate of residence from the Immigration Bureau
- Vehicle ownership transfer form By Department of Land Transport
Unlike new car purchases, there is no need for a Residence Certificate from the Immigration Office when buying a used vehicle. Foreigners can choose to make a full cash payment directly to the seller or arrange loans with financial institutions or credit companies, following their specified terms and conditions.
Car Prices in Thailand
In the current automotive market in Thailand, prices fluctuate based on the specific type of vehicle, encompassing a range of categories such as Sedan, Hatchback, MPV, SUV, Pickup, Coupe, Convertible, and Commercial cars, among others. For vehicles commonly used in daily life, the average price typically falls within the range of 500,000 to 1 million Thai baht per unit. This estimate encompasses Thai taxes, and for those opting for installment payments through loans, the monthly installment is approximately 10,000 Thai baht.
Top 5 Popular Car Models and Their Prices in Thailand
- Toyota Yaris ATIV: Starting at 549,000 baht (Sedan)
- MG5: Starting at 585,000 baht (Sedan)
- Honda City: Starting at 599,000 baht (Sedan)
- Honda HRV: Starting at 979,000 baht (SUV)
- Toyota Corolla Cross HEV Smart: Starting at 1,019,000 baht (SUV)
Predominantly, popular car brands in Thailand originate from Japanese manufacturers such as Toyota and Honda. This preference is influenced by the extensive network of service centers and Japanese assembly plants in the country, ensuring comprehensive service support. Notably, there is a growing presence of Chinese automotive companies, particularly in the electric vehicle (EV) segment, represented by brands such as MG, BYD, and TESLA from the United States. Those opting to purchase an electric car in Thailand, in accordance with the EV3.5 regulations, can benefit from discounts ranging from 50,000 to 100,000 baht per car.
Car Insurance in Thailand
Upon purchasing a car in Thailand, the acquisition of car insurance becomes imperative. Recognizing the prevalent traffic congestion and potential risks, securing insurance is essential. In Thailand, three primary levels of insurance are available:
Car Insurance Type 1
This level offers the highest protection, covering damages to our cars, property, and the life and body of involved parties in the event of our fault. It is particularly suitable for new cars or individuals in the early stages of learning to drive. Typically, when acquiring a new or used car, car companies in Thailand provide complimentary Type 1 insurance for the initial year.
Car Insurance Type 2
This level, akin to Type 1, provides comprehensive coverage, including loss or fire of our car. However, it excludes damage to our cars, such as instances of driving into a building with no other party involved. Type 2 and Type 2+ insurance are suitable for experienced drivers confident in navigating Thai traffic, exercising caution, and using the vehicle infrequently.
Car Insurance Type 3
This level is solely responsible for the other party in cases where we are at fault. It absolves us of any responsibility for damage to our cars. Type 3 insurance is apt for older cars and is commonly offered by second-hand car sellers to foreigners as a precautionary measure.
Regarding the cost of car insurance in Thailand, it varies based on specific conditions such as the car’s manufacturing year, mileage, engine condition, driver’s age, and the driving history of previous users. It is advisable to meticulously research and select an insurance company proficient in English, as they play a pivotal role in providing assistance in the event of an accident in Thailand.
Conclusion
Understanding the intricacies of buying a car in Thailand reveals a straightforward process with cost advantages compared to public transportation services. This contributes to the prevalent traffic congestion in the country. We trust that you have received comprehensive information on procedures, required documents, car prices, and accurate details about car insurance in Thailand. Should you have any further inquiries, please feel free to contact us at Ev2Gang; we are dedicated to assisting foreigners with their automotive needs in Thailand.
