How Can a Foreigner Buy a Car in Thailand?

How Can a Foreigner Buy a Car in Thailand?
When moving to the warm kingdom, in addition to learning how to buy property in Thailand, foreigners often wonder how to purchase a car. What licenses are required, how to register a car, what the costs will be, and what challenges might arise. In this post, we will discuss the nuances, available options, and the rules for buying a car in Thailand.

CONTENT:

• Why Should You Buy a Car in Thailand?
• Is It Possible to Buy a Car in Thailand?
• Driving License in Thailand
• What is Cheaper: Importing Your Car to Thailand or Buying Locally?
• Bringing 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 in Thailand
• Conclusion

Why Should You Buy a Car in Thailand?
Public transportation in Thailand is not as developed as it is in Europe. If you plan to purchase property in Thailand, having your own vehicle will ensure you’re not dependent on tuk-tuk routes or the availability of taxis.

While Bangkok has a metro system, cities like Pattaya, a popular resort destination, do not. To get around, you can use:

• Tuk-tuks (pickup trucks with covered seating for passengers);
• Taxis;
• Motorbike or car rentals.

The most cost-effective option is using a tuk-tuk, but it’s not always the most convenient. Tuk-tuks have set routes, fixed fares, and vary in color. There are no official stops—passengers press a button to signal the driver to stop.

Additionally, tuk-tuk drivers may try to overcharge tourists or expats. If you ask for directions, they might treat the request as hiring them for private transportation, which could result in an unexpected high fare.

Renting a motorbike or car can be expensive if you live in Thailand long-term. The same applies to using taxis regularly. If you need a car frequently, it’s more practical to buy your own vehicle. Moreover, having a car may be necessary for work or family needs, such as taking children to school. As a result, many expats start considering buying a car in Thailand.

Is It Possible to Buy a Car in Thailand?
Expats are allowed to purchase cars in Thailand. To be eligible for car ownership, you need to obtain either a non-immigrant Thai visa valid for at least one year or a valid work permit. These documents confirm your legal status and prove that you are planning a long-term stay in the kingdom. There are several ways to find cars for sale:

• Through car dealerships: The most straightforward method, ideal for those looking to buy a new car. You can view and test the latest models, and the prices are usually competitive. Don’t hesitate to negotiate with the dealer for a lower price. All necessary procedures, including paying taxes and purchasing insurance, can be handled at the dealership, saving you time.
• Through newspapers: If you are in the market for a used car, searching local newspapers is a good option.
• Through car auctions: A more specific method, as it involves competing with other buyers and not being able to inspect the car beforehand. It’s not ideal for those who dislike taking risks, as there’s a chance of overpaying in a bidding war.
• Through specialized car sale websites: Similar to classified ads in newspapers but done online.

Driving License in Thailand
Before buying a car in Thailand, a foreigner is required to have a valid driver’s license. An International Driving Permit (IDP) is required to legally drive a car in Thailand. The permit is valid for one year and is recognized in almost all major tourist destinations. Many foreigners already have an international license, which makes driving easier in Thailand.

If you don’t have an international driving permit, you can obtain a Thai driver’s license based on your ID. You will need to:

• Provide a certified English translation of your foreign driver’s license;
• Obtain a Residence Certificate from the Consulate;
• Get a medical certificate from any private medical institution;
• Submit these documents to the Transport Department;
• Undergo a vision test.

If you don’t already have a license, you’ll need to follow the same process but will also need to take a driving test. You’ll be assigned a time and date for the exam. This can be more challenging since local driving rules differ from those in Europe. It’s important to note that a driver’s license is required for scooters as well.

What is Cheaper: Importing Your Car to Thailand or Buying a Local One?
There’s no definitive answer to this question for two reasons: imported cars in Thailand are expensive, and import duties nearly double the car’s price.

However, shipping your own vehicle to Thailand isn’t cheap either. The cost of transport, combined with customs fees, can approach the price of a new car. Below, we compare the process of buying versus importing a car.

Alternatively, purchasing a used car locally may be much cheaper. However, older cars come with higher taxes. For instance, the tax rate for a 10-year-old car is 50%. More details on tax calculations are provided below.

Bringing Your Car to Thailand
When importing new or used cars, the total amount you’ll pay is based on a table that considers engine size and power. For less powerful vehicles, taxes and duties total 187.47% of the CIF value, increasing up to 328% for more powerful cars. Clearing customs for vehicles in Thailand can be very expensive. In some cases, the cost of importing may exceed the car’s original price.

However, for those staying temporarily, the rules are more lenient. If you plan to use the vehicle for less than six months, you won’t have to pay duties.

New Car Buying Process in Thailand
Buying a new vehicle in Thailand comes with several benefits from the dealer, such as a 3- to 5-year service warranty and free insurance for the first year. The process of purchasing a car includes the following steps:

1. Make a deposit for the car you’ve selected. After payment, you’ll receive a receipt detailing the specifics of the car (make, model, color, etc.) and any additional services you’ve chosen to use.
2. Inspect the car once it arrives at the dealership. New cars typically have red license plates, indicating their new status. A few months after the purchase, these will be replaced with white plates. If everything is in order, you can sign the purchase documents.
3. You will receive a certificate of ownership, commonly referred to as the «blue book,» only after the permanent white license plates are installed.

The key document for registering your car is the sales contract.

Costs of Car Registration in Thailand
All cars must display a tax sticker on the windshield and have Compulsory Motor Insurance (CMI), which is issued simultaneously with the road tax (renewed annually).

Registration fees vary based on the vehicle's type and age, generally ranging from ฿1,000 to ฿7,000 ($28–$199). For instance, renewing the registration for a Toyota Altis 1.8 costs around ฿2,000 ($57).

When registering a car, you also pay a tax, calculated based on the vehicle’s engine size. If you buy a new car, the dealership will calculate the tax for you, and it’s paid together with insurance. The annual car tax in 2024 will range from ฿800 to ฿10,000 ($23–$284).

Fuel Costs in Thailand
There are two main types of gasoline in Thailand:

• Gasoline: Derived from oil.
• Gasohol: A mixture of gasoline and ethanol from plants, which is cheaper but not ideal for motorbikes.
  A liter of 91 gasoline costs around ฿40 ($1.15), 95 gasoline is ฿48 ($1.35), and diesel costs about ฿33 (~$0.95) per liter.

Car Registration Documents in Thailand
To register a vehicle with the Department of Transport, you will need to submit the following documents and their copies:

• Valid passport;
• Visa;
• Immigration residence document, house registration, or work permit.

The new owner will receive a registration book, containing their name, address, and the vehicle’s details.

Rules for Driving a Car in Thailand
Driving in Thailand requires experience due to the country’s left-hand driving system. The rules in Southeast Asia have been influenced by Great Britain, a former colonizer of many regions. Drivers must navigate narrow streets, numerous motorbikes and scooters, and frequent traffic jams in major cities, requiring focus and quick reflexes.

Conclusions
Buying a car in Thailand differs from the process in other countries, and these nuances need to be considered. Before you start driving, it’s crucial to familiarize yourself with the country’s automotive laws, understand how they are enforced, and prepare by submitting all the necessary documents and studying the theoretical rules.

Regardless of the type of vehicle, buying is generally more cost-effective than renting. However, if you’re staying in Thailand temporarily, renting a car may be a more practical option than figuring out how to return or quickly sell your vehicle later.

Whether you own a vehicle or not, if you’re planning to move to Thailand permanently, it's essential to consider whether you want to buy an apartment or a villa. Our comprehensive real estate platform is here to assist you. We offer the most attractive listings on the market from trusted developers, housing agencies, and private owners. Start your search for a new home in the sunny kingdom today!