Buying a Vehicle

Purchasing a car in Thailand requires more than simply going to a dealer and handing over money and even if it were that easy you would still need help.

The biggest issue in purchasing a new car is the language and cultural barrier, with Retire In Thailand’s help you will get what you want at a lesser price.

Purchasing a second hand vehicle is a different story. The minute the dealer sees you are a foreigner his eyes light up, dual pricing kicks in and he starts calculating how much money he can extract from you. He will immediately raise his asking price allowing you to bargain down to the full price he would have used to begin bargaining with a Thai. You will think you did well and he will be laughing at you, not with you.  Also, unless you know the good dealers from the bad, like we do, you might wind up buying a car that is not all it appears to be.  For instance, used car dealers buy cars from all over the country and many of those, especially from Bangkok have been in floods.

Retire In Thailand has arrangements with a number of used car dealers who understand that if they make a good deal for our clients they will get more business. By allowing us to help you purchase a second hand vehicle you will not only get a good car, you will save a pile of money.

You should know that compared to Europe, The USA and Australia, second hand cars are expensive.

Another factor to consider is the age of the vehicle when it comes to buying insurance. In Thailand cars over 14 years old cannot buy what is referred to as “first class insurance”.  Below is a brief description of each type of vehicle insurance.

It is a legal requirement in Thailand for cars to have Compulsory Motor Insurance (CMI or Por Ror Bor). This insurance is required by law with a set premium and cover rates. It only covers third parties and passengers. CMI can be bought from the local Department of Land Transport Office (DLT), from car insurance companies, and from some car dealerships. The only document required is the car registration document (Blue Book or Lem Tabian).

Additional Car Insurance

A range of private insurance companies offer coverage greater than the CMI.  Most will offer a variation on the three levels of insurance cover listed below. Cover will vary from company to company, so check all of the policy details before signing.

First class insurance: Also known as fully comprehensive insurance: covers the vehicle, the life of the driver and any costs associated with injury to the driver or passengers it also covers third party property damage and liability.

Second class insurance: Also known as collision coverage, will cover repairs to any vehicles involved in an accident.  However, this class of insurance will not pay for your damage if, for instance, you hit a tree or building.  It only covers on road accidents.

Third class insurance: Covers the life of the driver, costs of injury to the driver and passenger, and third party property damage and liability

Thai insurance companies have a no-claims bonus structure on certain policies that will provide significant discounts after a year with no claims on the insurance. Some companies even permit small claims to be made without voiding the no-claims bonus.

Note: It is very important to know and understand an insurance company’s accident procedures, particularly those pertaining to the scene of the accident itself (will an agent attend the scene and help you). Find these out when taking out the insurance.

With the help Retire In Thailand provides on a new vehicle purchase, you’ll get your questions answered and requirements heard and understood and though we will get you a better deal the savings, though they will not be great (about 10%), will more than cover the cost of our service.