Unlike buying a new car, there are many steps involved when it comes to buying a used car in Thailand. Some steps are unique to Thailand, and you might be surprised to learn about some of them.
In this article, we are going to guide you through all five common cases of buying a used car, including all related procedures and documents.
What You Need to Know First
Before buying a used car, there are four things you should check first:
Blue Book
Always check the car’s Blue Book or its copy (if the car is financed) in addition to checking the car. The engine number should be the same as what is listed in the blue book.
This ensures the vehicle belongs to the seller and prevents unexpected problems such as purchasing a stolen car. If a seller cannot show you the blue book, it’s better to take your money elsewhere.
Car Condition
It’s always a good idea to bring someone who knows how to inspect a car, such as a mechanic in your area.
Always be careful of a used car that just had a new paint job. It could mean that the car was just recently in an accident and needed to replace a part.
If you don’t know anyone who can go with you to inspect the car, you can use an inspection service like Goo Inspection. Fees are in the range of THB1,500 to THB3,000. But it can also vary by provider, car type, and location, so check the current price before booking. After the inspection, they will give you an inspection report and tell you whether they think you should buy the car or not.
However, car inspectors are usually unable to speak English. So, if you want to go this route, you should bring a Thai friend with you.
Tax Sticker
Check the tax sticker at the front of the car. If it’s already expired, you will need to renew the annual vehicle tax and pay any late-payment surcharge before or during the transfer. The annual tax depends on the vehicle type, engine size, and age, but for many private cars it is often around THB2,000 to THB4,000 per year.
Compulsory Insurance
All cars in Thailand are required by law to have compulsory motor insurance, commonly called Por Ror Bor. If it’s already expired, you should ask your seller to renew it first before selling it to you.
Alternatively, it’s also possible to do it yourself for around THB700 for a standard private passenger car. You can read this article on how to buy compulsory insurance.
Required Documents
To transfer a used car, a seller needs to give you the following documents:
- Blue Book
- A signed copy of the seller’s passport / Thai ID card
- Purchase agreement*
- Transfer form from the Department of Land Transport
*You may need to find two people to sign the purchase agreement as witnesses. They can be anyone, including your friends, families, and neighbors.
If you can’t find anyone, sometimes it can be officers from the Department of Land Transport.
The purchase agreement may not be as strict as in the West since the seller usually downloads the form from the internet without going over it carefully.
On your end, you need your passport, a signed copy of your passport, and proof of address accepted by the Department of Land Transport. For most foreign buyers, this means a certificate of residence from Immigration or your embassy, although some DLT offices may accept a work permit showing your Thai address.
If you don’t want to make the transfer yourself, you can prepare a power of attorney and send someone to do it on your behalf.
Transfer Procedure
When you have all of the documents, you can go to the Department of Land Transport. You can see all of their branches here.
You don’t need to go there together with a seller. It is common in Thailand for the seller to give all of their documents to you and let you do the transfer yourself. Sometimes the transfer form and the purchase agreement might not even state the buyer’s name.
The transfer procedure is very straightforward. Once you are at the Department of Land Transport, show your documents at the reception counter. Then they will tell you to go to the car inspection area inside the Department of Land Transport for an identification check of the vehicle.
If you know the location of the car inspection area, you can go straight there without having to go to the reception counter.
After that, come back to the reception for a document check, and they will send you to the car registration department to complete your transfer with an updated blue book.
Depending on the queue, it’s possible to complete a transfer within an hour.
Transfer Fee
The main fees involved when it comes to transferring a car in Thailand are usually:
- Request fee – THB5
- Transfer fee – THB100
- Vehicle inspection fee – usually THB50 for a car
- Stamp duty – 0.5% of the DLT-assessed car value. For example, if the assessed car value is THB300,000, the stamp duty is going to be THB1,500.
If you need new plates or a new registration book, there may be additional fees.
Five Common Cases
The procedure of buying a used car can be broken down into five common cases.
Case One
The first case is to buy the car from a used car dealer like a car tent. Prices tend to be higher than buying from a private seller but they’ll have all the details related to the car transfer and even take care of the financial loan.
You only need to give them a copy of your passport and your address document, then pick up the updated blue book a few days later.
Case Two
The second case is to buy from a private seller, assuming you have enough cash. You’ll need to handle all the paperwork yourself.
A private seller provides documents and lets the buyer complete the whole process as mentioned above once everything is paid for.
Or you and the seller can arrange a date and go to the Department of Land Transport together to complete the transfer.
Case Three
The third case is that you have enough cash, but the car is still on finance. It’s recommended to go to the finance company together with the seller and complete the purchase contract and transaction there.
The finance company should be the one to do the paperwork and send an updated blue book with your name in it afterward. This often takes around two weeks, but the timeline depends on the finance company and DLT processing.
Case Four
If you need to finance the car, you need to pay a deposit in advance, often around THB5,000, but the amount is negotiable. Make sure to sign the deposit contract.
The seller should give you a few weeks to make the financial loan. Once it’s approved, you should get a check issued with the seller’s name. Then, the seller should provide you with the necessary documents for making the car transfer.
You can handle the rest yourself or the seller can go to the Department of Land Transport with you. If you can’t get a loan on time, the seller has the right to take the deposit unless it’s negotiated beforehand.
Case Five
If a car is still on finance and you need to get a loan to purchase the car, the easiest way is to go to the finance company and have them transfer the loan into your name. You may still need to pay a percentage to the seller and a processing fee to the finance company though.
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