Buying or Renting a Car in Thailand: Advice From a Rental Company Owner

I've run Pattaya Rent a Car since 2010, and people moving here often ask whether they should buy a car or rent one long term. Here's how I'd decide.

Buy or rent?

A year is the magic number. If you're staying less than a year, I'd rent. Any longer, and I'd probably buy.

It's a mix of reasons. If you're here long term, the hassle of buying a car is spread over many years, so it makes sense. For a shorter stay, the hassle of buying and selling, plus the depreciation from adding another owner to the registration, makes renting the better choice.

When you rent, you also get help with insurance, maintenance and breakdowns. If you're new here or a bit inexperienced, you may well prefer to hand all that to a well-established company.

What do you need to buy a car as a foreigner?

For a new car, you need the right visa. I believe you can buy one as a tourist, but you'd have to pay cash. To buy on finance from a dealer like Toyota or Honda, you'd need a work permit and a credit history.

To register a car in your own name, you'll also need proof of address, usually a certificate of residence from immigration or a letter from your embassy. That's much harder to get on a tourist visa, so check with the Department of Land Transport before you commit.

Second-hand, there isn't really any finance, so you have to pay the full amount. Second-hand cars here are also expensive compared with other countries. They just don't seem to lose value as much as they do elsewhere.

What should you watch for with a second-hand car?

All the usual things: mechanical problems, flood damage, accident history, and even whether the engine has been changed. I once bought a car that had been converted to LPG and then converted back. Cut-and-shuts aren't common, but they do happen here, even though they're illegal in a lot of other countries.

There are more risks buying second-hand here than in the West, so be extra careful. If you do buy second-hand, my advice is to buy from another foreigner and listen to their story. Why are they selling? Are they upgrading, or leaving the country? Talk to them on their level and get a sense of whether you're buying a problem.

What insurance do you need?

Get first-class insurance. You can get third party, fire and theft, but that won't cover things like medical expenses.

Insurance here is reasonably expensive, but it generally insures the car rather than the person, so anyone with a valid licence can usually drive it without being named. Check your policy, though, because some cheaper ones are limited to named drivers.

What does a monthly rental cost?

At Pattaya Rent a Car, we only offer monthly rentals in the low season, roughly May to September. In high season our cars are busy with shorter rentals.

In the low season, you can get a deal from as little as ฿10,000 a month, including insurance, maintenance and breakdown help.

How easy is it to sell a car when you leave?

Pretty easy. Transferring ownership can be done in a day. Cars over seven years old need a yearly safety inspection, so make sure that's up to date first. There are agents at the Department of Land Transport who will handle all the paperwork for you.

The one complication can be the number plate. Plates are tied to a province, so if you buy a car registered somewhere else, you may need new plates, and there's a fee for that.

My best advice

If renting doesn't make financial sense for you and you decide to buy, buy new. I'd stay away from the second-hand market completely. Used cars here are expensive, and finance on a new car is cheap. It just makes much more sense to buy new.

For more, read scooter or car in Pattaya and driving in Pattaya. For a long-term rental in the low season, contact Pattaya Rent a Car.