What It Really Costs to Run a Car in Thailand

Running a car in Thailand is cheap compared with the West, as long as you buy the right car. Here's what to budget for, from someone who's run a rental fleet here since 2010.

Insurance: always go first class

For a typical car, first class insurance is around ฿18,000 a year. The price depends on the car's age, the driver's age and whether you have a no-claims record.

I would always go first class. It costs a bit more, but it covers medical bills, including the other party's if you have an accident. You don't want to take too many risks in Thailand.

Servicing: cheap, if you buy a Toyota or Honda

New-car warranties here are normally three years or 100,000 km, and you can sometimes extend them. Most cars are serviced every 10,000 km or six months, and a standard service at an authorised dealer under warranty is around ฿1,200.

After the warranty, a Toyota or Honda stays cheap to service. A Mercedes or BMW is a different story. You almost have to use the authorised dealer, and that's how a lot of those dealerships make their money here: on servicing and repairs.

Road tax and compulsory insurance

Both are cheap. The compulsory insurance (Por Ror Bor) for a private car is about ฿645 a year. Road tax is separate and based on engine size: for a typical small car it's roughly ฿1,000 to ฿1,700 a year, with discounts once the car is over five years old. Cars over seven years old also need a yearly inspection before you can renew.

The compulsory insurance is pretty poor, which is another reason to have first class cover.

Fuel

Fuel is cheap compared with the West, though expensive compared with somewhere like the Middle East. At the moment gasohol is around ฿41 a litre. What you spend a month depends entirely on how much you drive.

The cost everyone forgets: depreciation

Depreciation isn't unique to Thailand, but people here often ignore it. I see people buy a car to drive for Grab or Bolt, look only at what they make at the end of the month, and never account for what the car is losing in value.

If you're deciding whether to rent, or to buy and sell when you leave, depreciation is the hardest part of the sum. Cars here used to hold their value well, but they're now losing it faster, more in line with the West. The main reason is cheap Chinese electric cars. They weren't that cheap at first, but prices are falling fast.

The government has just approved a big rise in the tax on imported electric cars, to 35% from 2027, to protect local production. Cars built here in Thailand will stay much cheaper.

Should you buy an electric car?

If it's a personal car, I'd recommend looking at an electric one. At the Bangkok Motor Show, held every year, most of the cars on display are electric and most of those are Chinese. The old idea of cheap, badly made Chinese cars just isn't true any more.

For more, read buying vs renting a car in Thailand, renting a car in Pattaya and driving in Pattaya. If you'd rather not own one at all, Pattaya Rent a Car can help.