If you were me - what would you do: Poll

[Yodarapper]

Expat with family, wife and 2 kids. Arrived in august, not sure if we will be here 2 years or 3 or 4. 
Definitely need a car. Currently renting for 16k month.

Two good salaries - currently we rent car and save 1 salary and a bit of the other - we use money to send back home for mortgage and to invest in private pension.

 

should we:

A.keep renting for however many years we are in Thailand.

 

B. Buy a second hand car from a place like toyotasure on a loan - will allow us to continue investing in our pensions back home

 

C. Buy a new car on a loan - will continue to allow us to invest in our home pensions.

 

D. Stop investing in our pensions for 5/6 months and try to save 600k to buy a car from a trustworthy secondhand place like toyotasure with cash.

 

My doubts are mainly because it’s s good time to invest and if I was to save to buy a car outright it would mean saving for 6 months - so not investing.

 

Also- what car? I’ve looked at the Mitsubishi xpander - toyotasure “sure” have a lot of them for around 600 to 800k. Also looked at the Toyota chr or the veloz - but that’s too long I think. Also the Honda Brv.

 

Anyway - what should we do?!

[Woof999]

2nd hand cars really hold their value here and I personally wouldn't trust one even if it came from a main dealer.

 

If you are in a position to get finance, go for new, but not a brand new model, and then really haggle with them on the interest rate.

[HauptmannUK]

New car depreciation is fairly modest in Thailand so buying new and selling at 3-4 years is a good option. Keep in mind also that dealers will offer 'extras' on a sale.  Last year my wife got year's insurance and three years' free servicing on a Toyota...

 

Think about what you will use the car for. If just shopping and taking the kids to school then something like a Yaris or City will suffice.  Note that SUVs don't necessarily have much more room than a small saloon - Veloz is built on the Yaris floorpan. CX30 is on Mazda 2 floorpan.  The old BRZ seemed a nice size and not badly priced. The new model looks a bit pricey.

[A1Str8]

Yo best bet is to negotiate a long lease. Buying brand new is for dummies. 

Buying sec hand isn't worth it. You get it you use it you spend quite a bit on upkeep then sell it years later for much less coz of depreciation. 

But don't lease from a business. Find a nice family who has several cars and is willing 2 give you one. Negotiate a price that's good for both of you. He pays for maintenance coz it's his car. 

[BangkokReady]

3 hours ago, Yodarapper said:

we use money to send back home for mortgage and to invest in private pension.

How does this work when living abroad?

[spidermike007]

Stop investing for awhile and buy a new car. Many think the market is due for a major correction this year. The car may be a far better place for your money at this time. Also, we managed to get a zero percent loan on our Mazda. Hard to beat that. 

[HauptmannUK]

3 hours ago, A1Str8 said:

But don't lease from a business. Find a nice family who has several cars and is willing 2 give you one. Negotiate a price that's good for both of you. He pays for maintenance coz it's his car. 

I hadn't thought of that option. Sounds like a great idea.......

[liddelljohn]

sell wife and kids , buy a motorcycle and be happy,, only joking  

 

  I  bought a low mileage 3 years old Toyota Hilux in mint condition  29,000 kms from a big 2nd hand  franchise that have places all over Thailand  car was like new , with 6 months warranty and full Toyota Service History  now had it 2 years totally Bomb proof now over 80k kms  and it was half the price of a new one which is currently 980,000  I paid 530,00   .

Stick to Toyotas, Hondas  , Suzuki , Mitsu      , beware of newer Nissans they are not so reliable  these days ,  Our last car was a Mazda it was OK  ,    avoid Fords and German cars

[Ralf001]

Renting @ 16k a month for possibly up to 4 years will cost 760k....... dead money.

Buying at 800k now............. sell @ 400k in 4 years.

 

Buying now seems to be a o brainer to me.

 

[Ralf001]

4 hours ago, BangkokReady said:

How does this work when living abroad?

 

The investing or the sending ?

 

Both Kbank and BKK bank allow me to direct transfer back home from my accounts.

[BangkokReady]

3 hours ago, Ralf001 said:

The investing or the sending ?

 

Both Kbank and BKK bank allow me to direct transfer back home from my accounts.

Paying into a private pension while living abroad.

[nigelforbes]

9 hours ago, A1Str8 said:

Yo best bet is to negotiate a long lease. Buying brand new is for dummies. 

Buying sec hand isn't worth it. You get it you use it you spend quite a bit on upkeep then sell it years later for much less coz of depreciation. 

But don't lease from a business. Find a nice family who has several cars and is willing 2 give you one. Negotiate a price that's good for both of you. He pays for maintenance coz it's his car. 

Totally disagree. Lease costs are sunk costs, there's nothing at the end, zero. New cars here retain their value much much more than in the West. Buy the new car when the exchange rate is favorable and you can almost make the car pay for itself over five years, plus you've got very high resale value.

 

OP don't stop your overseas pension payments, that should be a priority.

[Gottfrid]

33 minutes ago, BangkokReady said:

Paying into a private pension while living abroad.

Why would that be a problem?

[Gottfrid]

@Yodarapper I would personally continue to rent. However, you might fins a better monthly deal at a lower price. Let´s say you fins one for 12k a month. That would be 144k per year and 288k for 2 years. A good second hand car, seldom goes for less than 450 - 500k. Something that means you will have a margin for staying 2 years, you can stay 3 without paying more. After that, you not have to pay tax and insurance as well as have no problem selling it before you leave.

To me it sounds like your finances are stable and you can still save and invest for the future. That would be my choice. Sure, you will lose the money you pay every month, but have less problem around the car.

[4MyEgo]

9 hours ago, A1Str8 said:

Buying brand new is for dummies. 

Buying sec hand isn't worth it.

Really, wow, I did the math on buying a new car 8 years ago just before I purchased my new car back then. It went like this:

 

Car cost 800k baht with a years registration and 1st class insurance, plus some other things thrown in. 2 sets of replacement tyres, oil changes, and a little maintenance. I didn't include services, registration, insurance and fuel costs as they are normal costs associated when driving the car. 

 

So if I added 200,000 to the purchase price that would take it to a mil baht, now I would say I could get 400,000 baht for the car as it's a one owner and well looked after, that said, the cost for that car would be 600,000 baht over 8 years = 75,000 baht over 12 months = 6,250 baht or 200 baht per day if you like.

 

That to me is better than renting one for 16,000 baht per month, because you own it, you drive it, you maintain it and you know your cars reliability. 

 

9 hours ago, A1Str8 said:

Yo best bet is to negotiate a long lease.

How much would a lease cost you per month, noting that none of it would be recouped at the end of the lease.

 

9 hours ago, A1Str8 said:

You get it you use it you spend quite a bit on upkeep then sell it years later for much less coz of depreciation. 

Much much less, really, what 50% plus associated running costs, please enlighten me as to cost of your lease for an 8 year period for example.

 

It's easy to spew out words, but the math and a lot of others factors shows a clearer picture.

 

9 hours ago, A1Str8 said:

Buying sec hand isn't worth it.

Well we don't know about that, because he could buy a 2nd hand car that is well maintained like mine and continue to enjoy it for a few years to come, e.g. 2, 3, 4 year and more.

 

If he purchased it for 400,000 baht and resold it 4 years later for say 100,000 baht, he would have spent 300,000 baht excluding the other associated costs that I mentioned that are standard with driving a car.

 

So doing the math, it reverts back to what it cost me per month, i.e. 6,250 baht per month or 200 baht per day, now I will wait for those leasing figures of yours per month thanks ???? 

 

Edited February 5, 2023 by 4MyEgo

[Gottfrid]

15 minutes ago, 4MyEgo said:

Really, wow, I did the math on buying a new car 8 years ago just before I purchased my new car back then. It went like this:

 

Car cost 800k baht with a years registration and 1st class insurance, plus some other things thrown in. 2 sets of replacement tyres, oil changes, and a little maintenance. I didn't include services, registration, insurance and fuel costs as they are normal costs associated when driving the car. 

 

So if I added 200,000 to the purchase price that would take it to a mil baht, now I would say I could get 400,000 baht for the car as it's a one owner and well looked after, that said, the cost for that car would be 600,000 baht over 8 years = 75,000 baht over 12 months = 6,250 baht or 200 baht per day if you like.

 

That to me is better than renting one for 16,000 baht per month, because you own it, you drive it, you maintain it and you know your cars reliability. 

 

Yeah, that´s a fantastic calculation. You just missed the most important thing, that will totally wreck your numbers. The OP talked about a time frame of 2 -4 years. So, the reality will be minimum the double of your 8 years. In reality minimum 150k bath over 12 month or as high as 300k baht over 12 month if only 2 years.

So, there we crashed and burn real good! Totally unrecoverable man! Just wreck it, Ralph! ????????????

I know, now you are going to say that the second hand value will be much higher. So, will the problem with selling the car, whatever value you wish to put on it.

Edited February 5, 2023 by Gottfrid

[4MyEgo]

7 minutes ago, Gottfrid said:

Yeah, that´s a fantastic calculation. You just missed the most important thing, that will totally wreck your numbers. The OP talked about a time frame of 2 -4 years. So, the reality will be minimum the double of your 8 years. In reality minimum 150k bath over 12 month or as high as 300k baht over 12 month if only 2 years.

So, there we crashed and burn real good! Totally unrecoverable man! Just wreck it, Ralph! ????????????

I know, now you are going to say that the second hand value will be much higher. So, will the problem with selling the car, whatever value you wish to put on it.

Sometimes it makes it worth while to read the entire post.

 

I could say refer to the bottom of my post where I wrote about purchasing a 2nd hand car, as the old saying goes, "you can lead them to water, but .....

[realfunster]

7 hours ago, spidermike007 said:

Stop investing for awhile and buy a new car. Many think the market is due for a major correction this year. The car may be a far better place for your money at this time. Also, we managed to get a zero percent loan on our Mazda. Hard to beat that. 

Was that as a foreign couple or is your partner Thai ?

Just asking as I have a car loan but I'm fairly sure my (Thai) wife needed to be guarantor.

 

[steven100]

I would try to get a 12 month lease re-newable ....  try to get a deal for 8-10k / mth .

After 2 years you've only spent 240k ...  and you don't have to service, insure etc .... 

You certainly won't get a flash big Fortuner for 10k/m  but look around and bargain then down in that yo want it for two years .... and see what they can offer,  that's what I would do.  

[realfunster]

13 hours ago, Yodarapper said:

Expat with family, wife and 2 kids. Arrived in august, not sure if we will be here 2 years or 3 or 4. 
Definitely need a car. Currently renting for 16k month.

Two good salaries - currently we rent car and save 1 salary and a bit of the other - we use money to send back home for mortgage and to invest in private pension.

On a separate note, as you have decent salaries, has your Thai company enrolled you in their provident fund ?

Up to THB 500k allowed as tax deduction (if you are top rate tax payer = THB 180k tax saving) and the company must match your contribution.

If you are leaving within 2-4 years, you would get all your contributions returned but only a % of company contributions. Likely still worth it though.

Interested to hear, as some companies tend to be a bit economical with the truth on this, especially with expats on fixed term contracts...

 

[BangkokReady]

1 hour ago, Gottfrid said:

Why would that be a problem?

Who said it would be a problem?

[nigelforbes]

Jeeze guys, this is not rocket science! 

 

Buy a new vehicle for 1 mill. cash, keep it and drive it for 4 years and sell it. I've done that twice now over 6 and 7 years, both times I recouped at least 65% of my initial outlay, if I factor in the exchange rate gain on the first one (CRV) I recovered almost 85%. I have a third new vehicle that I've now had for 10 years (Vigo), I paid 900k for it and was offered 425k last month, an even better deal, plus there will be an ex. rate gain. That's circa 7k baht a month, plus insurance, tax and maintenance, there's no way leasing can compare favorably. Parts and labor and cheap here, that's why used prices are so high.

[Liverpool Lou]

14 hours ago, Woof999 said:

2nd hand cars really hold their value here and I personally wouldn't trust one even if it came from a main dealer.

Why wouldn't you trust a warranted car from a dealer?

[Liverpool Lou]

11 hours ago, A1Str8 said:

But don't lease from a business. Find a nice family who has several cars and is willing 2 give you one.

"Find a nice family who has several cars and is willing 2 give you one".

What?  Could you clarify, rationally, how anyone goes about doing that?

[Liverpool Lou]

"If you were me - what would you do: Poll"

 

I'd have not started the poll as I'm 100% sure you're no better off with all the "advice"!

[Saphan]

Rent a scooter

[Woof999]

1 hour ago, Liverpool Lou said:

Why wouldn't you trust a warranted car from a dealer?

Personal experience.

 

Generally cars aren't treated particularly well here.

The standard of servicing is nothing to write home about.

The roads aren't particularly well maintained, leading to early wearing of suspension parts.

Several instances of items under warranty suddenly not being under warranty.

Given a choice of an item failing and then being fixed / replaced under warranty or not failing in the first place, I'd go with the latter.

 

The relatively small gap between new and used, at least from where I came from, and, if cheap finance is available, a new car is a sensible choice.

 

In other parts of the world I'd almost certainly have a different view. Particularly in the UK.

 

[Gottfrid]

3 hours ago, BangkokReady said:

Who said it would be a problem?

That´s true! Nobody. 

[Gottfrid]

3 hours ago, 4MyEgo said:

Sometimes it makes it worth while to read the entire post.

 

I could say refer to the bottom of my post where I wrote about purchasing a 2nd hand car, as the old saying goes, "you can lead them to water, but .....

And as my saying says. Do not quote other posts and after try to include it in the text for reply on the post mentioned.

Seems to me that you should talk a little bit more to the cows you are referring to. 

[4MyEgo]

1 hour ago, Gottfrid said:

And as my saying says. Do not quote other posts and after try to include it in the text for reply on the post mentioned.

Seems to me that you should talk a little bit more to the cows you are referring to. 

Looking to start an argument over something your incapable of understanding, good luck with that one.