Car Rent Or Buy? Which Is Better In Medium Term?

[junkofdavid2]

Assuming you were to get a common Japanese car, NOT brand new (maybe 3 to 5 year old car) , for use in Thailand.

Which is better in the medium term? (about 3 years)

If you buy, it will cost you depreciation and repair costs... and will have the trouble of selling it again in about 3 years at an unknown price.

If you rent, then you have to "pay" extra for the car company's profit somehow.

Say what you think, and you can also suggest good deals for car rental companies, or of innovative or creative ways to go about this...

Cheers!

[solo siam]

Brand new car would be the cheapest, very small depreciation, warranty etc..

[stingray]

Brand new car would be the cheapest, very small depreciation, warranty etc..

I think not. Buy a 10 to 15 year "Non Japanese Car" (Japanese cars are very expensive in the Used Car market, therefore buy a "Non Japanese Car), like for example a Hyundai Accent or Elantra, Peugeot or something like them. They are arround 150' k for a good one and afther 3 years you still get a 100'k for it, if you sell it. Depreciation 50'k repairs and maintenance maybe another 50'k. 3rth party Insurance 3'000 Baht and taxes maybe another 15'k. So you'll drive for about 115'000 Baht for the next 3 years, it is 3'200 Baht per month. This is the cheapest way to drive.

BTW you can get full insurance for a older car for only about 7'000 Baht by 'Akane" Insurance

[solo siam]

Brand new car would be the cheapest, very small depreciation, warranty etc..

I think not. Buy a 10 to 15 year "Non Japanese Car" (Japanese cars are very expensive in the Used Car market, therefore buy a "Non Japanese Car), like for example a Hyundai Accent or Elantra, Peugeot or something like them. They are arround 150' k for a good one and afther 3 years you still get a 100'k for it, if you sell it. Depreciation 50'k repairs and maintenance maybe another 50'k. 3rth party Insurance 3'000 Baht and taxes maybe another 15'k. So you'll drive for about 115'000 Baht for the next 3 years, it is 3'200 Baht per month. This is the cheapest way to drive.

BTW you can get full insurance for a older car for only about 7'000 Baht by 'Akane" Insurance

Theres a reason those cars are cheaper, probably double your maintenance costs and then add in all he time and hassle of going to get it repaired, waiting for parts etc...

Much better to buy a new 500k Toyota and sell it on in 3 years for 350k, 1st year insurance is often free, no maintenance costs etc...

[Aussietraveller]

Your usage would be a huge factor to consider.

If you do not travel far from home, and do not do a lot of km's then an older car will probably be OK.

Reliability would be a factor, as i would not imagine that there are a lot of older Thai cars that get regular Mtce. When it breaks fix it type of thing.

If you will be doing a lot of driving, then new or very nearly new would be the way to go.

Car resale prices are high in Thailand, so you will not lose as much as you would in the west.

IMHO, buying new is the only way to go every time.

[stingray]

For 500'k you get a very basic "Japs". No air bags, no ABS, steel wheels with plastic wheel covers, and nothig inside. You have to spend at least 650'k if you want fully loaded. You buy a 10 year old Crysler Neon or a Volkswagen Passat for example you get 2 air bags, ABS, automatic, alloy wheels, etc for about 150'k. Sure you are right parts are more expensive, but you have to look the condition carefully, when you buy a used car. Don't buy a "Lemon". If you like style, spend a little bit more and buy a Audi A4 (2 air bags) or a Nissan Cefiro (sometimes one air bag). Very good cars, much more safety than a Jazz or Yaris, a liitle bit bigger and no problems at all. Remind if you buy a used car, check the condition very carefully.

[junkofdavid2]

Thanks for your opinions...

A question is, how much harder (if at all) is it to maintain an automatic car? Do they break down more often? How much more expensive is it to maintain an automatic transmission than a manual transmission car?

Never owned an automatic, so forgive my ignorance and/or biases or preconceived notions.

[LivinLOS]

Brand new car would be the cheapest, very small depreciation, warranty etc..

I think not. Buy a 10 to 15 year "Non Japanese Car" (Japanese cars are very expensive in the Used Car market, therefore buy a "Non Japanese Car), like for example a Hyundai Accent or Elantra, Peugeot or something like them. They are arround 150' k for a good one and afther 3 years you still get a 100'k for it, if you sell it. Depreciation 50'k repairs and maintenance maybe another 50'k. 3rth party Insurance 3'000 Baht and taxes maybe another 15'k. So you'll drive for about 115'000 Baht for the next 3 years, it is 3'200 Baht per month. This is the cheapest way to drive.

BTW you can get full insurance for a older car for only about 7'000 Baht by 'Akane" Insurance

Theres a reason those cars are cheaper, probably double your maintenance costs and then add in all he time and hassle of going to get it repaired, waiting for parts etc...

Much better to buy a new 500k Toyota and sell it on in 3 years for 350k, 1st year insurance is often free, no maintenance costs etc...

My first Thai car I bought for 80.. spent 40 on and sold for 150..

My next Thai car cost 120.. Spent nothing special on (perhaps a battery cos I dont drive much and they flatten) sold 140..

Current car bought cheap and can sell for 60 - perhaps 80 at a push more than I bought it for.. I have spent about 15k on fixing some little things that were not 100%.. Runs starts clean little runabout and needs no more service than any new or newish motor (cheaper in fact as your not dealing with rip off main dealers)..

Personally I think there so many people buying new now (on credit) under that assumption that the second hand market is getting flooded and price compression in inevitable.. The low end of the market is the least effected.

[LivinLOS]

For 500'k you get a very basic "Japs". No air bags, no ABS, steel wheels with plastic wheel covers, and nothig inside. You have to spend at least 650'k if you want fully loaded. You buy a 10 year old Crysler Neon or a Volkswagen Passat for example you get 2 air bags, ABS, automatic, alloy wheels, etc for about 150'k. Sure you are right parts are more expensive, but you have to look the condition carefully, when you buy a used car. Don't buy a "Lemon". If you like style, spend a little bit more and buy a Audi A4 (2 air bags) or a Nissan Cefiro (sometimes one air bag). Very good cars, much more safety than a Jazz or Yaris, a liitle bit bigger and no problems at all. Remind if you buy a used car, check the condition very carefully.

Also Audi 100's or A6's are good buys if you can see a clean one..

Thais dont rate them, yet they are great solid vehicles.

[LivinLOS]

http://www.thaivisa.com/forum/index.php?showtopic=144019

98 neon.. <100k kms.. Dual airbags.. 130k.. Maybe pick it up 100 - 120k cash on the nail..

Now I tend to think the neon is a bit dull but seriously how much is there to lose.. Own this car a couple of years and I will be shocked if it cant be sold at 80 - 90 plus.. Cheap insurance, bit of service, costs are minimal if its looked after.

[samran]

Just as a point of reference.

We bought our car for 280K 1.5 years ago. 1996 Model Suzuki Vitara

We've spent 50K in maintainence on it (new shock absorbers, new aircon system, and general maintainence). Expect to pay maybe up to 20K per year for maintaince from here on in.

We spend 15K per year for comprehensive insurance.

1000 baht for petrol every 2 weeks (25K per year)

I expect to sell the car for a similar amount that we bought it for in another 1.5 years.

Say 110K for three years (plus another 75K petrol) = (185K/3)/12 = 5,000 odd baht per month to run a car including fuel isn't bad as far as I'm concerned.

[mikethevigoman]

Assuming you were to get a common Japanese car, NOT brand new (maybe 3 to 5 year old car) , for use in Thailand.

Which is better in the medium term? (about 3 years)

If you buy, it will cost you depreciation and repair costs... and will have the trouble of selling it again in about 3 years at an unknown price.

If you rent, then you have to "pay" extra for the car company's profit somehow.

Say what you think, and you can also suggest good deals for car rental companies, or of innovative or creative ways to go about this...

Cheers!

buy a good chrysler neon for about 150k, you wil get 100 or over when you sell and it is a japanese car !

[thai4u]

if you rent you need to check that the car is insured with real insurance.

most of the car4rent shops use first-class insurance and not the real rental insurance.

I think its not cover the person..or am I mistake?