Just Retired Here - Need Help Making A Budget Before Buying New Car

[Lopburi99]

Hello - I am very happy to be retiring here from the USA. I want to buy a new car but I need some advice about living expenses so I can determine a monthly budget and, specifically, a monthly car payment I can afford.

My monthly U.S. government pension: About 60k baht (currently 65k due to recent dollar rise)

Monthly expenses:

Budgeted 20,000bt for daily living expenses (aircon [3,000/mo], food, cable, internet, water, phone, medical, and misc. [house already paid for])

Budgeted about 15,000bt for new car payments (inc insurance). 5 year dealer financing.

Budgeted 10,000bt for touring by car inc gasoline, reasonable cost resorts, etc.

Budgeted 15,000bt for savings (for health emergencies, annual visit to USA, etc.)

Does this tentative budget seem reasonable? I am 61 and have average health. (I have no other savings/assets here or in the USA) Since this may be the last new car I buy for a long time, I want to get a nice one. Currently considering a Toyota Altis 1.8E for about 900,000bt, or maybe a lower priced 2009 Honda City for about 650,000bt if the new City is really sharp and isn't too small [The new "City" comes to Thailand Sept 12 but little is known about this totally new Honda model yet].

I'd appreciate your thoughts/advice very much!

[GuestHouse]

I'd suggest that you settle in to Thailand for a few months before buying a car - Test your budget by living it and then see if you can afford to buy the car.

[Artamus]

If you search the other boards you will find a lot of threads on living costs. A general consensus appears to be anything from 30,000 - 120,000+ Bhat/month. Adjust one's lifestyle to fit. Depends where you live (out in the sticks as opposed to central BKK). If you have your own place and don;t travel a lot most people estimate you'll get by easily at the lower end of that range.

[poshthai]

60k should be fine especialy if you have your own house.3 of us live on that and i own my house and car,motorbike,and my stepson goes to a small private school,not international but still good.

[LaoPo]

Hello - I am very happy to be retiring here from the USA. I want to buy a new car but I need some advice about living expenses so I can determine a monthly budget and, specifically, a monthly car payment I can afford.

My monthly U.S. government pension: About 60k baht (currently 65k due to recent dollar rise)

Monthly expenses:

Budgeted 20,000bt for daily living expenses (aircon [3,000/mo], food, cable, internet, water, phone, medical, and misc. [house already paid for])

Budgeted about 15,000bt for new car payments (inc insurance). 5 year dealer financing.

Budgeted 10,000bt for touring by car inc gasoline, reasonable cost resorts, etc.

Budgeted 15,000bt for savings (for health emergencies, annual visit to USA, etc.)

Does this tentative budget seem reasonable? I am 61 and have average health. (I have no other savings/assets here or in the USA) Since this may be the last new car I buy for a long time, I want to get a nice one. Currently considering a Toyota Altis 1.8E for about 900,000bt, or maybe a lower priced 2009 Honda City for about 650,000bt if the new City is really sharp and isn't too small [The new "City" comes to Thailand Sept 12 but little is known about this totally new Honda model yet].

I'd appreciate your thoughts/advice very much!

You're not an accountant...are you ?

Why would a Thai car dealer give a guy he doesn't know, has no track record and doesn't have a down payment (from your numbers) give you a 5 year dealer finance ?

What happens if you hit a child, running across the street ?

Forget the car and save a lot of money (for you) by using public transport and hire one, once in a while.

A car will be parked 95% of the day.....24/7, 12 months per year, especially in your circumstances.

You're planning a budget of 25.000 Baht out of 60,000 for a CAR...and 15,000 for health on an age of 61............are you on dope or something ?

LaoPo

[haybilly]

Hello - I am very happy to be retiring here from the USA. I want to buy a new car but I need some advice about living expenses so I can determine a monthly budget and, specifically, a monthly car payment I can afford.

My monthly U.S. government pension: About 60k baht (currently 65k due to recent dollar rise)

Monthly expenses:

Budgeted 20,000bt for daily living expenses (aircon [3,000/mo], food, cable, internet, water, phone, medical, and misc. [house already paid for])

Budgeted about 15,000bt for new car payments (inc insurance). 5 year dealer financing.

Budgeted 10,000bt for touring by car inc gasoline, reasonable cost resorts, etc.

Budgeted 15,000bt for savings (for health emergencies, annual visit to USA, etc.)

Does this tentative budget seem reasonable? I am 61 and have average health. (I have no other savings/assets here or in the USA) Since this may be the last new car I buy for a long time, I want to get a nice one. Currently considering a Toyota Altis 1.8E for about 900,000bt, or maybe a lower priced 2009 Honda City for about 650,000bt if the new City is really sharp and isn't too small [The new "City" comes to Thailand Sept 12 but little is known about this totally new Honda model yet].

I'd appreciate your thoughts/advice very much!

You're not an accountant...are you ?

Why would a Thai car dealer give a guy he doesn't know, has no track record and doesn't have a down payment (from your numbers) give you a 5 year dealer finance ?

What happens if you hit a child, running across the street ?

Forget the car and save a lot of money (for you) by using public transport and hire one, once in a while.

A car will be parked 95% of the day.....24/7, 12 months per year, especially in your circumstances.

You're planning a budget of 25.000 Baht out of 60,000 for a CAR...and 15,000 for health on an age of 61............are you on dope or something ?

LaoPo

There you are--lesson No.1--post on TV and wait to get shot down--LaoPo actually gives good advice usually, today he's maybe a little too acute.

[Soutpeel]

Hello - I am very happy to be retiring here from the USA. I want to buy a new car but I need some advice about living expenses so I can determine a monthly budget and, specifically, a monthly car payment I can afford.

My monthly U.S. government pension: About 60k baht (currently 65k due to recent dollar rise)

Monthly expenses:

Budgeted 20,000bt for daily living expenses (aircon [3,000/mo], food, cable, internet, water, phone, medical, and misc. [house already paid for])

Budgeted about 15,000bt for new car payments (inc insurance). 5 year dealer financing.

Budgeted 10,000bt for touring by car inc gasoline, reasonable cost resorts, etc.

Budgeted 15,000bt for savings (for health emergencies, annual visit to USA, etc.)

Does this tentative budget seem reasonable? I am 61 and have average health. (I have no other savings/assets here or in the USA) Since this may be the last new car I buy for a long time, I want to get a nice one. Currently considering a Toyota Altis 1.8E for about 900,000bt, or maybe a lower priced 2009 Honda City for about 650,000bt if the new City is really sharp and isn't too small [The new "City" comes to Thailand Sept 12 but little is known about this totally new Honda model yet].

I'd appreciate your thoughts/advice very much!

You're not an accountant...are you ?

Why would a Thai car dealer give a guy he doesn't know, has no track record and doesn't have a down payment (from your numbers) give you a 5 year dealer finance ?

What happens if you hit a child, running across the street ?

Forget the car and save a lot of money (for you) by using public transport and hire one, once in a while.

A car will be parked 95% of the day.....24/7, 12 months per year, especially in your circumstances.

You're planning a budget of 25.000 Baht out of 60,000 for a CAR...and 15,000 for health on an age of 61............are you on dope or something ?

LaoPo

LaoPo...think you are being a harsh mate..yes the guys maybe a little confused over calculating his expenses and agree with you on the finance deal...ie deposit normally at 25% doesnt seem to be have been considered...

[Naam]

There you are--lesson No.1--post on TV and wait to get shot down--LaoPo actually gives good advice usually, today he's maybe a little too acute.

Guesthouse has given excellent advice. LaoPo too when comparing the budgeted car expenses with those for health care.

[LaoPo]

Thanks Soutpeel & haybilly, for your comments.

I'm not Einstein but if someone post here, planning to retire in Thailand and asks for advise I give mine.

If someone wishes to spend between 38.5% and 41,66% out of 100% of his monthly income on a car than I think................ :D

That same 38.5% (out of 65K Baht) and 41,66% (out of 60K Baht) is spent on a transport vehicle which is in pure rest/sleep/standing still, 95% out 0f 24/7, 12 months per year.

Now, if that's a WISE decision the OP has to make for himself.

That's all.

PS: would any of us spend between 38% and 41% & of your monthly income on a car....?

LaoPo

Edited August 26, 2008 by LaoPo

[longball53098]

I think the 10k for the travel expenses is a bit on the low side. With gas up and the other things travel is not that cheap.

I would say your car payment itself will be in the range of 15k a month. 1st class insurance is about 23k for the year and the annual road tax is about 6k?

You may be able to do it but like someone said try living here for a bit without wheels or rent a car every other month if you plan some trips

[GungaDin]

You're planning a budget of 25.000 Baht out of 60,000 for a CAR...and 15,000 for health on an age of 61............are you on dope or something ?

LaoPo

Po.

If you had half a brain you would have checked the guys previous 11 posts and not insulted him.

You owe him an apology.

---------------------

Lop99.

As others have suggested, forget buying a car.

Rent one from a reputable company with full insurance.

You may find that you don't need a car 24/7 and your cash will still be in the bank, a USA bank, I hope.

If the high temps and humidity are a problem for you, allow up to 6000bt a month for aircon.

Ok, here's the awkward bit, no insult intended.

You are not married yet, so, have you bothered to read the war stories here and on other websites???

I think not, I hope I'm wrong.

Will you put aside cash for that rainy day, when or if the marriage goes tits-up?

Where will you live? Because the house is not yours?

I wish you every happiness but be realistic but not as cynical as me.

BTW, 60kb a month is plenty to live on, if you have no mortgage or rent to pay.

GD

[Naam]

PS: would any of us spend between 38 and 41 & of your monthly income on a car....?

LaoPo

at age 19 i spent more

[LaoPo]

PS: would any of us spend between 38 and 41 & of your monthly income on a car....?

LaoPo

at age 19 i spent more

I thought you were still studying and chasing girls at 19, Naam........without income....

LaoPo

[lannarebirth]

If you're only 61, why don't you consider working another year. Then you could buy a car for cash and would likely have a larger pension stipend.

[LaoPo]

If you're only 61, why don't you consider working another year. Then you could buy a car for cash and would likely have a larger pension stipend.

I agree.

Calculating to the amount(s) the OP is able to survive on per month -no other savings/assets here or in the USA- (60 to 65K Baht) that's more-or-less US$ 1,750 & 1,895 / month.

If someone is wishing to spend between US$ 700 and 750 of that money per month on a car, well, that's up to him but that's US$ 8,400 to 9,000 per year for a vehicle that's not in function 95% of the time per year.

The remaining 5% means 8,4 hours PER DAY driving and that's 58,8 hours PER WEEK driving. ...So I'm probably VERY LOW on my estimate that the car is standing still for 95% per year.

If one reserves Baht 15,000/month (USD 437/month) for "health emergencies, annual visit to USA," than one is acting irresponsible and playing with his own life.

I know, since I was 'healthy' too.....until, because of circumstances, I was rushed into hospital 3 times in a row, within 5 months...this year.

Just calculate, Mr. OP, how much that would be......in Thailand, because you don't have the time to jump on a plane to the US if there's an urgency with your health.

Question: do you have a FULL INSURANCE from the US ? (or in Thailand perhaps ?) Does the insurance pay 100% if you have to go to a hospital ?

I am fully insured, 100%.

LaoPo

[torrenova]

Well first I hope you have 800k in the bank as you don't have the necesary income (Bt65k) for a "retirement" visa. A combination of the two is sufficient though but requires more paperwork.

I don't know how much you paid for your house but as other have commented, you don't own it. If through a company then you have those expenses to consider. If in a GF's name then watch out !

You say you want finance so I presume you don't have the cash. Personally I would not have bought the house unless very cheap as you've locked up your only remaining capital. However, that appears water under the bridge.

Your medical insurance is paramount, far more than a shiny new auto. Even on the auto front, you do not need a big or expensive car and honestly, you cannot afford one. You can rent month by month for little more than your repayment should you actually need a car.

I second advice to live here a while and see just how well your budget can be managed. Remember, the two big things which kill any budget are girls and beer !

All the best.

[LaoPo]

Well first I hope you have 800k in the bank as you don't have the necesary income (Bt65k) for a "retirement" visa. A combination of the two is sufficient though but requires more paperwork.

I don't know how much you paid for your house but as other have commented, you don't own it. If through a company then you have those expenses to consider. If in a GF's name then watch out !

You say you want finance so I presume you don't have the cash. Personally I would not have bought the house unless very cheap as you've locked up your only remaining capital. However, that appears water under the bridge.

Your medical insurance is paramount, far more than a shiny new auto. Even on the auto front, you do not need a big or expensive car and honestly, you cannot afford one. You can rent month by month for little more than your repayment should you actually need a car.

I second advice to live here a while and see just how well your budget can be managed. Remember, the two big things which kill any budget are girls and beer !

All the best.

The OP wrote: "-no other savings/assets here or in the USA-"

LaoPo

[Lopburi99]

Well first I hope you have 800k in the bank as you don't have the necesary income (Bt65k) for a "retirement" visa. A combination of the two is sufficient though but requires more paperwork.

I don't know how much you paid for your house but as other have commented, you don't own it. If through a company then you have those expenses to consider. If in a GF's name then watch out !

You say you want finance so I presume you don't have the cash. Personally I would not have bought the house unless very cheap as you've locked up your only remaining capital. However, that appears water under the bridge.

Your medical insurance is paramount, far more than a shiny new auto. Even on the auto front, you do not need a big or expensive car and honestly, you cannot afford one. You can rent month by month for little more than your repayment should you actually need a car.

I second advice to live here a while and see just how well your budget can be managed. Remember, the two big things which kill any budget are girls and beer !

All the best.

Hello - I just got back from dinner and read everybody's replies (WOW!), all of which I appreciate and will take into careful account. Thank you all, I'll reply to all who've asked me a question.

First of all, I see now I needed to give more information initially. I didn't wanted to get into what I thought might be unnecessary detail and mistakedly just gave the roll-up highlights.

In reply to your comments, yes I used the combined income plus savings to qualify for the Non-Immigrant O-A (retirement) visa before to coming back to Thailand three weeks ago. My savings account, already opened here, will contain sufficient funds to requalify next year. Everything is OK visa wise.

I do have money set aside for the down payment of a car, about 160,000 baht. I didn't really consider it "savings" since it was already earmarked. This threw everything off when people started "doing the math" on my situation. Sorry I didn't explain that, and some other issues, better.

Also not mentioned was my personal life situation. I have visited and lived in Thailand under a tourist visa for a total of about a year (a month or three at a time over six visits) since 1/2005. I have known my fiancee for almost one year. The paid-for house is her's, she being a widow. No, she is not a pretty gal 30 years my junior who frequents the Western Union office, I know all about such scenarios. We'll be married sometime next year.

Since I've lived here for a number of months, I am fairly confident the 20,000 per month living allowance is ok. That part doesn't worry me. Neither she nor I are extravagant. I have confessed however to wanting a nice new car, but you all have made your points loud and clear about that and that issue will be very carefully reconsidered. More on that later.

About not needing a car, there are not even any taxies in my city. We have access to an old family vehicle on the weekends only. But during the week we have only a motorcle to get about and I am going crazy (crazier?) spending so much time at home watching TV, eating and sleeping! That is why we have been seriously saving for a new vehicle so we can get out and have a life. We had considered a used car last spring but discovered used car third-party financing required almost the same amount down and the interest rate was much much higher. The car manufacturers here offer very affordable financing - great rates, like 2.5-3.5% or so. Mazda and Ford even currently offer 0% financing. That, along with the fact used cars here seem to be way, way too expensive (like 300,000 for 1 ten year old Civic), is why I thought maybe I would be better off in the long run to bite the bullet and get a new one and keep it long term.

About your comments re health insurance, that worries me a lot. I am covered in the U.S. and would go there for treatment of something serious or extended. I also have some AAA hospital coverage for in or outpatient here but it is for a daily amount and may be insufficient, requiring me to use money from savings here occasionally. I need to look much more into this whole area which I will do while I work out a car/budget plan with y'alls help (thanks again).

One last point in this post about the car. People have mentioned figures like 38% or more of my budget for a car. I don't understand that. I would be the first to agree such ratios are much too high. But I mentioned 15k per month for the car (25% of my 60K income). I knew even this percentage was high but I thought with no house payment it may not be unreasonable. The 10k budget was for touring travel, entertainment per se, a variable discretionary amount. Regular around-town gasoline would be covered in the 20k living expense category. I don't agree the two categories should be combined.

I look forward to reading more of the posts. Really appreciate all the input - it will all help me sort out a reasonable budget/life plan here.

[keemapoot]

Based on your budget, and not much time in Thailand I would also suggest going slowly at first. You say you have 160k allotted for a down payment. Why not use that amount to buy the best used car, with perhaps a rebuilt new engine and tranny? That amount would buy you an older Honda Accord, or perhaps older Toyota Tiger truck. I know it's a bit risky, but I too believe it's best not to jump in the deep end in your situation. Yes, and it is hard to trust the history on any used vehicle that old, but you might get lucky.

With a Honda or Toyota, parts and repair are cheap, and it won't bust your budget even if it needs something. Go along like this for a year or so and see how things go.

My two cents.

[Lopburi99]

I'd suggest that you settle in to Thailand for a few months before buying a car - Test your budget by living it and then see if you can afford to buy the car.

Hello GuestHouse,

Although I've officially retired here recently I have lived in Thailand for almost a year in totality, a few months at a time since 2005. At least the 20,000 baht living expenses part of my plan I am comfortable with. Please read my other replies for the complete picture. Thanks a lot.

[LaoPo]

Well first I hope you have 800k in the bank as you don't have the necesary income (Bt65k) for a "retirement" visa. A combination of the two is sufficient though but requires more paperwork.

I don't know how much you paid for your house but as other have commented, you don't own it. If through a company then you have those expenses to consider. If in a GF's name then watch out !

You say you want finance so I presume you don't have the cash. Personally I would not have bought the house unless very cheap as you've locked up your only remaining capital. However, that appears water under the bridge.

Your medical insurance is paramount, far more than a shiny new auto. Even on the auto front, you do not need a big or expensive car and honestly, you cannot afford one. You can rent month by month for little more than your repayment should you actually need a car.

I second advice to live here a while and see just how well your budget can be managed. Remember, the two big things which kill any budget are girls and beer !

All the best.

Hello - I just got back from dinner and read everybody's replies (WOW!), all of which I appreciate and will take into careful account. Thank you all, I'll reply to all who've asked me a question.

First of all, I see now I needed to give more information initially. I didn't wanted to get into what I thought might be unnecessary detail and mistakedly just gave the roll-up highlights.

In reply to your comments, yes I used the combined income plus savings to qualify for the Non-Immigrant O-A (retirement) visa before to coming back to Thailand three weeks ago. My savings account, already opened here, will contain sufficient funds to requalify next year. Everything is OK visa wise.

I do have money set aside for the down payment of a car, about 160,000 baht. I didn't really consider it "savings" since it was already earmarked. This threw everything off when people started "doing the math" on my situation. Sorry I didn't explain that, and some other issues, better.

Also not mentioned was my personal life situation. I have visited and lived in Thailand under a tourist visa for a total of about a year (a month or three at a time over six visits) since 1/2005. I have known my fiancee for almost one year. The paid-for house is her's, she being a widow. No, she is not a pretty gal 30 years my junior who frequents the Western Union office, I know all about such scenarios. We'll be married sometime next year.

Since I've lived here for a number of months, I am fairly confident the 20,000 per month living allowance is ok. That part doesn't worry me. Neither she nor I are extravagant. I have confessed however to wanting a nice new car, but you all have made your points loud and clear about that and that issue will be very carefully reconsidered. More on that later.

About not needing a car, there are not even any taxies in my city. We have access to an old family vehicle on the weekends only. But during the week we have only a motorcle to get about and I am going crazy (crazier?) spending so much time at home watching TV, eating and sleeping! That is why we have been seriously saving for a new vehicle so we can get out and have a life. We had considered a used car last spring but discovered used car third-party financing required almost the same amount down and the interest rate was much much higher. The car manufacturers here offer very affordable financing - great rates, like 2.5-3.5% or so. Mazda and Ford even currently offer 0% financing. That, along with the fact used cars here seem to be way, way too expensive (like 300,000 for 1 ten year old Civic), is why I thought maybe I would be better off in the long run to bite the bullet and get a new one and keep it long term.

About your comments re health insurance, that worries me a lot. I am covered in the U.S. and would go there for treatment of something serious or extended. I also have some AAA hospital coverage for in or outpatient here but it is for a daily amount and may be insufficient, requiring me to use money from savings here occasionally. I need to look much more into this whole area which I will do while I work out a car/budget plan with y'alls help (thanks again).

One last point in this post about the car. People have mentioned figures like 38% or more of my budget for a car. I don't understand that. I would be the first to agree such ratios are much too high. But I mentioned 15k per month for the car (25% of my 60K income). I knew even this percentage was high but I thought with no house payment it may not be unreasonable. The 10k budget was for touring travel, entertainment per se, a variable discretionary amount. Regular around-town gasoline would be covered in the 20k living expense category. I don't agree the two categories should be combined.

I look forward to reading more of the posts. Really appreciate all the input - it will all help me sort out a reasonable budget/life plan here.

Thanks for explaining; makes a lot of sense now.

Enjoy your Lady, your retirement and your (new) car !

Take care however for that ''health'' issue/insurance.

PS: about the 38/41%; that figure was added up: buying car 15K/month and 10K Baht/month*** (but that was including expenses for resorts etc. as you mentioned; sorry for that) Still a high % though, but as you said, you figured it all out with your Lady.

Good Luck !

*** Budgeted about 15,000bt for new car payments (inc insurance). 5 year dealer financing.

*** Budgeted 10,000bt for touring by car inc gasoline, reasonable cost resorts, etc.

LaoPo

Edited August 26, 2008 by LaoPo

[moneyshot]

Buy a car and enjoy yourself!

[Lopburi99]

Based on your budget, and not much time in Thailand I would also suggest going slowly at first. You say you have 160k allotted for a down payment. Why not use that amount to buy the best used car, with perhaps a rebuilt new engine and tranny? That amount would buy you an older Honda Accord, or perhaps older Toyota Tiger truck. I know it's a bit risky, but I too believe it's best not to jump in the deep end in your situation. Yes, and it is hard to trust the history on any used vehicle that old, but you might get lucky.

With a Honda or Toyota, parts and repair are cheap, and it won't bust your budget even if it needs something. Go along like this for a year or so and see how things go.

My two cents.

Hello Keemapoot,

Solid conservative advice. Thank you. Of course the pseudo-risky part is the chance of incurring another 100kB or more in repairs which I admit does worry me, but even that may not be so bad. Devil's advocate reply though for you: If I got the less expensive Honda City, not the Toyota, the payment would be reduced to about 9,000 baht per month (plus another 1,000 to cover next year's insurance premium). A full 5,000 baht less than the 15,000 baht in my budget for the car and having the reliability and warranty (100,000 km/3 yr). I am not ruling out your very good point (which I may ultimately end up doing) - just discussing it further...What do you think?

[keemapoot]

Based on your budget, and not much time in Thailand I would also suggest going slowly at first. You say you have 160k allotted for a down payment. Why not use that amount to buy the best used car, with perhaps a rebuilt new engine and tranny? That amount would buy you an older Honda Accord, or perhaps older Toyota Tiger truck. I know it's a bit risky, but I too believe it's best not to jump in the deep end in your situation. Yes, and it is hard to trust the history on any used vehicle that old, but you might get lucky.

With a Honda or Toyota, parts and repair are cheap, and it won't bust your budget even if it needs something. Go along like this for a year or so and see how things go.

My two cents.

Hello Keemapoot,

Solid conservative advice. Thank you. Of course the pseudo-risky part is the chance of incurring another 100kB or more in repairs which I admit does worry me, but even that may not be so bad. Devil's advocate reply though for you: If I got the less expensive Honda City, not the Toyota, the payment would be reduced to about 9,000 baht per month (plus another 1,000 to cover next year's insurance premium). A full 5,000 baht less than the 15,000 baht in my budget for the car and having the reliability and warranty (100,000 km/3 yr). I am not ruling out your very good point (which I may ultimately end up doing) - just discussing it further...What do you think?

Yes, a lower monthly payment makes a lot of sense. I've had 5 financed vehicles during my time in Thailand. The lowest monthly payment was 10k, and the highest was 35k. Believe me, I did run into unforseen circumstances and the higher payment was difficult.

One point to consider. Your username suggest you may be around Lopburi? If so, is there any flooding there? You might be better off with a pickup. You can get that monthly payment down to 10k or so too with a Vigo or similar perhaps.

[Lopburi99]

Based on your budget, and not much time in Thailand I would also suggest going slowly at first. You say you have 160k allotted for a down payment. Why not use that amount to buy the best used car, with perhaps a rebuilt new engine and tranny? That amount would buy you an older Honda Accord, or perhaps older Toyota Tiger truck. I know it's a bit risky, but I too believe it's best not to jump in the deep end in your situation. Yes, and it is hard to trust the history on any used vehicle that old, but you might get lucky.

With a Honda or Toyota, parts and repair are cheap, and it won't bust your budget even if it needs something. Go along like this for a year or so and see how things go.

My two cents.

Hello Keemapoot,

Solid conservative advice. Thank you. Of course the pseudo-risky part is the chance of incurring another 100kB or more in repairs which I admit does worry me, but even that may not be so bad. Devil's advocate reply though for you: If I got the less expensive Honda City, not the Toyota, the payment would be reduced to about 9,000 baht per month (plus another 1,000 to cover next year's insurance premium). A full 5,000 baht less than the 15,000 baht in my budget for the car and having the reliability and warranty (100,000 km/3 yr). I am not ruling out your very good point (which I may ultimately end up doing) - just discussing it further...What do you think?

Yes, a lower monthly payment makes a lot of sense. I've had 5 financed vehicles during my time in Thailand. The lowest monthly payment was 10k, and the highest was 35k. Believe me, I did run into unforseen circumstances and the higher payment was difficult.

One point to consider. Your username suggest you may be around Lopburi? If so, is there any flooding there? You might be better off with a pickup. You can get that monthly payment down to 10k or so too with a Vigo or similar perhaps.

Yes, we live about 4 miles out of Lopburi. Nope, no flooding here at all surprisingly. Doesn't even rain that much. Supposedly the Lopburi area is historically fortunate about usually avoiding major flooding. My friends near Nong Khai have a problem for sure, and my Lady's sister in Sa Kaeo has rain rain rain every day. Maybe that is why I see so many pickups everywhere. I know what you mean about the low cost of pickups. Today I stopped at a Ford dealer and the price of a new Ranger is only 8,900 down and 9,748/month for 60 months (0%!). Sadly though, I am just not the pickup type but I can see they are very affordable. I think it is great the manufacturers offer such low finance rates - makes sense to me, afterall they gain to make money at both ends so why not cut a little on the finance end to spur more sales? Have a good night.

[Lopburi99]

If you search the other boards you will find a lot of threads on living costs. A general consensus appears to be anything from 30,000 - 120,000+ Bhat/month. Adjust one's lifestyle to fit. Depends where you live (out in the sticks as opposed to central BKK). If you have your own place and don;t travel a lot most people estimate you'll get by easily at the lower end of that range.

Hi Artamus,

Sure wish I had more than the 60,000/month, but thankfully in Thailand that is a fairly decent income when considering it is ongoing. Adjusting to that is exactly what I have been trying to do. I have never, ever has such a low income but "retiring" at only 61 was not expected to say the least. On this money I can not have much of a life in the USA. It is only about 200% of poverty. Lopburi is not in the sticks, but it is not expensive to live here. We do not dine out often, preferring buying fruits and food from the roadside markets and vendors.

About not traveling a lot, that would be the first place to cut back if necessary. The 10,000 baht "touring" amount I allocated may prove to be too high and would need to be cut back, or perhaps we toured every other month or so which would be fine. But we just like driving around, seeing the countryside, in a relaxed manner. Shouldn't be too expensive to do that. I've always loved driving. Accommodations wise, I am happy in a low-priced motel (I guess called "resorts" here), just as long as it is clean and has air. I have found spending only about 300-500 baht per night is not difficult to find.

Thanks for the reply - have a good day.

[Lopburi99]

Well first I hope you have 800k in the bank as you don't have the necesary income (Bt65k) for a "retirement" visa. A combination of the two is sufficient though but requires more paperwork.

I don't know how much you paid for your house but as other have commented, you don't own it. If through a company then you have those expenses to consider. If in a GF's name then watch out !

You say you want finance so I presume you don't have the cash. Personally I would not have bought the house unless very cheap as you've locked up your only remaining capital. However, that appears water under the bridge.

Your medical insurance is paramount, far more than a shiny new auto. Even on the auto front, you do not need a big or expensive car and honestly, you cannot afford one. You can rent month by month for little more than your repayment should you actually need a car.

I second advice to live here a while and see just how well your budget can be managed. Remember, the two big things which kill any budget are girls and beer !

All the best.

Hello - I just got back from dinner and read everybody's replies (WOW!), all of which I appreciate and will take into careful account. Thank you all, I'll reply to all who've asked me a question.

First of all, I see now I needed to give more information initially. I didn't wanted to get into what I thought might be unnecessary detail and mistakedly just gave the roll-up highlights.

In reply to your comments, yes I used the combined income plus savings to qualify for the Non-Immigrant O-A (retirement) visa before to coming back to Thailand three weeks ago. My savings account, already opened here, will contain sufficient funds to requalify next year. Everything is OK visa wise.

I do have money set aside for the down payment of a car, about 160,000 baht. I didn't really consider it "savings" since it was already earmarked. This threw everything off when people started "doing the math" on my situation. Sorry I didn't explain that, and some other issues, better.

Also not mentioned was my personal life situation. I have visited and lived in Thailand under a tourist visa for a total of about a year (a month or three at a time over six visits) since 1/2005. I have known my fiancee for almost one year. The paid-for house is her's, she being a widow. No, she is not a pretty gal 30 years my junior who frequents the Western Union office, I know all about such scenarios. We'll be married sometime next year.

Since I've lived here for a number of months, I am fairly confident the 20,000 per month living allowance is ok. That part doesn't worry me. Neither she nor I are extravagant. I have confessed however to wanting a nice new car, but you all have made your points loud and clear about that and that issue will be very carefully reconsidered. More on that later.

About not needing a car, there are not even any taxies in my city. We have access to an old family vehicle on the weekends only. But during the week we have only a motorcle to get about and I am going crazy (crazier?) spending so much time at home watching TV, eating and sleeping! That is why we have been seriously saving for a new vehicle so we can get out and have a life. We had considered a used car last spring but discovered used car third-party financing required almost the same amount down and the interest rate was much much higher. The car manufacturers here offer very affordable financing - great rates, like 2.5-3.5% or so. Mazda and Ford even currently offer 0% financing. That, along with the fact used cars here seem to be way, way too expensive (like 300,000 for 1 ten year old Civic), is why I thought maybe I would be better off in the long run to bite the bullet and get a new one and keep it long term.

About your comments re health insurance, that worries me a lot. I am covered in the U.S. and would go there for treatment of something serious or extended. I also have some AAA hospital coverage for in or outpatient here but it is for a daily amount and may be insufficient, requiring me to use money from savings here occasionally. I need to look much more into this whole area which I will do while I work out a car/budget plan with y'alls help (thanks again).

One last point in this post about the car. People have mentioned figures like 38% or more of my budget for a car. I don't understand that. I would be the first to agree such ratios are much too high. But I mentioned 15k per month for the car (25% of my 60K income). I knew even this percentage was high but I thought with no house payment it may not be unreasonable. The 10k budget was for touring travel, entertainment per se, a variable discretionary amount. Regular around-town gasoline would be covered in the 20k living expense category. I don't agree the two categories should be combined.

I look forward to reading more of the posts. Really appreciate all the input - it will all help me sort out a reasonable budget/life plan here.

Thanks for explaining; makes a lot of sense now.

Enjoy your Lady, your retirement and your (new) car !

Take care however for that ''health'' issue/insurance.

PS: about the 38/41%; that figure was added up: buying car 15K/month and 10K Baht/month*** (but that was including expenses for resorts etc. as you mentioned; sorry for that) Still a high % though, but as you said, you figured it all out with your Lady.

Good Luck !

*** Budgeted about 15,000bt for new car payments (inc insurance). 5 year dealer financing.

*** Budgeted 10,000bt for touring by car inc gasoline, reasonable cost resorts, etc.

LaoPo

Glad you are now (cautiously) supportive. I erred by not giving more complete and accurate information on my first post and your initial response was not unreasonable. Your opinion means a lot. I agree my % now is still high however, so I will probably take the lower price Honda (unless I am just too fat for it ), and/or we may tour less often thereby reducing that part of the budget. But I am a car lover, always have been. I am the type who spends all saturday morning cleaning up my car. Cars are a big source of pleasure for me, having raced them, rebuilt engines, traveled to Germany to get a new one (even to Coventry England to get a new Jag XJS many years ago). Even the very-nice Toyota Altis would the most modest car I will ever owned. Early retirement was never expected, and all this has been a huge adjustment but I love Thailand, especially the peaceful, happy, always-cordial people here in Lopburi. Unfortunately there are almost no English speaking people here, but I've been picking up Thai quickly. The little short words are not difficult to remember.

I won't have my car in time to drive to the September Expat Bar BQ but I will plan to try to make the next one! I am sure it would be a great time!

Cheers, thanks again, and have a good day.

[Cuban]

Just to add a little more detail to the posts above talking of costs...

Depending on your status within Thailand you might find it less easy getting a 5 year finance deal. Many will want 25-50% up front and then some security as you are only one a renewable one year visa.

Consider 10,000 Baht a year insurance and 3,250 Baht road tax.

Fuel costs will be about 2-3 Baht a Km - an average road trip or 1,000 Km and 'resorts' 1,000 Baht a night? That eat up your monthly trip budget - but unless you are bored/unhappy at home will you be travelling every month?

The cost of having it sit outside not used for a large percentage of it's day does not balance with your limited income in retirement. Why do you need to buy a new car - I think your budget suggests a few years pre-owned is more suitable.

Consider the effect of price rises on both food and fuel in the years to come - you need to balance your budget now with an eye on increased spending as costs rise in the future. If your income does not rise in to match inflation your spending choices will need to adapt to suit.

[london]

Life is short.

You appear to be a balanced and intelligent individual.

You have been here a while and are not so niave as to think that all is milk and honey here.

You appear also to have done groundwork, a budget and are prepared for what is ahead......hopefully it will be a positive and happy move for you.

If you have worked out that you can afford it, and if it makes you happy........Just do it!

Edited August 27, 2008 by london

[LaoPo]

Glad you are now (cautiously) supportive. I erred by not giving more complete and accurate information on my first post and your initial response was not unreasonable. Your opinion means a lot. I agree my % now is still high however, so I will probably take the lower price Honda (unless I am just too fat for it ), and/or we may tour less often thereby reducing that part of the budget. But I am a car lover, always have been. I am the type who spends all saturday morning cleaning up my car. Cars are a big source of pleasure for me, having raced them, rebuilt engines, traveled to Germany to get a new one (even to Coventry England to get a new Jag XJS many years ago). Even the very-nice Toyota Altis would the most modest car I will ever owned. Early retirement was never expected, and all this has been a huge adjustment but I love Thailand, especially the peaceful, happy, always-cordial people here in Lopburi. Unfortunately there are almost no English speaking people here, but I've been picking up Thai quickly. The little short words are not difficult to remember.

I won't have my car in time to drive to the September Expat Bar BQ but I will plan to try to make the next one! I am sure it would be a great time!

Cheers, thanks again, and have a good day.

If you're such a carlover I'm afraid youre spoiled forever

But, if you buy a(ny) car, make sure you buy at least a 4-wheel drive, especially if you like to drive around in the mountains and off-track. In case of emergencies, you will thank God you have 4-wheel drive.

Good luck.

LaoPo