Is it possible to import used car parts from the UK to Thailand?

[arnold40844]

Hi there, having read a few posts on this on here I am still unclear to the issues I may be facing if I choose to give this a go.

In a nutshell I have a contact in the UK who runs a few successful vehicle dismantlers, the majority of which specialize in pickup trucks (Mazda, Toyota, Ford, Izuzu, Mitsubishi). He contacted me recently regarding a potential business opportunity whereby he ships container loads of car parts (engines, gearboxes, turbos, axles, suspension, drive shafts etc) to Thailand and setup an entity here that sells them.

From my initial research it appears to be problematic for a few reasons. Can anyone give me any advice on this?

Thanks in advance.

[arthurwait]

'Bringing coals to Newcastle'.

[arnold40844]

It does seem to look that way. I am maybe thinking that the only way it would work is if the parts were for exotic makes like Mercedes, BMW, VW, Porsche... Even then its probably a no go.

[arthurwait]

It must be possible as the breakers bring engines in from Japan. Japan has a rule something like engines can only be 3 years old before being hit with a huge tax. Whether a foreigner is allowed to do it I don't know.

Most older cars like Mercedes have Toyota engines in already. They replace them as the parts are much cheaper for maintenance. Old Mercs are bought by people desperate to appear rich but have no money. They want Toyota prices.

This is the parts section of Dealfish, olx, Kaidee.com, there are some exotic engines on there such as 2 Ferrari v8's and a BMW V10, they have been up for at least a year. A Jag XJS V12, several corvettes, a few Lotus's. Again no one is buying.

Non ASEAN cars are subject to 234% total tax, As you can guess only very, very rich buy exotics or newer sportier stuff, they don't need to buy secondhand parts.

Again look at kaidee for older classics, they never sell as there is very little interest in classic stuff. New car = face, old car doesn't.

Good luck if you do go ahead you might find a market. You do need permission to import here before you import. And things like engines can only go into the bluebook if they have proper import documention and receipts, if they don't they are basically worthless.

[PoorSucker]

Moved to the motoring forum.

[arthurwait]

Sorry. The link http://www.kaidee.com/c13-auto-car_parts/

[arnold40844]

Thanks for your input. And just to note, all these parts would be less than 3 years old including the engines, he only deals in relatively new write offs.

[arnold40844]

How easy would it be for me to do the reverse of this? i.e. sending a 40ft container of Mazda BT50 diesel engines to the UK? Also would be it be possible to send insurance writeoffs as is, or cut in half?

[arthurwait]

Check if it's a prohibited occupation first, if it isn't register a company and all that entails, apply for permission to import/export and start I suppose.

Few cars are written off here just repaired as labour is so cheap.

Someone once posted on here a picture of a wrecked car being completely rebuilt with no jigs, you have to see it to believe it.

[arthurwait]

The cut in half cars are Japanese imported here to get around the import tax etc of 234% on full cars and only pay the parts tax rate. Not sure what it is 30, 50 or 100%/

[mogandave]

You can export most anything without issue.

[ben2203]

For tax reasons, best to import from Japan or Hong Kong

UK Look into industrial digging equipment, road rollers, compactors etc but again Japan seems to be where everybody goes for second hand goods

[Tatsujin]

This was asked some time ago if my memory is not failing me.

The short answer is "no" (unless something has changed in the last few years) ... the problems you'll have with customs alone makes this a non-starter "unless" you have a Thai with good connections to "smooth the way".

[melvinmelvin]

Thanks for your input. And just to note, all these parts would be less than 3 years old including the engines, he only deals in relatively new write offs.

sorry to digress,

but could you ask your UK friend if he should have a Toyota 1VD Twin Turbo engine in stock?

[EvilDrSomkid]

OP, you can do what you propose, but it is not financially viable.

Like mentioned, all the Japanese 2nd hand parts come from Japan. The Thai market is flooded with the stuff you want to import.

For my Audi 80 2.0 fwd automatic conversion to Quattro 1.8turbo manual, all the parts came from Japan. Half cut with engine/trans/etc. (72k) and the quattro rear subframe (10k).

If you want to import car parts and sell here, you need a company with import/export registration at Customs. Its quite straight forward, but know that you have a lot of competition.

[melvinmelvin]

This was asked some time ago if my memory is not failing me.

The short answer is "no" (unless something has changed in the last few years) ... the problems you'll have with customs alone makes this a non-starter "unless" you have a Thai with good connections to "smooth the way".

some of the scrapyard shops in Rangsit actually import 2nd hand Toyota engines from UK

[peterb17]

OK

With any business plan you need to research your customer base:

Where will you be located? You don't see many older pick ups around unless you go into the depths of the countryside.

Then the customer driving around in an old pickup will not have much money- and will probably go to one of the many repair shops that offer dirt cheap spares / mechanics.

The idea of an online delivery service for quality parts would not work very well here as many of your potential customers have yet embraced the concept of Internet shopping and delivery is problematic.

You will be hit hard by import taxes, and as many have found- rip up any rule book - depends on the mood of the official on the day.

Accounting for taxes, shipping costs, cost of setting up your business ( if allowed?) paying your Thai staff, rental costs for warehousing / premises, utility costs etc etc. you will need to put a huge markup on the imported parts.

Would you have to pay VAT in the UK on these parts- that's 20% gone already.

I would suspect that the price you would have to charge to cover costs and make a living would simply price you out of the local market , Thais are very price sensitive .

Therefore the volume of spares you sell would have to be huge, selling a couple of drive shafts every week is not going to work.

Apologies for being a bit negative- but this idea sounds a non starter.

[LivinLOS]

You can import any car part except functional chassis..

You pay a fairly high tax on import.. Possibly 30 % ?? I forget now..

There are some slight possible margins from what I can see.. BMW and Merc especially but I conceed perhaps there are scrap / used dealers in bangkok that are lower than the prices I hear. But for the rest I think pricing is not as favorable as you may think.

I strongly disagree that many Thais dont deal online.. I go to my local VW / BMW / Audi specialist.. Need a part.. He photographs it.. goes on his tablet to line.. Messages a 'parts sale' line group.. and within minutes has 2 or 3 offers from bangkok dealers with the used part.. The guy is almost illiterate, but still gets me used parts shipped from bangkok in a matter of days. Actually a functional used parts finder website B2B and B2C in Thai language is a business that would make money IMO.

[melvinmelvin]

The cut in half cars are Japanese imported here to get around the import tax etc of 234% on full cars and only pay the parts tax rate. Not sure what it is 30, 50 or 100%/

should be about 30%

when it comes to 2nd hand engines my understanding is that Customs calculate the fee

partly based on the purchase price and partly based on the engine's displacement

[gandalf12]

It does seem to look that way. I am maybe thinking that the only way it would work is if the parts were for exotic makes like Mercedes, BMW, VW, Porsche... Even then its probably a no go.

I am only guessing but it is possible with these makes you would need permission from the original manufacturer in Thailand, which is highly unlikely you would get. As I say I am only guessing but the Middle East has policies similar to this

[Mudcrab]

Wasn't there a police order totally banning any imports of second hand/used vehicles/parts a couple of years ago? Has this been revoked?

[arnold40844]

I think its quite clear from the comments that it makes a lot more sense to get car parts out of Thailand to the EU. They dont seem to be as cheap as part from China or Japan though.

I like the idea of a website/mobile app partfinder for used parts. We have similar things in the UK, but to create something for Thai's to use sounds like a real possibility.

[edhart]

i had friend who imported pianos to saudi arabia ,one day he got call from the port they are leaking ,need connections in life ,pianos you had to buy box ,12 in a box

[tomyumchai]

i thought about this idea a while back and it always stops at the 1st hurdle, thais. as soon as you try to compete with an established business, or illuminate an angle they hadnt yet covered they will stamp you out of it and take over. theyre all connected some way or another and unless youre '1 of them' you'll end up getting shafted. however if you press on and succeed i need a 3.0D engine for my minibus, cash waiting

[8OA8]

Take a visit to the auto breakers city, located just off Bang Phli/Bang Na Trad road.

Location http://goo.gl/maps/d4oeA

they have pretty much everything covered in the s/h parts for all marque's

[arnold40844]

Take a visit to the auto breakers city, located just off Bang Phli/Bang Na Trad road.

Location http://goo.gl/maps/d4oeA

they have pretty much everything covered in the s/h parts for all marque's

Thanks I will check this out tomorrow.

[lostinisaan]

OP, you can do what you propose, but it is not financially viable.

Like mentioned, all the Japanese 2nd hand parts come from Japan. The Thai market is flooded with the stuff you want to import.

For my Audi 80 2.0 fwd automatic conversion to Quattro 1.8turbo manual, all the parts came from Japan. Half cut with engine/trans/etc. (72k) and the quattro rear subframe (10k).

If you want to import car parts and sell here, you need a company with import/export registration at Customs. Its quite straight forward, but know that you have a lot of competition.

(DELETED)

There're too many others who wouldn't like to have competition, with a lot of connections and cash.. It's that easy.

Edited May 15, 2015 by seedy
off topic

[arnold40844]

Like any industry I think it comes down to who you know, Thai competitors are unable to compete with a strong business network in the UK. And if that's the market I am selling to I dont see how they can touch me.

OP, you can do what you propose, but it is not financially viable.

Like mentioned, all the Japanese 2nd hand parts come from Japan. The Thai market is flooded with the stuff you want to import.

For my Audi 80 2.0 fwd automatic conversion to Quattro 1.8turbo manual, all the parts came from Japan. Half cut with engine/trans/etc. (72k) and the quattro rear subframe (10k).

If you want to import car parts and sell here, you need a company with import/export registration at Customs. Its quite straight forward, but know that you have a lot of competition.

(DELETED)

There're too many others who wouldn't like to have competition, with a lot of connections and cash.. It's that easy.

[rocketboybkk]

Op, you're not the first & won't be the last to think of this.

Try again

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[Mudcrab]

Thai Visa thread on the banning of importing used vehicles and parts

http://www.thaivisa.com/forum/topic/548685-thai-cabinet-approves-ban-on-imports-of-used-vehicles