Buying and selling used vs long term rental

[athousand]

Hi all,

For all those with experience of buying and selling used cars in Thailand, I'd like to have an idea of what kind of value gets lost per year. I'll be here for six months to a year and am trying to work out if I'm better off doing a long term rental or buying used and selling again.

I'd like the minimum risk and hassle, as well as a relatively safe car - so I was thinking of getting a used Fortuner for around 700,000 from ToyotaSure.

I'm assuming that would give me some kind of servicing / warranty and would also mean it would be easy to sell back to them?

If at all possible, I'd appreciate a rough estimate of my total outlay if I went this route - fully comp insurance, road tax etc in addition to whatever value gets written off due to depreciation and selling back to the garage.

If buying from somewhere like ToyotaSure is there a risk of being landed with a lemon and large repair bills or do they have some kind of warranty?

As far as the renting option goes, so far, the best long term deal I've found would mean committing for six months up front so there's not too much to be gained there in terms of flexibility but there is more peace of mind in that insurance and servicing is included.

To give an idea of pricing for the rental, the most I could afford to rent would be something like a Honda City for around 15,000 a month. I could pay more for the Fortuner based on the idea that most of the money isn't being 'lost' - is that a safe assumption?

Thanks in advance for any info.

[Supaluke]

Just a bit of 'outside the square' thinking.

Where do you plan to store the vehicle when you are not in the Kingdom?

RATS are a HUGE issue, depending on where you reside.

They eat the wiring and render some cars useless.

Just an ingredient to throw into the rent vs buy question.

[sotsira]

For a six month period, i would say it would work out about the same money.

Anything longer than that, then buying and reselling would save you money.

[athousand]

Thanks for the info.

I hadn't thought about the rats!!! It would be in the car park of a condo building. If they're getting stuck in to a car would they be obvious to a passing security guard? I probably wouldn't be away for more than a week or two at a time.

Any specifics would be much appreciated. For example, if I drove the Fortuner 15 - 20,000 miles in a year, had it fully serviced and sold it back to Toyota Sure - what kind of loss in value would I be looking at?

I'll be going to a showroom to find out what they say for myself. It will be interesting to see if what they say matches what people here have experienced.

[athousand]

Any figures for annual car tax, fully comp insurance and a service at a Toyota dealer would also be massively appreciated - based on the Fortuner example.

Cheers

[donmuang37]

Rats? A huge problem?

I've been here 13 years and haven't encountered problems with rats. None of my wife's large family have ever had such problems either.

Is this some new troll idea? Alarmist?

If you aren't living in a slum, I wouldn't worry about that.

[pest]

Rats can be a problem if you are storing it

my friends Volvo has had its wiring eaten so yes huge expense coming his way

I used to rent but I found buying good second hand (approx. 60k kms) from farang has been my best option never had a problem selling them if I buy right

my current car is a 2010 Vios lovely little runabout paid only 270,000 for it 1 owner from new I keep them about 2 years and then sell in Facebook

[MaeJoMTB]

Thanks for the info.

I hadn't thought about the rats!!! It would be in the car park of a condo building. If they're getting stuck in to a car would they be obvious to a passing security guard? I probably wouldn't be away for more than a week or two at a time.

I was away for 3 weeks in the UK.

Rats ate through my entire wiring loom under the bonnet in that time.

I just abandoned it, could still be sitting there.

[bazza40]

Thanks for the info.

I hadn't thought about the rats!!! It would be in the car park of a condo building. If they're getting stuck in to a car would they be obvious to a passing security guard? I probably wouldn't be away for more than a week or two at a time.

I was away for 3 weeks in the UK.

Rats ate through my entire wiring loom under the bonnet in that time.

I just abandoned it, could still be sitting there.

Hindsight I know; however, you could have put a dish of rat poison on the valve cover.

[bazza40]

Rats can be a problem if you are storing it

my friends Volvo has had its wiring eaten so yes huge expense coming his way

I used to rent but I found buying good second hand (approx. 60k kms) from farang has been my best option never had a problem selling them if I buy right

my current car is a 2010 Vios lovely little runabout paid only 270,000 for it 1 owner from new I keep them about 2 years and then sell in Facebook

Agree, you'll lose far less in depreciation with a reasonably low mileage secondhand vehicle. ThaiVisa Classifieds and Bahtsold are good sources.

I looked at Toyotasure; however IMO they are overpriced for the year and km.

[bazza40]

Just a bit of 'outside the square' thinking.

Where do you plan to store the vehicle when you are not in the Kingdom?

RATS are a HUGE issue, depending on where you reside.

They eat the wiring and render some cars useless.

Just an ingredient to throw into the rent vs buy question.

Would be interesting to know where most of the rats congregate. I haven't heard of this problem in Chiang Mai or Chiang Rai, although MaeJoMTB might beg to differ.

Perhaps it's related to being parked close to food sources such as markets or restaurants?

[Colabamumbai]

Do not believe anything Toyota tells you the car/truck could fall apart tomorrow, I doubt that there will be any warranty. Buyer beware much more so in Thailand. I doubt that they would buy it back, if they do you lose.

[athousand]

Thanks for the heads up about Toyota. My problem is that I don't know much about cars - so I wouldn't know what to look for and check in buying privately.

Any ideas as to how I could buy with relative peace of mind?

[issanmike]

7 years ago i started working, in Thailand, with a friend of mine, he decided to rent a car and i bought one. Today he has no equity in any motor whereas I have, so for me renting is a bad option in the long term, and especially as the motors in Thailand hold their value compared to the UK for example.

I notice about rats eating the wiring looms, I never saw this anywhere, but i suppose it could happen, just as a car could be caught in a flood.

Best to buy from an expat, I would not trust a local or car dealer.

I have just retired and will be moving to the North shortly so will be selling my car as I have a car in the North also.

When i bought mine it was a choice between a fortuna and a Mu 7, the Mu7 won hands down, in my opinion, so that is what i have for sale. If you are interested let me know and I will forward the details.

[khunPer]

I would say that up to a year, rent – longer than a year, consider buying.

I also think many thing depend of where you are living/staying in Thailand – some mention rats in posts above, but I’ve never had bad experience with leaving a car for several weeks or month where I live.

Second hand car prices are fairly high in Thailand, so buying second hand and selling again makes sense, as the car may almost keep it’s value – but you always have a risk with a second hand car and unforeseen major repairs.

My first two years here I rented on favorable long term deals, being away sometimes for 2-3 month also made that work, as I didn’t pay rent then. At a point I figured out, that approximately 2½ years rent would equal the cost of buying a second hand car and keep it running with insurance, tax and service, including some repair. Keeping it going a bit longer, together with anything I would gain when reselling, would be profit; however I hoped to recover about 1/3 of my investment. I some times had the “old” car parked 3 month here and I never had any problems when coming back from Europe and starting it, not to mention rats. I liked the car too much to sell it and replace with a brand new, so I ended up having it for more than 8 years – more than 3 times my calculation – and amazing 40% recovered in resale price.

I paid 15,000 monthly in rent, i.e. 180,000 baht a year. I bought a second hand car, bigger than the one I rented, for 350k baht, negotiated down from 380k, and sold it for 140k. Full insurance, tax and service/repair in average 50,000 baht annually.

[athousand]

Thanks khunPer and isaanmike - I'm leaning towards renting for six months and then reassessing.

[TheKnave]

Unless your departure date is very flexible (at the end of your stay) I would rent a car. The used car market in Thailand is very soft, and it's a huge anxiety producer to put it up for sale, knowing you have to leave by a certain date, and NOT knowing when/if it will sell. Also makes your bargaining position very weak, and you might lose more than you thought, having to accept a low-ball offer with days counting down...

Rent: pick it up, no service hassle (the rental company is responsible for routine repairs), drop it off on the way to the airport. No worries...

Peace of mind is worth a lot, at least to me...

[williamgeorgeallen]

I am trying to sell my pick up and seems to be hard to sell. I guess I am going to have to take a very low price. renting seems to be a good way to go as I plan to do 6 months a year in Thailand for the next couple years.

[louse1953]

For a six month period, i would say it would work out about the same money.

Anything longer than that, then buying and reselling would save you money.

Rent your own car out for the 6 months your away.It's just wasting money sitting there.

[louse1953]

7 years ago i started working, in Thailand, with a friend of mine, he decided to rent a car and i bought one. Today he has no equity in any motor whereas I have, so for me renting is a bad option in the long term, and especially as the motors in Thailand hold their value compared to the UK for example.

I notice about rats eating the wiring looms, I never saw this anywhere, but i suppose it could happen, just as a car could be caught in a flood.

Best to buy from an expat, I would not trust a local or car dealer.

I have just retired and will be moving to the North shortly so will be selling my car as I have a car in the North also.

When i bought mine it was a choice between a fortuna and a Mu 7, the Mu7 won hands down, in my opinion, so that is what i have for sale. If you are interested let me know and I will forward the details.

The trust worthy expat,5555.Just do your homework whoever you buy from.

[IssanMichael]

7 years ago i started working, in Thailand, with a friend of mine, he decided to rent a car and i bought one. Today he has no equity in any motor whereas I have, so for me renting is a bad option in the long term, and especially as the motors in Thailand hold their value compared to the UK for example.

I notice about rats eating the wiring looms, I never saw this anywhere, but i suppose it could happen, just as a car could be caught in a flood.

Best to buy from an expat, I would not trust a local or car dealer.

I have just retired and will be moving to the North shortly so will be selling my car as I have a car in the North also.

When i bought mine it was a choice between a fortuna and a Mu 7, the Mu7 won hands down, in my opinion, so that is what i have for sale. If you are interested let me know and I will forward the details.

The trust worthy expat,5555.Just do your homework whoever you buy from.

So you have the monopoly on being a trusted expat then ? Interesting

[VBF]

Just a bit of 'outside the square' thinking.

Where do you plan to store the vehicle when you are not in the Kingdom?

RATS are a HUGE issue, depending on where you reside.

They eat the wiring and render some cars useless.

Just an ingredient to throw into the rent vs buy question.

Just "FYI" - if you can obtain the old fashioned Camphor-based moth balls, they will certainly deter mice, and I imagine also rats.

I once got back to UK after 3 months away and found that mice had nested under the bonnet of my car in the garage. Fortunately, they'd only eaten a little of the noise insulation.

Since then, I scatter mothballs in the engine compartment and under and around the car. May be coincidence but no problem since.

These are what I've just bought http://www.amazon.co.uk/NO-201-Strong-Refresher-Natural-Camphor/dp/B013B66FYO/

[Lancashirelad]

For a six month period, i would say it would work out about the same money.

Anything longer than that, then buying and reselling would save you money.

Rent your own car out for the 6 months your away.It's just wasting money sitting there.

Need to be very careful about insurance doing this.

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OP it is highly unlikely a Toyota agent would buy a vehicle outright from a private individual. (unless, possibly it was a late model, with very low kms and was very cheap).

[BKResort]

If you buy a car new or used in a dealer..... you only can sell back to them loosing at least 30% of the market value ...