New car vs second hand

[davejonesbkk]

OK, I know this topic has been done to death but after reading many other threads and comments here Im still not that clear plus I have some questions related to buying new cars and financing so thought Id put it all in one thread.

 

Second hand cars

 

From what Ive read here many people say that buying second hand cars is a risk and that many of them have problems, is that really the case with *all* second hand cars here and how does one know if the car is ok or not?

 

Pricing - from what Ive seen second hand cars are quite expensive here, if I do get one I dont want to pay more than about 250-300k, what can I expect for this price? Tbh I dont really  need a car but after renting them a few times its hard to go back to taxis, Id be happy to have something like like a 4-5 year old Toyota vios or something like that but the prices seem to be all over the place. Ive seen some for as much as 350-400k that are just a few years old to some that are 150k but these lower priced ones do make me worry, is that too cheap? My Mrs being a typical Thai wants a  shiny, brand new car and gets in a strop everytime I mention second hand cars which brings me on to the next point.

 

New cars

 

My first question about these is, can you get a better deal if you buy a new car cash?

 

Financing - I may need to do it this way, I can easily afford any monthly car payment but I dont have a WP and my wife doesn't work so what are my options? Is it possible at all for me or her to get the financing? She has some money saved in the bank plus some gold thats worth about 100k, would that help?

 

We have family options too, two of her sisters have offered to help to be guarantors, Id rather not pursue that option as it makes me feel awkward but I may have no choice. If we did then would one of the sisters need to earn a certain amount to qualify and what docs would they need to show?

 

For both the above finance options what kind of deposit is required? Ive read that 25% is the norm, do any of the above factors affect that.

 

Rates - so my understanding is that the rate is usually around 4-5% but this is on the full price of the car regardless off what % deposit you pay correct? And then there is a 'real' interest rate or something? How many years can we expect to be able to pay the car off in and can we negotiate that? Can the car be paid of early if we want? Whose name is the car in during this period too?

 

Finally, what else is needed to be organized/acquired for a new car, theres car insurance of course but I read that foreigners have to get a proof of residence to buy the car. I got one of these some months back when I did the Thai driving test and still have a copy I think, do I need to get a new one?

 

Ive been looking at the Honda City which seems like an ok car and price, if anyone has any thoughts on that or can recommend any similar cars then please do so!

 

thanks

 

 

 

 

Edited December 11, 2016 by davejonesbkk

[Kwasaki]

1 hour ago, davejonesbkk said:

From what Ive read here many people say that buying second hand cars is a risk

 

Rubbish depends how old & service history.

 

1 hour ago, davejonesbkk said:

4-5 year old Toyota vios or something like that but the prices seem to be all over the place.

 

Most probably because dealer ask more than private sellers.

 

1 hour ago, davejonesbkk said:

My first question about these is, can you get a better deal if you buy a new car cash?

 

3rd  depends on the dealer.

 

1 hour ago, davejonesbkk said:

I can easily afford any monthly car payment but I dont have a WP and my wife doesn't work so what are my options?

 

You wrote it, two of your wife's  sisters have offered to help to be guarantors.

 

1 hour ago, davejonesbkk said:

For both the above finance options what kind of deposit is required?

 

The dealer lowest amount or whatever you want to put above it,  private bought s/h cars are usually and always best as cash deals.

 

1 hour ago, davejonesbkk said:

Can the car be paid of early if we want?

Whose name is the car in during this period too?

 

Yes if who you deal with will do it  " Ask ".  

The finance company will retain the book until full payment is made, they notify you for payments of road & Gov insurance. 

 

1 hour ago, davejonesbkk said:

I've been looking at the Honda City which seems like an ok car and price

 

Good cars check service history & you can get people check at a small cost if you no nowt about motors.

[naboo]

Interest rate on new car loan should be advertised much lower than 4-5%. Around 2% on the sticker is reasonable. There are always 0% offers about. Double the advertised rate to get approximately the APR rate you're probably more used to.

 

2nd hand finance costs a lot more, don't.

 

If you want best value, buy a pick-up new and keep it for at least 12 years, maintain it well with regular oil changes and services (they're cheap) and it will go forever. Most of the depreciation is in the first 4 years, but it retains half its value at that point. It then proceeds to lose 2/5ths of **** all over the next 6 years.

 

Finance, if you can show income (no work permit, just bank statements with money going in over 6 months) and put 50% down, with a Thai guarantor who earns 12,000B a month you should be fine. Finance company keeps the book until payments are complete.

[guzzi850m2]

My first car here was a 2nd hand Honda City (the old type) and it served me well for app 4 years.

 

I bought it from a small 2nd hand dealer in Pattaya and I asked for a full service history which they help me obtain from from a Honda dealer.

 

Then when comparing the service history I could see that the odometer had not been tampered with (which is normal here) and after a short test-drive I bought the car.

 

Yes a 4-5 year old City or Vios should be possible to find fairly cheap but try finding one with not too many km's on it (check if true or not very carefully) and not pimped with fat tires and lowered, spoilers and all that crap. If it is, it has likely been driven very hard. 

 

Sometimes you can find them in Bathsold where expats are selling their cars for different reasons. 

[Johnniey]

On 11/12/2016 at 0:25 PM, davejonesbkk said:

Rates - so my understanding is that the rate is usually around 4-5% but this is on the full price of the car regardless off what % deposit you pay correct?

Good question. I'd also like to know the answer.

 

Surely the interest is only on the amount that is borrowed, i.e  4-5% on 50% of the price if you pay 50% down.

 

[Olik]

Let your wife find a trustworthy car dealer and find a second financed car which monthly is reasonable. Check prices at taladrod or one2car websites.

[balo]

I am selling a Nissan March 2013 model for 270k , let me know if yo'ure interested, will sell it within the next 3 months. 

[KittenKong]

My main objection to used cars is that you have no idea how they have been treated. At least with a new vehicle you know that it has never been flooded, overloaded, driven too fast or without oil, and has been properly serviced. With a used vehicle you cant be certain of any of these here.

 

I remember seeing one used pick-up in a private sale. The interior was completely worn through, including the leather seats, and the outside wasnt better. "Dont worry" said the owner. A few days later I saw the same vehicle which had a completely new interior with all the seats recovered and carpets replaced, and a complete respray. Looking at it you would never know what a pile of overworked garbage it had been. And of course buying it you would still be buying a vehicle that had basically had a very hard life even though it now looked pretty good. I compare that with my pickup that I bought new, and has hardly ever had anyone in the passenger seats, nor anything in the flat-bed apart from a couple of items from Ikea and my suitcase once a year when I go to the airport.

 

Of course if you can find a used vehicle that was verifiably owned by a retired lady farang who only used it to go to church on Sunday you may be onto a good thing, but I suspect that they are rare.

[canthai55]

If your knowledge of cars is non-existent, then you are at the mercy of the seller. With knowledge comes choices, and you can decide for yourself. Both our cars were bought second hand. The Teana I bought in BKK - could not be new as they have CVT and 4 cylinder and I wanted V6 and torque converter auto. Looked at lots, over 4 days, and bought the best one. One owner since new - two if you count the bank. No issues. Our NV town car the same -  a lady teacher who bought it new.  200K - replaced the rad this year as 15 years of running straight water corroded the old copper/brass one. New one aluminum. Main thing - you do not take the hit when you put that first km on a new vehicle, plus many more choices.

Edited December 18, 2016 by canthai55

[Strange]

6 minutes ago, canthai55 said:

If your knowledge of cars is non-existent, then you are at the mercy of the seller.

 

So much truth here. 

 

If you don't know about cars I would never recommend buying second hand here in Thailand. Some people may get lucky but the amount of lemons here is astronomical. 

 

The only reason I can see to justifiably get second hand is you don't have the resources to buy new or you know how cars work and know full well what you are getting yourself into. 

[hawkander]

Can anyone tell me what insurance you get with a new car, as I`m thinking about buying a new car and it comes with what is called first class insurance, which is free for the first year? Does this insurance, cover things in the same way as fully comp works  in the UK and  has anyone had any experience of claims? Thanks in advance

[ballbreaker]

1st class covers everything. Google "types of car insurance Thailand" to learn details of each class.

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[hawkander]

Can anyone tell me what insurance you get with a new car, as I`m thinking about buying a new car and it comes with what is called first class insurance, which is free for the first year? Does this insurance, cover things in the same way as fully comp works  in the UK and  has anyone had any experience of claims? Thanks in advance

 

 

Many thanks for the reply and the info, was most helpfull

[balo]

1st class insurance does not always cover the same as in Europe. I experienced that myself. A small rock from the road hit my front shield and I had to replace it , insurance would not cover it since no other vehicles were involved in the "accident".  

[Don Mega]

2 minutes ago, balo said:

1st class insurance does not always cover the same as in Europe. I experienced that myself. A small rock from the road hit my front shield and I had to replace it , insurance would not cover it since no other vehicles were involved in the "accident".  

 

Interesting, who is your insurer ?

 

The missus cracked a screen (rocks from truck) about March and insurance covered it, she did another is August (another <deleted> rock from truck) and she had to pay the excess which was 3k, screen cost was 7k.

 

 

[balo]

4 hours ago, Don Mega said:

Interesting, who is your insurer ?

 

Viriyah insurance, they offer not so expensive insurance as others  , I think the yearly fee is under 10k.  I had a minor scratch on my car a few months ago that was covered 100% . Maybe I should read the contract next time before I sign any documents. 

 

 

Edited December 28, 2016 by balo

[naboo]

7 hours ago, balo said:

1st class insurance does not always cover the same as in Europe. I experienced that myself. A small rock from the road hit my front shield and I had to replace it , insurance would not cover it since no other vehicles were involved in the "accident".  

 

That sounds like Class 2+1, not first class.

 

Its the class I purchase, I think its best value for money, but for a new car usually you would get 1st class which covers the same as UK Fully Comprehensive with fewer questions asked.

[raro]

Best option is getting a 1 or 2 year old car with low mileage. Yes, you pay a bit more for finance, but under the bottom line cheaper than a new car with little to no drawbacks. 

 

The dealer won't give you any discount (or ...unlikely) for a cash purchase as the finance company gives him the cash anyways. It's not the dealer financing the deal. The extra paperwork is filled in by one of the sales girls who is also on payroll with the finance company (and the insurer and whoever else has a finger in the pudding) so the dealer doesn't really care where the money is coming from.

[DavisH]

12 hours ago, raro said:

Best option is getting a 1 or 2 year old car with low mileage. Yes, you pay a bit more for finance, but under the bottom line cheaper than a new car with little to no drawbacks. 

 

The dealer won't give you any discount (or ...unlikely) for a cash purchase as the finance company gives him the cash anyways. It's not the dealer financing the deal. The extra paperwork is filled in by one of the sales girls who is also on payroll with the finance company (and the insurer and whoever else has a finger in the pudding) so the dealer doesn't really care where the money is coming from.

That makes more sense with more expensive cars, like the accord hybrid. A 2015 car can be had for 1.2-1.3M with new price being over 1.8M. For a honda jazz, you may as well buy new as its less expensive to start with and obviously less money is lost over time. Same for pickups. A ratty 15 y.o toyota / isuzu pickup sells for more than my 12 y.o 2.0 civic. And that pickup was much cheaper to start with!

[ardokano]

Try find who sale car with change loan.. can find  good price. Total pay cost be as pay by cash for same second hand car.

but it's almost fast sell deal.. 

 

[meatboy]

On 27/12/2559 at 5:25 AM, hawkander said:

Can anyone tell me what insurance you get with a new car, as I`m thinking about buying a new car and it comes with what is called first class insurance, which is free for the first year? Does this insurance, cover things in the same way as fully comp works  in the UK and  has anyone had any experience of claims? Thanks in advance

 

 

Many thanks for the reply and the info, was most helpfull

we found out one scam that the sales rep.caught us on,oh i can get the insurance cheaper,yes by cutting the payout for injuries and treatment.didnt find out till we renewed with it the co.NO DISCOUNT AND A HIGHER PREMIUM.

i might have to sell mine in september doctors orders. toyota vios trd sportivo. 5yrs.old and less than 4k on the clock from new.

[impulse]

3 hours ago, meatboy said:

i might have to sell mine in september doctors orders. toyota vios trd sportivo. 5yrs.old and less than 4k on the clock from new.

 

It was for a similar reason that I bought used, and 20 years old at that.  I'm on assignment in Thailand and may get run off at any time.  In which case, I'll have to liquidate post-haste.  Had I known I'd last 6 years (and counting), I'd have bought a nicer vehicle, but not a new one.

 

I've had excellent luck with the 24 year old pickup I bought from an expat who had to liquidate post-haste during one of the tightenings of visa loopholes...  I'd be a little more skeptical about buying a used car from someone who couldn't convince me why he/she's selling it.   I see a lot of guys on Bahtsold and Craigslist that have sold a dozen cars, yet claim not to be dealers.  A lot of them were right after the floods of 2011...

[davejonesbkk]

Thanks for all the responses guys, very helpful. Looks like I will be getting a new car on finance soon. I do have a few more questions if anyone can help?

 

Is it possible to make extra voluntary payments on a car to pay it off early?

 

How much is road tax and how do I go about paying it?

 

Is first class insurance for a new car in the 14--18k per year range a reasonable price?

 

Can I put my wife on the insurance as a named driver if she doesnt have a drivers license but will get one later in the year?

 

[JaseTheBass]

1st class insurance does not always cover the same as in Europe. I experienced that myself. A small rock from the road hit my front shield and I had to replace it , insurance would not cover it since no other vehicles were involved in the "accident".  

Ford's does.

[JaseTheBass]

Thanks for all the responses guys, very helpful. Looks like I will be getting a new car on finance soon. I do have a few more questions if anyone can help?
 
Is it possible to make extra voluntary payments on a car to pay it off early?
 
How much is road tax and how do I go about paying it?
 
Is first class insurance for a new car in the 14--18k per year range a reasonable price?
 
Can I put my wife on the insurance as a named driver if she doesnt have a drivers license but will get one later in the year?
 

You can pay off early, but you won't get a discount for doing so in my experience.

[raro]

You can pay off early, but you won't get a discount for doing so in my experience.

Right. The car finance deals are chiseled in stone and unlike a house mortgage they do not reward early payments.



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