Buying a Car or Scooter in Phuket: Registration, Insurance and Road Tax

Can a foreigner own a vehicle?

Yes. Sources say there is no legal restriction on foreigners owning a car or motorcycle, and the registration book is issued in your name. You normally need your passport and an address in Thailand, and proof of address may be asked for. To drive it legally you need the right licence, as the driving guide explains, so buy the vehicle only after you know how you will be licensed and insured.

Used vehicles: what to check

• Insist on the original registration book, commonly called the blue book. Never buy a used vehicle without it.
• Check the seller's identity, and make sure the name in the book matches.
• Check that no finance is outstanding on the vehicle.
• Ask for the service history, and have an independent mechanic inspect the vehicle, including flood damage, which is a risk after heavy rain.
• Check that the plate, the engine and chassis numbers match the book.
• Check the tax sticker and the compulsory insurance are current.
• Do not pay a large deposit until the paperwork is checked, and pay by traceable bank transfer.

Dealers, second-hand lots and private sellers all operate in Phuket, with prices that vary a lot, and a trusted local who can read the documents is valuable.

Transfer of ownership

A transfer takes place at the Department of Land Transport. Typical steps are described as follows:

• The vehicle may need inspection at the office.
• Buyer and seller sign the transfer form, with the registration book, their identification and proof of address.
• The buyer shows valid compulsory insurance for the vehicle.
• The buyer pays the transfer fees, and the office updates the registration book and issues the receipt and tax sticker.
• Plates and the updated book are issued, often the same day, though a change of province or plate may take longer.

Rules and forms differ for new vehicles, imported cars, and vehicles registered in another province, so ask the office about your case.

Compulsory insurance: Por Ror Bor

Every registered vehicle in Thailand needs compulsory third-party insurance, known as Por Ror Bor. It covers injuries and death to people, and not property damage or your own vehicle, and you cannot pay your annual tax without it. Sources put it at around 650 baht a year for a car and 430 baht for a motorbike, and some quote a range of 300 to 1,200 baht depending on the vehicle. You can buy it from insurers, at some inspection garages or at the transport office.

Voluntary insurance

Por Ror Bor pays little, so most owners add voluntary cover, which can protect against damage to your vehicle and to other people's property, and against theft. Foreigners buy it routinely, using their passport, licence or International Driving Permit and the registration book. Compare policies that fix the excess, what happens if someone else drives, and whether the policy covers flood damage. A cheap policy that names only one driver is useless when someone else is at the wheel. See also the insurance warnings in the driving guide.

Annual road tax and inspection

Road tax is paid each year, with the tax sticker displayed on the vehicle. For a motorbike, one source puts the tax at about 100 baht, and for cars it depends on the engine size, with electric vehicles reported as exempt for a period. Cars over about seven years old and motorcycles over about five years old need an inspection certificate before the tax is paid. Driving with an expired sticker can bring a fine of up to 2,000 baht per offence, according to one guide, and leaving a vehicle unregistered for years can lead to its registration being cancelled.

Buying or renting?

If you stay for a short time, a monthly rental is usually cheaper and simpler. The cost of living guide has sample rental and ownership budgets, and buying makes more sense when you stay for a year or more. Add parking, fuel, servicing, insurance and tax to the price when you compare, and sell or deregister the vehicle properly when you leave, as the leaving checklist explains.