Planning to buy a used car, do I have to pay used car tax?

For those who are planning to buy a used car for use, but do not know what expenses are involved in buying a used car and whether or not to pay used car tax, to help you prepare the money for buying a car, we have some things you need to know about buying a used car to tell you.

6 things you need to know before buying a used car

1. Used car tax

When buying a used car, if you buy from an individual or what is called a "family car", the buyer does not have to pay used car tax and can pay for the car at the agreed price. However, if you buy through a used car dealership, the buyer must pay 7% tax of the car price. Therefore, before deciding to buy, do not forget to calculate the price by adding the car tax. This will help you know if it is within your budget. You will not have to worry about finding money to pay more later.

2. How to calculate used car tax

The method for calculating used car tax can be done as follows: If the selling price of the used car that the dealership has posted is 100,000 baht, you will have to pay 7% VAT or 7,000 baht, which means that the buyer must pay 107,000 baht for that used car.

3. Expenses for buying a used car

For those who are wondering if they want to buy a second-hand car from a used car dealership, besides the used car tax, what other fees do they need to pay? It can be divided into 2 cases:

Cash payment

Reservation fee is the money that must be paid to the dealership before making a sales contract. It is an expression of intent to reserve a car. If they do not come to buy it later, the dealership will keep the deposit.
Tax is an additional expense that the car buyer must pay on top of the used car price. Therefore, before deciding to buy, you should ask the dealership for the price clearly whether the price on the label includes the used car tax or how much tax must be calculated.
Transfer fee is an expense collected by the Department of Land Transport to change the name of the old owner to the new buyer. This ownership transfer fee is called the “stamp fee”, which consists of a 5 baht fee, a 100 baht transfer fee, and a 500 baht sales stamp fee per 100,000 baht.

Therefore, if you buy a used car for 100,000 baht, you will have to pay a transfer fee of 5 + 100 + 500, which is a total of 605 baht.

Car insurance This is an additional expense that must be prepared after purchasing a car. Some used car dealerships may provide car insurance as a bonus. However, if there is none, the buyer must purchase it by themselves to ensure that if there is an accident and the car is damaged, there will be expenses for repairing the car for both themselves and the other party.

In the case of paying for finance

The down payment is the cash that must be used to pay for the first part of the car. Usually, the down payment is around 15%-25%, but there are quite a few car dealerships that offer 0% down payment. Those interested in buying a car should therefore inquire carefully from the used car dealership before making a decision.
The installment payment is the money that the car buyer must pay to the finance company every month. The buyer must make sure that they have enough money to pay the installments because if they do not pay the installments on time, the finance company will repossess the car.
Interest is an additional expense from the price of the car that must be paid to the finance company. It is usually included in the monthly car installment. The interest rate will be as agreed upon between the buyer and the finance company. Therefore, it is necessary to study the interest rates carefully before deciding to buy.
The finance fee is the cost of processing and preparing documents from the finance company. The buyer must inquire about this expense carefully and compare it with several finance companies to choose the finance company that offers the best value.

What are the expenses when buying a used car?

4. Who must pay the car ownership transfer fee?

For the car ownership transfer fee as we mentioned, the buyer is usually the one to pay, but in some cases, you can agree with the seller to split the ownership transfer fee.

5. Can used cars transfer insurance?

When buying a used car, the buyer can transfer the car insurance. But if the car insurance of the car you want to buy has less than 6 months left, you must buy a new car insurance.

6. Where can I check the car tax online?

In addition to the used car tax that must be paid when buying a car, the new car owner must also pay the annual car tax at the Department of Land Transport. This is so that government agencies can use this money to repair and develop roads. The car tax varies depending on the type of car. Car owners can check the car tax at https://eservice.dlt.go.th/esvapp/esv/ebk/esv02q002/

All of this should help those who want to buy a used car prepare various expenses more carefully. And for those who want to buy a used car without having to worry about calculating the expenses, Autovilla, a used car tent in Bangkok, is ready to provide advice so that you have the right car for yourself.

Interested in going to see a used car Or inquire for more information at

Srinakarin branch, Tel. 097-921-9552

Romklao branch, Tel. 095-906-0633

Lam Luk Ka branch, Tel. 092-940-5098

Reference:

Car tax, why do you have to renew it every year? What are the methods and steps? Retrieved on January 23, 2024 from https://portal.info.go.th/automobile-tax/