Thinking of buying a car? You need to know if you're financially ready first

In this era, buying a car is no longer difficult! With a down payment of tens of thousands, you can drive a brand new car. Some brands even allow you to buy without a down payment! But be careful, not having to pay a down payment might mean high interest rates and a high risk of default. This can lead to monthly expenses so high that you might not be able to afford the installments, and the car could be repossessed.

Therefore, before deciding to buy a car, don't forget to check if you have enough money and are ready to handle the various expenses that will follow! Here are some thoughts for those who want a car but are not yet ready 

1. Compulsory Motor Insurance (Por Ror Bor) fee 600-1,200 Baht/year

Por Ror Bor is mandatory motor insurance under the Motor Vehicle Accident Victims Protection Act B.E. 2535. The average annual cost is 600-1,200 Baht. Sometimes it's bundled with car insurance, and sometimes it must be purchased separately.

2. Annual Vehicle Registration Renewal fee 1,500-3,000 Baht/year

This is the annual vehicle tax, with an average cost of 1,500-3,000 Baht/year. The larger the car and engine size, the more expensive this tax becomes. Cars older than 7 years must also undergo a vehicle inspection.

 
3. Car Insurance fee 6,500-20,000 Baht/year

Car insurance helps cover expenses arising from vehicle-related incidents. Generally, there are options for Class 1-3 insurance, or depending on each company's offers. Higher premiums provide greater coverage for your car. On average, it starts at around 6,500 Baht. For Class 1 insurance on common vehicles, the average is 12,000-20,000 Baht per year, but the more expensive the car, the higher the insurance premium.

 
4. Maintenance fee 5,000-30,000 Baht

Cars naturally experience wear and tear, so maintenance is required, typically every 6-12 months or 10,000 kilometers. Costs vary depending on the brand, model, usage, and how well each owner maintains their car. For ordinary cars, appropriate maintenance costs usually range from 5,000-30,000 Baht per year. However, for more complex or older cars, maintenance costs can reach tens of thousands of Baht per year. 

5. Fuel costs 3,000-5,000 Baht

Fuel costs are difficult to specify precisely because oil prices fluctuate constantly, and each person's usage can differ completely. However, for those who use their car daily, fuel costs often exceed 3,000-5,000 Baht for small cars. For larger cars or those with high fuel consumption, costs will be higher and could reach 10,000 Baht/month. Ways to reduce fuel costs include adjusting driving habits, planning trips, and using the car only when necessary.

 6. Tollway fees 3,000-4,000 Baht/month

For people whose homes are far from work, using tollways may be necessary due to long commutes and daily traffic congestion. Currently, the average toll fee is 50-100 Baht per entry. If tollways are needed daily, monthly costs can amount to 3,000-4,000 Baht.

7. Parking fees 1,500-5,000 Baht/month

For those living in apartments or condominiums, or in crowded homes without parking spaces, or those who work in business districts, regular parking rental can cost around 1,500-5,000 Baht/month.

8. Car wash fees 500-1000 Baht/month

If you're not convenient washing your car yourself, the cost could be 500-1000 Baht per month. A way to reduce this expense is to start washing your car yourself. In addition to significant savings, you also get time to inspect any damage to your car, so if you spot any defects or damage, they can be fixed promptly. More importantly, it's also a form of exercise.

9. Other expenses

In addition to all the expenses mentioned above, there might be hidden costs that could arise intentionally or unintentionally, such as various car gadgets which are very important nowadays, like cameras or car GPS, as well as fines for traffic violations. For car modification enthusiasts, there could be tens of thousands of Baht in additional expenses not included in this list.

 These are just estimates. Now that you know, don't forget to calculate and plan carefully before buying a car. At the very least, you should have some emergency funds set aside.