How to buy a car without a Thai guarantor
A car buying installment plan for foreigners that does not require a Thai guarantor
Buying cars from auctions has become a smart strategy for me, allowing me to enjoy driving different vehicles every year without incurring losses. The conventional wisdom is that cars depreciate rapidly the moment they're driven off the dealership lot, and a significant portion of this depreciation is essentially the dealership's profit. To counter this, I've tapped into the world of car auctions through my company, gaining access to vehicles at up to 20% below market value. By reselling these cars within 12 months on the open market, I manage to bypass the initial depreciation entirely.
One crucial aspect of this strategy is timing – selling the car before the next calendar year begins. Even if a car is manufactured in, say, October, come January, people automatically perceive it as a year older, leading to a depreciation in value. Selling to dealerships is not an option, as they typically offer prices 10%-20% below the auction price, further reducing potential gains. I have to sell on the open market for this to work in my favour.
Let me illustrate this with a real example. Five years ago, I acquired a Ford Ranger XLT 2.2 2013 at an auction for ฿360,000, while dealerships were advertising the same model for ฿430,000. After careful evaluation, dealers consistently offered below ฿300,000, with the lowest at ฿250,000 – nearly 40% below the auction price. Even dealerships with similar models on their lots priced above ฿400,000 were willing to pay less than ฿300,000. Wild right? Dealerships make big money on trade-ins. Despite my initial investment in new tires and servicing, I managed to sell it for ฿380,000 after 5000km of enjoying it, this worked because it was still well below the average dealership price.
This strategy may not work for every car or model, as factors like mileage and the release of new models significantly impact a vehicle's value. Clocking mileage over 100k, 150k, and 200k can lead to a perceived drop in value. However, there's a sweet spot right after the release of new models when the previous generation's price drops. Over the past seven years, I've cycled through various cars, sometimes enjoying two different ones in the same year. Even if I incur a 10% loss on one, it's still more cost-effective than renting and significantly cheaper than buying from dealerships or brand new.
If you're interested in exploring this strategy but don't know where to start, consider checking out our Auction Sourcing Service. It might just be the key to enjoying different cars without the financial drawbacks.
