Buying a Car in Taiwan FAQ 在台灣購買汽車常見問題

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Buying a car as a foreigner in Taiwan can be a confusing and stressful experience. If you do not live near a train station, chances are that you have thought about at least buying a car for long trips. Taiwan is a place that should be explored not just with public transportation, but by car or scooter. If you only take public transportation everywhere you go, you are missing out on a huge part of Taiwan. To make you buying experience smoother, we have created this guide to let you know what to expect and answer any questions.

Here is an easy checklist for buying a car in Taiwan:
Before buying the car:

• Get an ARC
• Get a local driver's license
• Test drive the car/scooter to see if there are any issues

Buying the car:

• Go to the local DMV (監理所) and transfer the owner
• Undergo vehicle check for scooters or cars over ten years old
• Pay fuel tax and license plate tax (燃料稅, 牌照稅)
• Buy compulsory insurance (强制險)
• Buy extra third party liability insurance and/or driver's injury insurance (第三方責任險及駕駛傷害險)
• Activate the ETC account for cars/motorcycles (electronic highway toll system)

After buying the car:

• Complete annual or bi-annual emissions tests (驗車)
• Change oil regularly (換機油)
• Repair regularly (定期保養)
• Renew insurance annually
• Buy a parking space if needed

Buying a Car in Taiwan FAQ 購買汽車常見問題:

The morning commute on Minquan East Road in Taipei, perhaps the most crowded morning commute in Taiwan.

Q: Do I need an ARC to buy a car?
A: Yes, for most all cases. Having an ARC card is arequirement for vehicle registration with the Motor Vehicles Office. 

Q: Do I need a local license to buy a car?
A: Yes, for most all people. But it is possible that you own a car while not having a local license, but I assume that you will want to drive your own vehicle. 
If you have a valid driver's license from your home country, you may be eligible for transfer of license based on principles of equity. For more information, see the government's website here.

Q: What is the driver's licence test like in Taiwan?
A: See our full blog on the test here. 
You can also check out the in-depth explanation from Tealit here. 

Q: What taxes do I need to pay for my car?
A: License plate tax and fuel tax, which need to be paid annually. Electric vehicles do not need to pay fuel tax. The rates are as follows:

Q: What are the annual fuel tax rates for gas/diesel cars in Taiwan?

Displacement	Gas Car Annual Fee ​(personal use - sits 9 people or less)	Diesel Car Annual Fee (personal use - sits 9 people or less)
251-500cc	2,160	1,296
501-600	2,880	1,728
601-1200	4,320	2,592
1201-1800	4,800	2,880
1801-2400	6,180	3,708
2401-3000	7,200	4,320
3001-3600	8,640	5,184
3601-4200	9,810	5,886
4201-4800	11,220	6,732
4801-5400	12,180	7,308
5401-6000	13,080	7,848
6001-6600	13,950	8,370
6601-7200	14,910	8,946
7201-8000	15,720	9,432

(Source: https://www.thb.gov.tw/page?node=b58eb9aa-3160-429b-af08-645d5ae19f4c)

Q: What are the annual license plate tax rates for gas/diesel cars in Taiwan?

Displacement	Annual Tax for Diesel or Gas Cars 小客車 ​(Personal use - Diesel or Gas, sits 9 people or less)
500cc or less	​1,620
501-600cc	​2,160
601-1200cc	4,320
2101-1800cc	7,120
1801-2400cc	11,230
2401-300cc	15,210
3001-4200cc	28,220
4201-5400cc	46,170
5401-6600cc	69,690
6601-7800cc	117,000
7801 or above	151,200

(Source: https://tpctax.gov.taipei/News_Content.aspxn=87EECD3D91B2159E&s=5D2ED0F9A79080F8)
​
Q: What are the annual license plate tax rates for electric cars in Taiwan?

Horsepower	Annual Tax for Electric Cars 小客車 ​(Personal use - sits 9 people or less)
38 or below	1,620
38.1-56	2,160
56.1-83	4,320
83.1-182	7,120
182.1-262	11,230
262.1-322	15,210
322.1-414	28,220
414.1-469	46,170
469.1-509	69,690
509.1 and above	117,000

(Source: https://tpctax.gov.taipei/News_Content.aspxn=87EECD3D91B2159E&s=5D2ED0F9A79080F8)

Q: What kind of car insurance is there in Taiwan?
A: There is compulsory insurance (强制險) which will pay a fixed amount for the medical expenses of another party and your passengers if you crash. You must purchase this insurance.
There is also optional third party insurance (第三方責任險), which covers extra amounts to passengers, other parties, and property damage. I highly recommend getting this insurance before driving your new car.
​Another type of insurance is driver Injury Insurance (駕駛人傷害險), which gives the driver an amount of money should they crash themselves. 
Please refer to the chart below for an explanation of coverage:

Coverage	Driver	Passengers	Other parties/ pedestrians	Other cars/property
Compulsory Insurance （强制險）	None	Death- 2M NT Injury - 200K NT	Death- 2M NT Injury - 200K NT	None
Third Party Insurance （第三方責任險)	None	None	Extra Amount	Extra Amount
Driver Injury Insurance (駕駛人傷害險)	Extra Amount	None	​None	None

(Source: https://www.thenewslens.com/article/40880)

Q: How much is the cost of car insurance in Taiwan?
A: Compulsory insurance (强制險) ranges from about 1,000 NT to 3,500 NT depending on your age and gender. 
Other added insurance (such as 第三方責任險) can range from 1,000 NT to 20,000 NT annually depending on your plan. You probably want a plan that would cover you if you hit a Ferrari. 

Q: Where can I buy a car in Taiwan?
A: There are car dealerships in major cities throughout Taiwan, as well as used car dealerships. It depends on what car you want to buy.

Q: How much is a new car in Taiwan?
A: Imported cars can by 1.5 to 2 times more expensive than cars built domestically, due to import taxes. Therefore brands that have factories in Taiwan (such as Toyota, Honda, Ford, Nissan, Hyundai, Mitsubishi) are cheaper than other brands in Taiwan that are imported (such as BMW, Mercedes, Porsche, Suzuki, Tesla, Volvo, Mazda, Volkswagen, etc). Taiwan built cars are similar in price to those sold overseas. 

Q: How much are used cars in Taiwan?
A: A car that is 10-20 years old in Taiwan is usually sold for less than 200,000 NT. 
Many really old cars sell for 50,000 NT because that is the tax rebate amount you can get if you junk it when buying a new car. 
​
Q: How much are parking spaces in Taiwan?
A: Parking spaces in Taipei can range from 2000-5000 NT per month.
In Kaohsiung however, parking spaces can be as cheap as 1000 NT per month or less.

Q: How much are car repair fees in Taiwan?
A: This depends on the car. For a normal sedan an oil change is about 1000 NT. In general, service fees for car repairs in Taiwan are about a third what they are in the US. 

Q: How often do I need to take an emissions test for my car?
A: If your car is more than five years old: once a year (about 500 NT).
If your car is more than ten years old: twice a year (about 150 NT for the second test).
At the emissions test, they will also test your brakes, lights, etc. to make sure your car works properly. 
​
Q: How much are the highway/freeway toll fees (ETC fees) in Taiwan?
A: This is about 1.2 NT per kilometer, but there are discounts if you prepay using your ETC account and if you drive long distances. Discounts may stop during holiday travel times. 

Q: How much is the price of gas? 
A: As of March, 2018 it was around 27 NT per liter for 95 octane gas. However in March 2020 it has dropped to 25 NT per liter, which is quite low.
For you Americans that is 95- 100 NT per gallon (3.14 USD to 3.31 USD per gallon).

Q: What are the average annual costs for a car in Taiwan?
License Plate Tax: 4,000 - 46,000 NT (see above for rate table)
Fuel Tax: 4,800 - 12,000 NT (see above for rate table)
Gas for 20,000 KM: 40,000 - 60,000 NT
Oil Changes: 2,000 - 4,000 NT
Emissions Tests: 500-650 NT
Other minor repairs/servicing: 3,000 NT to 20,000 NT
ETC fees: 6,000-12,000 NT 
Parking fees: 12,000 - 50,000 NT 
Insurance: 2,000 NT to 20,000 NT
Estimated Total Annual Costs: 74,300 - 224,650 NT

Q: How do I get a local Taiwanese licence?
​A: Check out our guide on getting a driver's licence in Taiwan here.

Q: What do the different car license plate colors in Taiwan mean?

1. Red background with white letters: tour bus or heavy motorcycle
2. White background with red letters: small commercial vehicle or machine
3. Green background with white letters: large commercial vehicle
4. White background with green letters: large personal vehicle 
5. White background with black letters: small personal vehicle
6. Yellow background with black letters: local transportation vehicle

For a full list of different types of license plates, check out this Wikipedia article. 

Q: What side of the road does Taiwan drive on?
A: The Right side.

Q: Anything else I should be aware of when driving in Taiwan? 
Yes!

• Turning right on a red light is against the law.

• When turning right, check your blind spot and the space behind your car for scooters. There are scooters everywhere. To make a safe right turn, make sure to signal early, turn slowly, and check your mirrors and blind spots. 
• Check for speed cameras and red light cameras. These are the only effective way of traffic enforcement in Taiwan, and they are everywhere! But, most GPS systems in Taiwan will tell you where they are, and will warn you when you approach them.
• Getting in an accident can be messy and involve a long litigation process. Call your insurance company and the police. Do not move your vehicle until the police arrive and create their accident report. 
• There are a few lanes in Taipei City that are just for buses. Don't drive on them.
• Some lanes are only meant for scooters or motorcycles.
• Avoid small alleys if at all possible. You can get stuck and might have to end up backing out.
• If you come to a blind corner, there should be a round mirror at the intersection to let you see if there is any oncoming traffic from the right or left.

Renting a car instead?
Please see our guide on car rental in Taiwan here.

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