A Guide To Buying Cars In Brunei

Buying a car in Brunei offers a range of options, from affordable to luxurious vehicles. Whether you're looking for a new or used car, there are trusted dealerships and online marketplaces to explore. With a variety of brands and models available, you can find the perfect car to suit your needs and budget. The process involves viewing and test-driving cars, as well as handling the necessary paperwork for registration, ownership transfer, and license renewal. Additionally, Brunei has specific import regulations for used cars, which should be considered when making your purchase.

How to Buy a Car in Brunei

Where to buy used cars in Brunei

There are several options for buying used cars in Brunei. One option is to go through a used car dealership. Mudaseri Auto Used Car, for example, is a licensed used car dealer that offers a range of exclusive used cars, including BMW, Mercedes, and Porsche. They have a showroom where you can view and test drive the cars before purchasing. Another option is to check out Honeycarsmart, which also has a physical location where you can view their cars. They offer a range of used cars from various brands, including Toyota, Suzuki, Volkswagen, and BMW, and they have their own workshop where they pre-inspect, repair, and clean their cars before putting them up for sale.

In addition to dealerships, there are also online marketplaces where you can find used cars for sale in Brunei. These platforms, such as Motorcity Brunei, allow both buyers and sellers to connect and facilitate the transaction. They often offer a wide range of imported and local used cars, with options ranging from affordable to luxurious.

When buying a used car in Brunei, it is important to do your research, compare prices, and carefully inspect the vehicle before making a purchase. It is also recommended to consider the reputation of the dealership or seller and to ensure that all the necessary paperwork is in order.

How to finance a car in Brunei

Cash or Loan?

Firstly, you'll need to decide whether to pay for your car in cash or take out a loan. Paying in cash means you'll avoid paying interest and won't have to worry about monthly repayments. However, this option requires a large sum of money upfront, which may not be feasible for everyone.

Taking out a loan, on the other hand, is the more common way to finance a car in Brunei. This option allows you to make smaller, more manageable monthly payments. However, you'll end up paying more overall due to interest and additional fees.

Hire Purchase Loan

If you decide to take out a loan, you'll likely be looking at a hire purchase loan. This type of loan is specifically designed for car purchases and is offered by banks and dealerships. With a hire purchase loan, you'll be borrowing money from a creditor and paying it back in monthly instalments over a predetermined period, usually up to seven years.

Interest Rates

The interest rate on a hire purchase loan in Brunei typically ranges from 4.25% to 4.75% per annum. However, it's worth shopping around as different lenders may offer slightly different rates, and you may be able to negotiate a lower rate, especially during promotional periods.

Down Payment

To reduce the amount you'll need to borrow, consider putting down a down payment on the car. This will lower the overall cost of the loan and the amount of interest you'll pay.

Loan Period

While choosing a longer repayment period will reduce your monthly payments, you'll end up paying more in interest overall. For example, a $40,000 car loan with a 4% interest rate will cost you $8,000 in interest over five years, compared to $11,200 in interest over seven years.

Additional Costs

When taking out a car loan, there are also additional costs to consider, such as late payment charges, documentation and loan application fees, and settlement charges if you pay off the loan early. These costs can add up, so be sure to understand all the fees involved before committing to a loan.

Eligibility

To be eligible for a car loan in Brunei, you'll typically need to meet certain criteria, including age requirements (e.g., between 18 and 60 years old) and providing valid documentation such as a Brunei Identity Card, passport, driving license, employment pass (for foreigners), salary slips, bank statements, and employment letters.

Insurance and Taxes

Don't forget to factor in the ongoing costs of car ownership, such as regular maintenance, tyre replacements, road tax, and car insurance. These expenses will need to be budgeted for on top of your monthly loan repayments.

Imported vs. local cars in Brunei

Imported vs Local Cars in Brunei

When it comes to buying a car in Brunei, you have the option of purchasing a locally sold car or importing a vehicle from another country. Both options have their advantages and considerations, which we will outline below.

Local Cars in Brunei

Buying a car locally in Brunei is a relatively straightforward process. You can visit car dealerships and choose from a variety of new or used cars available. For new cars, you will typically need to pay a deposit, usually 10% of the car's price, and the dealership will order the car from the manufacturer. When the car arrives, you pay the remaining amount, sign the sales contract, and the dealership will register the car in your name.

For used cars, you can find them for sale online, in newspapers, or at car dealerships. It is recommended to inspect the car, check its condition, mileage, and history, and take it for a test drive before making an offer. Once you agree on a price with the seller, you will sign a sales contract, pay a deposit, and handle the necessary paperwork, including checking for any outstanding debts or fines.

Imported Cars in Brunei

Importing a car into Brunei involves following specific procedures and regulations, and the process can vary depending on the vehicle's origin and age. If you are importing from an ASEAN (Association of Southeast Asian Nations) country, the steps are generally simpler. You will need to obtain an Import Permit from the Brunei Land Transport Department (LTD), a Certificate of Origin from the country of manufacture, and a Bill of Sale from the seller with all relevant details. You will also need to pay taxes and duties, including Import Tax (15% of the vehicle's value), Excise Duty (based on age and engine capacity), and Sales Tax (5% of the vehicle's value).

For importing from non-ASEAN countries, the process is more complex. In addition to the documents and taxes mentioned above, you will need to obtain a Pre-Export Inspection from a recognised company to confirm that the vehicle meets Brunei's technical requirements.

It is important to note that there are age restrictions on imported vehicles. Brunei typically does not allow older vehicles to be imported, with a limit of around four years old. Additionally, only the royal family is permitted to bring in classic cars.

Both options, buying locally or importing, have their advantages. Buying locally may offer a wider selection of new and used cars, with a more straightforward process. On the other hand, importing allows you to bring in a vehicle of your choice from another country, but it involves more procedures, regulations, and costs. It is essential to consider your preferences, budget, and the specific requirements of importing before making a decision.

Car registration in Brunei

The issue of registration plates in Brunei is regulated and administered by the Brunei Land Transport Department (LTD). All motorised road vehicles in Brunei are required by law to display registration plates. These must be in the form of two identical registration plate numbers, with white characters on a black background, at the front and rear of the vehicle. The most common format for a Brunei number plate is one or more letters followed by up to four numerical digits with no leading zeros, e.g. 'BB 1234'.

The first letter of the number plate is either a 'B' or a 'K', depending on where the vehicle was registered before 2006. After 2006, the letter 'K' could be assigned to any vehicle, regardless of its place of registration. The letters 'I' and 'O' are not used to avoid ambiguity with numbers.

The Land Transport Department has been creating vehicle registration plates with three-digit alpha prefixes since 2009. The prefixes in use as of 2024 include BBA, BBB, BBC, BBD, BBE, and BBF.

The size and shape of the plates are restricted to either 8.5 by 13.5 inches (216 by 343 millimetres) or 21 by 6 inches (533 by 152 millimetres). Motorcycles usually have smaller plates, measuring either 4.25 by 6.75 inches (108 by 171 millimetres) or 8.5 by 3 inches (216 by 76 millimetres). The size of the letters and numbers on the plate is defined as 3.5 by 2.5 by 0.625 inches (89 by 64 by 16 millimetres) for all vehicles except motorcycles, which are 1.75 by 2.5 by 0.3125 inches (44 by 64 by 8 millimetres).

Vehicle registration numbers can be purchased or bid for by the public through the online platform NomborKu, using either the 'Click & Buy' or 'Click & Bid' feature. A registration fee of $25.00 is required for both services, along with the price of the desired VRN.

Car inspection and test drives in Brunei

When buying a car in Brunei, it is important to conduct a thorough inspection and test drive to ensure you are making a well-informed purchase. Here are some detailed steps to guide you through the process:

Car Inspection in Brunei:

• Choose a Reputable Workshop: Select a certified vehicle inspection station (VIS) or workshop to ensure an accurate assessment of the car's condition. Brunei has several Class 'A' Vehicle Inspection Stations and workshops, such as Boustead Sdn Bhd, GHK Motors Sdn Bhd, and Bayu Ilham Motors Sdn Bhd, that are authorised by the Land Transport Department (JPD) to conduct inspections.
• Make an Appointment: Most workshops require customers to schedule an appointment for the inspection. Contact your chosen workshop to book a convenient slot.
• Inspection Process: During the inspection, JPD-certified inspectors will thoroughly examine the vehicle. This includes checking the mechanical components, such as the engine, transmission, brakes, and suspension, to ensure they are in proper working order. They will also inspect the car's exterior and interior for any damage or irregularities.
• Brake Test and Light Penetration: As part of the inspection, a brake test will be conducted to ensure the car's braking system is functioning optimally. Additionally, light penetration will be assessed to guarantee proper illumination for safe driving.
• Obtain a Certificate: Once the inspection is successfully completed, the workshop will issue a Certificate of Road (CoR) Worthiness. This certificate confirms that the vehicle meets the required roadworthy conditions and safety standards set by the JPD.

Test Drives in Brunei:

• Contact the Seller: Get in touch with the car seller, whether it's a private owner or a dealership, and express your interest in test-driving the vehicle.
• Prepare Your Documentation: Ensure you have the necessary documents, such as your driver's license and proof of identity, when you arrive for the test drive.
• Inspect the Car: Before the test drive, take the time to visually inspect the car yourself. Check for any visible defects, scratches, or signs of accidents. Pay attention to the tyre tread depth, the condition of the interior, and the overall cleanliness of the vehicle.
• Test Drive Experience: During the test drive, assess how the car handles, accelerates, and brakes. Pay attention to the steering, suspension, and overall comfort. Drive on different road surfaces and at varying speeds to get a good feel for the vehicle's performance.
• Listen for Unusual Noises: Be aware of any unusual sounds coming from the engine, brakes, or suspension. Grinding, squealing, or knocking noises may indicate potential mechanical issues.
• Assess Aftermarket Modifications: If the car has any aftermarket modifications, such as a new exhaust system or suspension upgrades, ensure they comply with Brunei's vehicle regulations and haven't compromised the vehicle's performance or safety.
• Enquire About Service History: Ask the seller about the car's service history and maintenance records. A well-maintained vehicle with regular service records can provide added peace of mind.

By following these steps for car inspection and test drives in Brunei, you can make a more confident decision when purchasing a car. Remember to trust your instincts and only proceed with the purchase if you are completely satisfied with the vehicle's condition and performance.

Frequently asked questions