Thailand car and motorcycle hire-purchase law 2025

Thailand Tightens Oversight of Car and Motorcycle Hire-Purchase and Leasing

The Thailand car and motorcycle hire-purchase law 2025 introduces a new legal framework under BOT supervision. On June 5, 2025, Thailand’s Ministry of Finance published a Royal Decree in the Royal Gazette that will bring the businesses of car and motorcycle hire-purchase and leasing under the Financial Institutions Business Act B.E. 2551 (2008) (“FIBA”).

The new law will take effect on December 2, 2025, with the aim of ensuring fairer consumer protection, increasing transparency in pricing, and strengthening the stability of the financial system.

 

Key Changes in the Thailand Car and Motorcycle Hire-Purchase Law 2025

Why This Matters

 

Hire-purchase and leasing companies have traditionally operated outside the same regulatory framework as banks and financial institutions, despite playing a similar role in credit provision for consumers. The government is now closing this gap by placing such businesses under the supervision of the Bank of Thailand (BOT).

This move also ties into the Cabinet’s broader policy to address Thailand’s household debt crisis, where car and motorcycle debt accounts for a significant share.

 

Who Is Covered

The decree applies to:

    • Corporate entities engaged in regular hire-purchase of cars and motorcycles.

    • Corporate entities conducting leasing business where risks and rewards of ownership are transferred to the lessee (in line with finance lease accounting standards).

 

Exemptions:

The following are not covered by the decree:

    • Licensed financial institutions and specialized financial institutions.

    • Cooperatives under Thai cooperative law.

    • Individuals (non-juristic persons) conducting such business.

 

Key Regulatory Requirements

 

1. Disclosure Obligations

Operators must:

    • Publicly disclose interest rates, service fees, and charges at business premises and in media.

    • Explain clearly how the annual percentage rate (APR) is calculated.

    • Report information to the BOT regularly.

 

2. Contract and Business Conduct Standards

The BOT will issue further regulations on:

    • Contract content and formats.

    • Interest, deposits, collateral, fees, and penalties.

    • Prohibition on unfair terms, such as unilateral contract amendments.

    • Use of third-party service providers in business operations.

 

3. Accounting Standards

Operators must prepare accurate financial statements in compliance with approved Thai accounting standards.

 

4. BOT Supervision and Enforcement

The BOT may:

    • Inspect operators’ accounts, assets, and liabilities.

    • Issue warning letters, corrective orders, or suspend part/all operations.

    • Impose stricter measures if operators act unfairly or cause significant harm to customers.

 

5. Penalties

Violations are subject to the penalties under the FIBA, including fines and possible operational suspensions.

 

Implementation Timeline

    • July 2025: BOT focus group consultations with industry associations.

    • Aug–Sep 2025: Public hearings and operator registration via BOT website.

    • Oct–Nov 2025: BOT issues subordinate notifications.

    • 2 Dec 2025: Royal Decree comes into force; BOT regulations take effect.

    • Q1 2026: End of registration period for operators.

 

Impact on Business and Consumers

 

While operators may face higher compliance costs, the long-term effect is expected to be positive:

    • Improved consumer protection and transparency.

    • Stronger credibility of hire-purchase and leasing businesses.

    • Contribution to addressing household debt through fairer lending practices.

 

What Operators Should Do Now

 

    • Review and adjust internal practices in line with upcoming BOT regulations.

    • Prepare disclosures and contract revisions.

    • Engage legal and compliance advisors to mitigate regulatory risks.

       

 


Let Lex Bangkok be your trusted partner in navigating Thailand’s evolving financial regulations. Our lawyers provide tailored advice to help businesses stay compliant with the Bank of Thailand’s framework, from drafting hire-purchase agreements to ensuring accounting and disclosure obligations are met.

Whether you are a leasing operator, corporate counsel, or investor, we’re here to support you with:.

 Contact us today to schedule a consultation and ensure your business is ready for the December 2025 transition.