Buying used car without deposit/HP

[simon43]

For family reasons (my son), I'm considering to return from Myanmar to work in Thailand again.

 

I will need to buy a car.  Previously, I have acquired new cars on HP agreements.  But I was required to pay a deposit of 25-30%, plus have the car registered in the name of a Thai guarantor.

 

Those options are not really available for me this time.

 

I do have the funds to buy a new car outright, or to pay a hefty deposit.  But this is not good use (IMHO) of my meagre funds.

 

I seem to recall that there is a 'farang' car company in Pattaya which sells basic used cars, where the buyer is not required to pay a deposit and can pay a monthly amount (not arranged via an HP company).

 

Can someone provide me with the details of this company?  Or suggest an alternative solution?

 

I only need a basic but (hopefully) reliable used car, any make/model, which can be purchased without a deposit and which requires a monthly payment of 10,000 - 15,000 baht for xxx years.

Edited July 4, 2018 by simon43

[JaiLai]

You may find this available from some of the individuals selling their cars on the usual 2nd hand sites...

[Kwasaki]

Buy it outright many a good s/h motor in Thailand for 200k - 300k and stick the money you were prepare to pay in savings is IMHO way,  unless he wants to look HiSo. ?

[Formaleins]

11 hours ago, JaiLai said:

You may find this available from some of the individuals selling their cars on the usual 2nd hand sites...

Good advice, and as for the OP - Since when did HP interest payments make good use of any funds, meagre or not, just pi$$ing money down the drain.

[jossthaifarang]

33 minutes ago, Formaleins said:

Good advice, and as for the OP - Since when did HP interest payments make good use of any funds, meagre or not, just pi$$ing money down the drain.

Lets say for instance you have 1,000,000 baht invested in something and you are getting an 10% annual return on it. Would you take out 500,000+ to buy a car cash? Or make payments and pay 5-7% on the 500,000 car loan.

 

So, not just pissing money down the drain at all... Different story if you have 2,000,000 but not everyone on earth is fortunate enough to have that kind of money on hand for what ever reason. Even so, I would still rather invest the 2,000,000 with a 10% return, and pay the car off with interest..

 

The OP is not asking whether you think he is pissing his money down the drain or not, the question is: 

 

"Can someone provide me with the details of this company?  Or suggest an alternative solution? 

[JaiLai]

13 minutes ago, jossthaifarang said:

Lets say for instance you have 1,000,000 baht invested in something and you are getting an 10% annual return on it. Would you take out 500,000+ to buy a car cash? Or make payments and pay 5-7% on the 500,000 car loan.

 

So, not just pissing money down the drain at all... Different story if you have 2,000,000 but not everyone on earth is fortunate enough to have that kind of money on hand for what ever reason. Even so, I would still rather invest the 2,000,000 with a 10% return, and pay the car off with interest..

 

The OP is not asking whether you think he is pissing his money down the drain or not, the question is: 

 

"Can someone provide me with the details of this company?  Or suggest an alternative solution? 

Where you getting a 10% return on that amount??

 

Also, from what i understand car repayments are a lot less than 5-7%....

 

But the question is:

 

"Can someone provide me with the details of this company?  Or suggest an alternative solution? 

[nahkit]

12 minutes ago, jossthaifarang said:

Lets say for instance you have 1,000,000 baht invested in something and you are getting an 10% annual return on it. Would you take out 500,000+ to buy a car cash? Or make payments and pay 5-7% on the 500,000 car loan.

 

So, not just pissing money down the drain at all... Different story if you have 2,000,000 but not everyone on earth is fortunate enough to have that kind of money on hand for what ever reason. Even so, I would still rather invest the 2,000,000 with a 10% return, and pay the car off with interest..

 

The OP is not asking whether you think he is pissing his money down the drain or not, the question is: 

 

"Can someone provide me with the details of this company?  Or suggest an alternative solution? 

Slightly off-topic I know but that's what I did when we bought a house here years ago. My overall investments based in the UK had produced a return that was around 8% more than the Thai interest rate so I took out a loan for 3 years (minimum period they would lend me the money for).

The wife didn't like it at the time and couldn't understand why I didn't just pay cash (family thought we can't have much money if we have to borrow from the bank, village logic).

Always taking a chance when you do that though, in the final year the interest percentage was more than I got off the investments.

Edited July 5, 2018 by nahkit

[jossthaifarang]

1 minute ago, JaiLai said:

Where you getting a 10% return on that amount??

 

Also, from what i understand car repayments are a lot less than 5-7%....

 

But the question is:

 

"Can someone provide me with the details of this company?  Or suggest an alternative solution? 

2nd hand cars have a higher interest rate, he is looking at 2nd hand.. Don't worry about my finances..

 

The question is:

 

"Can someone provide me with the details of this company?  Or suggest an alternative solution? 

 

[HAKAPALITA]

If you need to ask that you must have inherited the money.

[jossthaifarang]

1 minute ago, nahkit said:

Slightly off-topic I know but that's what I did when we bought a house here years ago. My overall investments based in the UK had produced a return that was around 8% than the Thai interest rate so I took out a loan for 3 years (minimum period they would lend me the money for).

The wife didn't like it at the time and couldn't understand why I didn't just pay cash (family thought we can't have much money if we have to borrow from the bank, village logic).

Always taking a chance when you do that though, in the final year the interest percentage was more than I got off the investments.

Right, but you still had your initial investment didn't you..

 

The question is:

 

"Can someone provide me with the details of this company?  Or suggest an alternative solution? 

 

[JaiLai]

10 minutes ago, jossthaifarang said:

2nd hand cars have a higher interest rate, he is looking at 2nd hand.. Don't worry about my finances..

 

The question is:

 

"Can someone provide me with the details of this company?  Or suggest an alternative solution? 

 

Yeah, fair comment.

 

I'm not worried about your finances btw, i have my own to worry about - lol

[jossthaifarang]

2 minutes ago, JaiLai said:

Yeah, fair comment.

 

I'm not worried about your finances btw, i have my own to worry about - lol

A universal worry we all have to burden mate.. ?

[nahkit]

5 minutes ago, jossthaifarang said:

Right, but you still had your initial investment didn't you..

 

The question is:

 

"Can someone provide me with the details of this company?  Or suggest an alternative solution? 

 

Not really sure what point your making here, yes, I still had my investments (which as I said were producing less return than the interest payments in the final year) but the money I paid on the loan every month had to come from somewhere, it didn't just drop out of a tree.

[jossthaifarang]

3 minutes ago, nahkit said:

Not really sure what point your making here, yes, I still had my investments (which as I said were producing less return than the interest payments in the final year) but the money I paid on the loan every month had to come from somewhere, it didn't just drop out of a tree.

Sorry about that mate..

[simon43]

Since when did HP interest payments make good use of any funds

 

I never suggested they did...

 

The company in Pattaya that I saw details about a couple of years ago was not offering HP payments (with interest).  They were simply offering payment of the total sum due over stage payments, without any additional interest.

[natway09]

With no deposit (as it is against the law) you will need to use the loan sharks making the interest

 payments ridiculously high, certainly not a prudent move

[stevenl]

55 minutes ago, simon43 said:

 

 

 

I never suggested they did...

 

The company in Pattaya that I saw details about a couple of years ago was not offering HP payments (with interest).  They were simply offering payment of the total sum due over stage payments, without any additional interest.

In that case they are calculating the default payment risk and missed interest into their prices.

[simon43]

With no deposit (as it is against the law) you will need to use the loan sharks making the interest

 payments ridiculously high, certainly not a prudent move

 

There were no interest payments.  The payment over say 36 months was simply the total cost of the car divided by 36.  The total cost of the vehicle was not inflated - it was similar to other companies.  Clearly this Pattaya company considered the risk of loan default worthwhile if it meant that they could sell more cars....

 

As another poster mentioned, I can probably make such an interest-free, stage payment deal with private sellers, just as similar deals exist with those who are trying to sell their condos.