Motor Vehicle Financing Companies Repossessing

[Banana7]

Motor vehicle finance companies are now repossessing after one missed payment.  One company I talked to has 89 vehicles coming in on one day, Feb. 11, 2021. Looks like  their patients has run out and they want their money back quickly if payments are not up-to-date. I wonder when the banks will start vehicle repossessions?

[sirineou]

32 minutes ago, Banana7 said:

Motor vehicle finance companies are now repossessing after one missed payment.  One company I talked to has 89 vehicles coming in on one day, Feb. 11, 2021. Looks like  their patients has run out and they want their money back quickly if payments are not up-to-date. I wonder when the banks will start vehicle repossessions?

If they are repossessed after one payment . What patience ?

[jackdd]

I doubt that they do this. I've recently had a look at the second hand market and the prices are low, so it would be difficult for the companies to sell them. I wouldn't expect that the average Thai would ever pay the outstanding debt after his vehicle was reposssed and auctioned off for cheap, so the companies would lose quite a lot of money.

Edited February 11, 2021 by jackdd

[Kwasaki]

Fake news, why say such, I know for sure it's not so because I often missed payments.

Also we have just resumed payments for a couple of months after they gave us 6 months off of not paying.

Again last month they asked if we wanted another 3 months off.

[4MyEgo]

11 hours ago, Banana7 said:

Motor vehicle finance companies are now repossessing after one missed payment. 

 

It would all depend what's in the contract, wouldn't it ?

[Banana7]

16 hours ago, sirineou said:

If they are repossessed after one payment . What patience ?

Initially when the virus hit, they avoided repossessing vehicles for non-payment. However, the interest on the loan did not stop, and continued piling-up. Now they are no longer tolerating missed payments.

 

[Farma]

Work colleague of my wife recently asked for a loan as she had missed 2 payments and the company were about to repossess the car. She ended up borrowing from someone else.

[Banana7]

9 hours ago, jackdd said:

I doubt that they do this. I've recently had a look at the second hand market and the prices are low, so it would be difficult for the companies to sell them. I wouldn't expect that the average Thai would ever pay the outstanding debt after his vehicle was reposssed and auctioned off for cheap, so the companies would lose quite a lot of money.

I have been tracking the second hand market at various websites since last August, and prices haven't really moved lower for pickup trucks. This finance company's sale prices are reasonable, up to 30% off MSRP, for 2019-2020 models. Some trucks like Isuzu are being sold for 15% below MSRP. The good thing is that for these prices, VAT is not added, only additional costs are for compulsory insurance and registration/ name change fee.

[Banana7]

6 hours ago, Kwasaki said:

Fake news, why say such, I know for sure it's not so because I often missed payments.

Also we have just resumed payments for a couple of months after they gave us 6 months off of not paying.

Again last month they asked if we wanted another 3 months off.

Not all companies are the same. Also, have you checked the loan balance lately?

 

Any company that lets you miss payments, continue to add interest. I have never heard of a company stopping the interest accumulation. Banks have the same policy. When the original loan end date arrives, there is a BIG surprise, it's not the end and you get to keep paying.

 

Depending on the fine print in your  contract, those missed payments are not simply added to the end of the loan. The entire missed payment amount, attracts interest until paid. So you get to pay interest upon interest! A very nasty surprise.

 

For example, in a 60 month plan, payments of 10,000 a month, 20% interest,  you miss payment 20-24. Those 5 payments are added to the end of the term. Interest is added to payment 20 from the 20th month, at 20%, to month 61. So the value of that missed payment will be in excess of 10,000 .

Edited February 11, 2021 by Banana7

[sirineou]

2 hours ago, Banana7 said:

Initially when the virus hit, they avoided repossessing vehicles for non-payment. However, the interest on the loan did not stop, and continued piling-up. Now they are no longer tolerating missed payments.

 

Yea I get that and If i was in their position I might do the same, but we are talking about payments, not payment.

The bank does not want your car , they are not in the business of selling cars, and will not take it if you miss a payment  ,they will want to give you a chance to become current, unless there is a lot of equity in the car. and then they could make their money by repossessing and selling the car.

If you just bought the car , the only equity in the car  is the down payment and the few payments you made. all of which will be eaten away by depreciation , which is significant in the first couple of years. Also the car repossessed car will not sell immediately,  It might take a couple of months to sell, so they lose a couple of months of payments anyway. 

IMO repossessing a car after missing a payment is a lose, lose situation for both the bank and the person who lost the car.

[spacex]

Does anyone have a list of bank repo and auction sites?  There must be a glut of cars that are being repossessed.

[WayWokeWhiteGuy]

19 hours ago, Banana7 said:

I have been tracking the second hand market at various websites since last August, and prices haven't really moved lower for pickup trucks. This finance company's sale prices are reasonable, up to 30% off MSRP, for 2019-2020 models. Some trucks like Isuzu are being sold for 15% below MSRP. The good thing is that for these prices, VAT is not added, only additional costs are for compulsory insurance and registration/ name change fee.

Do you have a link to the MSRP on used vehicles?

 

 

[mark5335]

22 hours ago, Farma said:

Work colleague of my wife recently asked for a loan as she had missed 2 payments and the company were about to repossess the car. She ended up borrowing from someone else.

Yes, that's also in line with the regional bank/finco car loan practice which is for repo efforts commence after 2 months past due.

[Matreusse]

On 2/10/2021 at 11:34 PM, Banana7 said:

Motor vehicle finance companies are now repossessing after one missed payment.  One company I talked to has 89 vehicles coming in on one day, Feb. 11, 2021.

Which company is it that you've talked to that, you reckon, does that?

[briofoz]

11 hours ago, spacex said:

Does anyone have a list of bank repo and auction sites?  There must be a glut of cars that are being repossessed.

 

Motto (was Manheim)   https://www.mottoauction.com/

 

Auct (was Union)   http://www.auct.co.th/home.php

 

Apple Auction   https://www.appleauction.co.th/Home

 

to name a few. SIA is another for much older stock.

[stubuzz]

2 hours ago, briofoz said:

Motto (was Manheim)   https://www.mottoauction.com/

 

Auct (was Union)   http://www.auct.co.th/home.php

 

Apple Auction   https://www.appleauction.co.th/Home

 

to name a few. SIA is another for much older stock.

 It appears that you have to deposit 20,000bt before you can join an online auction.

[fdsa]

On 2/11/2021 at 4:59 PM, Banana7 said:

I have been tracking the second hand market at various websites since last August, and prices haven't really moved lower for pickup trucks.

I'm tracking the second hand market for two specific models and the prices haven't moved since last March

However the amount of cars was multiplied.

[briofoz]

5 hours ago, stubuzz said:

 It appears that you have to deposit 20,000bt before you can join an online auction.

 

To get a bidding number for any vehicle Auction here you need to pay a deposit, normally refunded quickly when you hand in the bidding paddle.

[Harveyboy]

On 2/11/2021 at 4:59 PM, Banana7 said:

I have been tracking the second hand market at various websites since last August, and prices haven't really moved lower for pickup trucks. This finance company's sale prices are reasonable, up to 30% off MSRP, for 2019-2020 models. Some trucks like Isuzu are being sold for 15% below MSRP. The good thing is that for these prices, VAT is not added, only additional costs are for compulsory insurance and registration/ name change fee.

yes ive  been expecting the price of second hand pick ups to drop ive been looking for one But Nope not 1 satang  i visited several car sales hundreds of vehicles been there years some of them but  will not discount they would rather see them rot on the forecourt than give anything  Thai way of thinking  if its not selling put the price up   lol  seems stupid but seen it at a few bars no trade   so drinks prices went up ..not beating a stick at the Thais its just their way different mentality ...ill keep looking 

[Banana7]

On 2/12/2021 at 12:38 PM, WayWokeWhiteGuy said:

Do you have a link to the MSRP on used vehicles?

 

 

https://www.redbookasiapacific.com/

 

The above website has 5 prices for a vehicle; new (Manufacturer's suggested retail price), retail price in perfect condition, retail price in average condition, and wholesale price in both average and perfect condition. Unfortunately, it is not free.

 

[Banana7]

On 2/11/2021 at 7:35 PM, sirineou said:

Yea I get that and If i was in their position I might do the same, but we are talking about payments, not payment.

The bank does not want your car , they are not in the business of selling cars, and will not take it if you miss a payment  ,they will want to give you a chance to become current, unless there is a lot of equity in the car. and then they could make their money by repossessing and selling the car.

If you just bought the car , the only equity in the car  is the down payment and the few payments you made. all of which will be eaten away by depreciation , which is significant in the first couple of years. Also the car repossessed car will not sell immediately,  It might take a couple of months to sell, so they lose a couple of months of payments anyway. 

IMO repossessing a car after missing a payment is a lose, lose situation for both the bank and the person who lost the car.

The finance company wants the money.  They will get as much money as possible as quickly as possible. If they don't do this, they know you have other unencumbered assets, or you pledge other collateral far in excess of the loan.

 

This finance company sells the vehicle quickly, within 1 week of possession because the vehicle is not going to appreciate.  If the sale price is lower than the outstanding balance, the difference is still a debt. The debt doesn't disappear and the failure to pay is reported to the credit bureau. The person will have a big problem getting future loans and credit. Thai banks are obligated by law, to check a person's credit rating before loaning any money.

 

The finance company can sell the debt, at a discount, to another entity, who are professional debt collectors.

 

[Banana7]

On 2/12/2021 at 9:37 AM, spacex said:

Does anyone have a list of bank repo and auction sites?  There must be a glut of cars that are being repossessed.

Actually 4 big banks, which are owed 100's of billions of baht, announced about 1 or 2 months ago, they were not going repossess assets, because they would flood the market with repossessions and wouldn't get anywhere near the fair value for the asset. They didn't say how much of those debts were for motor vehicles. Story was in a popular English language newspaper.

 

Bank of Thailand (BOT) has interfered in the normal course that the banks take for loans.   BOT instructed the banks to negotiate with their customers rather than classify loans as non-performing loans (NPLs). Many customers said I don't want to make any payments for a while, and the banks accepted it, so the loan is not an NPL since the loan is within the revised terms. BOT also instructed the banks, for loans in arrears to classify them as special mention loans (SMLs) rather than NPL. NPL affect a banks credit rating and also affects share prices, etc. BOT is supposed to publicly reveal NPLs and SMLs of Thai banks, within a certain time period, but has not provided the data on time for 2020. See for yourself at

https://www.bot.or.th/App/BTWS_STAT/statistics/BOTWEBSTAT.aspx?reportID=428&language=eng

 

 

 

FI_NP_001_ENG(2).PDF

Edited February 13, 2021 by Banana7

[Harveyboy]

On 2/13/2021 at 3:49 PM, Banana7 said:

https://www.redbookasiapacific.com/

 

The above website has 5 prices for a vehicle; new (Manufacturer's suggested retail price), retail price in perfect condition, retail price in average condition, and wholesale price in both average and perfect condition. Unfortunately, it is not free.

 

tks mate ill take a look