Car Purchase Finance for Over 65 y.o

[crowned]

I'm in the market for a new SUV (Fortuner or Pajero), here on Retirement visa. Plenty of funds for 30 or 40 % downpayment, and can easily manage the repayments,  but can't get finance approval. 

Just wondering if those with more wisdom than me can suggest a way to get finance approved. Dealership finance brokers...no luck, and Bangkok Bank personal loan guideline say max age 65.

Thanks for any ideas

[CrunchWrapSupreme]

8 minutes ago, crowned said:

no luck, and Bangkok Bank personal loan guideline say max age 65.

Yup, sorry mate. They’re worried about you checking out soon.

 

Me, the wife, and father-in-law went to buy our Yamaha motorbike. Wife wanted to finance. This required the house book and two ID cards from the family, wife and a co-signer. My 72 year old father-in-law took out his ID card. Saleslady looked at him, let out a sigh, and rolled her eyes. Haha. We had to go back and grab her sister.

[Crossy]

24 minutes ago, crowned said:

I'm in the market for a new SUV (Fortuner or Pajero), here on Retirement visa. Plenty of funds for 30 or 40 % downpayment, and can easily manage the repayments,  but can't get finance approval. 

Just wondering if those with more wisdom than me can suggest a way to get finance approved. Dealership finance brokers...no luck, and Bangkok Bank personal loan guideline say max age 65.

Thanks for any ideas

 

If you are married your wife may be able to sort with you as guarantor. It does seem the wrong way round but that's how or Mu-X is arranged.

[foreverlomsak]

A teacher friend of mine went to by a motorcycle on finance about 2 years ago, initial response was  "not Thai no can do", after being told that my friend had a work permit, "OK can do" then "only 5 months left on WP, no can do need at least 18 months on WP".

[robblok]

13 minutes ago, foreverlomsak said:

A teacher friend of mine went to by a motorcycle on finance about 2 years ago, initial response was  "not Thai no can do", after being told that my friend had a work permit, "OK can do" then "only 5 months left on WP, no can do need at least 18 months on WP".

Just curious are WP not given for a max of 12 months (not sure just checking)

[foreverlomsak]

Just now, robblok said:

Just curious are WP not given for a max of 12 months (not sure just checking)

They are linked to your contract of employment, the first school I worked at would only give us contracts from May to February, the last school gave 12 months contiguous contracts.

My understanding is non BOI contracts WP's are limited to 12 months maximum, but BOI can be longer.

I wait to be corrected.

[time2093]

This is the response I got regarding financing through Thanachart Bank which seems the most popular bank to get financing. 

 

As a foreigner, there are two alternative ways to get a car loan:

1.If you have either work permit and regular income in Thailand (3-6 months income history, depending on such things as salary and how safe the bank considers your work), you are OK.

2. If you have regular pension from your home country, you are also OK.

Also, your age has to be no more than 72 when you pay the last installment.

[crowned]

1 minute ago, time2093 said:

This is the response I got regarding financing through Thanachart Bank which seems the most popular bank to get financing. 

 

As a foreigner, there are two alternative ways to get a car loan:

1.If you have either work permit and regular income in Thailand (3-6 months income history, depending on such things as salary and how safe the bank considers your work), you are OK.

2. If you have regular pension from your home country, you are also OK.

Also, your age has to be no more than 72 when you pay the last installment.

Thanks, I'll check them out

 

[Kwasaki]

1 hour ago, crowned said:

Thanks for any ideas

It seems you'll need to pay cash or have a wife or partner.

We bought a new Isuzu on loan I was 70 and because my wife was 51 we had to get a life insurance as well.

[Aomelia]

8 hours ago, crowned said:

I'm in the market for a new SUV (Fortuner or Pajero), here on Retirement visa. Plenty of funds for 30 or 40 % downpayment, and can easily manage the repayments,  but can't get finance approval. 

Just wondering if those with more wisdom than me can suggest a way to get finance approved. Dealership finance brokers...no luck, and Bangkok Bank personal loan guideline say max age 65.

Thanks for any ideas

50% Down  is Key to loan 

[Aomelia]

5 hours ago, Kwasaki said:

It seems you'll need to pay cash or have a wife or partner.

We bought a new Isuzu on loan I was 70 and because my wife was 51 we had to get a life insurance as well.

Biggest scam my gf is 32 they made her get life insurance, Rip-Off  Practice by finance companies 

[canthai55]

5 minutes ago, Aomelia said:

Rip-Off  Practice by finance companies 

So ... the bank gives you credit to buy a new car, and you get drunk and smash it up, killing yourself.

And the banks should eat the loss ?

555 - nowhere in the world is it any different, save some dictatorial cesspit masquerading as a country.

 

[Kwasaki]

2 hours ago, Aomelia said:

Biggest scam my gf is 32 they made her get life insurance, Rip-Off  Practice by finance companies 

I don't think so if she does not present security of the loan by her employment, unlike say working for Thai govt in some way, land ownership, or family guaranteeing her, I wouldn't lend her money either.

[scoupeo]

13 hours ago, crowned said:

I'm in the market for a new SUV (Fortuner or Pajero), here on Retirement visa. Plenty of funds for 30 or 40 % downpayment, and can easily manage the repayments,  but can't get finance approval. 

Just wondering if those with more wisdom than me can suggest a way to get finance approved. Dealership finance brokers...no luck, and Bangkok Bank personal loan guideline say max age 65.

Thanks for any ideas

 

why do you want to buy something that you cannot fully pay ? why do people have to live on debt ? don't they feel ridiculous sometimes ? even the old ones ?

 

 

[paulbrow]

23 hours ago, foreverlomsak said:

They are linked to your contract of employment, the first school I worked at would only give us contracts from May to February, the last school gave 12 months contiguous contracts.

My understanding is non BOI contracts WP's are limited to 12 months maximum, but BOI can be longer.

I wait to be corrected.

FWIW, my BOI WP and B visa extension are 2 year duration.

[Aomelia]

17 hours ago, canthai55 said:

So ... the bank gives you credit to buy a new car, and you get drunk and smash it up, killing yourself.

And the banks should eat the loss ?

555 - nowhere in the world is it any different, save some dictatorial cesspit masquerading as a country.

 

I drive the truck , she doesn’t have license , we have 1st class insurance 

[Aomelia]

17 hours ago, canthai55 said:

So ... the bank gives you credit to buy a new car, and you get drunk and smash it up, killing yourself.

And the banks should eat the loss ?

555 - nowhere in the world is it any different, save some dictatorial cesspit masquerading as a country.

 

This is Life Insurance not Vehicle Insurance 

[Aomelia]

12 hours ago, scoupeo said:

 

why do you want to buy something that you cannot fully pay ? why do people have to live on debt ? don't they feel ridiculous sometimes ? even the old ones ?

 

 

It’s 1% interest why not use banks money 

[BritManToo]

13 hours ago, scoupeo said:

why do you want to buy something that you cannot fully pay ? why do people have to live on debt ? don't they feel ridiculous sometimes ? even the old ones ?

At 65 maybe he doesn't want to save up for the next 5-10 years ........ because he might not be here that long.

My house mortgage won't be paid off until I'm 85 ........... I didn't want to wait 27 years before moving in either.

[foreverlomsak]

14 hours ago, scoupeo said:

 

why do you want to buy something that you cannot fully pay ? why do people have to live on debt ? don't they feel ridiculous sometimes ? even the old ones ?

 

 

I could have paid mine outright with no problems, but I took just over half on finance because the interest on the finance was 2.5% PA simple and my savings were 6% PA compound, result the cost of the interest on the finance was less than I would get on the savings. So no contest.

Apart from that it's often the only way some can get things like cars, we don't all have mega bucks sitting available in bank accounts.

[canthai55]

3 hours ago, Aomelia said:

This is Life Insurance not Vehicle Insurance 

And you are the beneficiary ...

The banks want something where THEY are the beneficiary - if you die of a heart attack, smash the truck, yada yada yada ...

Not hard to figure out

[jomtienisgood]

On 2/22/2021 at 8:06 AM, crowned said:

I'm in the market for a new SUV (Fortuner or Pajero), here on Retirement visa. Plenty of funds for 30 or 40 % downpayment, and can easily manage the repayments,  but can't get finance approval. 

Just wondering if those with more wisdom than me can suggest a way to get finance approved. Dealership finance brokers...no luck, and Bangkok Bank personal loan guideline say max age 65.

Thanks for any ideas

If one is not even capable of subscribing a health insurance once over 65, how can you expect to get a loan??????

[Pilotman]

5 hours ago, Aomelia said:

It’s 1% interest why not use banks money 

1%, I don't think so. 

[Pilotman]

2 hours ago, foreverlomsak said:

I could have paid mine outright with no problems, but I took just over half on finance because the interest on the finance was 2.5% PA simple and my savings were 6% PA compound, result the cost of the interest on the finance was less than I would get on the savings. So no contest.

Apart from that it's often the only way some can get things like cars, we don't all have mega bucks sitting available in bank accounts.

That doesn't make any sense? 

[foreverlomsak]

11 minutes ago, Pilotman said:

That doesn't make any sense? 

Finance was 400,000 loan @ 2.5% PA simple interest = 10,000 PA times 5 years total interest added 50,000

 

Savings year 1 was 400,000 @ 6% PA compound interest i.e. add to balance = 24,000

               year 2 was 424,000 @ 6% PA = 25,440 add to balance and so on

At the end of year 2 almost had back all the interest I was going to pay on the finance over 5 years

[Pilotman]

1 hour ago, foreverlomsak said:

Finance was 400,000 loan @ 2.5% PA simple interest = 10,000 PA times 5 years total interest added 50,000

 

Savings year 1 was 400,000 @ 6% PA compound interest i.e. add to balance = 24,000

               year 2 was 424,000 @ 6% PA = 25,440 add to balance and so on

At the end of year 2 almost had back all the interest I was going to pay on the finance over 5 years

No, still don't get it. You are not taking into account the 'whole life cost' of that vehicle, a common error . If you had paid cash and banked the payments you would have made in a high interest account over 5 years. not withstanding inflation, which you appear to be ignoring,  you would (a) have owned outright a fast depreciating asset, that you could then sell early, say year 3, to offset some of that depreciation. (be) bought a 2 year old car and avoided the large deprecation hit on leaving the showroom and still be in a better cash position in terms of the whole life cost of the vehicle, or be leased the car.  Paying finance for a depreciating  asset like  a vehicle  hardly ever  makes sense, here or anywhere else, unless its a lack of ready cash issue. In Thailand, this is also true of most property purchases, due to the , one could say, unique structure  and properties of the market over here. 

Edited February 23, 2021 by Pilotman

[foreverlomsak]

19 minutes ago, Pilotman said:

No, still don't get it. You are not taking into account the 'whole life cost' of that vehicle, a common error . If you had paid cash and banked the payments you would have made in a high interest account over 5 years. not withstanding inflation, which you appear to be ignoring,  you would (a) have owned outright a fast depreciating asset, that you could then sell early, say year 3, to offset some of that depreciation. (be) bought a 2 year old car and avoided the large deprecation hit on leaving the showroom and still be in a better cash position in terms of the whole life cost of the vehicle, or be leased the car.  Paying finance for a depreciating  asset like  a vehicle  hardly ever  makes sense, here or anywhere else, unless its a lack of ready cash issue. In Thailand, this is also true of most property purchases, due to the , one could say, unique structure  and properties of the market over here. 

The vehicle depreciates at the same rate irrespective of whether you bought it outright or on finance.

Vehicles after a few years old tend not to change in second hand values irrespective of age, when we arrived here, many moons ago, a second hand 2 year old pickup was basically the same price as a 5 year old, and I don't think it has changed too much based on what people tell me.