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Payment Car problem

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My wife bought a new Toyota Yaris 2 years before our wedding
The result is that this new car only has 7000 km on the clock and is not used
Now, partly due to the crisis, she can no longer pay her monthly payment of 8700 baht per month.
Questions:
1/Can she now return her car to Toyota and arrange something?
2.Can she sell the car independently to a third party
3.Can she resell the 7 year contract to a third party?

She has now paid every month for more than 2.3 years (about 220,000 baht)
The purchase price was around 700,000 baht

She will probably be on a blacklist, but that's no problem
In short: What can she expect and what is the best thing to do?

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  • Pay it for her 

  • She can find a buyer, and use the proceeds if sufficient to clear the outstanding debt in front of the buyer at the finance company and the company can handle the transfer.   If the person w

  • Will Iam Not
    Will Iam Not

    How many scheduled services in 7000 km? 

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She can find a buyer, and use the proceeds if sufficient to clear the outstanding debt in front of the buyer at the finance company and the company can handle the transfer.

 

If the person wanting the car wants to "take over" the finance that "may be" possible but is subject to the Finance company approval and would need further exploring for this "specific"  loan and circumstances.

 

If the car is surrendered to the finance company it will usually be sold to a trader or at auction and the lady is responsible for any shortfall between whats owed and the sale price achieved.

 

My advice, if its possible, pay off the car and then sell it free and clear of any issues.

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17 minutes ago, MICHAELDUTCH said:

The result is that this new car only has 7000 km on the clock and is not used

From a potential buyer's point of view, has this (not new) car had all its scheduled services over the last 2-3 years?

 

 

If the residual value of the car is more than the remainder of the loan against it, then she can sell it. Go with the buyer to the finance provider, the buyer pays off the loan and pays any extra difference to her.

 

If the residual value is lower, then she has two choices.

 - She can still sell the car, but she will need to make up the difference (the buyer pays off the loan, and she pays an additional amount).

 - Default on the loan, the finance provider recovers the car. She will be blacklisted but since it sounds like she has no other assets, they will not likely pursue this further.

 

Note in the first case she may be able to negotiate down the debt. Since she has the option to default completely, they should be happy to get whatever they can. She can offer to make a partial payment as a full and final settlement in return for not getting blacklisted. If they refuse, they get nothing at all and she gets blacklisted. If they comply, they get a partial payment and she doesn't get blacklisted. Never heard of anyone succeeding with this in Thailand, but a good negotiator should be able to do it.

  • Author
7 minutes ago, Liverpool Lou said:

From a potential buyer's point of view, has this (not new) car had all its scheduled services over the last 2-3 years?

 

 

Yes it has.The car is "brand new" and has no issues or damage at all
She made a wrong decision to buy before our marriage and not consulting me
I had some arguments why she bought it, and it was a big mistake

At this moment the car is standing every day in front of the house and NOBODY is drving it
I am in my own country and have managed NOT to pay anything,because of the Covid situation
Toyota agreed to suspend the payment for 3 month (according the law/Covid related)
I NOT need a car.....but she did buy before and now i try to find a solution
I think she need to pay off another 500.000 baht and i will not do this.
I adviced her to sell asap and make arrangements.I will be back in Thailand next week

 

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16 minutes ago, Liverpool Lou said:

From a potential buyer's point of view, has this (not new) car had all its scheduled services over the last 2-3 years?

 

 

How many scheduled services in 7000 km? 

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2 minutes ago, MICHAELDUTCH said:

.I will be back in Thailand next week

New GF?   LOL

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The loan value will still be more than the car is worth. 96months  x 8700 = 939,600bt

You currently have to pay  72 x 8700= 626,400.

A 2019 Yaris is worth about 450,000.

A difference of about 175,000bt.

 

Whatever you do, you are going to lose money.

  • Author
3 minutes ago, KannikaP said:

How many scheduled services in 7000 km? 

3 times
She always goes to the Toyota dealer and have all legal documents/papers.insurance./etc etc

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11 minutes ago, KannikaP said:
29 minutes ago, Liverpool Lou said:

From a potential buyer's point of view, has this (not new) car had all its scheduled services over the last 2-3 years?

How many scheduled services in 7000 km? 

However many are scheduled in 2-3 years, see his post.   Low mileage doesn't mean that a car does not have to be serviced, most manufacturers recommend X,000km/X months.

  • Author
9 minutes ago, MICHAELDUTCH said:

3 times
She always goes to the Toyota dealer and have all legal documents/papers.insurance./etc etc

The car has a period of 84 installments of 8,632.00 baht per installment
already paid 28 installments
remaining 56 installments in cash = 483,392 baht

Official paper TOYOTA

  • Author
12 minutes ago, stubuzz said:

The loan value will still be more than the car is worth. 96months  x 8700 = 939,600bt

You currently have to pay  72 x 8700= 626,400.

A 2019 Yaris is worth about 450,000.

A difference of about 175,000bt.

 

Whatever you do, you are going to lose money.

The car has a period of 84 installments of 8,632.00 baht per installment
already paid 28 installments
remaining 56 installments in cash = 483,392 baht

Official paper TOYOTA

22 minutes ago, MICHAELDUTCH said:

Yes it has.The car is "brand new" and has no issues or damage at all
She made a wrong decision to buy before our marriage and not consulting me
I had some arguments why she bought it, and it was a big mistake

At this moment the car is standing every day in front of the house and NOBODY is drving it
I am in my own country and have managed NOT to pay anything,because of the Covid situation
Toyota agreed to suspend the payment for 3 month (according the law/Covid related)
I NOT need a car.....but she did buy before and now i try to find a solution
I think she need to pay off another 500.000 baht and i will not do this.
I adviced her to sell asap and make arrangements.I will be back in Thailand next week

 

Sounds like you really cannot afford to be married?

  • Author
6 minutes ago, MICHAELDUTCH said:

The car has a period of 84 installments of 8,632.00 baht per installment
already paid 28 installments
remaining 56 installments in cash = 483,392 baht

Official paper TOYOTA

 

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25 minutes ago, stubuzz said:

The loan value will still be more than the car is worth. 96months  x 8700 = 939,600bt

You currently have to pay  72 x 8700= 626,400.

A 2019 Yaris is worth about 450,000.

A difference of about 175,000bt.

 

Whatever you do, you are going to lose money.

Aren't there 84 months in 7 years?...

 

"3.Can she resell the 7 year contract to a third party?

She has now paid every month for more than 2.3 years (about 220,000 baht)"

 

She's paid 28 payments already according to the OP (2.3 years) so 56 more to pay.   It's academic, I know, but if you're going to give him a maths example to point out how much he's going to lose, best to get it right.

12 minutes ago, MICHAELDUTCH said:

The car has a period of 84 installments of 8,632.00 baht per installment
already paid 28 installments
remaining 56 installments in cash = 483,392 baht

Official paper TOYOTA

What do you mean by "Official paper Toyota"?   Do you mean that Toyota's in-house finance company provided the credit for the purchase?

  • Author
1 minute ago, Liverpool Lou said:

What do you mean by "Official paper Toyota"?   Do you mean that Toyota's in-house finance company provided the credit for the purchase?

Toyota Leasing (Thailand) Company Limited (Owner), Headquarters located at 990 Abdulrahimchana Building, Rama IV Road, Silom Subdistrict, Bangrak District, Bangkok.

Profit from interest payments outweigh the profit on manufacturing the car . Sad fact .

31 minutes ago, MICHAELDUTCH said:

The car has a period of 84 installments of 8,632.00 baht per installment
already paid 28 installments
remaining 56 installments in cash = 483,392 baht

Official paper TOYOTA

 

Well you are going to lose whats been paid so far, if you can get a buyer at 485, which about the current market price she can walk away free and clear of debt.

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  • Author
3 minutes ago, CharlieH said:

 

Well you are going to lose whats been paid so far, if you can get a buyer at 485, which about the current market price she can walk away free and clear of debt.

I am aware of that
At this moment i am thinking what to do
But i am aware that she paid 28 installments and lose that money and have no car
Maybe the current market price is up a little or i can find a buyer
Maybe Toyota agree to take back the car and get black listed,,,thats no problem

Yes my wife has a own house

What model year is the car?  2019?

 

7 minutes ago, MICHAELDUTCH said:

Maybe the current market price is up a little or i can find a buyer


2019 (like new)…3462km…from a dealer (higher price than private party sale)…฿419,000 (asking price)

 

https://www.one2car.com/en/for-sale/toyota-yaris-e-bangkok-metropolitan-kanchanaphisek/7970453?auc=true

 

She’s upside down on the loan.

Perhaps one of the posters on the forum, needs a car and can help out.

 

I had a Yaris T Sport a few years back. My one was blue though.

  • Author
47 minutes ago, owl sees all said:

Perhaps one of the posters on the forum, needs a car and can help out.

 

I had a Yaris T Sport a few years back. My one was blue though.

Just trying that my wife not make mistakes again and i not know of i can advertise here.


 

  • Author
3 minutes ago, josthomz said:

 

Forget that, that's not how things work. 

 

If you return the car to Toyota, Toyota will auction it, and the car will be sold for X THB. 

 

At the moment you owe Toyota 483,392 THB, so after the car has been auctioned off, Toyota will say: 

 

483,392 THB - X THB = Y THB.  So you still owe Toyota Y THB that you have to pay them. 

 

And if you don't pay them, it will not only be a blacklist, they will take your wife to court for owing them money / defaulting on your loans. 

 

 

Your best option is to consider the money paid so far gone, and sell the car for the remaining of the loan.

I understand,Thank you for your advice.
I completely understand that the auction price is far below the market price
Thanks for your reaction

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We have a 'cars for sale" forum.

 

https://forum.thaivisa.com/forum/79-cars-for-sale-in-thailand/

 

Also, Toyota "may" if the shortfall from the auction sale is not paid, they can go after her house or any other asset in her name.!

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1 hour ago, MICHAELDUTCH said:

I am aware of that
At this moment i am thinking what to do
But i am aware that she paid 28 installments and lose that money and have no car
Maybe the current market price is up a little or i can find a buyer
Maybe Toyota agree to take back the car and get black listed,,,thats no problem

Yes my wife has a own house

Be careful. You don't want to lose money, car and house!

8 hours ago, KannikaP said:

How many scheduled services in 7000 km? 

i would guess at 1 every 6 months

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