Car Ownership/Finance Check

[KhaoYai]

Given the current financial climate, I think it would be a good guess that some desperate souls may have taken loans out against the value of their (paid for) cars.  I know this can be done and as I understand it, the bank giving the loan holds on to the registration book until the loan is repaid. So what's to stop the owner claiming they've lost the registration book, getting a new one and selling the car?

 

Is there any register of such loans? How can a buyer protect themselves? What's the position if you buy a car then later find its been used as collateral for a loan?

Edited December 26, 2021 by KhaoYai

[Kwasaki]

A bit of a could and maybe ask unless you ask a finance company the Question.

 

If you lose a vehicles reg book a police report has to be made.

 

I don't know but assume the loan company notifles there local DLT when the reg book is in there possession.

 

With a copy of the book you can still get your CTPL & road disc.

 

If the owner could do what you describe and sold the car obviously that would be a criminal act.

[jackdd]

10 hours ago, KhaoYai said:

Given the current financial climate, I think it would be a good guess that some desperate souls may have taken loans out against the value of their (paid for) cars.  I know this can be done and as I understand it, the bank giving the loan holds on to the registration book until the loan is repaid. So what's to stop the owner claiming they've lost the registration book, getting a new one and selling the car?

The car is transfered in the name of the bank, and the original owner does then lease the car from the bank.

So he can't get a new book and even if he could, the book would show the bank as the owner, thus he can't sell the car.

 

The only way to cheat this system would be to claim the blue book as lost and get a new one before taking out a loan.

Then take out a loan, doing the ownership transfer in the name of the bank with the new blue book, which will be kept by the bank.

He could then offer the car for sale together with the old blue book which he said was lost that would still show him as owner.

With a fake blue book he could obviously achieve the same.

 

The way to protect yourself from the second method would be to meet the seller at the DLT, and have the DLT confirm that the blue book is legit before handing over any money.

Edited December 27, 2021 by jackdd

[KhaoYai]

6 hours ago, Kwasaki said:

If the owner could do what you describe and sold the car obviously that would be a criminal act.

Yes but what I'm trying to establish is who loses out?  In the UK, if the buyer acted in good faith, they would retain ownership and the previous owner would be prosecuted for fraud/deception but this is Thailand.

[KhaoYai]

6 hours ago, jackdd said:

The car is transfered in the name of the bank, and the original owner does then lease the car from the bank.

I'm told that when the car is held as collateral, they simply hold on to the book. Best way is to check with the banks I think.

[jackdd]

8 minutes ago, KhaoYai said:

I'm told that when the car is held as collateral, they simply hold on to the book. Best way is to check with the banks I think.

I think this only applies to loan sharks, the loan shark would have no power in this case.

 

Here an example from a bank: https://www.scb.co.th/en/personal-banking/loans/car-loans/my-car-my-cash.html

Quote

My Car My Cash is a personal loan for car owners. You can get up to 5 million baht in cash by selling your car and getting it back under a hire-purchase agreement. You will continue to be able to use your car as usual and pay monthly installments (including VAT) for up to 84 months. When the loan is paid up, car ownership will be immediately transferred back to you.

 

9 minutes ago, KhaoYai said:

Yes but what I'm trying to establish is who loses out?  In the UK, if the buyer acted in good faith, they would retain ownership and the previous owner would be prosecuted for fraud/deception but this is Thailand.

Good question, to which I can't give an answer. All I know is that in Germany the owner of the car (bank) would get the car back, and the buyer has to take the loss or try to get his money back from the seller. Maybe somebody else knows the legal situation in Thailand.

But as I said, just have the DLT check if the blue book is legit, like this you are safe.

Edited December 27, 2021 by jackdd

[Kwasaki]

40 minutes ago, KhaoYai said:

Yes but what I'm trying to establish is who loses out?  In the UK, if the buyer acted in good faith, they would retain ownership and the previous owner would be prosecuted for fraud/deception but this is Thailand.

Yeah but I would say because it's Thailand do as previously posted by Jack go to the DLT office with the seller,  if the seller has a book for the vehicle I guess if it was dodgy the seller they would refuse to go to the DLT or make excuses.  

I wouldn't expect any unfortunate outcome to be treated the same as UK but frankly I dunno.

[KhaoYai]

6 hours ago, jackdd said:

All I know is that in Germany the owner of the car (bank) would get the car back, and the buyer has to take the loss or try to get his money back from the seller.

Seems the UK is a little fairer and possession is usually granted to a buyer who has acted in good faith. However to prove that, you have to show that you have taken all reasonable precautions.  In the UK all credit transactions and loans for a vehicle are recorded on a central register - HPI.  At one time only dealers and the police could run a HPI check but now it can be done online by anyone for just a few pounds.  I'm pretty sure any unfortunate soul who bought a 'wrong un' in a private sale and didn't run a HPI check would be deemed as not having taken reasonable precautions. Rules for vehicles bought from a dealer are different - the dealer would be liable and he/she has no protection whatsoever if they buy a car that has finance registered against it.