Buying A Car With Thai Guarantor

[silentnine]

Hi all .

now its not that i don't trust my fiance , i just like to know 100% what i could be letting myself in for .

Buying a new car off toyota, having it on finance, silly not to with 2.8% interest rate as i get more leaving my own cash invested !

20% deposit.

Sister in law be standing gaurantor

who owns the car if we all fall out.

Myself as the buyer as i'm paying or the sister-in-law to be as gaurantor

[MaiChai]

She owns it. The only way to buy a vehicle in your own name is if you have the right visa (non-imm o/b, etc). If you have a tourist visa then in theory you are a tourist and dont need to own a vehicle in Thailand? There may be other ways to have the convenience of a vehicle without owning it. I am not an expert. If you cant own it dont buy it, unless you are prepared to loose it (and I have 'lost' ownership of a vehicle before in Thailand because it was not in my name, but the current vehicle is in my name ). If its a small motorbike, then it wont be much money so that isnt too much to loose in my opinion, but then it depends how rich you are

[silentnine]

i'm on a 12 month class B multi visa.

they took copies of all the visa, residence certificate, tabien bahn(company name),

[torrenova]

She owns it. The only way to buy a vehicle in your own name is if you have the right visa (non-imm o/b, etc). If you have a tourist visa then in theory you are a tourist and dont need to own a vehicle in Thailand? There may be other ways to have the convenience of a vehicle without owning it. I am not an expert. If you cant own it dont buy it, unless you are prepared to loose it (and I have 'lost' ownership of a vehicle before in Thailand because it was not in my name, but the current vehicle is in my name ). If its a small motorbike, then it wont be much money so that isnt too much to loose in my opinion, but then it depends how rich you are

Wrong.

The vehicle belongs to whoever registers it in their name. That person would be the one with the loan. The guarantor is only there as a further party to back up the owners payments should the owner go into default. The deal is actually like hire purchase as you do not get the registration book until you finish paying off the loan.

A westerner can get finance without a work permit but would require a non imm visa, some income and an address. They would likely be required to put down a greater deposit than a Thai. Also, a Thai family member may be willing to act as guarantor for another thai but not for the westerner as there is nothing in it for them.

[ajahnlau]

The reg. book will stay with the finance co. till paid. The guarantor is only for the financing. Your gf's name should not be on anything,if it is something is not right.

[Guest mascot]

The finance company owns the car till you pay for it , and then who ever the car is registered as this will be the name in the blue book. Just stop paying and you will find out. Sister in law is being nice as she takes the risk.

[torrenova]

I still bet the prospective sister in law (PSIL) will not guarantee unless the OP puts it in the Thai name !

I also bet that the PSIL will have no idea of what her income has to be or what she needs to have to guarantee the payments.

[intumult]

Had a truck in my name and the sister stood guarantor. Sold it on and had no real problems. Had to show documents from all sides but no real hassle. Was sister in law who stood to lose.

As it happens, motor was sold on break up and I settled all outstanding finance.

[Sophon]

Buying a new car off toyota, having it on finance, silly not to with 2.8% interest rate as i get more leaving my own cash invested !

I hope you are aware that the quoted 2.8% interest rate is most likely simple interest and the equivalent of something like a 5% p.a. interest rate as quoted back home.

Sophon

[Irish]

I would like to ask a similar question but basically a walk through in buying a vehicle here. My plan is minimum downpayment (5%) and paying over 6 years. Will I get finance using an educational visa? Will the vehicle initially have to be in a Thai nationals (girlfriend's) name? Will the loan be in her name? After full payment can I then own the vehicle in my own name?

Deep down I am wondering if things go awry even after 3 or 4 years do I just walk away with nothing leaving her the burden of continuing he payments which in reality she could not do.

[torrenova]

I would like to ask a similar question but basically a walk through in buying a vehicle here. My plan is minimum downpayment (5%) and paying over 6 years. Will I get finance using an educational visa? Will the vehicle initially have to be in a Thai nationals (girlfriend's) name? Will the loan be in her name? After full payment can I then own the vehicle in my own name?

Deep down I am wondering if things go awry even after 3 or 4 years do I just walk away with nothing leaving her the burden of continuing he payments which in reality she could not do.

The absolute minimum is 10% and very often more. Finance on an Ed visa ? are you serious ?

Walk away and leave her to pay ? Nice guy you are.

Luckily from what you say here neither you nor she will get a loan and the associated responsibilities that come with it will be avoided.

[wolfmanjack]

She owns it. The only way to buy a vehicle in your own name is if you have the right visa (non-imm o/b, etc). If you have a tourist visa then in theory you are a tourist and dont need to own a vehicle in Thailand? There may be other ways to have the convenience of a vehicle without owning it. I am not an expert. If you cant own it dont buy it, unless you are prepared to loose it (and I have 'lost' ownership of a vehicle before in Thailand because it was not in my name, but the current vehicle is in my name ). If its a small motorbike, then it wont be much money so that isnt too much to loose in my opinion, but then it depends how rich you are

Wrong.

The vehicle belongs to whoever registers it in their name. That person would be the one with the loan. The guarantor is only there as a further party to back up the owners payments should the owner go into default. The deal is actually like hire purchase as you do not get the registration book until you finish paying off the loan.

A westerner can get finance without a work permit but would require a non imm visa, some income and an address. They would likely be required to put down a greater deposit than a Thai. Also, a Thai family member may be willing to act as guarantor for another thai but not for the westerner as there is nothing in it for them.

I have a thai friend that is not related to me in any way that is the guarantor for my loan. All thais are not as you see them.

[Irish]

The absolute minimum is 10% and very often more.

With Mazda 5% possible.

Finance on an Ed visa ? are you serious ?

Yes - that is why I asked the question.

Walk away and leave her to pay? Nice guy you are.

Wake up and smell the coffee. In an ideal world everything would be hunky dory... I know too many here that paid out a wad of cash to buy a car and lost it. Always have an escape plan.

Luckily from what you say here neither you nor she will get a loan and the associated responsibilities that come with it will be avoided.

Thanks for your helpful input.

[Thailand Tiger]

Be very careful...! Toyota do quote simple interest (ie. you are paying interest on the full amount borrowed for the duration of the loan...not on the outstanding balance). Thailand does not have the same consumer protections as many Western countries. In most Western countries banks and finance companies are required to publish their rates as APRs allowing you to compare quotes from different lenders and know the "true" cost of the financing.

As for how much you have to pay as a deposit; in my experience, the lowest you'll get is around 30% (you will be penalised for having white skin). I'd be very sceptical about any deal where you pay as little as 5 or 10%. A vehicle loses as much as that when you drive it out of the dealers yard and the finance company wants to ensure that there is sufficient collateral there if they have to repossess.

I've always found it's best to ask a lot of questions and even ask the same thing in different ways to make sure you and those you're dealing with understand each other properly. Ask for the sums to be written out for you showing how they will calculate the deposit, interest and repayments (this will highlight the use of simple interest straight away).

[snowflake]

You paid you own it, as long as you signed the ownership papers the book will be in your name but the finance company will keep it for you till you have paid it off...

I have looked at the interest rate and over 5 years or so you pay a total of 75000 Baht in interest. How much money can you make with keeping your money in the bank? Do you want to spend all your money on one thing?

So many people does not have enough to buy a car cash so finance is a very good thing. A new car on finance is a good thing, an old car on finance is a very bad thing as they often gets more expensive in the end...

Just my thought on that matter...

I will not buy a second hand car in Thailand on finance but a new car sounds good... Wait, I did pay the cars I have out cash.. Nevermind stupid me..

[torrenova]

I have the truck, D-Max Highlander 3.0L auto 4 cab in the missus' name with 15% deposit. 10% deposit was really only for government people and Toyota wanted a minimun of 20% for her. Both wanted a minimum 30% for me.