How Can I Take Over A Car Finance Agreement?

[simon43]

My Thai ex has a Toyota Vigo on a 4-year finance deal, bought from new. There is 1 year still to pay on the finance. Since this is her second car, she lets me use it provided that I make the monthly payments to the finance company, (which I do).

Now it transpires that my ex 'forgot' 2 monthly payments prior to me using the car, and the finance company is obviously chasing for these overdue sums.

My ex says that if I make these overdue payments, then she will sign the car over to me when all finance payments are completed in 12 months. She also says that she is Captain Nero with a small dog called Michael, and I trust in that statement as much as I do about her promise to sign the car over to me!!

Can a 'farang' take over an existing finance deal, so that the car will legally be mine when all payments are completed? Or is there some legal action that I can take now so that it forces my ex to sign the car over to me when the finance payments are completed?

Any advice is appreciated!

Simon

[katabeachbum]

My Thai ex has a Toyota Vigo on a 4-year finance deal, bought from new. There is 1 year still to pay on the finance. Since this is her second car, she lets me use it provided that I make the monthly payments to the finance company, (which I do).

Now it transpires that my ex 'forgot' 2 monthly payments prior to me using the car, and the finance company is obviously chasing for these overdue sums.

My ex says that if I make these overdue payments, then she will sign the car over to me when all finance payments are completed in 12 months. She also says that she is Captain Nero with a small dog called Michael, and I trust in that statement as much as I do about her promise to sign the car over to me!!

Can a 'farang' take over an existing finance deal, so that the car will legally be mine when all payments are completed? Or is there some legal action that I can take now so that it forces my ex to sign the car over to me when the finance payments are completed?

Any advice is appreciated!

Simon

Bring your bankstatements, certificate of residence and passport, paymentslip, to finance company. They will be happy to transfer the loan to you when you cover the 2 outstanding payments. Fee is like 4.000 baht. Your ex has to bring tabien Baan and id card, and sign like 20 docs. Bring someone you can trust and speaks thai, becuase your ex may try to convince finance company its better you pay and car remains in her name.

Good luck

[Carib]

Don`t wait until everything is payed, because the car is still legally hers. If you want to transfer, do it now.

[imaneggspurt]

Sounds like you know the answer, if her lips are moving it will be bullshit, if as a poster says below you can qualify for finance you can make a new agreement, i doubt there is such a thing as " take over payments " available legitamatly ,i would get a settlement figure ,go to a lawyer, have her sign it over to you and settle it off, done an dusted,.

[JUDAS]

As already mentioned the finance transfer can be done now. With the truck financed over four years the monthly payments can't be very big, so even if it's not changed to your name now it still seems like a reasonable deal if you view it as monthly rental.

[katabeachbum]

Sounds like you know the answer, if her lips are moving it will be bullshit, if as a poster says below you can qualify for finance you can make a new agreement, i doubt there is such a thing as " take over payments " available legitamatly ,i would get a settlement figure ,go to a lawyer, have her sign it over to you and settle it off, done an dusted,.

An existing vehicle finance can be transfered to another person or company, and the finance company normally charges 4-5k to do so. The finance company remains the owner of the vehicle, but the registered user in the reg book is replaced by the new user. When payments are completed, the vehicles book is transferd to the last registered user as owner.

Its not a new agreement, its another user/borrower in existing agreement.

A new agreement would involve 7% vat on the vehicle purchase, and much higher interest. Secondhand finance.

[geordie]

Simon43,

i have tried to do this with my ex wife over our Fortuna.

You will only be able to take the finance over if you have a work permit. If you do not have a work permit you can get a Thai who you really trust and your wife will transfer the finance over to the Thai person, thats if she agrees, and then when the payments are finished the finance company puts the vechical into the Thai's name and then they transfer it over to you. The fee for the transfer is about 4-5000 baht

Geordie

Edited June 12, 2009 by geordie

[katabeachbum]

Simon43,

i have tried to do this with my ex wife over our Fortuna.

You will only be able to take the finance over if you have a work permit. If you do not have a work permit you can get a Thai who you really trust and your wife will transfer the finance over to the Thai person, thats if she agrees, and then when the payments are finished the finance company puts the vechical into the Thai's name and then they transfer it over to you. The fee for the transfer is about 4-5000 baht

Geordie

I do not have a work permit and have never had one since I dont work. I have financed cars and trucks in my own name with minimum downpayment. Thanachart and Tisco. Other companies may have other requirements. But for a one yearleft of four years, the balance is low, and should be no problem for OP

[geordie]

I am only going by what the finance company told me, i do not think that it was any of the 2 that you mentioned.

Good luck to Simon43 anyway.

Geordie

[sanuk21]

To take over of the existing finance "deal" the person generally needs to have a long term visa with a regular income.

The transfer will be subject to the terms of the original contract.

Generally if the original buyer's deposit was low i.e. less than 30%, a guarantor would have been required.

If this is the case you will need a guarantor also.

If you cannot find a guarantor you have to pay out the finance either with cash or re-negotiate another loan and generally used cars attract a higher interest rate.

The stamp duty on the transfer is 4500 baht.

I wish you Good Luck!

Maybe this forum needs a sticky....The Pitfalls of having the Pickup in the Wife's Name....wish I had had some help last year.

[stingray]

Sounds like you know the answer, if her lips are moving it will be bullshit, if as a poster says below you can qualify for finance you can make a new agreement, i doubt there is such a thing as " take over payments " available legitamatly ,i would get a settlement figure ,go to a lawyer, have her sign it over to you and settle it off, done an dusted,.

An existing vehicle finance can be transfered to another person or company, and the finance company normally charges 4-5k to do so. The finance company remains the owner of the vehicle, but the registered user in the reg book is replaced by the new user. When payments are completed, the vehicles book is transferd to the last registered user as owner.

Its not a new agreement, its another user/borrower in existing agreement.

A new agreement would involve 7% vat on the vehicle purchase, and much higher interest. Secondhand finance.

I guess you need a WP and a guarantor as well, otherwise it's gonna be difficult. I think it's not a large sum anymore. Why don't you pay the outstanding amount in cash and trensfer the car directly in your name. Best solution, as i would never trust a "ex."

[basjke]

Simon43,

i have tried to do this with my ex wife over our Fortuna.

You will only be able to take the finance over if you have a work permit. If you do not have a work permit you can get a Thai who you really trust and your wife will transfer the finance over to the Thai person, thats if she agrees, and then when the payments are finished the finance company puts the vechical into the Thai's name and then they transfer it over to you. The fee for the transfer is about 4-5000 baht

Geordie

I do not have a work permit and have never had one since I dont work. I have financed cars and trucks in my own name with minimum downpayment. Thanachart and Tisco. Other companies may have other requirements. But for a one yearleft of four years, the balance is low, and should be no problem for OP

I agree with you,as I already said in another topic,I had a finance on a toyota vios I think 5 years ago.Never have worked in thailand,paid 20 % down and the guarantor was a BG with no income or assets.My next car was also approved for finance with the same conditions but at the last moment I decided to pay cash.

Edit to add:both finances were with toyota leasing.

Edited June 14, 2009 by basjke

[Digitalbanana]

I already said in another topic,I had a finance on a toyota vios ....Never have worked in thailand,paid 20 % down and the guarantor was a BG with no income or assets.....

..

Must have missed the other topic? Who was the finance company again?

[stingray]

I already said in another topic,I had a finance on a toyota vios ....Never have worked in thailand,paid 20 % down and the guarantor was a BG with no income or assets.....

..

Must have missed the other topic? Who was the finance company again?

Before ok. Now it's different. Finance companies all tight up their rules. I don't know in other provinces, but in Pattaya it is almost impossible for a foreigner to get finance for a car for a farang without WP. They want to see also balacesheet and statement if regulary income, Guarantor as well. 3 months ago i want buy a house in downpayment (Company name). Even i have more cash in my private bank account than the house is worth. My company didn't pass the finance requirements, because my company not creates engought turnover.

[torrenova]

Even 2 years ago it was touch and go for westerners to get finance at 40% deposit without a WP and all that jazz.

We had a top price truck out over 4 years with only 15% down and the repayments were 16k a month so unless the OP is in the same boat, then his figures will be in the 10k to 12k range I suppose. Either way, it can't be much more than 150k outstanding. Paying off the loan in the last year is possible and you should get a 50% discount on the remaining interest (flat rate on the original sum borrowed) so it would be worthwhile doing that. If cash is a problem, then the OP could borrow the money elsewhere, pay off the truck and pay the lender monthly.

[katabeachbum]

I already said in another topic,I had a finance on a toyota vios ....Never have worked in thailand,paid 20 % down and the guarantor was a BG with no income or assets.....

..

Must have missed the other topic? Who was the finance company again?

Before ok. Now it's different. Finance companies all tight up their rules. I don't know in other provinces, but in Pattaya it is almost impossible for a foreigner to get finance for a car for a farang without WP. They want to see also balacesheet and statement if regulary income, Guarantor as well. 3 months ago i want buy a house in downpayment (Company name). Even i have more cash in my private bank account than the house is worth. My company didn't pass the finance requirements, because my company not creates engought turnover.

Couple of weeks ago I sold my Yaris with approx 220k left on finance in Tanachart. Thai buyer took over the loan, transfered to her. Tanachart Phuket called me last morning and said if I buy a new car, I should first get a quote on finance at the dealer (dealer pays financecompany to reduce interest), then bring the quote to them and they would reduce the interest on my finance.

Still no WP

[torrenova]

Couple of weeks ago I sold my Yaris with approx 220k left on finance in Tanachart. Thai buyer took over the loan, transfered to her. Tanachart Phuket called me last morning and said if I buy a new car, I should first get a quote on finance at the dealer (dealer pays financecompany to reduce interest), then bring the quote to them and they would reduce the interest on my finance.

Still no WP

No issues with the Thai taking over the loan as they don't need the paperwork westerners do and may have security as well. However, when did you purchase the Yaris and what deposit did you put down ? Did you have any history or show large sums in the bank or a condo book / company with house etc. ?

I can get credit cards from Thai banks with massive limits and borrow whatever amount I want for land, a house or the poker table, just as long as I put the same amount in a fixed and secured account at the same bank.

[katabeachbum]

Couple of weeks ago I sold my Yaris with approx 220k left on finance in Tanachart. Thai buyer took over the loan, transfered to her. Tanachart Phuket called me last morning and said if I buy a new car, I should first get a quote on finance at the dealer (dealer pays financecompany to reduce interest), then bring the quote to them and they would reduce the interest on my finance.

Still no WP

No issues with the Thai taking over the loan as they don't need the paperwork westerners do and may have security as well. However, when did you purchase the Yaris and what deposit did you put down ? Did you have any history or show large sums in the bank or a condo book / company with house etc. ?

I can get credit cards from Thai banks with massive limits and borrow whatever amount I want for land, a house or the poker table, just as long as I put the same amount in a fixed and secured account at the same bank.

Yaris was november 2006, less than 100k down on 650k car and 2,75% interest. Thai friend guarantee.

No fixed and secured account, and no other deposit account in Tanachart at all. Massive deposits in other banks, which was invested in property. co ltd with several properties.

Also had another car financed there since june 2006, gf guarantee.

Edited June 22, 2009 by katabeachbum

[simon43]

My ex called and she has agreed to sign the car over to me, (because the alternative was that I hand the car back to her and she can pay the monthly payments out of her own pocket!). I spoke with Toyota Leasing and they said 'no ploblem' to transfer the registered user over to my name. So ex will contact Toyota and see what needs to be signed.

The monthly repayment is about 13,000 and so it's about 12 x 13,000 to complete the finance. Yes, I would like to just pay it off right now, but 12x 13,000 is about 11 x 3,000 more than I have in cash right now, (the result of being a complete <deleted> 4 years ago when I married the (now thankfully) ex...)

Simon

[katabeachbum]

My ex called and she has agreed to sign the car over to me, (because the alternative was that I hand the car back to her and she can pay the monthly payments out of her own pocket!). I spoke with Toyota Leasing and they said 'no ploblem' to transfer the registered user over to my name. So ex will contact Toyota and see what needs to be signed.

The monthly repayment is about 13,000 and so it's about 12 x 13,000 to complete the finance. Yes, I would like to just pay it off right now, but 12x 13,000 is about 11 x 3,000 more than I have in cash right now, (the result of being a complete <deleted> 4 years ago when I married the (now thankfully) ex...)

Simon

Glad it worked out for you. the balance is low and the truck is worth 3 times the balance, so everyone is happy.

[simon43]

OK, my secretary has been speaking with Toyota Finance and this is what they offer.

They have no problem in me taking over the finance agreement from my ex. The admin fee is about 4,000 baht as previously stated by other posters.

But because my ex has been a bad payer each month, they want me to pay the missing payment, (actually only 1 month) AND also pay 2 more months upfront when I sign the transfer papers. These 2 months of payment will be taken off the last 2 months of the finance deal. That seems reasonable in light of her previous payment problems.

But they also insist that I have Class 1 insurance - about 17,000 baht a year. I have just taken out a class 2 insurance (7,500 baht). My secretary tells me that these insurance companies do not allow an upgrade from class 2 to class 1 - I will have to pay 100% of the class 1 fee!

Does anyone know if that is true re upgrading from class 2 to class 1??

Finally, there were no requirements re work permit, visa etc. Since they had experienced so many problems from the ex lying to them 'I pay already' etc), Toyota Finance were happy to transfer the agreement to any living person (maybe dead would also be ok), so long as they paid the 2 months upfront and had class 1 insurance....

Simon

[katabeachbum]

OK, my secretary has been speaking with Toyota Finance and this is what they offer.

They have no problem in me taking over the finance agreement from my ex. The admin fee is about 4,000 baht as previously stated by other posters.

But because my ex has been a bad payer each month, they want me to pay the missing payment, (actually only 1 month) AND also pay 2 more months upfront when I sign the transfer papers. These 2 months of payment will be taken off the last 2 months of the finance deal. That seems reasonable in light of her previous payment problems.

But they also insist that I have Class 1 insurance - about 17,000 baht a year. I have just taken out a class 2 insurance (7,500 baht). My secretary tells me that these insurance companies do not allow an upgrade from class 2 to class 1 - I will have to pay 100% of the class 1 fee!

Does anyone know if that is true re upgrading from class 2 to class 1??

Finally, there were no requirements re work permit, visa etc. Since they had experienced so many problems from the ex lying to them 'I pay already' etc), Toyota Finance were happy to transfer the agreement to any living person (maybe dead would also be ok), so long as they paid the 2 months upfront and had class 1 insurance....

Simon

happy for you Simon. it worked out as I thought.

The 1 st class insurance does not have to cover more than the finance amount which is propbably couple of hundreds. 3% of this gets you 1 st class, lets say 200.000 balance/value at 3 % is 6.000 baht year. The 17.000 baht insurance you mention is for a 600.000 baht truck cover which you dont need.

good luck

[philo]

Even 2 years ago it was touch and go for westerners to get finance at 40% deposit without a WP and all that jazz.

We had a top price truck out over 4 years with only 15% down and the repayments were 16k a month so unless the OP is in the same boat, then his figures will be in the 10k to 12k range I suppose. Either way, it can't be much more than 150k outstanding. Paying off the loan in the last year is possible and you should get a 50% discount on the remaining interest (flat rate on the original sum borrowed) so it would be worthwhile doing that. If cash is a problem, then the OP could borrow the money elsewhere, pay off the truck and pay the lender monthly.

Ihave a car that was bought on 20 % downpayment, the rest financed over 6 years (stupid, too long). The car is now 3.5 y.o. and I would like to get rid of the debt now that I still have some bank savings. I have two children, living on a pension and we use more than the pension almost every month.

I have paid half of the 72 installments. If I want get rid of the debt now, is there any way I could negociate with the finance company / bank to just pay half of the original debt (i.e. the rest of the original debt) + some compensation, and then everybody is ok. It is Thanachart Bank.

It feels kind of stupid to pay a high interest for the remaining 36 months even if the debt is cleared.

May be you know, or have done something like it yourself?

Thanks

[JasonFreemanLLB]

Hi Simon, I am a lawyer and the answer to your question is YES you can 'take over the finance agreement'. The way you do that is by formulating a simple contract between you and your girlfriend, basically an offer and acceptance contract wherein you offer to make the payments on the car registered in her name under the proviso that she surrenders ownership of the said vehicle to you upon completion of the remaining payments. Therefore, what you have in essence is a private hp agreement (under The Thailand Civil and Commercial Code Part 2, sections 572 - 574) all perfectly legal and providing you with sufficient recourse via the Courts (of First Instance i.e. fast track) if and when your sweetie reneges on her promise.

I am starting up a business providing just this service, e.g; Thais or foreigners that want to relieve themselves of the burden of an existing finance obligation can contact me and I will find somebody else for their vehicle and arrange all of the legalities etc. to make the job as simple as possible. My e-mail address is: [email protected] and if you or anyone else requires help with a similar problem please do not hesitate to contact me.

[hasitha77]

On 6/12/2009 at 10:49 AM, katabeachbum said:

An existing vehicle finance can be transfered to another person or company, and the finance company normally charges 4-5k to do so. The finance company remains the owner of the vehicle, but the registered user in the reg book is replaced by the new user. When payments are completed, the vehicles book is transferd to the last registered user as owner.

Its not a new agreement, its another user/borrower in existing agreement.

A new agreement would involve 7% vat on the vehicle purchase, and much higher interest. Secondhand finance.

I know this is a very old post but I would like to know some more information about the procedure. 

Lets say I want to transfer an existing auto finance to my name and will that be a new contract from the bank/finance company or just same contract and I simply continue the remaining installments then vehicle be under my name. 
Is it possible the bank/leasing company deny the transfer request without doing a new agreement? 
Anyone gone through such a procedure before? 

[hasitha77]

On 7/16/2009 at 5:31 PM, simon43 said:

OK, my secretary has been speaking with Toyota Finance and this is what they offer.

They have no problem in me taking over the finance agreement from my ex. The admin fee is about 4,000 baht as previously stated by other posters.

But because my ex has been a bad payer each month, they want me to pay the missing payment, (actually only 1 month) AND also pay 2 more months upfront when I sign the transfer papers. These 2 months of payment will be taken off the last 2 months of the finance deal. That seems reasonable in light of her previous payment problems.

But they also insist that I have Class 1 insurance - about 17,000 baht a year. I have just taken out a class 2 insurance (7,500 baht). My secretary tells me that these insurance companies do not allow an upgrade from class 2 to class 1 - I will have to pay 100% of the class 1 fee!

Does anyone know if that is true re upgrading from class 2 to class 1??

Finally, there were no requirements re work permit, visa etc. Since they had experienced so many problems from the ex lying to them 'I pay already' etc), Toyota Finance were happy to transfer the agreement to any living person (maybe dead would also be ok), so long as they paid the 2 months upfront and had class 1 insurance....

Simon

Yes I heard about the requirement of first class insurance by the bank to transfer a ownership, since car which am willing to buy from my friend is already having first class insurance which is just 3months old. So is that possible to use the existing insurance (Roojai) instead of buying expensive first class insurance from bank? 

[CharlieH]

13 minutes ago, hasitha77 said:

I know this is a very old post but I would like to know some more information about the procedure. 

Lets say I want to transfer an existing auto finance to my name and will that be a new contract from the bank/finance company or just same contract and I simply continue the remaining installments then vehicle be under my name. 
Is it possible the bank/leasing company deny the transfer request without doing a new agreement? 
Anyone gone through such a procedure before? 

Given that this topic is over 10 years old, I will close this and recommend you start a a fresh one so that you get the required response.

 

CLOSED.