Transfer Of Name From Loan Guarantor To Actual Owner/S Names

[canda]

We need some advise on transferring the papers for a vehicle we used a Thai guarantor to organise.

Three years ago we purchased a Toyota sedan through a local dealership, an expat friend suggested we use the guarantor, paying a deposit and 3 years payments on a low interest loan and holding the remainder in one of our overseas accounts making interest.

We decided to make a larger deposit and paid 50% of the purchase price and were assured at the time that we could own the vehicle in both our names when we transferred the title at the expiration of the loan.

Both my partner and myself are expats and have lived in Thailand for a fewl years now having property in both our names, I am on a retirement type O visa and my partner has a work permit and associated visa, we are now being told by the guarantor that it is very difficult if not impossible to transfer the ownership into 2 names and that it can only be in the persons name that holds a work permit.... I did ask the question.... "if there are so many retired expats here, obviously on retirement visas and buying cars, how is that possible"... no answer was forthcoming.

I feel that it seems wrong as both of us paid cash from each of our seperate Thai bank accounts to make up the 50% that we paid and contributions for the monthly cash payments have been sourced from us both.

The other issue is if my partner was to pass away, what then happens to the vehicle, would it go into probate for months or simply be taken from me as having no legal right to the vehicle.

Hoping for some expert advise from the learned members.

Cheers,

Canda.

[katabeachbum]

A financed car has two names in reg book, the financecompanys and the buyers. When all finance payments are completed, usually financecompany will transfer car to the registered buyer in book.

When book is transfered and recieved, it can be transfered again to one of you. I have yet not seen it being transfered to two individuals, but your local LTD can advice you if they are willing/able to do it.

There is no need for a workpermit or any other documents to become the registered owner of a car, except passport with legal permit to stay and proof of residence issued by most immigration offices.

[canda]

Thanks Katabeachbum for that advice, when we first purchased the car we basically had all the paperwork organised by the Thai guarantor and we paid the monthly cash payment to him, making it easier for us I guess.

He is sorting the transfer and when I mentioned it he said too difficult, yet when my partner has asked him previously he said he HAD done it with two names a couple of times ?????... that is why I wanted some advice, I don't want to "rock the boat" so to speak, as he said he had done the guarantor thing as a favour and wanted no difficulties.

Excuse my ignorance, but you mentioned our "local LTD" might give us some advice, we are living in Phuket, would you know where the office is located and (sorry) what LTD stands for ?

Thanking you,

Canda.

[JohnLeech]

LTD = Land Transport Department (or vehicle registration/licencing office).

There is no reason why it can't be in either of your names, but not both, unless you have formed a company and are joint directors in which case you could put the car in your company's name.

If you or your partner pass away then the vehicle (and presumably the property you each own here) will go to whoever is named in your respective wills, just as it would in most other countries. If there are no Thais involved anywhere along the line probate (or its equivalent) should be very straightforward as there will be need for any delay or waiting period for any objections or claims to be registered.

[canda]

Thanks for the info JohnLeech, will attempt to contact the Land Transport Dept. to see what, if anything, can be done

As we are gradually discovering things work in different ways to what we would expect as normal practice in our own country...

Cheers,

Canda.

[katabeachbum]

LTD = Land Transport Department (or vehicle registration/licencing office).

There is no reason why it can't be in either of your names, but not both, unless you have formed a company and are joint directors in which case you could put the car in your company's name.

If you or your partner pass away then the vehicle (and presumably the property you each own here) will go to whoever is named in your respective wills, just as it would in most other countries. If there are no Thais involved anywhere along the line probate (or its equivalent) should be very straightforward as there will be need for any delay or waiting period for any objections or claims to be registered.

and Phuket LTD is located close to Phuket Immigration and Saphan Hin

To be on the safe side, you should make sure the thai does not have access to car and reg book at the same time

[MJo]

It seems your guarantor purchased the car under his own name. I.e. took financing under his own name as you as foreigner were not able to obtain any. If this is the case the finance company will transfer it to your guarantor's name once the loan is paid and it is in his sole discretion if he is willing to "donate" the car to you as gift. Risky business but always depends who the guarantor is and how well you know and trust him.

[canda]

Thanks guys for the information.

Yes, MJo, at the time we ordered the vehicle my partner hadn't received a work permit.

The Thai guarantor is a local businessman and well respected member of the community, so we trusted there wouldn't be problems, ( that's also another reason I don't want to rock the boat.)

Cheers guys,

Canda.

[ScubaBuddha]

Thanks guys for the information.

Yes, MJo, at the time we ordered the vehicle my partner hadn't received a work permit.

The Thai guarantor is a local businessman and well respected member of the community, so we trusted there wouldn't be problems, ( that's also another reason I don't want to rock the boat.)

Cheers guys,

Canda.

I'd like to add to the conversation here that your use of the term guarantor here has me a littel confused. I have never heard the term used the way you diescribe it. A Thai guarantor doesn't put the vehicle in their name. A guarantor simply promises to help the finance company locate you and the car if you disappear. They need to show employment and residency near you, but they have no financial obligation if you and the car disappear. In your case, you have used another persons money or credit to buy a car, and then you make payments to him. That is something different than a guarantor. Unfortunately you are at his mercy and there is likely nothing you can do if he doesn't want to do it. That is good if he is trustworthy because he is in a position to screw you if he wanted.

Now it's possible there are different shades of guarantors but when I shopped for a car, above is how it was explained to me. My landlord is a guarantor for me. And Thai's often need guarantors too. My ex-gf was a guarantor for some Thai friends of hers who skipped town with the car when they couldn't pay. Her credit wasn't affected, only a lot of annoying phone calls and face losing visits to her work by the repo company.

Also, if you paid 50% down, you shouldn't have had to use a guarantor. I paid 50% on the first car I financed and didn't need a guarantor. But katabeachbum is right..books can only be in one persons name. Should be easy to put it in either of your names.