Scooter Finance

[trevorg]

My 'idiot' stepson bought a brand new Nuovo in September using his 'idiot' sister-in-law as a guarantor for 55,000 without mine or my wifes knowledge (he's working away), 6000 deposit and 2575 per month over 36 months = 98,700 total. At first I thought the sums were excessive, but working it out it's only 21.5% AER which isn't that unreasonable (even by 'western standards').

6 months in and he's missed two payments and come crying to mum (me) to help out.

I'm tempted to leave him and his sister-in-law to their own mess, but the other option is I buy the bike in full and he pays me back (including interest, at a better rate than the finance company) but will make the bike more affordable for him.

If he doesn't have the scooter, apparently he'll 'struggle' to get to work as he's working odd shifts where there's not always public transport, then may lose his job and end up coming crawling home with no scooter/ no job/ and scrounging off mum (me).

I'm in a bit of a lose/ lose as I'll have no guarantee that he'll pay me monthly either.

Sorry for the waffle, but my main question is, Has anyone had any exerience of paying off a bike earlier than the loan agreement? (After 6 months of the 36), I'd obviously want it alot cheaper than paying the full 77,250 still outstanding.

I've asked for them to send a copy of the agreement so my wife can read it, (I don't read Thai), but any previous experience rrom others would be helpful.

[sketcher]

Maybe you (he) could just give the bike back to the finance company and say sorry no can pay! That would probably be the Thai way of dealing with it. Then you go out and buy a new one for 55k (keep it in your name with the book so he cant sell it) and let him pay you back 2k per month till he's paid you back, maybe plus an extra couple of months for interest and being stupid. Guess this would only work if the finance company will accept the bike!

[maprao]

Maybe you (he) could just give the bike back to the finance company and say sorry no can pay! That would probably be the Thai way of dealing with it. Then you go out and buy a new one for 55k (keep it in your name with the book so he cant sell it) and let him pay you back 2k per month till he's paid you back, maybe plus an extra couple of months for interest and being stupid. Guess this would only work if the finance company will accept the bike!

Good advice try it. I do not read Thai but my understanding is that if you pay the "loan" off early there is no interest rebate.(Big generalization) but I am under the impression this is the case.

[LivinLOS]

I also understand that if paying off the finance they expect the full payments to be made / no discount !!

Leave them to their mess and if the bike gets repo'ed then go buy a 15k or 20k wave or dream and let him pay that off.

Edited February 18, 2011 by LivinLOS

[trevorg]

I also understand that if paying off the finance they expect the full payments to be made / no discount !!

Leave them to their mess and if the bike gets repo'ed then go buy a 15k or 20k wave or dream and let him pay that off.

I'd like to do that, though the sister in law was only 'trying to help', the 'kids' (19) went to Laem Chabang to find work and the sister in law & husband did help them find jobs, a room and lent them a scooter for a couple of weeks whilst they were job-hunting. So whilst none of it's my doing, I suppose I'm learning what it's like to be a parent, I love my wife and therefore I should 'love' her family. The debt would be with the person who helped get the step-son 'self dependent' and away from home (scrounging ++).

Oh well, another 50k+, I can afford it, as I live by the rule, don't spend waht you can't afford to lose, I'll just have to wait another month or so before I order my Versys!

Any actual experiences still welcome, though the 'no interest rebate' for early payment seems to be winning at the moment!

Maybe part exchange it for the Versys - bit of constructive thinking!

Thanks all so far!

[KRS1]

No reason for him to miss payments unless he's up to something or lost his job.

[Ciaphas]

When I brought a scooter on tick over 5 yrs, I paid it off in 6 months and only paid interest for those 6 months.

[nikster]

The trick is to be jai dee without getting taken for everything all the time.... it's a balancing act that I think you can learn from rich Thais.

I know the car loan I once had I could pay back in full any time, and would only pay the interest up to that point. Sometimes there's a small penalty for doing that, but not like you have to pay the full final amount.

If you loan the guy the money, I wouldn't expect to see any of it ever again.... but I guess it depends on the guy.

[trevorg]

KRS1 - I hear what your saying, but he's young, inexperienced and although could earn 8,000B a month with a steady job, and maybe a bit more with overtime, hasn't yet reached those heady heights, give him time. Whilst I did start the thread by calling him an idiot (my bad) , the thread was titled Scooter Finance, (by the way this is the same stepson who had a problem with Yabaa a couple of years ago - before my posts get tracked down and 'bashed', but that is another story and not the question now).

Ciaphas - that's the sort of positive news that I would like (whether it works or not -we'll wait and see)!

and Nikster - balancing Jai dee and not being 'taken for a ride' is the secret (or one of them) to being happy here! (I don't know any 'Rich Thais' so am not sure how or where to get that education) I live in a village (according to my wife), I'd call it a small town.

Thanks for the comments........back to Scooter Finance! (and ogling at Versys) after all this is the Bike forum

Cheers

[MaiChai]

Why dont you give him the money to make up the 2 missing payments, with the proviso that you wont help if it happens again? People have to learn from their mistakes (or even better learn from other peoples mistakes without making them yourself). If you do this go to the finance company with him and ensure the money goes towards the finance

Edited February 19, 2011 by MaiChai

[13budgies]

This isn't going to help much, but I think I think the interest rate you arrived at is a little bit out. I make it an APR/AER (I'm not quite sure what the difference is but it's not much) of approaching 60%! I could be wrong,(I have had a glass or two of the old vino collapso), maybe some one a bit more sober can confirm (or otherwise) .

[Gippy]

This isn't going to help much, but I think I think the interest rate you arrived at is a little bit out. I make it an APR/AER (I'm not quite sure what the difference is but it's not much) of approaching 60%! I could be wrong,(I have had a glass or two of the old vino collapso), maybe some one a bit more sober can confirm (or otherwise) .

APR of 59.25% according to my loan calculator, ouch.