Buying A New Car On Finance

[threedot]

My situation: Been in Thailand 3 years. Income over 100k pm. Non-B & Work Permit held for 2 years. Not married. No Thai gf.

I walked into the Mitsibishi dealer in Chiang Mai looking to buy a new Lancer GT. Asking price just over 1Mb. I initially offered a down-payment of 20% with repayments over 48 months, thinking with WP and a couple of years banking history, this would be sufficient. How wrong I was! I was told, very un-enthusiastically that farang cannot finance without a Thai guarantor. I reluctantly offered 50% deposit, thinking this would be sufficient. The shrug of the shoulders suggests it's impossible, certainly with this Mitsubishi dealer.

Some questions for those in the know;

1) Is it worth phoning more Mitsubishi dealers to see if any are willing to work with me? Does anyone have any experience with specific dealers who have financed 'first time buyers' without guarantors?

2) Are any other manufacturers (ie Ford as the focus seems a viable alternative) that are more willing to offer finance to farangs?

3) Would I have more success if I tried to finance a cheaper car?

4) Is another feasible approach to contact finance companies / banks for a new car loan and what is the likelihood that this would be more successful?

Thanks in advance

[Spoonman]

The company I work for owns a few Mazda dealerships in BKK, I being an employee of the company for nearly 5 yrs enquired about finance , yep can do was the response, need a Thai guarantor though, granted they don't do in-house finance and it is a requirement of the finance company they use.

[BangkokImages]

It can be done without a Thai guarantor. I did it. And on a retirement visa with no proof of income.

I was told 'NO" once. I asked which bank (SBC) and which branch, and then walked in and introduced myself to the head guy in the loan department. I was told Thai law doesn't allow for this, but he'd do it anyway. I had my loan that day. I initially asked for only 100k (my purpose was to build credit in my own name) but was told they wouldn't make money on such a small loan, and was offered a 300k loan.

So.. it's possible. I think you just need to find someone who wants to do it.

Oh.. recently paid it off. A week later the same guy calls me up and asked if I'll be financing another car, that they can finance 80% now that I have a record with them.

[WarpSpeed]

It can be done without a Thai guarantor. I did it. And on a retirement visa with no proof of income.

I was told 'NO" once. I asked which bank (SBC) and which branch, and then walked in and introduced myself to the head guy in the loan department. I was told Thai law doesn't allow for this, but he'd do it anyway. I had my loan that day. I initially asked for only 100k (my purpose was to build credit in my own name) but was told they wouldn't make money on such a small loan, and was offered a 300k loan.

So.. it's possible. I think you just need to find someone who wants to do it.

Oh.. recently paid it off. A week later the same guy calls me up and asked if I'll be financing another car, that they can finance 80% now that I have a record with them.

Well according to the member who posted above you you'd be considered clueless with such contradicting testimony.. He's a very self confident member that has all the car info wrapped up, just ask him .. Funnily enough though it seems he's misinformed again on this one too .

[BangkokImages]

It can be done without a Thai guarantor. I did it. And on a retirement visa with no proof of income.

I was told 'NO" once. I asked which bank (SBC) and which branch, and then walked in and introduced myself to the head guy in the loan department. I was told Thai law doesn't allow for this, but he'd do it anyway. I had my loan that day. I initially asked for only 100k (my purpose was to build credit in my own name) but was told they wouldn't make money on such a small loan, and was offered a 300k loan.

So.. it's possible. I think you just need to find someone who wants to do it.

Oh.. recently paid it off. A week later the same guy calls me up and asked if I'll be financing another car, that they can finance 80% now that I have a record with them.

Well according to the member who posted above you you'd be considered clueless with such contradicting testimony.. He's a very self confident member that has all the car info wrapped up, just ask him .. Funnily enough though it seems he's misinformed again on this one too .

I'm not in it..

But to be fair, it was a large down payment and the loan officer told me they don't usually loan to a farang without a guarantor.. and all this time I thought he was stroking me by making me feel like an exception..

After a total of 10 years in the Kingdom.. the only thing I feel confident in knowing for certain, is that there's nothing for certain. You can go in most Thai businesses and give five different answers from five different people, and sometime they'll all be wrong. And sometimes the next day they'll play "musical policies" and switch positions. The term "YMMV" has never been more valid than among expats in the Kingdown trying to complete most any common task we take for granted as quick and simple in the west.

Recently this sort of thing has been getting under my skin. By recently I mean the last year.

[WarpSpeed]

It can be done without a Thai guarantor. I did it. And on a retirement visa with no proof of income.

I was told 'NO" once. I asked which bank (SBC) and which branch, and then walked in and introduced myself to the head guy in the loan department. I was told Thai law doesn't allow for this, but he'd do it anyway. I had my loan that day. I initially asked for only 100k (my purpose was to build credit in my own name) but was told they wouldn't make money on such a small loan, and was offered a 300k loan.

So.. it's possible. I think you just need to find someone who wants to do it.

Oh.. recently paid it off. A week later the same guy calls me up and asked if I'll be financing another car, that they can finance 80% now that I have a record with them.

Well according to the member who posted above you you'd be considered clueless with such contradicting testimony.. He's a very self confident member that has all the car info wrapped up, just ask him .. Funnily enough though it seems he's misinformed again on this one too .

I'm not in it..

But to be fair, it was a large down payment and the loan officer told me they don't usually loan to a farang without a guarantor.. and all this time I thought he was stroking me by making me feel like an exception..

After a total of 10 years in the Kingdom.. the only thing I feel confident in knowing for certain, is that there's nothing for certain. You can go in most Thai businesses and give five different answers from five different people, and sometime they'll all be wrong. And sometimes the next day they'll play "musical policies" and switch positions. The term "YMMV" has never been more valid than among expats in the Kingdown trying to complete most any common task we take for granted as quick and simple in the west.

Recently this sort of thing has been getting under my skin. By recently I mean the last year.

Yes but the key here is as you've eluded to, that nothing is for certain and if you want it don't take "no" for an answer. Someone more business savvy always wants your business and those who don't understand that are destined to suck hind tit...

I've heard more often then not though that policy is not the standard or disallowed by the Government, that is just the excuse most banks who don't want the risk use to chase you off. In this case the loan manager met you face to face and decided better of it as you were obviously more determined then the average expat and just told you he was giving you exclusive treatment for your peace of mind and likely to save face for his original refusal..

[MoonRiverOasis]

All Mitsubishi dealers are contractually obliged to use Ayudhya finance (car 4 cash) as Mitsu TH has brokered a deal with them for much lower than normal interest rates. Under the special interest rate deal, Ayudyah require a guarantor for all people w/out a Thai credit history - it's got nothing to do with the fact you're farang, nothing to do with being in Chiangmai - its the same the country over.

You can however get finance yourself, without a guarantor, from other lenders. You won't be able to down 20% on your first finance though - most lenders will want to see somewhere between 25% and 50% down for a solo Farang on first finance. You also will have to pay normal interest rates too of course..

My recommendation would be to contact a finance broker, and have them find the right lender for you - most of the major lenders have had policy changes earlier this year, so who used to do may not do it anymore - a broker could save you a lot of run-around..

[katabeachbum]

All Mitsubishi dealers are contractually obliged to use Ayudhya finance (car 4 cash) as Mitsu TH has brokered a deal with them for much lower than normal interest rates. Under the special interest rate deal, Ayudyah require a guarantor for all people w/out a Thai credit history - it's got nothing to do with the fact you're farang, nothing to do with being in Chiangmai - its the same the country over.

You can however get finance yourself, without a guarantor, from other lenders. You won't be able to down 20% on your first finance though - most lenders will want to see somewhere between 25% and 50% down for a solo Farang on first finance. You also will have to pay normal interest rates too of course..

My recommendation would be to contact a finance broker, and have them find the right lender for you - most of the major lenders have had policy changes earlier this year, so who used to do may not do it anymore - a broker could save you a lot of run-around..

My experience finacing some cars in my own name and helping friends do same, is first car they want minimum 25% down and Thai guarantor. If 50% down, they can skip Thai guarantor. When you have build a Thai credit rating over several years, as I have, they garnt 10% down and no guarantor. I have used Tanachart only.

It is more difficult to finance theft popular vehicles like Vigo and Fortuner 4x4, but they have accepted farang with 50% down and no previous finance without Thai guarantor.

No WP, not married, but substantial cash flow in Thai bank accounts.

[chrisinchaam]

In Hua-Hin purchased a Honda civic in my name with 20% deposit payments over 48 months no Thai Guarantor. I do have a work permit was financed by Krung Thai Bank.