Finance Car

[whoppe78]

I've been coming here last 3 years, 6 months here and 6 months in states. Want to buy second hand car and put down healthy down payment. But now on TR visa, no WP or income here and neither does my GF.What are my chances of financing? My girl has been paying off her fino for the last 3 years so maybe she has some credit, plus all the money I've been sending might have some bearing. Plus I can show steady income from back home. I'm only thinking of buying a 250000 -300000 baht car with around 100000 down.

[MoonRiverOasis]

As you're not married, your income will not be able to be assesed.

Being on a TR visa you cannot apply for finance in your name (you used to be able to do this with a big enough downpayment, but not anymore), nor will you be able to act as a guarantor.

The only chance you have is if the money you have been sending her has been regular as clockwork for at least 6 months, has been a decent amount of money, and she can get a Thai friend who's a business owner to provide a letter of employment to match so it looks like a salary - then she can perhaps get the finance in her own name.. But it all has to "look" right - i.e. no-one gets paid 40K/Mth to work at a beauty salon

Note that the motorcycle finance will most likely not have counted towards her credit rating - in almost all cases (for small bikes) this is vendor finance, not a finance company, so not in the credit register.

[aussiebebe]

A second-hand dealer would certainly sell your girlfriend a car with that down payment, perhaps with a member of her family acting as the guarantor.

The fiscal issue for you to consider is the sum you're being charged to send her money from outside Thailand vs the interest rates charged on the auto loan.

I don't mind sharing a tale of my own financial ineptitde as I have experience with the high-interest charged on auto loans as the first car I bought in Thailand was a second-hand Toyota, superb car, but it was a real wake-up call financally. This is back in 2005, I used my work permit with my wife as guarrantor and from a cash price of 310k, I paid 50k down and the auto loan, underwritten by Kiatnakin bank, was quoted as 6%, which I agreed to.

On the principal of 260,000baht, the effective rate was much higher as I ended up paying 12,500/month for two years which was 44,500 in interest (including some other charge for the intermediary finance compay) so I may have well have bought the car on my credit card. I know I was stupid, but you live and learn; I still don't understand how interest is charged in Thailand. Since then I've always bought new.

My point is that instead of getting gouged with interest rates from a Thai bank and then losing again with variable exchange rates and transfer charges to your girlfriend, you may consider borrowing money from a bank in your home country and negotiating a lower cash-price for a car in your price bracket.

[whoppe78]

A second-hand dealer would certainly sell your girlfriend a car with that down payment, perhaps with a member of her family acting as the guarantor.

The fiscal issue for you to consider is the sum you're being charged to send her money from outside Thailand vs the interest rates charged on the auto loan.

I don't mind sharing a tale of my own financial ineptitde as I have experience with the high-interest charged on auto loans as the first car I bought in Thailand was a second-hand Toyota, superb car, but it was a real wake-up call financally. This is back in 2005, I used my work permit with my wife as guarrantor and from a cash price of 310k, I paid 50k down and the auto loan, underwritten by Kiatnakin bank, was quoted as 6%, which I agreed to.

On the principal of 260,000baht, the effective rate was much higher as I ended up paying 12,500/month for two years which was 44,500 in interest (including some other charge for the intermediary finance compay) so I may have well have bought the car on my credit card. I know I was stupid, but you live and learn; I still don't understand how interest is charged in Thailand. Since then I've always bought new.

My point is that instead of getting gouged with interest rates from a Thai bank and then losing again with variable exchange rates and transfer charges to your girlfriend, you may consider borrowing money from a bank in your home country and negotiating a lower cash-price for a car in your price bracket.

thanks for info I guess I just pay all. I have the cash but it's in mutual funds and hate to take out before market rebounds.

[whoppe78]

As you're not married, your income will not be able to be assesed.

Being on a TR visa you cannot apply for finance in your name (you used to be able to do this with a big enough downpayment, but not anymore), nor will you be able to act as a guarantor.

The only chance you have is if the money you have been sending her has been regular as clockwork for at least 6 months, has been a decent amount of money, and she can get a Thai friend who's a business owner to provide a letter of employment to match so it looks like a salary - then she can perhaps get the finance in her own name.. But it all has to "look" right - i.e. no-one gets paid 40K/Mth to work at a beauty salon

Note that the motorcycle finance will most likely not have counted towards her credit rating - in almost all cases (for small bikes) this is vendor finance, not a finance company, so not in the credit register.

thanks for info. there's nothing regular with me sending her money.