First Time Buyer - Don'T Want To Be Ripped Off!

[zorro1]

What always worked for me is lying.

Go to the first dealer and after he makes you an offer tell him you get a better deal at the competitor,and just plain lie to him how much you got offered.He will make his second best offer at that time.

Tell him you want to think about and drive straight to his competitor.If the second dealer doesn't make you a better offer,show him the the documents from the first dealer.Now he will make you a better deal if it is possible without making a loss.

i thought car sales man were the liars?

LOL spare a thought for the poor salesman who has to sift through all the B/S to actually get a deal done , no wonder they can barley roll their eyes when a fake polo shirt wearing farang strolls through the doors

I thought everything was fake in LOS. BUT if you had said farang with a fake Rolex you might have made your point..

LOL okay rolex then. There is a saying in the motor industry "buyers are liars" just read janverbeams post, and this thread proves it

[Back Sida]

As for how to calculate the finance cost of your car, that's simple.

800K - 30% = 560K

2.6% interest = 14,560Baht /yr

@ 2years = 29,120 Baht total interest.

Hi MoonRiverOasis

I did not asked to calculate the finance cost for me.

I asked for how this work:

Rich Thai's are smart enough to know finance has a commission, therefore a stronger negotiating position, so practically all cars are financed whether or not cash could have been paid.

And anyway, if you park your cash wisely, you'll make more interest on savings than you'll pay on finance.

But thanks so much for your calculation exemple.

Here is how I meant it.

800K - 30% = 560K

2.6% interest = 14,560Baht /yr

@ 2years = 29,120 Baht total interest.

Free insurence 20000 but I guess you get this also if you buy cash.

Right? (But OK, lets say no)

Free stuff= 10000 ?

Now we are +/- 0

Now we park the money in the bank:

Interest in 2 years 30000 (I doubt that you get for 560K more than 2.6% either.

minus

2th year insurance 20000

win 10000

total

over 24 month

416 Bath per month (= 1/4 hour overtime in one month).

Is this how clever rich Thais calculate and get richer?

As a stupid farlang, I calculate then in this way:

416, that's one short time every 2 month (if I negotiate with the BG proper

and wai her, have good manners, wear fake Polo shirt and fake gold watch (ah no wear real Polo shirt and gold watch)i.e.).

Against:

I pay cash and skip one short time every 2 month (and no need to buy a new (fake) Polo shirt

or a (fake) gold watch) and I'm OK again.

OK seriously.

I like to know if there is a 'good' reasonable reason to going for finance instead to buy cash

on a value of less then a million, except to give the salesman commission on the fiance system?

Thanks and regards

[katabeachbum]

with a shortage of cars, sales staff need to make more comision on each car to make a living, thus will give priority to buyers wanting to finance. In addition its more easy to get more freebies when financing

so in my experience with 15-16 new purchases, always start money talk with saying you want to finance, accept any downpayment they suggest, and make financial changes at the end of the deal

and a fixed savings in any TH bank presently returns approx 3,5%

[Back Sida]

so in my experience with 15-16 new purchases, always start money talk with saying you want to finance, accept any downpayment they suggest, and make financial changes at the end of the deal

Hi Katabeachbum,

thanks for the answer.

OK, the point is that I'm not against finance, it is that we will return from oversee. I still will work oversee but family stay now

in Thailand. My wife do not work. She have no bank record at all, I do not have bank record (only a account with a little of money in.

So I'm not sure we will approve for finance.

Now after reading all the post about car buying and finance in this forum the plan is like this:

As you suggested, we walk in and play like we want to finance. Let's make the deal (with what ever the salesman prefer on down payment, finance, interest rates) and negotiate all the free stuff.

And when it comes to the point that we are not able to get it financed because of no bank record, work, i.e., go for the cash option.

Will that work, or will the salesman then take away all the free stuff, free insurance or don't give us the car at all?

Thanks and regards

[MoonRiverOasis]

And when it comes to the point that we are not able to get it financed because of no bank record, work, i.e., go for the cash option.

Will that work, or will the salesman then take away all the free stuff, free insurance or don't give us the car at all?

That depends on what you're buying, what you're getting for free, and how much movement there is in the car w/out a finance commission being involved.

i.e. if you negotiated poorly in the first place, they may still be able to do the same deal for cash.

If you negotiated hard, they will say "no can" pretty quickly when you start talking cash.

[MoonRiverOasis]

I asked for how this work:

Rich Thai's are smart enough to know finance has a commission, therefore a stronger negotiating position, so practically all cars are financed whether or not cash could have been paid.

And anyway, if you park your cash wisely, you'll make more interest on savings than you'll pay on finance.

Well, you can't very well generate wealth without being a good investor, which by extension means that if you're wealthy you must be able to generate a whole lot more than just 3% ROI

[MoonRiverOasis]

Free insurence 20000 but I guess you get this also if you buy cash.

Right? (But OK, lets say no)

Free stuff= 10000 ?

As a general guide, freebies/discount will be around 5-6% if financing (up to 10-12% during some campaigns), vs. 2-3% freebies/discount for cash. Assuming a good negotiation..

[janverbeem]

What always worked for me is lying.

Go to the first dealer and after he makes you an offer tell him you get a better deal at the competitor,and just plain lie to him how much you got offered.He will make his second best offer at that time.

Tell him you want to think about and drive straight to his competitor.If the second dealer doesn't make you a better offer,show him the the documents from the first dealer.Now he will make you a better deal if it is possible without making a loss.

i thought car sales man were the liars?

LOL spare a thought for the poor salesman who has to sift through all the B/S to actually get a deal done , no wonder they can barley roll their eyes when a fake polo shirt wearing farang strolls through the doors

I thought everything was fake in LOS. BUT if you had said farang with a fake Rolex you might have made your point..

LOL okay rolex then. There is a saying in the motor industry "buyers are liars" just read janverbeams post, and this thread proves it

Well it isn't really lying,I should more call it " adjusting the truth a little for the better" In a previous life when i was a salesman,that would have been called lying.

Oh and by the way,it's a genuine 18K Rolex oyster perpetual

[transam]

i thought car sales man were the liars?

LOL spare a thought for the poor salesman who has to sift through all the B/S to actually get a deal done , no wonder they can barley roll their eyes when a fake polo shirt wearing farang strolls through the doors

I thought everything was fake in LOS. BUT if you had said farang with a fake Rolex you might have made your point..

LOL okay rolex then. There is a saying in the motor industry "buyers are liars" just read janverbeams post, and this thread proves it

Well it isn't really lying,I should more call it " adjusting the truth a little for the better" In a previous life when i was a salesman,that would have been called lying.

Oh and by the way,it's a genuine 18K Rolex oyster perpetual

Nice watch, l bought one at Chong Mek.

[janverbeem]

Are you sure,as I can't find an address of any authorized dealer in that area

[transam]

Are you sure,as I can't find an address of any authorized dealer in that area

There are dozens, but Nooooooooooooo name stalls. AND you get free ''Viagra'' with your purchase .

[funcat]

Free insurence 20000 but I guess you get this also if you buy cash.

Right? (But OK, lets say no)

Free stuff= 10000 ?

As a general guide, freebies/discount will be around 5-6% if financing (up to 10-12% during some campaigns), vs. 2-3% freebies/discount for cash. Assuming a good negotiation..

I've signed in for the Almera couple of weeks ago and when ask for the "deal" the answer was 5K BHT off the 1st class insurance and that's it...the interest 2.65-2.85 %...Today another dealer had a show at the Airport Plaza(CM) and offered the same exactly deal...any possibilities of negotiations?...no!

...so it looks like there is not much one can do here(dressed up or not)...any different in BKK??...and BTW,the finance guy called us today,that we need to sign the contract asap...??Is that normal? I don't want to sign anything till I'm actually ready to purchase...any thoughts here?

[janverbeem]

Free insurence 20000 but I guess you get this also if you buy cash.

Right? (But OK, lets say no)

Free stuff= 10000 ?

As a general guide, freebies/discount will be around 5-6% if financing (up to 10-12% during some campaigns), vs. 2-3% freebies/discount for cash. Assuming a good negotiation..

I've signed in for the Almera couple of weeks ago and when ask for the "deal" the answer was 5K BHT off the 1st class insurance and that's it...the interest 2.65-2.85 %...Today another dealer had a show at the Airport Plaza(CM) and offered the same exactly deal...any possibilities of negotiations?...no!

...so it looks like there is not much one can do here(dressed up or not)...any different in BKK??...and BTW,the finance guy called us today,that we need to sign the contract asap...??Is that normal? I don't want to sign anything till I'm actually ready to purchase...any thoughts here?

Of course they want you to sign asap..............They want money.

Play bluff poker and you will be the winner at the end.When I bought the Navara about 20 months ago all dealers offered a finance at 3.25% untiill the final dealer offered me finance by Nissan leasing at 2.70%.Every dealer would have been able to offer me that same finance but didn't want because their commission would be much less.

Edit to add: Don't ask them what's the deal...........Tell them what's the deal

[zorro1]

Free insurence 20000 but I guess you get this also if you buy cash.

Right? (But OK, lets say no)

Free stuff= 10000 ?

As a general guide, freebies/discount will be around 5-6% if financing (up to 10-12% during some campaigns), vs. 2-3% freebies/discount for cash. Assuming a good negotiation..

I've signed in for the Almera couple of weeks ago and when ask for the "deal" the answer was 5K BHT off the 1st class insurance and that's it...the interest 2.65-2.85 %...Today another dealer had a show at the Airport Plaza(CM) and offered the same exactly deal...any possibilities of negotiations?...no!

...so it looks like there is not much one can do here(dressed up or not)...any different in BKK??...and BTW,the finance guy called us today,that we need to sign the contract asap...??Is that normal? I don't want to sign anything till I'm actually ready to purchase...any thoughts here?

Run forest RUN !!

LOL how can you be a buyer and not be ' ready to purchase'

[katabeachbum]

Free insurence 20000 but I guess you get this also if you buy cash.

Right? (But OK, lets say no)

Free stuff= 10000 ?

As a general guide, freebies/discount will be around 5-6% if financing (up to 10-12% during some campaigns), vs. 2-3% freebies/discount for cash. Assuming a good negotiation..

I've signed in for the Almera couple of weeks ago and when ask for the "deal" the answer was 5K BHT off the 1st class insurance and that's it...the interest 2.65-2.85 %...Today another dealer had a show at the Airport Plaza(CM) and offered the same exactly deal...any possibilities of negotiations?...no!

...so it looks like there is not much one can do here(dressed up or not)...any different in BKK??...and BTW,the finance guy called us today,that we need to sign the contract asap...??Is that normal? I don't want to sign anything till I'm actually ready to purchase...any thoughts here?

Of course they want you to sign asap..............They want money.

Play bluff poker and you will be the winner at the end.When I bought the Navara about 20 months ago all dealers offered a finance at 3.25% untiill the final dealer offered me finance by Nissan leasing at 2.70%.Every dealer would have been able to offer me that same finance but didn't want because their commission would be much less.

Edit to add: Don't ask them what's the deal...........Tell them what's the deal

You need to sign the credit check form before any finance can be approved. usually one signs all docs at same time, and they are not valid unless you have taken delivery of purchase.

They trust you by lending you money, would be od to not trust them

[funcat]

[

As a general guide, freebies/discount will be around 5-6% if financing (up to 10-12% during some campaigns), vs. 2-3% freebies/discount for cash. Assuming a good negotiation..

I've signed in for the Almera couple of weeks ago and when ask for the "deal" the answer was 5K BHT off the 1st class insurance and that's it...the interest 2.65-2.85 %...Today another dealer had a show at the Airport Plaza(CM) and offered the same exactly deal...any possibilities of negotiations?...no!

...so it looks like there is not much one can do here(dressed up or not)...any different in BKK??...and BTW,the finance guy called us today,that we need to sign the contract asap...??Is that normal? I don't want to sign anything till I'm actually ready to purchase...any thoughts here?

Of course they want you to sign asap..............They want money.

Play bluff poker and you will be the winner at the end.When I bought the Navara about 20 months ago all dealers offered a finance at 3.25% untiill the final dealer offered me finance by Nissan leasing at 2.70%.Every dealer would have been able to offer me that same finance but didn't want because their commission would be much less.

Edit to add: Don't ask them what's the deal...........Tell them what's the deal

You need to sign the credit check form before any finance can be approved. usually one signs all docs at same time, and they are not valid unless you have taken delivery of purchase.

They trust you by lending you money, would be od to not trust them

Of course,I trust them ...but it's about locking yourself out of any better(or worse) possible deal,I guess.I don't like this one sided offer and was asking,if anybody else got anything better?? I remember when Mitsu offered 0% interest with 40% down and this will be something interesting,or even 1+%.but here the interest doesn't change after 25% down or more(locked at 2.85%).I hope this can change between particular dealerships...so is there anybody out there,who put up the deposit already,with some better info,or deals??

[ACMIKE]

Note that the advertised interest rate is somewhat misleading at least to westerners. A simple loan calculator on the internet will show that you are actually paying almost double in interest charges. This seems to be the accepted practice in Thailand and that's all good and well as long as you are informed and agree to it. On approximately 600,000 baht loan your interest charges are about 40000 baht more on a 4 year loan at 2.7%.

[katabeachbum]

Of course,I trust them ...but it's about locking yourself out of any better(or worse) possible deal,I guess.I don't like this one sided offer and was asking,if anybody else got anything better?? I remember when Mitsu offered 0% interest with 40% down and this will be something interesting,or even 1+%.but here the interest doesn't change after 25% down or more(locked at 2.85%).I hope this can change between particular dealerships...so is there anybody out there,who put up the deposit already,with some better info,or deals??

turn it around and think which dealer wants to work with you before you have a credit approval? Having an offer is not an approval, creditcheck takes signed forms, bank statements etc

signing forms does not put you in any negative position, on the contrary it puts you in a finance buyer position, able to do some real negotiations. Until then you are not really a buyer

I do it the other way around. Sign all docs with Tanachart, search for car, when I find it negotiations start with giving them my man in Tanacharts phonenumber, they call him, he says katabeachbum approved, zero down/ limit 1,8? mill baht. Now we can close a deal on car and interest. Tanachart has its interest, lower interest is paid by supplier/dealer.

The day before delivery Tanachart fills out the signed forms, I approve them on delivery, and finance becomes valid

[funcat]

Of course,I trust them ...but it's about locking yourself out of any better(or worse) possible deal,I guess.I don't like this one sided offer and was asking,if anybody else got anything better?? I remember when Mitsu offered 0% interest with 40% down and this will be something interesting,or even 1+%.but here the interest doesn't change after 25% down or more(locked at 2.85%).I hope this can change between particular dealerships...so is there anybody out there,who put up the deposit already,with some better info,or deals??

turn it around and think which dealer wants to work with you before you have a credit approval? Having an offer is not an approval, creditcheck takes signed forms, bank statements etc

signing forms does not put you in any negative position, on the contrary it puts you in a finance buyer position, able to do some real negotiations. Until then you are not really a buyer

I do it the other way around. Sign all docs with Tanachart, search for car, when I find it negotiations start with giving them my man in Tanacharts phonenumber, they call him, he says katabeachbum approved, zero down/ limit 1,8? mill baht. Now we can close a deal on car and interest. Tanachart has its interest, lower interest is paid by supplier/dealer.

The day before delivery Tanachart fills out the signed forms, I approve them on delivery, and finance becomes valid

Credit check should not be a problem,specially if you offer to pay 30-40% down...as long as terms are open...??

[katabeachbum]

Of course,I trust them ...but it's about locking yourself out of any better(or worse) possible deal,I guess.I don't like this one sided offer and was asking,if anybody else got anything better?? I remember when Mitsu offered 0% interest with 40% down and this will be something interesting,or even 1+%.but here the interest doesn't change after 25% down or more(locked at 2.85%).I hope this can change between particular dealerships...so is there anybody out there,who put up the deposit already,with some better info,or deals??

turn it around and think which dealer wants to work with you before you have a credit approval? Having an offer is not an approval, creditcheck takes signed forms, bank statements etc

signing forms does not put you in any negative position, on the contrary it puts you in a finance buyer position, able to do some real negotiations. Until then you are not really a buyer

I do it the other way around. Sign all docs with Tanachart, search for car, when I find it negotiations start with giving them my man in Tanacharts phonenumber, they call him, he says katabeachbum approved, zero down/ limit 1,8? mill baht. Now we can close a deal on car and interest. Tanachart has its interest, lower interest is paid by supplier/dealer.

The day before delivery Tanachart fills out the signed forms, I approve them on delivery, and finance becomes valid

Credit check should not be a problem,specially if you offer to pay 30-40% down...as long as terms are open...??

bad credit or bankrupsy, in TH you dont get finance 30-40% down, when form is signed they can check you

[wandrinstar]

Why worry about Fakes and Copies, it doesn't bother the Mighty Chevy Corp..Look at their Fine Range of of Korean Replica Cars on offer here ......

[MoonRiverOasis]

I've signed in for the Almera couple of weeks ago and when ask for the "deal" the answer was 5K BHT off the 1st class insurance and that's it...the interest 2.65-2.85 %...Today another dealer had a show at the Airport Plaza(CM) and offered the same exactly deal...any possibilities of negotiations?...no!

...so it looks like there is not much one can do here(dressed up or not)...any different in BKK??...and BTW,the finance guy called us today,that we need to sign the contract asap...??Is that normal? I don't want to sign anything till I'm actually ready to purchase...any thoughts here?

As a guide, the current best rates from Thanachart are:

12-48 Months: 2.35%

60 Months: 2.50%

72 Months: 2.70%

Other financiers will be similar, BUT you will need to be good negotiator to get these...

As for the deal, I'm sure you can do much better. I'd expect at least free insurance (~15K) and free registration (~5K), even for the base 400K Baht model. If CM dealers aren't playing ball, ring around dealers from neigboring provinces (Lampang, Chiang Rai, Phrae etc) and see what they'll do..

[funcat]

I've signed in for the Almera couple of weeks ago and when ask for the "deal" the answer was 5K BHT off the 1st class insurance and that's it...the interest 2.65-2.85 %...Today another dealer had a show at the Airport Plaza(CM) and offered the same exactly deal...any possibilities of negotiations?...no!

...so it looks like there is not much one can do here(dressed up or not)...any different in BKK??...and BTW,the finance guy called us today,that we need to sign the contract asap...??Is that normal? I don't want to sign anything till I'm actually ready to purchase...any thoughts here?

As a guide, the current best rates from Thanachart are:

12-48 Months: 2.35%

60 Months: 2.50%

72 Months: 2.70%

Other financiers will be similar, BUT you will need to be good negotiator to get these...

As for the deal, I'm sure you can do much better. I'd expect at least free insurance (~15K) and free registration (~5K), even for the base 400K Baht model. If CM dealers aren't playing ball, ring around dealers from neigboring provinces (Lampang, Chiang Rai, Phrae etc) and see what they'll do..

Thanks...

[wandrinstar]

A sensible choice , they seem to be selling well , and are quite nippy going by the one i just followed ...

[Derifo]

Of course,I trust them ...but it's about locking yourself out of any better(or worse) possible deal,I guess.I don't like this one sided offer and was asking,if anybody else got anything better?? I remember when Mitsu offered 0% interest with 40% down and this will be something interesting,or even 1+%.but here the interest doesn't change after 25% down or more(locked at 2.85%).I hope this can change between particular dealerships...so is there anybody out there,who put up the deposit already,with some better info,or deals??

The Nissan web calculator shows an interest rate of 2.79%.

N.B. That's for payments covering 48 months.

[Derifo]

Nice info in this thread. I didn't know anything about the interest stuff when I bought the Proton I gave to the ex last week. The sales rep really had me. With what I've read here, I'll be wiser in dealing with Nissan after the flood.

[DavidJames]

• • Rent a decent car to drive around to the dealerships (they will look at what you arrived in, and make judgements based on that). The higher the value of the car you arrive in , the stronger your negotiating power/influence will be. Always rent something better than what you're shopping for! (e.g. in this case a Camry or a Fortuner)

Absolutely not your not there to impress a car salesman. They need to impress you!

Are you sure about this?

Are you not supposed to show them all kinds of signs that you are wealthy enough to handle the monthly payments without any problems

Including clothes, jewelry, and documents.

[Hooters]

• • Rent a decent car to drive around to the dealerships (they will look at what you arrived in, and make judgements based on that). The higher the value of the car you arrive in , the stronger your negotiating power/influence will be. Always rent something better than what you're shopping for! (e.g. in this case a Camry or a Fortuner)

Absolutely not your not there to impress a car salesman. They need to impress you!

Are you sure about this?

Are you not supposed to show them all kinds of signs that you are wealthy enough to handle the monthly payments without any problems

Including clothes, jewelry, and documents.

"Are you not supposed to show them all kinds of signs that you are wealthy enough to handle the monthly payments without any problems"

what it will show is you can pay an inflated loan at a high interest rate without any problems.

look your loan is not approved by the dealership. They do the paperwork and then send it to bank of Bangkok or who ever. a Rolex on each wrist wont help you if your a dud .

[DavidJames]

what it will show is you can pay an inflated loan at a high interest rate without any problems.

look your loan is not approved by the dealership. They do the paperwork and then send it to bank of Bangkok or who ever. a Rolex on each wrist wont help you if your a dud .

You have a point there.

However when I bought my car both a bank representatitve and the salesman

was there negotiating with me.

[janverbeem]

• • Rent a decent car to drive around to the dealerships (they will look at what you arrived in, and make judgements based on that). The higher the value of the car you arrive in , the stronger your negotiating power/influence will be. Always rent something better than what you're shopping for! (e.g. in this case a Camry or a Fortuner)

Absolutely not your not there to impress a car salesman. They need to impress you!

Are you sure about this?

Are you not supposed to show them all kinds of signs that you are wealthy enough to handle the monthly payments without any problems

Including clothes, jewelry, and documents.

Not really,when they told me they needed to consider my finance application and that it would take some time,I just aked them if they thought I needed their <deleted>*ng finance money as I could buy the dealership from my pocket money.

They answered that the finance was approved.