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[pete66]

A Thai I know can't afford to pay remaining installments on car (very common I presume), and has offered to sell it to me.

But I can't even imagine if that is possible, because whoever is providing the loan is certainly not going to allow the loan to be transferred to "some farang guy" right?

Is this a non-starter?

[moe666]

Do you have a work permit, if so, it could happen. If no work permit pay off in cash.

[onthedarkside]

Or you could ask a Thai national to act as guarantor. Maybe the guy who is selling the car would do that.

[bristolgeoff]

you come into the picture the price may go up.just be careful

[BookMan]

Just ensure the car ownership papers end up in your name before u finish paying off the loan!

[Daffy D]

As "bookman" says be sure you have all the correct papers before handing over any money.

Don't fall for the "it's easier to keep in my name till payment finished" or similar story.

[pete66]

Or you could ask a Thai national to act as guarantor. Maybe the guy who is selling the car would do that.

Yeah, but the problem is they are selling because they can't afford the payments ...... so they couldn't guarantee anything.

Certainly not going to keep it in their name ... but yeah, I can see the angles here. Sounds like a no-go.

[Tonto21]

Hi ‘pete66’

Interesting, well we know you are entitled to own the vehicle, title deed in your name.

But I think you need a visa other than a tourist one.

As far as ‘taking over the payments’, I don’t know, what I would suggest is you contact the HP company/Bank, whoever the loan is held with and simply ask the question. You may need the assistance of a Thai speaker; someone who can interpret all the detail correctly. I wouldn’t be worried about the loan company ripping you off.

Remember if it’s a case of you just taking over payment or paying off the outstanding balance, the loan company here, just like anywhere want the money, not the vehicle.

Personally I don’t think it’s a nonstarter. But you need to be on your toes….Good luck.

[WinnieTheKhwai]

Or you could ask a Thai national to act as guarantor. Maybe the guy who is selling the car would do that.

Yeah, but the problem is they are selling because they can't afford the payments ...... so they couldn't guarantee anything.

Sure they could. Clearly to get the loan in the first place they were able to guarantee it through offering some collateral, usually some land somewhere. That they're too short on money for the monthly payments doesn't mean they want to lose their collateral, so their guarantee is still just fine.

It's common with loans that the guarantor is a different person from the one specified as the one getting the loan, and owning the vehicle.

So I don't see too many issues if you have any Thai guarantor, or of course if you're working legally in Thailand then you don't need a guarantor, you can do it yourself. How easy/feasible this is does depend on the particular financial institution.

Edited December 26, 2011 by WinnieTheKhwai

[uptheos]

Walk away - take the fast lane.

[onthedarkside]

Or you could ask a Thai national to act as guarantor. Maybe the guy who is selling the car would do that.

Yeah, but the problem is they are selling because they can't afford the payments ...... so they couldn't guarantee anything.

Certainly not going to keep it in their name ... but yeah, I can see the angles here. Sounds like a no-go.

They can still act as the guarantor. The car is the collateral.

And the loan company have their name in the book, and they keep the book, so as long as you make the owner change official through the loan company then you should be Ok..

[pete66]

I'm still struggling with this one, especially the concept of the old owner remaining the guarantor.

Wouldn't that be a foolish thing to do, for the old owner?

As an example, let's say the car is 1M baht loan, and they have paid off 200K already. So they owe the bank 800K. If they cannot pay, the bank takes the car and sells that first before getting the money back other ways, that's right isn't it? And since the car is only 6 months old, it would sell for a very big slice of the 800K.

So in that case, the old owner doesn't lose their land or whatever else they have used to guarantee the loan.

But if they sell to me, and continue to guarantee the loan, haven't they kept the same liability, but just removed the way of paying it back should I ever stop paying? Sure, the car could still be collateral, but I could drive it out to Laos tomorrow and sell it ...... and the old owner just loses their land.

Can you imagine a Thai ever going for that? Or indeed anyone in their right mind? I know I wouldn't want that hanging over my head for the next 5 years.

[uptheos]

There are easier, hassle free ways to buy cars.

[onthedarkside]

There are easier, hassle free ways to buy cars.

Yes, pay cash ....

But back to the OP. Unless you have the cash to pay off the loan, or a Work permit and take over the loan payments, then you would need a qualified guarantor. If you don't like that option then end of this story.

[pete66]

End of story