Honda Financing Available To Farangs ?

[Krub]

I wonder if any of you had first hand experience at buying new car with financing from Honda and how was the procedure.

[phuketsiam]

I did in 2001, had to pay a 40% deposit, show a work permit, and letter from my company showing my salary, finance done through citycorp, once I had the right docs they made quite easy, only one complaint, cannot pay by bank standing order, the missus had to o and queue at the bank every month to pay the installment. While money is outstanding, you must carry first class insurance

[Tywais]

I did in 2001, had to pay a 40% deposit, show a work permit, and letter from  my company showing my salary, finance done through citycorp, once I had the right docs they made quite easy, only one complaint, cannot pay by bank standing order, the missus had to o and queue at the bank every month to pay the installment. While money is outstanding, you must carry first class insurance

Did they require a guarantor or does a down payment of >= 40% satisfy that (along with salary)? Reason I ask is that I was considering a Toyota last year (glad I didn't now) and was told that all I needed was a guarantor. That isn't a problem for me, have Thai ajarn friends who are willing to sign. The guarantor is responsible for paying off the car if you default.

Edited December 8, 2005 by tywais

[phuketsiam]

With a Thai guarantor they only wanted 25% (same deal as for a Thai), I think it may be less now. As I paid 40% I didn't need a guarantor, also needed to pay the insurance and registration fee up front, can't remember exactly how much, but it was around 30K at the time

[Tywais]

With a Thai guarantor they only wanted 25% (same deal as for a Thai), I think it may be less now. As I paid 40% I didn't need a guarantor, also needed to pay the insurance and registration fee up front, can't remember exactly how much, but it was around 30K at the time

Thanks for that info. Was planning on 50-60% down plus I have a monthly salary from the university. Would rather not have to have a friend co-sign if I don't have to, gheng jai and all you know.

[phuketsiam]

I think for that kind kind of deposit you will have no probs, I did it in 2001, I thinks the deposits and checks are less stringent now, easy way to make sure is to pop into any honda dealer, wear decent clothes and they will be doing their best to accomodate you buying a car, if your Thai's not great take a friend to translate, I nearly always had to speak to Thai in 3 Honda dealers/service places, and my Thai's not great, sometimes would have to phone the missus for translation help

[Krub]

There was no way Honda financing was going to consider a Farang as a guarantor for a financing.

My partner (Thai) is the owner of the car and will pay 20% deposit cash + insurance cost etc (250.000 baht) and wanted financing for 4 years (20.000 baht per month)

They turned down my credit rating (7 figures balance in bank, 3 different gold credit cards, etc. but no job in Thailand)

They are however ready to accept a Thai as guarantor who has a monthly payslip of 10.000 baht !

The deal is not sealed as I am trying to raise more cash for the deposit so that the financing can be reduced at 3 or 2 years

[paulfr]

I financed my Toyota Altis at the dealer thru a finance company.

But even with a 50% down, they required it be in my wife's name.

And I too can not pay by ATM or ove the internet.... a real pain having to go to their bank (B of Ayuttaya) each month.

[Tywais]

I financed my Toyota Altis at the dealer thru a finance company.

But even with a 50% down, they required it be in my wife's name.

And I too can not pay by ATM or ove the internet.... a real pain having to go to their bank (B of Ayuttaya) each month.

That would be annoying for me. Seems odd that you can't do an interbank transfer with ATM. What's the difference between that and an interbank transfer at the window?

[paulfr]

I financed my Toyota Altis at the dealer thru a finance company.

But even with a 50% down, they required it be in my wife's name.

And I too can not pay by ATM or ove the internet.... a real pain having to go to their bank (B of Ayuttaya) each month.

<{POST_SNAPBACK}>

That would be annoying for me. Seems odd that you can't do an interbank transfer with ATM. What's the difference between that and an interbank transfer at the window?

<{POST_SNAPBACK}>

I don't know.

I have tried asking 4 different employees at both banks and they all say it cannot be done. But this is not convincing yet to me because we all know a Thai will say "mai dai" before saying "mai lu".

My next step is to go to the office of the finance company and ask ... How can I pay by ATM or Internet xfer. But this is down in double digits on my todo list.

Will report back if I get it done .... i.e. no longer have to physically go to their bank with cash.

[Krub]

There was no way Honda financing was going to consider a Farang as a guarantor for a financing.

My partner (Thai) is the owner of the car and will pay 20% deposit cash + insurance cost etc (250.000 baht) and wanted financing for 4 years (20.000 baht per month)

They turned down my credit rating (7 figures balance in bank, 3 different gold credit cards, etc. but no job in Thailand)

They are however ready to accept a Thai as guarantor who has a monthly payslip of 10.000 baht !

The deal is not sealed as I am trying to raise more cash for the deposit so that the financing can be reduced at 3 or 2 years

<{POST_SNAPBACK}>

Just an update on deal (not sealed as finance company will bring the paperwork on Monday)

Reservation payment of 10.000 baht (already paid)

Upon car delivery ealry next year : down payment of 30% instead of 20%

4 years at 2.90% monthly installments

Car registerred under a Thai name

Financing under the same Thai name with no need for proof of employment nor proof of income nor chanode or other guarantees.

No third party guarantor needed

Wonder if they will keep their word on Monday as I think it is quite a good deal.

[tom yum goong]

the interest rate certainly seems cheap

[Tywais]

Car registerred under a Thai name

Financing under the same Thai name with no need for proof of employment nor proof of income nor chanode or other guarantees.

No third party guarantor needed

I don't understand this part. Exactly whose name is it going to be under since there is no guarantor? My understanding that the Blue Book (registration book) will have your name in it as registrar and they keep the book with them.

[Krub]

the interest rate certainly seems cheap

<{POST_SNAPBACK}>

Yes it is but it is not calculated on the balance of utsanding loan bit on the whole amount outstanding

I will be paying total of 83.664 baht in interrest over 4 years on 750.000 outstanding at start of financing or 17.368 per month for 48 months

[Butterfly]

Interest rates is misleading. 11% over for 4 years, you need to annualize it to get the exact annual interest rates. Divided by 4 is not the right method.

Still cheap enough though.

Edited December 17, 2005 by Butterfly

[Krub]

Car registerred under a Thai name

Financing under the same Thai name with no need for proof of employment nor proof of income nor chanode or other guarantees.

No third party guarantor needed

<{POST_SNAPBACK}>

I don't understand this part. Exactly whose name is it going to be under since there is no guarantor? My understanding that the Blue Book (registration book) will have your name in it as registrar and they keep the book with them.

<{POST_SNAPBACK}>

I first tried to register in my name and proceed with a Thai guarantor

It was no go as my guarantor does not have proof of employment.

They (Honda) then proposed 30% down at delivery of the car, registration under a Thai name (not mine) and 4 years at 2.9%. No need for a guarantor anymore....

[Krub]

Interest rates is misleading. 11% over for 4 years, you need to annualize it to get the exact annual interest rates. Divided by 4 is not the right method.

Still cheap enough though.

<{POST_SNAPBACK}>

Hi I am not sure what you mean but as I pay 30% at delivery of car (350.000) the balance to be paid is 750.000 baht and Honda has said I will have to pay 17.368 per month for 48 months or 83.644 of interrest for the 4 years.

I am not smart enough to calculate the real rate but I know what I have to pay and I though it was quite a good deal

Edited December 17, 2005 by Krub

[moonoi]

Interest rates is misleading. 11% over for 4 years, you need to annualize it to get the exact annual interest rates. Divided by 4 is not the right method.

Still cheap enough though.

<{POST_SNAPBACK}>

Hi I am not sure what you mean but as I pay 30% at delivery of car (350.000) the balance to be paid is 750.000 baht and Honda has said I will have to pay 17.368 per month for 48 months or 83.644 of interrest for the 4 years.

I am not smart enough to calculate the real rate but I know what I have to pay and I though it was quite a good deal

<{POST_SNAPBACK}>

Have to be careful though, if your name is not in the book then you have no legal right to the car. Even if your paying the finance.

I got financing from Mazda (50% deposit) without thai guarantor and my own name in the registration book. So it is possible

[Krub]

Interest rates is misleading. 11% over for 4 years, you need to annualize it to get the exact annual interest rates. Divided by 4 is not the right method.

Still cheap enough though.

<{POST_SNAPBACK}>

Hi I am not sure what you mean but as I pay 30% at delivery of car (350.000) the balance to be paid is 750.000 baht and Honda has said I will have to pay 17.368 per month for 48 months or 83.644 of interrest for the 4 years.

I am not smart enough to calculate the real rate but I know what I have to pay and I though it was quite a good deal

<{POST_SNAPBACK}>

Have to be careful though, if your name is not in the book then you have no legal right to the car. Even if your paying the finance.

I got financing from Mazda (50% deposit) without thai guarantor and my own name in the registration book. So it is possible

<{POST_SNAPBACK}>

I realize that the car is not in my name.

Did you have to show proof of employment or income ?

Can you name the finance company ?

Thanks

Edited December 19, 2005 by Krub

[moonoi]

Interest rates is misleading. 11% over for 4 years, you need to annualize it to get the exact annual interest rates. Divided by 4 is not the right method.

Still cheap enough though.

<{POST_SNAPBACK}>

Hi I am not sure what you mean but as I pay 30% at delivery of car (350.000) the balance to be paid is 750.000 baht and Honda has said I will have to pay 17.368 per month for 48 months or 83.644 of interrest for the 4 years.

I am not smart enough to calculate the real rate but I know what I have to pay and I though it was quite a good deal

<{POST_SNAPBACK}>

Have to be careful though, if your name is not in the book then you have no legal right to the car. Even if your paying the finance.

I got financing from Mazda (50% deposit) without thai guarantor and my own name in the registration book. So it is possible

<{POST_SNAPBACK}>

I realize that the car is not in my name.

Did you have to show proof of employment or income ?

Can you name the finance company ?

Thanks

<{POST_SNAPBACK}>

I showed my Work Permit and a letter from my company along with 6 monhs bank history and my latest payslip.

The finance company is GE Capital and after some negotiation I got the same interest rate as offered to thai nationals 2.9%...at first they wanted 3.25%

[Krub]

I showed my Work Permit and a letter from my company along with 6 monhs bank history and my latest payslip.

The finance company is GE Capital and after some negotiation I got the same interest rate as offered to thai nationals 2.9%...at first they wanted 3.25%

Very good indeed.

I do not have a work permit nor employment in LOS so that will be out for me.

Also at only 30% down payment and no proof of employment I think we got a good deal also from Honda. I take the risk of not having the car in my name but I will not get the responsibility in case it goes up the wall either....and maybe it will help in case of an accident not to have a farang owner....

Edited December 19, 2005 by Krub

[tom yum goong]

yeah, the interest is calculated on the total loan amount for the duration of the loan. so its not really 2.9% in the normal sense, but its still a good deal for Thailand.

[Tywais]

Thought I would supply some real numbers for the curious:

((83,664/750000) * 100) / 4 = 2.7888% per year at a flat rate (not amortized).

Using an amortization table: (interest calculated on remaining balance per month, normal practice in the US)

750000 @2.9% for 48 months the payment would be 16567.62/month which would be a toltal interest payment of 45245 baht over 4 years.

Still a good deal considering the difference using amortization vs flat is only 10,000 baht per year.

[Butterfly]

Thought I would supply some real numbers for the curious:

((83,664/750000) * 100) / 4 = 2.7888% per year at a flat rate (not amortized).

Using an amortization table: (interest calculated on remaining balance per month, normal practice in the US)

750000 @2.9% for 48 months the payment would be 16567.62/month which would be a toltal interest payment of 45245 baht over 4 years.

Still a good deal considering the difference using amortization vs flat is only 10,000 baht per year.

<{POST_SNAPBACK}>

45,242 vs 83,664 ?

That's double the interests !!!

[Tywais]

45,242 vs 83,664 ? 

That's double the interests !!!

You're right. I meant to add to the comment that the rate even unamortized is better then the average rate of 6-6.5% in the US amortized. Got rushed to send the reply due to work interfering with TV.

[Krub]

45,242 vs 83,664 ? 

That's double the interests !!!

<{POST_SNAPBACK}>

You're right. I meant to add to the comment that the rate even unamortized is better then the average rate of 6-6.5% in the US amortized. Got rushed to send the reply due to work interfering with TV.

<{POST_SNAPBACK}>

Yes I thought it was a good deal considering that the requirement was only 30% down payment and no proof of employment, salary slip or other form of guarantees except that the owner had to be Thai !

Quite an easy way to get consumer financing, it would not be as easy in my country even for a 'native'

[Butterfly]

Anyway, good to know. Is that true for all dealers ? did you go upfront and said you have no proof of employment or wait for the deal to go further before disclosing that you had no work permit here ?

[Krub]

Anyway, good to know. Is that true for all dealers ? did you go upfront and said you have no proof of employment or wait for the deal to go further before disclosing that you had no work permit here ?

<{POST_SNAPBACK}>

The financing details were only discussed AFTER we decided on the car, model, colour AND paid the 10.000 non refundable 'reservation' fee.

I first wanted to have the car registerred in my name (farang, no work permit, no emplyment in Thailand but Non-O 1 year + driving license and some funds in Bangkok Bank)

Pay 20% unpon delivery of the car and 4 years financing.

I was ready to provide a Thai guarantor.

They refused (gently) and came up finaly with the deal of :

Car registerred in name of Thai with no need for guarantee or guarantor but

30% upon delivery and 4 years financing

I don't know th elogic or the risk calculation but I am not complaining

I am not aware if this is a special case or of it is for all Honda dealers

The financing company is not Honda themselves

[Doi Thong]

Anyway, good to know. Is that true for all dealers ? did you go upfront and said you have no proof of employment or wait for the deal to go further before disclosing that you had no work permit here ?

<{POST_SNAPBACK}>

The financing details were only discussed AFTER we decided on the car, model, colour AND paid the 10.000 non refundable 'reservation' fee.

I first wanted to have the car registerred in my name (farang, no work permit, no emplyment in Thailand but Non-O 1 year + driving license and some funds in Bangkok Bank)

Pay 20% unpon delivery of the car and 4 years financing.

I was ready to provide a Thai guarantor.

They refused (gently) and came up finaly with the deal of :

Car registerred in name of Thai with no need for guarantee or guarantor but

30% upon delivery and 4 years financing

I don't know th elogic or the risk calculation but I am not complaining

I am not aware if this is a special case or of it is for all Honda dealers

The financing company is not Honda themselves

<{POST_SNAPBACK}>

That Thai person they provide? Or you?

[Krub]

Anyway, good to know. Is that true for all dealers ? did you go upfront and said you have no proof of employment or wait for the deal to go further before disclosing that you had no work permit here ?

<{POST_SNAPBACK}>

The financing details were only discussed AFTER we decided on the car, model, colour AND paid the 10.000 non refundable 'reservation' fee.

I first wanted to have the car registerred in my name (farang, no work permit, no emplyment in Thailand but Non-O 1 year + driving license and some funds in Bangkok Bank)

Pay 20% unpon delivery of the car and 4 years financing.

I was ready to provide a Thai guarantor.

They refused (gently) and came up finaly with the deal of :

Car registerred in name of Thai with no need for guarantee or guarantor but

30% upon delivery and 4 years financing

I don't know th elogic or the risk calculation but I am not complaining

I am not aware if this is a special case or of it is for all Honda dealers

The financing company is not Honda themselves

<{POST_SNAPBACK}>

That Thai person they provide? Or you?

<{POST_SNAPBACK}>

I provide.......