Does Anyone Offer No Income Loan Against Auto License?

[BuddhistDruid]

I am a short term cash flow problem and would like to know if there is any company that will do a loan against auto license for cash without requiring income? The car is in my name but my Thai wife would guarantee. I only need about 100,000 baht on a car worth about 350,000.

I need the loan for approximately 3 to 6 months, and I need to continue being able to operate the car during the loan period.

Does anyone know of a legitimate company that will do something like this? I understand that the interest rate will be stratospheric.

Thank you for any information.

[anon210]

Did you try talking to your bank, using the car as collateral for the loan?

You would obviously have to transfer them the car registration as security for the duration of the loan. I take it that is what you mean when talking of "auto license".

Furthermore, your 350 K car is probably worth at most 200 K when resold, margin of the dealer taken out.

[gregb]

Did you try talking to your bank, using the car as collateral for the loan?

You would obviously have to transfer them the car registration as security for the duration of the loan. I take it that is what you mean when talking of "auto license".

Furthermore, your 350 K car is probably worth at most 200 K when resold, margin of the dealer taken out.

"Loan against auto license" means they don't transfer title unless the loan defaults, thus no VAT due on the transfer. That is the kind of loan I am looking for. I do not want a hire purchase loan. I'll take 60,000 baht if that is all I can get it. The point is I can not show proof of income, so need a legitimate company who deals routinely with these types of loans and can gauge the risk properly.

[yankee99]

Did you try talking to your bank, using the car as collateral for the loan?

You would obviously have to transfer them the car registration as security for the duration of the loan. I take it that is what you mean when talking of "auto license".

Furthermore, your 350 K car is probably worth at most 200 K when resold, margin of the dealer taken out.

"Loan against auto license" means they don't transfer title unless the loan defaults, thus no VAT due on the transfer. That is the kind of loan I am looking for. I do not want a hire purchase loan. I'll take 60,000 baht if that is all I can get it. The point is I can not show proof of income, so need a legitimate company who deals routinely with these types of loans and can gauge the risk properly.

Sounds like you want the loan with no collateral? Keep the car and the title this could be dangerous borrowing from the wrong person. look in the buy and sell section of the big pattaya forum. not secrets but addicts there is a ad offering this type of loan

[anon210]

Did you try talking to your bank, using the car as collateral for the loan?

You would obviously have to transfer them the car registration as security for the duration of the loan. I take it that is what you mean when talking of "auto license".

Furthermore, your 350 K car is probably worth at most 200 K when resold, margin of the dealer taken out.

"Loan against auto license" means they don't transfer title unless the loan defaults, thus no VAT due on the transfer. That is the kind of loan I am looking for. I do not want a hire purchase loan. I'll take 60,000 baht if that is all I can get it. The point is I can not show proof of income, so need a legitimate company who deals routinely with these types of loans and can gauge the risk properly.

It is not to us that you have to answer that, but if you have no legitimate income, just an old car and do not want to transfer title to the lender, what guarantee has this lender that you would repay and why, oh why, would they ever agree to lend you any money at all? At least when talking of a legitimate company.

No income = no way to repay in the eyes of a bank, unless a Thai citizen with a stable income stands as guarantor.

[gregb]

Did you try talking to your bank, using the car as collateral for the loan?

You would obviously have to transfer them the car registration as security for the duration of the loan. I take it that is what you mean when talking of "auto license".

Furthermore, your 350 K car is probably worth at most 200 K when resold, margin of the dealer taken out.

"Loan against auto license" means they don't transfer title unless the loan defaults, thus no VAT due on the transfer. That is the kind of loan I am looking for. I do not want a hire purchase loan. I'll take 60,000 baht if that is all I can get it. The point is I can not show proof of income, so need a legitimate company who deals routinely with these types of loans and can gauge the risk properly.

It is not to us that you have to answer that, but if you have no legitimate income, just an old car and do not want to transfer title to the lender, what guarantee has this lender that you would repay and why, oh why, would they ever agree to lend you any money at all? At least when talking of a legitimate company.

No income = no way to repay in the eyes of a bank, unless a Thai citizen with a stable income stands as guarantor.

I think you misunderstand what I am saying. A "loan against auto license" does give the lender recourse to repossess the car. It simply does not happen until the loan defaults. It is not as easy for the lender as a hire purchase loan where the title is transferred at the beginning of the loan (and thus incurs VAT), but the lender still has recourse via collection and the courts.

It is not an unsecured loan.

I am looking for a legitimate company that is willing to do this. Most banks, such as TISCO, offer these types of loans, generally at up to 70% of the car's value. But I have difficulty qualifying as I have no current income. So I am looking for a company that specializes in doing this for high risk loans at a lesser valuation vs. what TISCO would lend.

[stevenl]

I think you misunderstand what I am saying. A "loan against auto license" does give the lender recourse to repossess the car. It simply does not happen until the loan defaults. It is not as easy for the lender as a hire purchase loan where the title is transferred at the beginning of the loan (and thus incurs VAT), but the lender still has recourse via collection and the courts.

It is not an unsecured loan.

I am looking for a legitimate company that is willing to do this. Most banks, such as TISCO, offer these types of loans, generally at up to 70% of the car's value. But I have difficulty qualifying as I have no current income. So I am looking for a company that specializes in doing this for high risk loans at a lesser valuation vs. what TISCO would lend.

Wait, recourse via collection and courts. Collection based on what? Seems to me the only option would be the courts, which would take only about 3 years here, by which time your car can have been sold three times already.

Having said that, I know there are quite a few 'companies' that will loan this to you. You'll have to give them the book, and if you're lucky the interest charged is 5% per month. And those sharks you will find all over the country.