Foreigner Financing A New Bike Purchase Through Dealer?

[Harley62]

Please forgive me if this has been covered before, but I'm considering buying a new motorbike (small, 115-150cc range) and am wondering if it's even possible in LOS for a foreigner to arrange a monthly payment plan / financing through a Dealer...

I DO have a Thai work visa and work permit, but I don't know if the bike can be purchased in my name or MUST be in the name of a Thai person (in my case, my Thai girlfriend could do this).

She doesn't seem to know the answer either....this would happen in the Phuket area in the coming week or two.

So, if anybody has previous experience in this, or suggestions how to facilitate this, I'd be most grateful!

Also, what are the common rates of interest over a one year period? If the amount is significanty higher to pay off the bike over a year, then better to either pay cash, or look for a 2nd hand bike I suppose.....

Thanks!

HMB

P.S. My GF claims that even IF we put the bike purchase in her name (and put down 50% of the purchase price), she has to have a "local" Thai sign some type of assurance for her...due to the fact that she's not from Phuket?

[Yme]

Was told recently by a Yamaha dealer that as long as I had a WP it wasn't a problem. Check the interest rate. Don't register it in another person's name. It isn't necessary

[chris2004]

I think it has to be in the thai's name. I did this with my tgf and got 6 months interest free with 50% deposit. Wasn't really worth all the fuss though. If you get 2 year finance the interest is VERY high, like 2% per month. You end up paying 50% more for the bike. Best just to pay cash.

[thaicbr]

I think it has to be in the thai's name. I did this with my tgf and got 6 months interest free with 50% deposit. Wasn't really worth all the fuss though. If you get 2 year finance the interest is VERY high, like 2% per month. You end up paying 50% more for the bike. Best just to pay cash.

It really depends on the dealer. My Bike finance is in my name with the Gf as guarantee. 1.5% per month so not so bad about 20.000b interest over 2 years on 109thou.

sent from my Wellcom A90+

[SumetCycle]

It shouldn't be a problem, as long as you have a work permit. You can also have it in your name. Expect between 1.6% to 2.0% interest per month for a new bike and as much as 3.0% for second hand though. It is still possible to get financing without a Thai guarantor, but expect a higher down payment. Best of luck.

Brian

[pauljones]

At those rates, why not put the purchase on a credit card?

[SumetCycle]

At those rates, why not put the purchase on a credit card?

Probably wouldn't be a bad idea. In the U.S. you get a better rate because it is usually amortized, but here vehicle financing is done using a simple interest calculation. Personal loans here do use an amortized rate though. While the rates are high, they are the the same for Thais or foreigners.

[robsamui]

At those rates, why not put the purchase on a credit card?

Probably wouldn't be a bad idea. In the U.S. you get a better rate because it is usually amortized, but here vehicle financing is done using a simple interest calculation. Personal loans here do use an amortized rate though. While the rates are high, they are the the same for Thais or foreigners.

yes, the Thai repayments are on a flat rate per month over whatever set time period. Plus there is the (your!) inability to be able to pay off the loan early. If you decide you want to pay more each month or come into some money, you'll still pay the calculated and agreed interest in full, with no concession for early closure.

To get an idea, have a look here:

http://www.motorcycl...cycle_Financing

R

Edited September 25, 2012 by robsamui

[thaicbr]

At those rates, why not put the purchase on a credit card?

Probably wouldn't be a bad idea. In the U.S. you get a better rate because it is usually amortized, but here vehicle financing is done using a simple interest calculation. Personal loans here do use an amortized rate though. While the rates are high, they are the the same for Thais or foreigners.

yes, the Thai repayments are on a flat rate per month over whatever set time period. Plus there is the (your!) inability to be able to pay off the loan early. If you decide you want to pay more each month or come into some money, you'll still pay the calculated and agreed interest in full, with no concession for early closure.

To get an idea, have a look here:

http://www.motorcycl...cycle_Financing

R

Again it depends on the dealer.. some will actually calculate an interest discount if you pay ...say a 2 year loan at the end of the 1st year.. but you need to ask BEFORE you get the loan.

[Nebula]

It depends on the financing company if u can pay earlier or not, which I doubt is possible in most cases. And dealers prefer customers to finance since they get their money and a bonus. I did one bike with finance, and after that I decided no more!!! The reasons are yes the interest and yes even if u pay earlier they calculate all for the rest of the time. The second time I just used card and cash together. There was 3 % charge for the card. First time I needed a guarantor, and of course it was on my name. There was never option to be on someone else's name neither was offered this way. Before I buy the second time, I asked how much down I need to pay if I dont want a guarantor. So the sales man ( was at the expo in Central world) , Tanachart company, said that it is 35 % down. Later at the Honda shop, I was told the same, but I dont remember Tanachart or was the other company financing company (starting with T too, forgot the name), anyway I m sure is for both- 35 % down and no guarantor.

[karlos]

Yeah, i agree with 'small bike finance is a rip-off!'

Just over a year ago, i was planning to buy a Mio125 (48,000Baht)

After the dealership did all the calculations and told me i would be paying 70,000Baht over the course of a year, i took the money from my pocket and slapped it on the desk.

They looked a little shocked and somewhat pissed off, as they wouldn't be getting any commission from the finance company.

Half of that money i slapped down was going to be part of a downpayment on a larger bike after having just sold my NC30, but i thought i could wait a little longer for the bigger bike happy in the knowledge that i'm not paying near half the value of the Mio in interest over the course of 12months. Day light bloody robbery!!

[yankee99]

At those rates, why not put the purchase on a credit card?

Probably wouldn't be a bad idea. In the U.S. you get a better rate because it is usually amortized, but here vehicle financing is done using a simple interest calculation. Personal loans here do use an amortized rate though. While the rates are high, they are the the same for Thais or foreigners.

I think you are slightly mistaken....In the us simple interest is interest calculated only on the outstanding principle. http://en.wikipedia.org/wiki/Interest

Edited September 25, 2012 by yankee99

[yankee99]

I think it has to be in the thai's name. I did this with my tgf and got 6 months interest free with 50% deposit. Wasn't really worth all the fuss though. If you get 2 year finance the interest is VERY high, like 2% per month. You end up paying 50% more for the bike. Best just to pay cash.

It really depends on the dealer. My Bike finance is in my name with the Gf as guarantee. 1.5% per month so not so bad about 20.000b interest over 2 years on 109thou.

sent from my Wellcom A90+

18% a year at the way you imply they are calculating is OTT. It sounds like 36% if you have a two year note.....Basically borrow 200k pay back 272k.....no bike in the world worth that vig! imho......this is not simple interest it is loan sharking....

Does anyone know if the banks lending on new cars work like this?

[TramsRepus]

A friend of mine tried to get finance on a Kawasaki Versys 650 few month ago. He have had his WP for like 8 years and makes a good salary. But he did not succeed to get finance other then with a Thai guarantor.

[SumetCycle]

At those rates, why not put the purchase on a credit card?

Probably wouldn't be a bad idea. In the U.S. you get a better rate because it is usually amortized, but here vehicle financing is done using a simple interest calculation. Personal loans here do use an amortized rate though. While the rates are high, they are the the same for Thais or foreigners.

I think you are slightly mistaken....In the us simple interest is interest calculated only on the outstanding principle. http://en.wikipedia.org/wiki/Interest

Perhaps, but here in Thailand simple interest is calculated only on the principle amount. This is only for small bikes. I believe they do it differently for cars and big bikes.

[SumetCycle]

Simple interest formula v. Amortization formula

http://online.morainevalley.edu/websupported/jsukta/handouts/simple_interest_car_loan.htm

[yankee99]

Simple interest formula v. Amortization formula

http://online.morainevalley.edu/websupported/jsukta/handouts/simple_interest_car_loan.htm

Honestly i think you are giving incorrect information ...

instead of this " simple interest formula v. Amortization formula" it should be the "future value simple interest v. Amotization formula"

same as the chrysler financial which is simple interest based on outstanding principal.

I do agree that this is something that might happen here in thailand but reputable lenders in the usa dont do this..if they do lend like this the loan would be "rule of 78"

No one should borrow money with the interest loaded up front..

.

[McMagus]

If you have a job, WP etc, I would just be buying the dam_n thing outright. Not too keen on putting the ownership into gf name.

[thaicbr]

Simple interest formula v. Amortization formula

http://online.morain...st_car_loan.htm

Honestly i think you are giving incorrect information ...

instead of this " simple interest formula v. Amortization formula" it should be the "future value simple interest v. Amotization formula"

same as the chrysler financial which is simple interest based on outstanding principal.

I do agree that this is something that might happen here in thailand but reputable lenders in the usa dont do this..if they do lend like this the loan would be "rule of 78"

No one should borrow money with the interest loaded up front..

.

That's how they do it here in Thailand.. forget the American way or the British way.. This is Thailand and this is how they do it on loans.. the interest is charged on a monthly/ yearly rate applied to the loan for each year of the loan. AT the beginning.

So a 100,000b loan with 10% per year would have 10,000b added for each year of the loan. a 3 year loan would then be 130,000b divided by 36 months = 3611b per month. nice and simple.

If you pay off early SOME companies rebate a proportion of the interest outstanding (eg if a 3 year loan is paid off in 2 years you may get the 3rd years interest back ,or proportion of)

That's how its done.

Edited September 26, 2012 by thaicbr

[blackpanda]

When I bought my bike, a CBR 150r it cost me 85k after I financed it. it came out to be 104k. 19k for a year. Is about 20% more for financing the bike.

The bike was bought in my name with my girlfriends mom co signature and all I needed was my work permit and passport. The bike is in my name and is paid off now.

Edited September 26, 2012 by blackpanda

[SumetCycle]

Simple interest formula v. Amortization formula

http://online.morain...st_car_loan.htm

Honestly i think you are giving incorrect information ...

instead of this " simple interest formula v. Amortization formula" it should be the "future value simple interest v. Amotization formula"

same as the chrysler financial which is simple interest based on outstanding principal.

I do agree that this is something that might happen here in thailand but reputable lenders in the usa dont do this..if they do lend like this the loan would be "rule of 78"

No one should borrow money with the interest loaded up front..

.

Thought it was an interesting article, that's all. Sorry, if I wasn't clear. OK, "future value simple interest". Regardless, here in Thailand simple interest is calculated only on the principle amount. Fair or not, that's the way it happens to be here.

[Polanskiman]

If you have the cash it's better to purchase the good full. Any credit will make you pay more eventually. Now that this has been said, of course IT IS possible to purchase a bike/car under your name, credit or not. If purchased by credit, the credit company will require a Thai guarantor, but that has nothing to do with the ownership. Just a note though, if you purchase the bike with a credit, the bike wont be legally yours until you finish paying it. It will be the ownership of the credit company and you wont have the famous green book before the last payment.