How best to purchase car for Thai wife

[1Ping1]

Little background info.

While married by Monk, paperwork not filed with courts as plan was to get finance immigration visa for wife and six yr old daughter and head to US. My wife loves her country though, I love it more each day and we are planning on spending 4-6 yrs here and then look at immigration again to US. I have lived in Thailand for two years.

How best to buy a new car with roughly 50% down is the first question. I have solid income so payments not a problem and in fact would work to pay off in roughly a yr but would want smaller payments so 4-5 yr financing if possible. I truly need sage guidance as not at all clear on how this works. Dealers finance or go through bank as only option?. I do have an SCB savings account for what it is worth. Balance is always low though as let wife handle all living expenses, I only pull enough money into account each month to stay afloat as not real trusting of non insured thai bankis and felt it best to build up solid history in her account and was not thinking about mine.

Second question, can I put the car in wifes name. Reason I ask this and please tear me up if warranted but I am a bit concerned about having it in my name. I have read stories about a car being in farongs name and when wife wrecks car and hurts someone they can come after me as the registered owner of car and will do so if they know owner is farong and think he has money. I trust my wife with my money, I am of the "only invest what in Thailand you can afford to lose" group or mindset also though. Is this something that I should worry about. Has anyone heard of this happening where car was in farongs name and wife or GF got in wreck and hurt someone and they came after the legal owner of the car, the farong for damages and compensation? Or am I being paraniod and can go ahead and simply finance it in my name and not worry.,

I do not plan on driving the car other than minimal and away from city traffic. We also though with six year old daughter truly need the car for my wife taking our daughter to school. While I am not biological father they is 100% my daughter in my mind. The thought of them going to school on motorscooter is driving me nuts.

All advice, guidance is greatly appreciated.

[benalibina]

Insurance will cover any accidents and consequenses of it. What you write about coming after foreigners seems nonsense. In touristlocations it might be though. Again just have a good insurance. The motorbike thing will go happen, how hard you you try to avoid it. Seen it, tried to avoid it and, only once though, had to do it. So have no illusions about that !

Edited July 31, 2013 by benalibina

[Upnotover]

If you buy a car on finance it is in the finance co.'s name not yours, so that is not an issue, you can register it in either name at the end of the finance and pay no attention to those scare-stories you've been hearing.

Getting the finance is more of an issue. I bought a car on finance 7 years ago and as a foreigner had to put down 50% minimum, although so that would seem to suit you anyway. My then girlfriend had to stand as guarantor on the loan even though she had no significant income. To be honest the finance companies seem to be very able to find ways to lend money pretty easily, they don't want to miss out on business.

[bonobo]

Off-topic, but as you ahve a 6-year-old, look into the regulations as far as US residency for her for her to qualify for social security and such. I have a friend who has a two-year-old (he's 74 now), and he took his family back to Texas with a plan on staying there five years so his daughter qualifies for benefits. To be honest, I didn't catch all of the benefits, but I think it was primarily social security. Given his age, I think that is pretty prudent planning.

[Gsxrnz]

If you buy a car on finance it is in the finance co.'s name not yours, so that is not an issue, you can register it in either name at the end of the finance and pay no attention to those scare-stories you've been hearing.

Getting the finance is more of an issue. I bought a car on finance 7 years ago and as a foreigner had to put down 50% minimum, although so that would seem to suit you anyway. My then girlfriend had to stand as guarantor on the loan even though she had no significant income. To be honest the finance companies seem to be very able to find ways to lend money pretty easily, they don't want to miss out on business.

Same experience but only put 33% down and 36 months to pay. They wanted 50% but I said no, will only give 1/3. They asked to see my bank passbook which had several million baht coming through over the prior 12 months so they were happy with that. The then GF (now wife) had to guarantee.

Mind you, the interest rate is nothing short of rape, but the cashflow suited me at the time. I actually didn't know if I was going to stay "forever", so would have been happy to walk away from a truck that I'd only paid a 1/3 deposit and maybe a few instalments on. Still here and only a couple more payments to make.

Get top level A grade insurance and no worries. "They'll come after you" is utter nonsense. I've had one minor and one major ding and no problems with insurance, the repairers, the BIB, or the other parties. No injuries involved, so it might have been a different situation re compensation etc.

[Gsxrnz]

If you buy a car on finance it is in the finance co.'s name not yours, so that is not an issue, you can register it in either name at the end of the finance and pay no attention to those scare-stories you've been hearing.

Getting the finance is more of an issue. I bought a car on finance 7 years ago and as a foreigner had to put down 50% minimum, although so that would seem to suit you anyway. My then girlfriend had to stand as guarantor on the loan even though she had no significant income. To be honest the finance companies seem to be very able to find ways to lend money pretty easily, they don't want to miss out on business.

Same experience but only put 33% down and 36 months to pay. They wanted 50% but I said no, will only give 1/3. They asked to see my bank passbook which had several million baht coming through over the prior 12 months so they were happy with that. The then GF (now wife) had to guarantee.

Mind you, the interest rate is nothing short of rape, but the cashflow suited me at the time. I actually didn't know if I was going to stay "forever", so would have been happy to walk away from a truck that I'd only paid a 1/3 deposit and maybe a few instalments on. Still here and only a couple more payments to make.

Get top level A grade insurance and no worries. "They'll come after you" is utter nonsense. I've had one minor and one major ding and no problems with insurance, the repairers, the BIB, or the other parties. No injuries involved, so it might have been a different situation re compensation etc.

[1Ping1]

Thanks so far and please keep it coming with others advice if possible. Does ease my mind about putting car in my name. Also, yes, do plan on putting 50% down. Does anyone have a feel for what bank is best and what rates they can try and rape me for. As one noted, cashflow on monthly basis is what payment comes down to but still nice to get a decent rate if possible.

Comments about SS benefits also great input. That is exactly why we planned on and still do plan on getting married in states long before I turn 65. I am 55 now. In US you must be married at the time you reach "full retirement age", for a period of three months prior to reaching full retirement age for wife and, or kids to get benefits. I absolutely plan on ensuring that happens. If I was to die while she still a minor or in college she can benefits along with my spouse who deserves and would get them for life once she reaches retirement age. For the minor or student, benefits begin immediately once properly applied for. (I think)

Also appreciate reality check on scooter. Promise I agree with you 100%. Fact is that I also once, within two weeks or arriving in Thailand, and having driven "real" motorcycles for 45 years, flippen drove a 125cc scooter off a cliff and ended up with five ribs broke in seven places, left clavicle and shoulder plus a few fingers. All i all a lesson well learned, I drive only minimally, pray for my wife each day and keep saving for the car. Thanks Again, as you stated, its not a matter of if but of when.

[theoldgit]

I purchased a car in my name using finance, absolutely no problem, paid a deposit of 33% and paid the balance over 48 months.

My rate was pretty low though I was charged 7% VAT on the total repayment every month, so I was effectively paying a further 7% VAT on the financed portion of my car.

The cars blue book was in my name from day one, though the finance company retained it until the finance was cleared.

[Nana Cowboy]

Off-topic, but as you ahve a 6-year-old, look into the regulations as far as US residency for her for her to qualify for social security and such. I have a friend who has a two-year-old (he's 74 now), and he took his family back to Texas with a plan on staying there five years so his daughter qualifies for benefits. To be honest, I didn't catch all of the benefits, but I think it was primarily social security. Given his age, I think that is pretty prudent planning.

It's her kid is it not? Thus no SS bennies. only if it were his kid

[Crossy]

If buying new do have a look at the dealer / manufacturer finance packages.

We got 30% down and 4 years interest free on our Ranger (about 6 years ago mind).

[Issangeorge]

Two and a half years ago I bought my wife a Mazda 2. Paid a fair bit down, I'm not sure the percentage, and financed it over 36 months. The interest through Mazda was only 1.9%.

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[rak sa_ngop]

I am not sure how car financing works in Thailand but in Malaysia I agreed to a certain interest rate for a certain number of months. As I paid back the loan, the monthly payments stayed the same, i.e. as the loan decreased I was still paying interest on the original loan amount. So the true annual interest rate was effectively far higher than the quoted rate.

Best to be fully aware of exactly what the loan conditions are and what the true annual interest rate is, not just the attractive quoted rate.

[IMHO]

Based on everything you've said - 50% down & monthly salary in wife's name, your wife should be able to get finance all by herself. Indeed, if not legally married, you're needn't be involved - it'll just make it all harder.

[guzzi850m2]

Have all the vehicles in my wife's name, 1 truck and 2 scooters. Okay we are married at city hall and we also have one child together.

I had a Harley once and it was in my name, no way my wife can/could ride that baby (325 kg dry), lol.

I am not scared of riding bikes here, as a matter of fact I love it but sold my HD shortly after my son was born, no more touring trips on it when he came along.

Riding scooters every day here, impossible to park the truck downtown Pattaya unless you go to a big shopping center.

Class A is a must on cars/trucks, they will take care of all legal matters if the shit hits the fan, never heard of anybody that had to pay big $ in compensation if they are covered and off-course not drunk/high when driving.

We got 50% finance on the truck, my wife don't have any income but the lender rep. came and took photos of the house, can remember the %, it's a 36 month loan.

[Gsxrnz]

I am not sure how car financing works in Thailand but in Malaysia I agreed to a certain interest rate for a certain number of months. As I paid back the loan, the monthly payments stayed the same, i.e. as the loan decreased I was still paying interest on the original loan amount. So the true annual interest rate was effectively far higher than the quoted rate.

Best to be fully aware of exactly what the loan conditions are and what the true annual interest rate is, not just the attractive quoted rate.

Same in Thailand if from a dealer or finance company, basically it's Hire Purchase. May be a reducing type (amortised) loan if from a bank but I doubt it, unless you raise the loan against a house and have a reducing or table mortgage.

HP is Rule of 78. Interest is paid on a reducing proportion over the life of the loan, rather than amortising the principle.. The first payment is basically 98% interest. The last payment is 98% principal. This means that there is no incentive to pay off the loan early as their is no benefit to you.

[1Ping1]

Thanks all.

Crossy and others....... So you can get dealer financing at dealerships??? I did no know this. Anyone buy Honda or Toyota this way w 50% down??

Also, I keep reading Thai wife, even though no income can co sign?? She does. Can show significant funds into her account over past two years each month but again, not yet "legally" married. Sounds like from some no problem??

As for daughter. Appreciate advice and concern. Once married though in states think all good w ssa as long as I dot my I's and cross my T's.

What is a good solid insurance company to go with. In perfect world. I would go w dealer finance at decent interest rate and milk out for 3-4 years while planning to pay of much sooner.

Also, still not clear on wife, (not recorded) as co signer. Several have stated no problem. For the record I give her roughly 60k each month. Have for two yrs. Bank records as proof. I roughly then bring in the same to los using atms each month. Is this the documentation lenders are looking for? Will they then still want, need her to co sign?

Greatly appreciate help guys.

Thanks again

[guzzi850m2]

You can rest assured that the dealer (if they approve the financing) that they will get a good insurance company for you, they want their money back if the car is totaled/stolen

Our truck class A insurance actually gives my wife a health insurance thrown on top "for free", 1000 bath pr day in doctors/hospitals fees. Tested yesterday at a private hospital when my wife was sick, we paid nothing of the bill of total 700 baht (hmm I wonder if the insurance will go up next year, he-he).

[Neeranam]

I purchased a car in my name using finance, absolutely no problem, paid a deposit of 33% and paid the balance over 48 months.

My rate was pretty low though I was charged 7% VAT on the total repayment every month, so I was effectively paying a further 7% VAT on the financed portion of my car.

The cars blue book was in my name from day one, though the finance company retained it until the finance was cleared.

I think the finance company always keep the blue book but could be wrong.

I only paid a down payment of 13%.

[misterphil]

From the figures and information you have provided you will have no problem getting the car in your wifes name and her getting the finance. We had similar statistics and Toyota gave us the finance from Toyota leasing. 30% down and my then girlfriend now wife had approx. 30,000 baht a month in her account for over 2 years. I had to stand as guarantor for her loan and had to show my Kasikorn bank book, which had several million baht through it in the last 4 years. They did however ask to see our driving licences at the time of signing for the finance. Both our licences are Thai. Interest is 2.5% over 5 years. Free full insurance was provided along with a load of crap free accessories, if I bought a new car again I would ask for 20,000 discount and buy the accessories myself from somewhere else. Vigo came with a cheap bed liner and not the Toyota one as described in the accessories catalogue. Free floor mats were crap and not worth 10 baht, free window tint I can't see out of in the dark, and when its raining at night forget it, cars not driveable. Free chrome effect door handle covers fell off. Had to refit them with good quality 3M double sided tape.

[1Ping1]

Thanks all. Greatly appreciate sage. Solid advice and info. I guess I'm off car shopping after gathering required info. FYI, did visit both Honda and Toyota dealerships yesterday. "Both" sales girls said first "no way" must have work permit. Politely kept explaining retired and got them to call finance dept. Now gathering info to meet w both.

Thanks again for great info

[misterphil]

Did you get the car you wanted?

[Nowhereman60]

When we purchase my new truck I put it in my wife's name and also the financing. This is because I am older and if something happen to me it would be hard to transfer the title to her name, but she would still have the financing to worry about. This is something to consider when making your purchase.

[jbrain]

I purchased a car in my name using finance, absolutely no problem, paid a deposit of 33% and paid the balance over 48 months.

My rate was pretty low though I was charged 7% VAT on the total repayment every month, so I was effectively paying a further 7% VAT on the financed portion of my car.

The cars blue book was in my name from day one, though the finance company retained it until the finance was cleared.

I guess that concerns a used car, or not ?

I financed a new car and as far as I'm am aware there is no extra vat charge.

[theoldgit]

I purchased a car in my name using finance, absolutely no problem, paid a deposit of 33% and paid the balance over 48 months.

My rate was pretty low though I was charged 7% VAT on the total repayment every month, so I was effectively paying a further 7% VAT on the financed portion of my car.

The cars blue book was in my name from day one, though the finance company retained it until the finance was cleared.

I guess that concerns a used car, or not ?

I financed a new car and as far as I'm am aware there is no extra vat charge.

No, it was a new car. I don't recall if there was any VAT on the cost of the car but on the financed balance I was charged VAT, when I received the monthly payment advice there was 7% added, I think the repayments were in the region of 10,000 Baht so another 700 Baht on top, 33,600 over the duration of the loan.

I

[1Ping1]

Thanks for posts and info. I'm still working on it. all great info, advice greatly appreciated.

Wanted to get in wife's name but appears will be in mine w her as co signer? Still not clear on why.

Plan is 50% down, roughly a month out on saving this amount, then finance at dealership thru lender. Met w several, gathering required documentation now pre emptive of meeting w lender.

Thanks Again. I will let you know how it plays out and thanks again for all the guideance and help.

[billd766]

I bought a Ford Ranger back in 2002 with 50% deposit over 4 years through the Ford dealer on Sukhumvit 62 in Bangkok.

My wife's boss was the co-signer.

It was registered in my name but the finance company kept the book, arranged the insurance and tax every year.

When it was paid off I sold it to my wife for 10 baht which she STILL hasn't given me.

[jbrain]

I purchased a car in my name using finance, absolutely no problem, paid a deposit of 33% and paid the balance over 48 months.

My rate was pretty low though I was charged 7% VAT on the total repayment every month, so I was effectively paying a further 7% VAT on the financed portion of my car.

The cars blue book was in my name from day one, though the finance company retained it until the finance was cleared.

I guess that concerns a used car, or not ?

I financed a new car and as far as I'm am aware there is no extra vat charge.

No, it was a new car. I don't recall if there was any VAT on the cost of the car but on the financed balance I was charged VAT, when I received the monthly payment advice there was 7% added, I think the repayments were in the region of 10,000 Baht so another 700 Baht on top, 33,600 over the duration of the loan.

I

You need to take a closer look.

When you buy a new car, there is no VAT mentioned on the invoice, but the leasing company first subtracts the VAT out of the price then adds it again.

For example if you have to pay 2% on a 100.000 Bht amount over 12 months it will look like total 102.000/12 =8500 Bht/month , but the leasing company will invoice it a s 95.327 + 6.673 = 102.000 Bht.

Also take note that if you have a finance of lets say 2% over 48 months, it mean that the total interest you will pay is 2% on the total amount multiplied by 4 ( years )

Edited August 12, 2013 by jbrain