Car Payments / Default / repossession

[spacemand]

I had a local guy come asking me for help he has not been able to make payments on his car for the last 1 1/2 month because of the floods and what ever, so he missed 2 payments, 15th of Sep and 15th of Oct.

Car company claims he have missed 3 monthly payments so they can come and take the car away from him and he has 15 months left on a 6 year finance deal paid on time every month and I have seen the receipts from him paying every month except from Sep and Oct.

My questions are:

Can the car company reposes the car without going to court first?

I have seen the receipts so I know he is only 1 1/2 month behind what are his options?

What is the law regarding repossessing a car in Thailand?

He is a good honest hard working guy thats about to be screwed over and I want to help because its just ain't right

[IMHO]

Can the car company reposes the car without going to court first?

Yes.

I have seen the receipts so I know he is only 1 1/2 month behind what are his options?

Pay the overdue amount - they aren't going to repossess it if he isn't in arrears.

What is the law regarding repossessing a car in Thailand?

Less about the law, more about the contract.

Most hire purchase contracts don't specify how much you need to be overdue before what actions are taken - as soon as you are overdue, you are in breach of contract. The reality is, they will tolerate one payment being a couple of weeks late, so long as you make a promise to pay and keep it. Once you are two payments in arrears they will start getting a lot more serious and your friend will have a bad credit rating for life, at 3 missed payments it's game over.

If he's had a good payment record up to now he should be able to talk to them and get special consideration, but 3 missed payments is just too much.

Two points to bear in mind here:

1. The finance company doesn't want his car, they want their money.

2. If he's indeed only 2 payments late, what they are doing is a last effort to scare him into paying. They don't actually make an appointment to repossess your car, or give you any indication of when they might be coming for it.

Bottom line, he needs to pay, or sell the car and pay that way. They're aren't' screwing him over...... By definition hire-purchase makes it their car, not his, until it's fully paid off.

Edited October 29, 2013 by IMHO

[tom21]

tell him to hide the car till he gets the repayments up to date. at least that what my gf brother does and it seems to work.

[jingjoke]

^#1 '...not been able to make payments on his car for the last 1 1/2 month because of the floods and what ever, so he missed 2 payments, 15th of Sep and 15th of Oct. Car company claims he have missed 3 monthly payments....'

Your friend should still have the cash he could not pay in Sep/Oct.

Three months (plus) owed, and ought to be paid / should have been paid pronto...like via internet bank transfer.

He is Thai and Thais fully understand the rules concerning finance company loans even though they may feign ignorance; almost every village has a 'lender of last resort', albeit expensive. Borrowing from the village loan shark may be a better obtion than losing his car at this stage in the loan. He seems to be his own worse friend. Good luck to both of you.