Thai guarantor for car finance... their rights?

[chrisdouglas123]

hi,

im about to buy a new ford ranger, but of course i need a thai guarantor!

my question is, what rights will this person have? the trucks blue book/ownership will be in my name paid for by me, but can the thai guarantor change the finance plan or cancel it at any point? any control over me wanting to sell it?

thanks

[ukrules]

You don't need a guarantor, what you need is a load of money to buy it outright.

You won't be able to sell it easily, it will be registered in the name of the finance company until it's completely paid for from what I understand.

[bkkjames]

My understanding (correct me if I am wrong) is the guarantor is only responsible for the loan should you fail to meet your commitments.

[wprime]

They have the right to get a bunch of motorcycle taxi drivers to talk with you if you go behind on payments.

[samran]

Ford? Doesn't ford have lousy resale value in Thailand?

[geronimo]

They can do nothing to you, unless you default in payment. Then they become liable and will be pursued through legal channels by the finance company to recover the money.

[Soutpeel]

the trucks blue book/ownership will be in my name paid for by me

Not until you have paid off the loan it wont be, and once the loan is paid the guarantor's function is complete ant way

Typically a guarantor has no input into anything, unless you default on the loan, and the finance company/bank is chasing someone for their money

[geronimo]

One more thing,

the truck will not be in your name until you finish paying for it. Until then, it is owned by the finance company.

[Crossy]

One more thing,

the truck will not be in your name until you finish paying for it. Until then, it is owned by the finance company.

Indeed, so forget any ideas of taking it out of the country (Ford finance wouldn't let us take our their truck to Malaysia).

In 7 years and 140,000km our Ranger has had (apart from normal service consumables);-

Aircon compressor

Prop centre bearing and spiders (twice) - a known issue

Flywheel (dual mass, 15,000 Baht) - in dock now for that (and its first new clutch).

That said, it's never actually stopped on us (famous last words I expect).

[chris2004]

Always better, if you can, to get a bank loan for the money then buy the car outright. Then it's yours from day one.

[ATF]

They can do nothing to you, unless you default in payment. Then they become liable and will be pursued through legal channels by the finance company to recover the money.

NEVER BE A GUARANTOR! I was a guarantor for my best friend who I knew would keep up the payments, which he did. Until 2 years into the contract when he had a heart attack at a very young age and died. The finance company TANACHART (READ BAS#$%DS FROM HELL) told me if I continue the payments everything would be fine. Which I did in addition to paying his family a generous amount for the car. So I sold my car made all the payments and it took me 4 years after that to get the blue book put in my name. Tanachart would only sign the car over on a court order which had to come from the UK before it was accepted in Thailand and then tons of c#$p on top. They have this clause in their contract. So never be a guarantor you will have 100% responsibility and zero rights to the property.

[salty14]

I recently approached Mazda and asked them what the situation was for a farang to get finance.. I ended up getting the bank manager to come in so I could talk directly to her.. She wanted 40% deposit, 6 months in advance payments, 3 months payslips and bank statements from both my Australian and Thai banks.. And a Thai guarantor to which my girlfriend would suffice.. Albeit after she provided them a copy of her chanood on their home and bank statements.

My question is who's name appears on the ownership papers?? From what I'm reading here it is the finance company.. What I want to be sure of is that it isn't the guarantor.. As other people have stated and is my understanding outside of Thailand, the guarantor have no title only liability in case of default.. but then again I know TIT so anything could apply! Can anyone advise me on this??

[remaxtony]

As a few people have stated, to the OP and salty14, Guarantors have NO rights, only risk.

They cannot get anything into their name except the potential debt if you don't pay the loan. It amazes me on this forum how many replies come into topics that are not related to the OP's question.

And as far as the bank on the blue book, as is the case in any country and any lending whether it be a house or a vehicle, the financing company "holds" the title as a "lienholder" until the loan is paid off. If it is not paid in full, they won't release the blue book to you. Their "lien" listed in the book would then be shown as paid off.

Your name would be on their as the owner, with the lenders name as a Lienholder against it. That is the way it works everywhere.

[salty14]

Remaxtony... Thanks for the detailed response. That is what I assumed but know assuming anything here can be unwise.. Cheers for the advice

[WarpSpeed]

My wife was able to get a loan without guarantor if you pay at least 50% down sometimes even less, (she actually got down to 35% on one car but we passed on it for other reasons, probably why she was considered for the 35% because it had mechanical issues) and you have a work permit, not sure how this applies to you since you didn't say anything about your status in your OP but if not you, then maybe it applies to others seeking advice as well. Most won't offer this service voluntarily you have to pursue it vigorously as they want cash instead and feel that farang can pay it in full so they'd prefer you do that, it's also less hassle for them to pay cash and we know how they shy away from hassle and a bit of extra work even for a sale.

We tried to trade in 2 cars for a new diesel Focus a few years ago, A SEAT worth about 120,000 and a classic Crown I've mentioned a few times, they wouldn't even entertain the Crown and the SEAT was not much consideration either, I was willing to take $100,000 for the SEAT but wanted 170,000 for the Crown, BTW it was a special edition Cal look trim and interior features as well, probably the only like it in Thailand. It all worked out in our favor though as I ended up getting 240,000 for the crown and 130,000 for the SEAT when I sold them just before leaving. Might not have even gotten that much for the newer Focus. Som nom na. their loss, our gain..

Edited March 1, 2015 by WarpSpeed

[salty14]

Yeh sorry should of stated.. No work permit.. No elite card.. Under 50.. Work on a 5 week on/off roster so just use the 30 day exemption (so far so good but got 2 passports). Explained all this and that's why they stated the conditions as such.. Cheers for the input

[salty14]

Slightly off topic but can anyone suggest a good finance option for someone in my situation? I'm ok with the 40% deposit but their interest rate was 3.7%.. So would be interested to look around for finance but pretty keen to stick with Mazda in terms of the vehicle I want. Cheers

[IMHO]

They will have the right (obligation) to pay when you don't.

Simple as that.

[salty14]

Just another follow up question on signing for finance in Thailand;

Can anyone advise what is the normal process when it comes to picking up the car and signing the finance papers in terms of translation. Obviously everything will be in Thai, and no one obviously wants to sign something they can't read! Is the norm to take a translator? Or take the paperwork away to a translator and return with it when you've read through it? I'm sure many on here have been through the process so just thought I'd ask..

Cheers

[stevenl]

Just another follow up question on signing for finance in Thailand;

Can anyone advise what is the normal process when it comes to picking up the car and signing the finance papers in terms of translation. Obviously everything will be in Thai, and no one obviously wants to sign something they can't read! Is the norm to take a translator? Or take the paperwork away to a translator and return with it when you've read through it? I'm sure many on here have been through the process so just thought I'd ask..

Cheers

That will be a standard contract. Just make sure the most important (variable) information is correct, and those numbers you can check for yourself.

You have the choice: sign and take the car or don't sign and don't take the car, if you think a translator adds value, do take one. I never have.

[salty14]

Steve (or anyone).. When you get the car under finance, what ownership paperwork do you get? Do you get the blue book in your name? (With maybe a caveat on it for the finance company)

Cheers

[seedy]

The bank or finance company buys the car from the dealer. Their name is in the blue book as the owner on the first ownership page.

Once you repay the loan, the blue book is transferred into your name, on a different page from the previous owner.

This is how to make sure that the 'owner' is really the owner. If their name is not on the last ownership page, then they do not own it.

[salty14]

So what paperwork is in your name to show you have any rights to the car??

[hasitha77]

Does anyone aware of a place to find a thai guarantor, I am willing to pay some money if there is such a service.