Taking Over Finance When Buying A Car

[Robroona]

I see a few instances where people are selling their cars with a down payment and regular monthly payments after that. I have seen as many as 40 months still to pay. Looks like they bought on HP and now want to get rid of their debt, or maybe just want to change cars.

I wonder how this is actually done at the time of sale. Does a buyer have to go to the bank and get the outstanding loan transferred before getting down to the actual transfer of the car? Or am I missing something simple?

[soalbundy]

We have a similar problem,my sister-in-law is getting divorced and wants us to take over her pickup still another 27 months payment. The place where she bought the car from wants the payment in full before transferring ownership.

[khounteen]

I think just about anywhere in the world, loan transfer is illegal.

[bkkjames]

Pretty sure you can just go to the finance company / bank who holds the loan and apply yourself for the amount outstanding - if approved, you have a new loan in your name for the vehicle.

[realenglish1]

Banks do not allow a transfer of the loan or take over of the care unless you have a work permit. Otherwise you are SOL

[bkkjames]

Banks do not allow a transfer of the loan or take over of the care unless you have a work permit. Otherwise you are SOL

To be clear : the prospective buyer will have to qualify for a new loan to pay off the old one from the seller. Even with a WP this may or may not be possible without a guaranter - depending on how much down payment you are will to give.

[konying]

Pretty sure you can just go to the finance company / bank who holds the loan and apply yourself for the amount outstanding - if approved, you have a new loan in your name for the vehicle.

Not exactly this way.

It's not a new loan , it's the same existing one, but person taking over the payments has to be approved by the bank.

My car is with tanachart bank, when I was selling it, had to make appointment with loan manager.

1 time buyer was a foreigner with real estate worth 50 million baht, 3 company's but bank wanted a Thai guarantor, the one he brought they did not approve .

Second buyer was a Thai, with stable job, in same job for 9 years with all proof of bank statements and pay slips. Bank again asked for guarantor .

So basically , while taking over in theory works , in reality with Tanachart anyway, they do not approve anyone.

Taking out "new loan " for used car means 3 times higher interest rate.

[HUAHIN62]

I would advise you never ever to do this. Even if you can get a loan from the bank to finance the vehicle, you don't know if the previous owner had used the vehicle as colateral for a loan shark deal. I would only buy a secondhand vehicle from a vehicle manufacturer's dealership (Toyota/Isuzu/etc).

[Jonmarleesco]

Hire purchase is exactly what the name implies, on hire until the last payment. The borrower doesn't own the car - or anything bought on HP - until the last payment has been made, so is in no position to legally sell it. Someone else, however, could take on the loan, with the lender's permission and with the right paperwork completed. With a personal loan, the borrower can sell if they wish, but the loan is still theirs to repay - just like a mortgage.

[thhMan]

I would advise you never ever to do this. Even if you can get a loan from the bank to finance the vehicle, you don't know if the previous owner had used the vehicle as colateral for a loan shark deal. I would only buy a secondhand vehicle from a vehicle manufacturer's dealership (Toyota/Isuzu/etc).

Is it common that people make deals with loansharks and vehicles are involved?

Why would you only buy a vehicle from a manufacturers dealership?

I see quite a few western gents wearing shorts and brown socks pulled up to their knees... Is the the norm for western gents ? sic

[HUAHIN62]

I would advise you never ever to do this. Even if you can get a loan from the bank to finance the vehicle, you don't know if the previous owner had used the vehicle as colateral for a loan shark deal. I would only buy a secondhand vehicle from a vehicle manufacturer's dealership (Toyota/Isuzu/etc).

Is it common that people make deals with loansharks and vehicles are involved?

Why would you only buy a vehicle from a manufacturers dealership?

I see quite a few western gents wearing shorts and brown socks pulled up to their knees... Is the the norm for western gents ? sic

If you buy through a manufacturer dealership you have a legal recourse with an entity that can repay you if the deal turn sour. Why take the chance of losing your money if you can prevent it. Unless you have enough money to waste it.

[AnotherOneAmerican]

@OP

Impossible!

[Wong!]

@OP. They do it all the time here.