car repossessed by finance company. can you advise

[advancebooking]

A car is about to be repossessed by a finance company and I thus seek your opinion about the logistics of whats about to go down. 

 

The car is a few years old and was purchased under the 1st car scheme- leveraged 70%

 

As soon as they take the car can negotiations be made about getting the car back if the 2 arrears payments are  paid up? Does the owner automatically get black listing on their credit rating when the car is taken away? Or can this be deferred or stopped. 

 

Is there a penalty fee in the event that the arrears is paid and we get the car back. 

 

If you have been involved in this kind of thing before can you comment on any of the details including how it actually happens.

 

thanks

[Seastallion]

Just pay the arrears before repossession. Easy.

[geronimo]

If I am not mistaken, once the car has been repo'd, the finance company, by law, must give you a period of time to repay the total amount (plus any extra charges). If you fail to do this, they can then sell the car or whatever they want to do with it.

[DLock]

From experience, if they actually repossess the car, it is no longer of paying just arrears.

 

They will want substantially more of the loan paid back before they give it back to you.

 

In my wives case, she was 3 months late in payments. She actually went to talk to them about payments in the actual car, and they took it then.

 

It then took about 2 months of phone calls and them deciding, but she had to pay 12 months of payments and then they allowed her to continue as normal for the last 13 months.

 

I think it probably had something to do with the value of the car at that point, as she did consider abandoning it, but the repercussions of bad credit in Thailand are not good.

 

Everything was worked out in the end....but it was painful.

 

My advice, don't take the car if you need to go talk to them, but if you turn up with what is owing you might escape repossession. Don't risk it.

 

 

[ALFREDO]

My GF got calls in that regard to last year.But could avoid repossessing.

 

Call the company who financed the car loan or/and the car dealership the car was bought from.

Offer them, to pay at least one month now, in days and promise to pay now every month

and soon also the outstanding month(s) in tranches.  

Good luck. 

 

 

 

Edited August 7, 2014 by ALFREDO

[Suradit69]

Maybe a question better posted in the "Ask a Lawyer" forum. If you ask this in the general forums all you'll get is conflicting bar stool wit & wisdom.

 

http://www.thaivisa.com/forum/forum/192-ask-the-lawyer/?utm_source=newsletter-20140807-1519&utm_medium=email&utm_campaign=news

[cherrylee2512]

from experience i had a car it was 4 years old and the engine had blown up it was parked at honda i then found out my company hadnt extended the insurance so i had to pay myself that was 300000 baht for a honda civic 2.0 engine they didnt have 2nd hand engines at the time. I couldnt pay that and was paying 17000 a month still for my car as it was on finance i rented a car for a while and got very behind on my payments after 7 months i rang them told them to go get it myself they took it back and i was still liable to pay 400000 baht extra which they are still asking for till today this was 5 years ago. when they take the car back doesnt always cover the cost of the car.

my friends car recently was being looked for they never found it and my friend went to court at the court he managed to get the car refinanced and now pays less per month.

i have another friend whos car got taken it was 4 months over when they had the 4 months money they went to try to get it back it was so expensive had a lot of charges etc they charge per reminder they send and tanachart charges 500 baht per call to tell you.

unfortunately if it is already not being paid ontime whoevers name it is in will have bad credit i just got a new car someone put it in their name for me but the first person couldnt do it because it showed up on the system that they had paid their other car slow at a different company so it does stay on the system. i would advise paying it before the finance company can get it if it os not 3 months yet then pay 1 month or even 2 by law in thailand unless it is 3 months they cannot take it sp if 3 months overdue pay 1 month for now. hope this helps

[ukguyinthai]

Why don't you just ring and ask the company.........What is the procedure and what are your options. Only they can give you a straight answer.

You obviously have not got the money right now, so think up a reasonable payment plan offer you can afford. And a reasonable excuse why you have fallen behind with payments. Be proactive and talk to them. At the end of the day if you cannot afford it let it go.

You can always get a cheap runaround later. A car is not worth the stress if you are struggling to keep up payments. If your circumstances have changed then cut your cloth accordingly. All the best of luck.

[mokwit]

No personal experience but If I was in that situation I would be wary of a situation where you pay more but don't get the car back - i.e. you pay the arrears but they sell it anyway. As was mentioned if they repossess that may not be the end - they will still come after you for any shortfall between what they sell it for and what is owed.

Edited August 7, 2014 by mokwit

[Strangebrew]

My best advice is one pay up all you owe to bring current. And make your payment on time. Also next time buy only what you can afford. There is another option too, find some one to make all back payments and take over loan.

[brio]

If I am not mistaken, once the car has been repo'd, the finance company, by law, must give you a period of time to repay the total amount (plus any extra charges). If you fail to do this, they can then sell the car or whatever they want to do with it.

 

 

that is correct. 30 days i think.
 

[GOLDBUGGY]

The time to negotiate with the bank is now. Not sure how it works in Thailand but back home, once the car is repossessed it is a done deal and out of the banks hands. You then might be able to buy it back if it goes to auction or a car dealership. 

 

For sure, repossession of a car cost extra money as nobody works for free.  

[jingjoke]

No personal experience but If I was in that situation I would be wary of a situation where you pay more but don't get the car back - i.e. you pay the arrears but they sell it anyway. As was mentioned if they repossess that may not be the end - they will still come after you for any shortfall between what they sell it for and what is owed.

 

"they will still come after you for any shortfall between what they sell it for and what is owed." Too True, considering they may well sell cheaply to a colleague, or family member. 
 

[BBJ]

My understanding is, once the car is in their hands it becomes more difficult.  A lawyer is the best bet but a simple call to the finance company would be the obvious first step.

[DLock]

If they do repossess your car, they take their own sweet time in making a decision...which costs you more in interest and penalties.

 

...and be careful in believing them when they say "come down and lets discuss things" if you are more than 3 months late.

 

My wife did that and the moment she arrived they blocked her in, and took the keys with threats of police.

 

Once you are 3 months late, they get nervous that you will continue to default...expect a significant payment to get the car back.

 

Just don't get in the position of being late payment...it's really quite a painful experience. Don't recommend.