Car financing

[paulinbkk111]

Hi TVers,

Im looking to buy a Camry/accord or smaller car, but dont want to pay in cash. Does anyone have experience in buying with motor finance if:

1. They have a work visa/permit

2. Dont have Thai wife/guarantor, but do own a condo.

In Bangkok here.

[deepcell]

Depends on value, your condo can be given as a guarantee. Talk to the finance.Talk to the finance.

[fxe1200]

Beware and watch out! Besides the interest you have to pay, car dealers will add the costs for a credit default swap. Better to get that money from a bank. Should work with a Condo. Compare interest rates! Calculate yourself; sometimes those rates are given as a percentage of the loan, but as that loan normally is an annuity loan, the effective interest rate is about double as high.

[Mudcrab]

Pardon my ignorance...what is a credit default swap? In the context of a simple car loan?

[seedy]

Pardon my ignorance...what is a credit default swap? In the context of a simple car loan?

I think he means the finance company tries to increase the purchase price of the car to recoup their missing / lost payments from the original purchaser.

So if you buy from a used car lot / tent dealer, these costs are built into the selling price.

[bkkjames]

Pardon my ignorance...what is a credit default swap? In the context of a simple car loan?

I think he means the finance company tries to increase the purchase price of the car to recoup their missing / lost payments from the original purchaser.

So if you buy from a used car lot / tent dealer, these costs are built into the selling price.

I am lost here (not the first time lol) but I negotiated the price of my truck directly with the tent and only after that did we get finance involved. Price didn't change.

[CharlieH]

Also bare in mind there will be NO benefit or incentive whatsoever to clear or pay it off early, as they lump all the charges/interest in at day one upfront.