What Is The Process For Buying A New Car On Credit?

[pistonpilot]

How does a Thai buy a car on credit? What is looked at in the decision making process? What does the fine-print say on those Thai leases?

My idea was to setup my wife with a Thai Corporation in her name. Do business as the corporation, and have money sent to the corporation's bank account from overseas. Is that enough to convince the dealers to extend credit to her personally or the Thai Corporation?

Would I as a Farang be able to get credit for a motor vehicle?

[nikster]

How does a Thai buy a car on credit? What is looked at in the decision making process? What does the fine-print say on those Thai leases?

My idea was to setup my wife with a Thai Corporation in her name. Do business as the corporation, and have money sent to the corporation's bank account from overseas. Is that enough to convince the dealers to extend credit to her personally or the Thai Corporation?

Would I as a Farang be able to get credit for a motor vehicle?

A friend just got credit for a Triton recently. He had to pay a much higher down-payment, but the car is in the wife's name and she is from the country. They actually sent someone to count the family cows in her parent's village!! But they got approved fairly quickly.

I got a car in my own name, also with credit. They looked at my bank statement which was probably extremely positive since I am building a house and transferring lots of money every months, then spending it all - I imagine that's the pattern they like to see most.

I also had to have a letter from the embassy to register the car. I also gave them my Thai corporation papers (49% owner) but I am not sure how much that counted for since I am making absolutely no money with it at the moment and it was founded 3 months ago. My wife had to guarantee me, too. I am not sure we had to show them our land papers (in wife's name) as well... ?! I also had to pay a higher down payment than usual.

I don't have a work permit or make money in Thailand or have a 1 year family visa (yet) and still got approved.

The general impression I had was that they are very eager to give out credit. Especially to Thais, to farangs probably much less eager.

One annoyance with the credit provider (Tisco bank) was that they approved us, then another department called the next day and wanted more papers / proofs and asked a lot of questions.

My wife eventually got pissed off with them and told them to either stop calling her or we would drive the car straight back to the dealer and they can keep it. Haven't heard from them since

[Moonfruit]

We had to get a Thai guarantor, and i think this is pretty normal.

Even through my company, which is trading nicely with plenty of cash flow they still wanted the Tabien Baan of the Thai Director.

My opinion is, after the first and last time that its just way better to fork out the cash and buy the vehicle in cash. Thai interest rates are calculated in a screwed up way too.

[macb]

Well in 2004 i bought our pick-up in the wifes name on Finance, we were living in a Condo at the time in BKK. She gave her brothers address in Bkk and said she worked for him which she didnt, they checked the address and took a photo of his house I put 40% down and there you go, when the house was completed and we were married and my wife took my name we informed the finance company and all was changed no problem.

If your a married couple I mean by procedure and you have a house you have the option of only putting I believe 20/25% down

macb

Edited September 9, 2006 by macb

[Margo]

I bought a car on credit a few years ago from a Chev dealer and procedure was the same as for a Thai, no different deposit. Had to provide the usual mountain of documentation - ie work permit, passport, house registration, proof of income but it was very straight forward and didn't take any time at all.

[Oleg_Rus]

I've seen really funny situation:

ex-USSR girl got job at international company. next month - WP, next month - bought Toyota Altis.

thai garantor doesn't even know her, she got it nicely on 5yrs term

they have lots of ways, right ?

[Moonfruit]

From all the posts here, there seems to be a Thai involved somewhere, wether the wife, guarantor, or whatever.

Did anybody get a car financed in their own name, without guarantors or wives involved?

[Camelot]

I needed a Thai guarantor even with a permanent residence permit and all the right documents so I think it's essential. A clerk at the local post office obliged with a land title deed.

I think a Thai national also needs a guarantor so I guess the only short-cut is to pay 100% cash.

With no local guarantor what do they do if a foreigner sells the car on for use in Cambodia and skips the country? Obviously no slight intended to anyone on this forum but there are plenty of rogues out there who would do just that. They are the reason it is far more difficult these days for a foreigner to get a credit card here. Ten, 15 years ago it was a breeze but that element of automatic trust is no longer there.

If you want to hear some real horror stories and have a week to spare just ask American Express (Thailand).

[jumbo]

With no local guarantor what do they do if a foreigner sells the car on for use in Cambodia and skips the country? Obviously no slight intended to anyone on this forum but there are plenty of rogues out there who would do just that. They are the reason it is far more difficult these days for a foreigner to get a credit card here. Ten, 15 years ago it was a breeze but that element of automatic trust is no longer there.

when your car is bought on credit, you do not have proof of ownership so you cannot cross the border nor can you sell the car

J

[Camelot]

That would certainly apply to a legal trade but the gangs who buy these vehicles and smuggle them into Cambodia fake all the documents, including the log book, licence plate etc. It's also where a lot of cars stolen off the streets end up.

[onlooker]

Garages dont care at al about the perosn buying the car, it's the guarantor that's the important person in all this as it's them the lender will go to to get the cash if the buyer defaults. This is why a Thai office girl with a monthly salary of 10,000 baht and downpayment paid by her folks can get a loan to buy a new Honda City with monthly repayments of 9,000 baht.

My ex-g/f was in this same position a few years ago with Standard Chartered being the lender who agreed to a loan of around 80% of her monthly salary for the car.