I've been told if i act as Guarantor on Car Finance im stupid.!!.. If He cant pay so I will pay the monthly installments to Toyota but will never have any claim on the Vehicle, it remains in His name , he can keep it ,and I loose , is that correct.?..

Yes. That is how I understand it.

Same as buying a car , and putting it in the name of your girlfriend / wife / both !. . Legally theirs . How good is your friendship / trust / bank balance .Personally i wouldnt do it . At least there are "benefits! with the GF !.

Buy, maintain and register the car in your name then when the other person has paid it off sell it to them for 1 baht. Take it or leave it!

BSJ Good idea - the ONLY way id even slightly consider this , if i were you . Keep all the paperwork in your hands , so to speak . However if the "buyer" pulls out at any time , you end up with an "unwanted" car , plus its depresiation .

Yes, as a guarantor the only thing you can do is pay - you can never collect.

Thanks Guys, wont do it

And if he smashes it and he has not paid the insurance or drives it without oil in the engine - worst case scenario of course - everybody looses except the finance company. If i gamble i like to have a hand that has the prospect of winning. .

Surely the vehicle is owned by the finance company and not the debtor or guarantor anyhow.

You are accepting liability if you act as guarantor, I would not take it lightly.

You could be liable for missed payments, and/or any differences between the outstanding debt, and whatever you get for the vehicle.....

Edited April 27, 201511 yr by jacko45k

Buy, maintain and register the car in your name then when the other person has paid it off sell it to them for 1 baht. Take it or leave it!

You will not be allowed to sell for one Baht. There is a list at every LTO with the average price of any second hand car. If your price is to low, they will not accept it, otherwise they would get not "enough" transfer taxes. So you will have to sell - at least pro forma - for a reasonable price and the "buyer" will have to pay the taxes. Happened here in Phuket to a friend of mine who wanted to give away his old car (in very good condition) as a present.

I have worked in Credit for a long time and seen many Credit Reports?History damaged from kind folk acting as Guarantors (mainly for motor vehicle finance).....Guarantors need to fully converse themselves with what the Guarantee thrust in front of them for signing actually can result in if the Borrower fails to meet the commitment & push comes to shove !

If you are daft enough to act as guarantor, make sure there is full Class 1 insurance after the first usual free year.

I came across a case where the vehicle was stolen after the first year, there was no insurance, so the buyer paid no more installments on the loan. The guarantor had to pay the balance owing.I imagine the same would happen if the vehicle was "written off" with no insurance.

100% correct and I agree you would be stupid to get involved in this deal.

 

Same as buying a car , and putting it in the name of your girlfriend / wife / both !. . Legally theirs . How good is your friendship / trust / bank balance .Personally i wouldnt do it . At least there are "benefits! with the GF !.

 

Not entierly correct! If done for a wife, with whom one is legally married, both 'owns' the car as well as responsibility for the loan.

_{Good advice , take it , not just Thailand ; anywhere .}

Edited April 27, 201511 yr by seedy
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Buy, maintain and register the car in your name then when the other person has paid it off sell it to them for 1 baht. Take it or leave it!

And make sure he pays for full insurance coverage.

Your method is safer in some respects, but it also makes it even easier for him to walk away from it all leaving you with a car that you may not have wanted in the first place and, unless he's totally reliable and financially able, it's almost certainly going to cost you one way or another.

Could be wrong, but I always thought only a Thai can co-sign for a loan. Rationale is if a foreigner signs, he can simply leave the country if called to account.

Buy, maintain and register the car in your name then when the other person has paid it off sell it to them for 1 baht. Take it or leave it!

And make sure he pays for full insurance coverage.

Your method is safer in some respects, but it also makes it even easier for him to walk away from it all leaving you with a car that you may not have wanted in the first place and, unless he's totally reliable and financially able, it's almost certainly going to cost you one way or another.

Since the car is on finance BSJ's suggestion is not possible anyway.

Im referring to Thai elder helping Thai younger person.All clear so far from your replies, but what if the Guarantor gets into a cash flow prob too, and cant make the payments either after a while .All rather "iffy" to me , this borrowing business.

Same as buying a car , and putting it in the name of your girlfriend / wife / both !. . Legally theirs . How good is your friendship / trust / bank balance .Personally i wouldnt do it . At least there are "benefits! with the GF !.

I did the same.

fingers burned!

now helping a bit to repay the loan!!!

NO benefits!!

My advise to anybody is:

Never ever stand Surety nor Guarantor for anybody, NO not even your own flesh and blood.

I have used this advise all my life and I am still a very rich man.

They also say a fool and his / her money are soon parted.

Have a Law Court approved Last Will and Testament in Thailand and also a Law Court approved Trust Fund for your wife and kids.

Im referring to Thai elder helping Thai younger person.All clear so far from your replies, but what if the Guarantor gets into a cash flow prob too, and cant make the payments either after a while .All rather "iffy" to me , this borrowing business.

The premise behind it is simple: the finance company has no track record to show trust in the borrower - so they ask the borrower to prove at least one person on earth trusts them to repay the debt.

I have done it for family members before, to get them started off. Once the borrower successfully pays of the debt, with a good payment record, finance companies will be throwing money at them left, right and centre. So, I guess In some ways, all you'd be doing is helping them get into even more debt in the future

All this said, there's always another way too... Even a first time borrower will be able to get finance sans-guarantor if their downpayment is large enough.

Edited April 27, 201511 yr by IMHO

Going Off Road slightly, Honda sent me a letter a while back Mrs read it for me. Gave me a nice high credit rating with Honda Leasing. Rather weird that, ive never used them.They always try to get me to finance, but i cant afford too.

What if "he" is the OP's son?

What if "he" is the OP's son?

Why is their always some idiot called fred popping up here, lost me.

yES THAT IS A NO BRAINER.

Im referring to Thai elder helping Thai younger person.All clear so far from your replies, but what if the Guarantor gets into a cash flow prob too, and cant make the payments either after a while .All rather "iffy" to me , this borrowing business.

OP: I've been told if i act as Guarantor on Car Finance im stupid.!!.. If He cant pay so I will pay the monthly installments to Toyota but will never have any claim on the Vehicle, it remains in His name , he can keep it ,and I loose , is that correct.?..

So you are a Thai elder?

In any event, just say no (politely).

No im not a Thai,just interested, as many seem to be.

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