Car finance on retirement visa

[SanukDii]

Hello all,

Does anybody have any experience of financing a car here in Thailand whilst on a retirement visa?

Possible? Level of deposits required? Finance rates?

Any info gratefully appreciated.

Thx

[PattayaPhom]

Financing here is generally the same as worldwide, the lender will require proof of means to be able to meet monthly payments plus probably a gaurantur. Ask at different dealers as is Thailand it seems to vary from place to place

[Gsxrnz]

I don't see how what type of visa you're on will have anything to do with buying a vehicle or obtaining credit.

If you can prove wealth/income to their satisfaction that meets their credit terms, they'll lend you the money.

Typical would be 30-40% down and balance over 36 months but you might do better.

Edited August 4, 2015 by Gsxrnz

[stevenl]

I don't see how what type of visa you're on will have anything to do with buying a vehicle or obtaining credit.

If you can prove wealth/income to their satisfaction that meets their credit terms, they'll lend you the money.

Typical would be 30-40% down and balance over 36 months but you might do better.

Age can be a determining factor though.

[NanLaew]

I don't see how what type of visa you're on will have anything to do with buying a vehicle or obtaining credit.

If you can prove wealth/income to their satisfaction that meets their credit terms, they'll lend you the money.

Typical would be 30-40% down and balance over 36 months but you might do better.

Based on personal experience, it was easier to get financing on my first purchase 4 years ago as I was working in Thailand at the time and had a WP. Financing approval on my most recent purchase relied solely on my previous good finance history (same finance company) as I am now on a retirement extension. I managed to get 20% down on both purchases, both financed over 36 months. I had to haggle for the shorter loan since the preference is to finance over a longer period (up to 7 years) with lower monthly payments but higher interest accrual.

[SanukDii]

Thanks for the responses guys. Yes, I expected it to be easier if one had a work permit. All my earnings are offshore although I bring money in on an as needed basis. Still the earning are easily verifiable I guess we will see whether the Bank/Finance company will accept.

[emilymat]

I bought a new Toyota from a main dealer 5 years ago. I was 68y.o. on a retirement visa. I had a deposit of around 40% and they bit my hand off to provide finance over any period I wanted up to 72 months.

Ironically, my Thai wife acted as guarantor (on paper) as her only income was from me!. The car is however in my name with the bank and I'm just finishing paying for it.

So.....No age problem. Yes...They copied my passport - but they always do that.

You should have no problem.

[mrfaroukh]

Usually when you want to get finance for car or property etc they ask if you have a job or regular income. Most of them usually ask to show if regular money coming to your Thai Bank. I do the same as you just transfer money to my account when needed. But if you want to buy a car etc then try to send money to your account in Thailand on regular basis for few months to show them that you are getting money in your account on regular basis.

[Si Thea01]

You will need proof of income to meet installments and now that the banks have set harder terms owing to many defaulters, you will need a minimum of 30% deposit anda gurantor or if you pay 40%, no guarantor. Depending on how much you can afford, monthly, you can have a term of between 1 to 6 years. First class insurance in a must, as is a valid driver's license, which must be a Thai license if you have been residing here longer than 3 months.

Depending on what you buy and what promotions are on offer, the rates can vary from zero percent to 3.5%. It also pays to shop around for both price, finance and insurance costs. Also you can bargain but wait until they give you the total price, including registration and insurance costs, then ask for a discount, you may get one, than you may not, depends on the dealer.

Edited August 5, 2015 by Si Thea01

[Si Thea01]

I don't see how what type of visa you're on will have anything to do with buying a vehicle or obtaining credit.

If you can prove wealth/income to their satisfaction that meets their credit terms, they'll lend you the money.

Typical would be 30-40% down and balance over 36 months but you might do better.

Based on personal experience, it was easier to get financing on my first purchase 4 years ago as I was working in Thailand at the time and had a WP. Financing approval on my most recent purchase relied solely on my previous good finance history (same finance company) as I am now on a retirement extension. I managed to get 20% down on both purchases, both financed over 36 months. I had to haggle for the shorter loan since the preference is to finance over a longer period (up to 7 years) with lower monthly payments but higher interest accrual.

You would be very lucky to get 20% down now, banks have upped the anti because of too many defaulters, so now 30% minimum. I don't know why you had to haggle for a shorter loan term, that is up to you, not the financier. You would know what you are capable of repaying and that the term selected is what suits you, not them. Sure you would pay a higher amount of interest it taken over a longer period but even at 3.5% it would not be a significant amount, even less if you can get a zero interest deal.

Edited August 5, 2015 by Si Thea01

[Sophon]

I don't see how what type of visa you're on will have anything to do with buying a vehicle or obtaining credit.

If you can prove wealth/income to their satisfaction that meets their credit terms, they'll lend you the money.

Typical would be 30-40% down and balance over 36 months but you might do better.

Based on personal experience, it was easier to get financing on my first purchase 4 years ago as I was working in Thailand at the time and had a WP. Financing approval on my most recent purchase relied solely on my previous good finance history (same finance company) as I am now on a retirement extension. I managed to get 20% down on both purchases, both financed over 36 months. I had to haggle for the shorter loan since the preference is to finance over a longer period (up to 7 years) with lower monthly payments but higher interest accrual.

You would be very lucky to get 20% down now, banks have upped the anti because of too many defaulters, so now 30% minimum. I don't know why you had to haggle for a shorter loan term, that is up to you, not the financier. You would know what you are capable of repaying and that the term selected is what suits you, not them. Sure you would pay a higher amount of interest it taken over a longer period but even at 3.5% it would not be a significant amount, even less if you can get a zero interest deal.

But the interest rates quoted here in Thailand on car loans are simple interest, so not like what most of us are used to where we came from. That means that the 3.5% interest rate you quote in reality are closer to 7% p.a., so the interest payments will be quite considerable on a longer term loan.

Of course, if yo can get zero % interest rate, then it doesn't matter how the interest calculations are done.

Sophon

Edited August 6, 2015 by Sophon

[SanukDii]

Thanks again. So looks like 40% down which leaves me about a million baht or less to finance.

[IMHO]

Thanks again. So looks like 40% down which leaves me about a million baht or less to finance.

Everest, Fortuner, Camry, Accord or CR-V?

[ThaiBob]

I financed two Toyotas on retirement visas. Both required a Thai guarantor and there was no interest as to my finances. The first car was 25% down with a 36 month term. Before the term ended my salesman approached me and said I was now a Toyota VIP. I said are you sure as I was then 66 and knew I would not qualify for a loan with a Thai bank. No problem about age was the reply and I bought a new Camry for no money down. My understanding is you can buy BMWs if over 65 since BMW financing is in-house.