Can a guarantor be any harm?

[Marcel1]

Maybe a simple one but I'm not 100% sure on this.

If a car is bought on finance in ones own name, there is a Thai guarantor needed.

Can at any point during the pay off the guarantor be at any harm? Retreat? Take over? Or are they merely there in case one fails their payments?

[lopburi3]

He will be responsible for payment - so yes he can be in serious trouble if there is a default.

[Robert24]

Usually the question is asked the other way round, what risk are you to the Thai guarantor? If you default the guarantor needs to pay. So risk is with the guarantor. And he/she may indeed be pissed of if you don't pay your loan.

[Marcel1]

Sure I understand one has to make it's payment and do understand the risks but this is indeed the standard question the other way around, is there any power the guarantor has against the owner?

[lopburi3]

Believe it guarantor has to make payments they can sue the defaulter - just as the bank would do if no guarantor.

[wangsuda]

So the guarantor cannot take over the financed vehicle, or change the address of the payer?

[lopburi3]

If paranoid enough suppose could believe they could conspire with seller to do some such deed. Normally you would use a professional or personal friend however.

[prakhonchai nick]

A guarantor just agrees to take on your debt with the seller should you default. He/she has no rights whatsoever over the property, except, should you default, when he/she can then negotiate with the seller regarding repayment..

[technologybytes]

In answer to your question, no, the guarantor is no risk to you provided you do not default on the loan. He/she cannot take over the vehicle or put you at risk in any way.

However, if a situation arose where you stopped making payments and the guarantor had to take over the payments then you could not expect to get the blue book at the end of the term, at the least the guarantor could in theory then hold the blue book until you repaid the debt owned to the guarantor. In all likelihood though if you defaulted then the car would be repossessed and sold at auction, the guarantor would be responsible for the balance unpaid plus any administration fees.

Bottom line is simple, if you default then you can expect to loose the vehicle and your payments already made. If you can't afford the car then perhaps its better to buy one that you can afford, but thats just my opinion.

[abhaya]

I have always noticed the poorest and most humble among us are the most honest.

[Tywais]

"If a car is bought on finance in ones own name, there is a Thai guarantor needed."

This is not entirely accurate. Depending on the agency, the amount of down payment, credit history you can get the finance without a guarantor. My last car I had no guarantor.

[Jedsada3]

Not so many days ago there was a post over a guarantor who was f***ed.

So my advice: don't be guarantor for anyone (and for sure not for relatives!) and don't ask anyone to be your guarantor.

Try to pay all in once and if you can't... then save money until you can and believe me, you will feel a lot better and avoid a lot of trouble!

[Autonuaq]

Depend on the personal situation.

I not needed any one to help me out.

So i do think you have to think over if what you do and want is really right for you in your situation.

In fact it is you who plays with the trust other have in you that the professionals not have.

[hawker9000]

Generally speaking, guarantorship is a lose-lose proposition. If the guarantor ends up being called in to make good on the loan, I DON'T think that gives him any rights to the property, whatever it is, unless that's specifically provided for in the loan agreement. Thailand being Thailand, I suppose it might be possible to have some such double-secret provision inserted into the loan agreement with the foreigner none the wiser. Speaking for myself, if a Thai lender insisted on a Thai as guarantor, that'd be a deal-killer, pure & simple. (Actually, insisting on ANY guarantor, Thai or otherwise, would probably be a deal-killer for me.)

[Suradit69]

Pretty sure if the debtor defaults, the lender can seize the collateral and dispose of it at a realistic price to reduce that amount due from the debtor or guarantor. Not sure if the guarantor can ask a court to force the seizure and sale.

The O/P's question seems to be about whether a guarantor has any right regarding the collateral, the automobile, assuming that the debtor does not default on the loan. I doubt the guarantor has any rights to the property or its disposition as long as the debtor does not default and I doubt any court would enforce any provision in a standard agreement that would give him any claim on the property unless he is forced to make payments to the lender.

The guarantor is taking on a risk if the debtor defaults, but normally she/he would have no rights to the property or its disposition if the debtor does not default.

[al007]

I have bought a few new cars here, on finance and never need a guarantor, one time the car was in my wife name and no guarantor, usually around 80% financed

[sead]

Hope you have a trustworthy person with you or the guarantor may be the owner and you the guarantor haha

[hawker9000]

Pretty sure if the debtor defaults, the lender can seize the collateral and dispose of it at a realistic price to reduce that amount due from the debtor or guarantor. Not sure if the guarantor can ask a court to force the seizure and sale.

The O/P's question seems to be about whether a guarantor has any right regarding the collateral, the automobile, assuming that the debtor does not default on the loan. I doubt the guarantor has any rights to the property or its disposition as long as the debtor does not default and I doubt any court would enforce any provision in a standard agreement that would give him any claim on the property unless he is forced to make payments to the lender.

The guarantor is taking on a risk if the debtor defaults, but normally she/he would have no rights to the property or its disposition if the debtor does not default.

Even if the debtor DOES default and the guarantor becomes obligated to pay the debt, I don't think that gives him (the guarantor) any rights to the property (again, unless there's a specific provision to that effect in the loan agreement). 'Not that insisting on such a provision seems like such a bad idea if one is asked to act as guarantor (but I doubt lenders would agree to it).

When you borrow money in order to purchase something, it passes into your lawful possession. Under the terms of most collateralized loan agreements, the lender will probably have some right to foreclose or "repossess" the property from you if you default on the loan, but that requires that the property actually be legally removed from your possession and passed to the lender. This is the right of the lender, not the guarantor. And I doubt any lender would give it up to the guarantor in any loan agreement.

If you really want to guarantee somebody's loan for them, well & good, but don't think it gives you any rights in the matter. Just an obligation. But to repeat, if there's collusion taking place between the lender and the "guarantor", then anything is possible.

[Marcel1]

Thanks for all the answers guys, there are some really good ones. Many off topic though since many seems to put the situation the other way around but they might be of help to someone else.

Cheers

[GOLDBUGGY]

Sure I understand one has to make it's payment and do understand the risks but this is indeed the standard question the other way around, is there any power the guarantor has against the owner?

Sure I understand one has to make it's payment and do understand the risks but this is indeed the standard question the other way around, is there any power the guarantor has against the owner?

No! The Guarantor has no power over you on this loan. I fact if you default and you are the owner he has no power to take your possession even if he is making the payments. To a Bank or Loan Company a Guarantor is just an Insurance Policy on the loan. This is why a Guarantor really needs to think hard and long before he decides to do this.

It really surprises me sometimes how so many people take this role as a Guarantor so lightly. It is serious business and if the loan is in default they will come after you and not care if you have this car or not.