Borrowing against a car

[naboo]

I have a truck which I paid for through finance with Tisco. It was bought in 2011 and paid off over 4 years, no late payments. I spoke to them about a loan for a motorbike last year and they were keen having checked my file.

 

Looking at the cars4thais and one2car websites, similar cars seem to be offered at 330,000B. Looking at local dealers, they seem to be asking 380,000B.

 

Realistically, how much would I be able to borrow against the car?

[Kwasaki]

Not so much about how much they will give you IMO it's how much they charge in interest best shop around very expensive way of borrowing money.

If your buying a motorbike new from a dealer rates on finance are usually better.

[jerome2]

They tell you 3.xx %and then when you check with taxes 12%

[baansgr]

16 hours ago, jerome2 said:

They tell you 3.xx %and then when you check with taxes 12%

3% per month isn't unusual.

[madmax2]

Be careful to check any fees and charges they charge if added to the quoted interest rate

It generally is a lot more than the quoted rate

Borrow 330000 plus what ever fees and charges say 40000 baht and you will probably end up paying  compound interest of 3% on the whole amount borrowed for the entire length of the loan,So when you reach your last payment you will still be paying interest on the full amount of 370000 baht

Banks charge simple interest of 6% on housing loans and you only pay interest on the balance owed with the bank holding a mortgage on the property as security, finance  companies charge compound interest at 3% otherwise they would go broke 

[naboo]

Thanks for the comments so far.

 

I am well aware of the charges and the way the interest works. The costs of second hand car loans when I researched were high enough for me to quickly change my mind and purchase a brand new car instead. The money would be used to purchase a piece of land for my daughter at a very reasonable price off a friend of a friend in desperate need of cash. The costs of the loan would be negligible compared to the savings, and the piece of land is something I would really like to purchase.

 

So anybody know how much I could borrow? I need 300,000B to add to the the cash I can stump up. If not, I'll go to see Tisco on Friday (would be helpful if someone could let me know, have little time to be going to the bank) and let you all know. I have a meeting with the lady arranged for Saturday.

[madmax2]

If you have nothing for security against the loan your only choice is a finance company or a loan shark, stick with the finance company its a lot safer

[mcfish]

I don't think you can borrow against such a depreciating asset unless it's a pawn shop and they will offer you 30% of its value

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[MikeyIdea]

My daughters mother borrowed money on the family car behind my back 

 

She went to "Money stuck to the wheels" and they happily transferred the car to their name and let her borrow - Let's see: Car worth perhaps 250K, she borrowed a bit less than 200K and total cost when everything was paid back again was 270K?

 

I would guess between 260 and 300K in your case. Just call "Money stuck to the wheels" if your Thai is OK or bring it to an outlet and you will quickly give you an answer. Bring the Tisco originals showing that you are reliable

 

I suppose you plan to take out a loan on the car because you want the land in your daughters name directly = her name on the Chanote = there must be no loans on the land => cannot give responsibility to a child. That is a very good idea

 

Mikey

[gdgbb]

On 28/11/2016 at 5:41 PM, jerome2 said:

They tell you 3.xx %and then when you check with taxes 12%

Tax isn't applied to loan interest.

[gdgbb]

I doubt that Tisco would be very happy lending against a depreciating old pickup for a land purchase, they'll probably want the land as security.

[naboo]

Spoke to Tisco this afternoon, they would lend up to 285,000B on my car. Interest and charges work out at about 50,000B over a 2 year loan. Not cheap, but expected. Need a Thai guarantor, did not need one when I bought new.

 

Seemed being a previous customer mattered, get a higher % value of truck, and lower interest. Hate to think what the higher interest customers are paying on four or five year deals.

 

Out of interest, asked about the land as security, Tisco don't loan against land outside of Bangkok.