Refused Credit by Honda Car Leasing

[Boatman37210]

Just got turned down by Honda Leasing to finance a new car. We're talking about a 700K baht car with 25% down. The reason, my Thai wife does not work and I am a retired foreigner. They say no way to verify if I am telling the truth about my financial situation. Spent a lot of time preparing 4 sets of papers at their request so they can do a credit check only to be turned down before they even took delivery of the papers.

 

Five years ago purchased new Nissan through Nissan Leasing. Had just arrived in Thailand on a retirement visa. Absolutely no problem. I was really surprised since I had no credit history in Thailand. Paid the car off with no late payments. Nissan invited us to buy another car with zero down.

We also have a credit card we pay off each month.

 

We have since established a good credit history, so you would think it would be easier to buy a car than before. If it is standard procedure for Honda to turn down applicants if neither has a job and one is a foreigner, then they should tell dealers that and save everyone time. We spent a lot of time looking at Hondas. Had we known they would not finance, we would have not looked at Hondas. It may be there is another reason for credit refusal that their not saying, but can't imagine what it would have been.

 

Very frustrated. Anyone have similar experience?

 

Thanks.

 

 

Edited March 7, 2017 by Boatman37210

[CharlieH]

Bought a New Honda recently the dealer offerred us a choice of finance options if we wanted from various places (banks) none of which was Honda !!

 

Tell the dealer/sales person to try harder or find another dealership.

[steve187]

well to be honest, old retired persons, who are here on a non immigrant visa, who could leave the country at anytime, either by plane or a coffin are a bad risk, would it be the same thing in your homeland

 

try another dealer, 

Edited March 7, 2017 by steve187

[Wiggy]

I've bought a Toyota, Ford and Honda on finance in the past 13 years. Even though the Honda was the third car (when one would think my credit history was sound after 25 years here, not one missed/late payment on the previous two cars and with 50% down) the financing was the most complicated and thorough. In fact it was a pain in the backside. It would appear that Honda are far more careful than other manufacturers. No idea why though. Also, no guarantor was required with the Ford as it was 50% down. But Honda insisted on a guarantor regardless. They said I'd need to put 75% down to do it solo. Not a problem as my wife works, but more paperwork required.

Edited March 8, 2017 by Wiggy

[Don Mega]

Boatman, the bank you have the credit card with, ask them if the finance the car.

[Henryford]

Easy just tell Honda where to go. Plenty of other cars you can buy. I have always found their sales service to be abysmal.

[Boatman37210]

Update:

Honda offered the financing to a bank which happened to be the bank we have our one and only credit card with.  They turned us down.  They claim they have a policy of not loaning to foreigners.  Amazing. 

 

The Honda sales lady has since found another bank that supposedly will do the financing at the same terms as Honda Leasing.  Only catch is I have to go to the embassy to get an income letter.  I have a copy of the income letter that was done in November for my extension of stay, but they say they need one that is current and is an original.  They have requested 6 months worth of bank statements, so they could easily verify if the November letter is accurate.  Another 1700 baht for an income letter.

 

If Nissan had an MPV we liked we would have gone there right away.  Would have been the first place we went.  They made the experience of buying our first new car in Thailand a pleasant one.

Most likely not all Nissan dealerships are that pleasant.  We dealt with a local small town dealer the first time.  The Honda dealership we are now dealing with is in Bangkok.  I will say that the financing part is probably none of their doing.  My only problem with them was they refused to confirm if they had the car I wanted unless I put a booking deposit down.  I got mad and walked out.  The next day the sales lady called and confirmed they had a car.  My wife wanted to see this through, so I went along.  I think she was tired of looking and phone calls and just wanted to get it over with.  I would have to agree with her on that part.

 

If it were up to me, I would have already pulled the plug with Honda, but wife wants to see it through. 

 

 

Edited March 8, 2017 by Boatman37210

[VocalNeal]

Buy a Nissan?

[JoeW]

21 hours ago, Boatman37210 said:

Update:

Honda offered the financing to a bank which happened to be the bank we have our one and only credit card with.  They turned us down.  They claim they have a policy of not loaning to foreigners.  Amazing. 

 

The Honda sales lady has since found another bank that supposedly will do the financing at the same terms as Honda Leasing.  Only catch is I have to go to the embassy to get an income letter.  I have a copy of the income letter that was done in November for my extension of stay, but they say they need one that is current and is an original.  They have requested 6 months worth of bank statements, so they could easily verify if the November letter is accurate.  Another 1700 baht for an income letter.

 

If Nissan had an MPV we liked we would have gone there right away.  Would have been the first place we went.  They made the experience of buying our first new car in Thailand a pleasant one.

Most likely not all Nissan dealerships are that pleasant.  We dealt with a local small town dealer the first time.  The Honda dealership we are now dealing with is in Bangkok.  I will say that the financing part is probably none of their doing.  My only problem with them was they refused to confirm if they had the car I wanted unless I put a booking deposit down.  I got mad and walked out.  The next day the sales lady called and confirmed they had a car.  My wife wanted to see this through, so I went along.  I think she was tired of looking and phone calls and just wanted to get it over with.  I would have to agree with her on that part.

 

If it were up to me, I would have already pulled the plug with Honda, but wife wants to see it through. 

 

 

What honda are you buying? Nissan has an MPV, the livina.

[DGS1244]

Technically a foreigner cannot get finance unless he has a work permit, although this is often ignored. I have had the same experience with a Honda dealer. Problem is that all dealers are franchises and each has different guidelines, non of them are actually the Honda Car Co.

[Ace of Pop]

1 hour ago, DGS1244 said:

Technically a foreigner cannot get finance unless he has a work permit, although this is often ignored. I have had the same experience with a Honda dealer. Problem is that all dealers are franchises and each has different guidelines, non of them are actually the Honda Car Co.

They only have so much freedom, they can risk what they like with outside finance providers,but with Honda Leasing they follow Honda Rules.

[ThaiWai]

The lease cars here?  Why do you keep saying leasing?

[Don Mega]

5 minutes ago, ThaiWai said:

The lease cars here?  Why do you keep saying leasing?

They call it leasing but it aint.

[ThaiWai]

1 minute ago, Don Mega said:

They call it leasing but it aint.

Ok gotcha thanks. Thought I missed something. 

[natway09]

Just pay cash for it. Not worth the effort of filling out the forms.

If you are on a pension just delay for 1 year & save.  Hang on to your older car until have the money

[anon4637435435]

There are high interest no check type loaners out there.

Know one in bkk. Youll find if you put down 50% or more it wouldnt be an issue and would try another dealer if they are playing the typical honda smug game. Years ago it was easy for farang. Not so nowadays. Really its wiser to save. Hard to do because the idea of a new cars is good but give it a month and youll wish you waited anyway

[lungnorm]

I would curl a darky on their doorstep and go elsewhere.

[catman20]

a few years ago i bought a Honda accord 1.6 mill 700,000 with Honda finance no problem im retired girlfriend was guarantee  but she never worked either, they come to see my house i showed them i owned other cars out right with blue books finance was agreed  a few days later

[catman20]

2 hours ago, DGS1244 said:

Technically a foreigner cannot get finance unless he has a work permit, although this is often ignored. I have had the same experience with a Honda dealer. Problem is that all dealers are franchises and each has different guidelines, non of them are actually the Honda Car Co.

not so im retired, i got fiance from Honda 

[Wanderer555]

Try TIsco they may be able to help, 30% and above will be better.

[ljd1308]

On 08/03/2017 at 7:08 PM, Boatman37210 said:

Update:

Honda offered the financing to a bank which happened to be the bank we have our one and only credit card with.  They turned us down.  They claim they have a policy of not loaning to foreigners.  Amazing. 

 

The Honda sales lady has since found another bank that supposedly will do the financing at the same terms as Honda Leasing.  Only catch is I have to go to the embassy to get an income letter.  I have a copy of the income letter that was done in November for my extension of stay, but they say they need one that is current and is an original.  They have requested 6 months worth of bank statements, so they could easily verify if the November letter is accurate.  Another 1700 baht for an income letter.

 

If Nissan had an MPV we liked we would have gone there right away.  Would have been the first place we went.  They made the experience of buying our first new car in Thailand a pleasant one.

Most likely not all Nissan dealerships are that pleasant.  We dealt with a local small town dealer the first time.  The Honda dealership we are now dealing with is in Bangkok.  I will say that the financing part is probably none of their doing.  My only problem with them was they refused to confirm if they had the car I wanted unless I put a booking deposit down.  I got mad and walked out.  The next day the sales lady called and confirmed they had a car.  My wife wanted to see this through, so I went along.  I think she was tired of looking and phone calls and just wanted to get it over with.  I would have to agree with her on that part.

 

If it were up to me, I would have already pulled the plug with Honda, but wife wants to see it through. 

 

 

Have you checked out the X-Trail? Surely that would meet your needs.

 

Or if you really want an MPV look at the Toyota Sienta, looks a nice little car, I'm probably going to get one for the wife

[emilymat]

On 3/8/2017 at 8:32 AM, Henryford said:

Easy just tell Honda where to go. Plenty of other cars you can buy. I have always found their sales service to be abysmal.

I agree. Some years ago I tried to buy a Honda City from a main dealer. (Big boot for golf clubs). They had no models in the showroom and some mini skirted babe kept trying to persuade me to buy a Honda Jazz. They eventually showed me an employee's City in the car park, but  clearly they were not interested in selling me anything but a Jazz. I just left, showing my displeasure.

 

I went up the road and bought a Toyota Vios on the spot. They were really helpful.

[jacko45k]

To be honest I am glad to see they are a bit more stringent where loaning out money is concerned.

Credit history etc etc, stop expecting things to be the same as 'at home'......

 

I have zero credit and have lived here over 10 years , retired and had a so called credit card for most of them that actually requires me to hold the limit on fixed deposit.

[GARYZX6R]

Went to the Mitsubishi dealer and he wanted me to take out a insurance policy on the loan in case I died. Ok but he said it was wait for it 57000 baht ! Laughed at him and said no way. He said all the banks want this .. Goodbye then.. By the way the other Mitsubishi shop in town said easy to get finance she then showed me details of a retired 61yr old who just got the go ahead.

[mortenaa]

19 hours ago, Don Mega said:

They call it leasing but it aint.

Yes it is. Actually they call it hire-purchase. The car ownership is not transferred until the contract and all the payments are done.

[Don Mega]

50 minutes ago, mortenaa said:

Yes it is. Actually they call it hire-purchase. The car ownership is not transferred until the contract and all the payments are done.

So basically a loan using the car as collateral, luckily no balloon payment like a lease typically does.

[MINIMIGLIA]

They call it leasing here in Thailand, but as you say we call it hire purchase back home

[Boatman37210]

On ‎3‎/‎9‎/‎2017 at 1:09 PM, JoeW said:

What honda are you buying? Nissan has an MPV, the livina.

Livina  is on the Nissan website, but we called our dealer and the manager said they no longer make it.  They're pushing the Note which I do not care for.  One thing I can't understand, if the dealer is being straight, is why would a big company like Nissan continue to show the Livina on their website if they no longer will continue to make it.  Is it really about being slow to update their website?

 

23 hours ago, ljd1308 said:

Or if you really want an MPV look at the Toyota Sienta, looks a nice little car, I'm probably going to get one for the wife

We test drove a Sienta, but at least to me it is over priced for what you get.  You can get a Mobilio or Avanza or the Ertega for 100K less.  That's comparing the top models for each. 

 

One of the problems we ran into during our search was models appearing on a company's website only to be told by a dealer that they do not make it anymore.  We were interested in the Avanza.  Told by one dealer they quit making it and was being replaced by the Sienta..  Another dealer said you can get them, but you have to order.  Unable to find any on display.  We are trying to buy a Honda Mobilio.  Was told by one dealer they quit making them.  We had to go to Bangkok to find one.  It seems the 2016 they have quit making, but according to Honda's website the 2017 will come mid year.  Dealers did not tell us that.

 

The thing is we got so many different answers we could not tell what was true and what was not.  Tried calling the company direct and line always stayed busy. 

 

Supposedly we now have financing.  According to the dealer Honda owns other financing companies and they have agreed to finance at the same terms as Honda Leasing was offering.  Interest rate is only 1% .  Honda has also agreed to pay 2,500 baht each month toward our payment for the first 12 months.  Not sure how that works. 

 

While we could pay cash, it would put a pretty good dent in our savings.  The 1% was hard to pass up.  This whole process has made me leery.  I am concerned that when I sit down with the papers that in some form or fashion they will not be as how I understood the terms.   

 

 

 

 

[ljd1308]

4 minutes ago, Boatman37210 said:

Livina  is on the Nissan website, but we called our dealer and the manager said they no longer make it.  They're pushing the Note which I do not care for.  One thing I can't understand, if the dealer is being straight, is why would a big company like Nissan continue to show the Livina on their website if they no longer will continue to make it.  Is it really about being slow to update their website?

 

We test drove a Sienta, but at least to me it is over priced for what you get.  You can get a Mobilio or Avanza or the Ertega for 100K less.  That's comparing the top models for each. 

 

One of the problems we ran into during our search was models appearing on a company's website only to be told by a dealer that they do not make it anymore.  We were interested in the Avanza.  Told by one dealer they quit making it and was being replaced by the Sienta..  Another dealer said you can get them, but you have to order.  Unable to find any on display.  We are trying to buy a Honda Mobilio.  Was told by one dealer they quit making them.  We had to go to Bangkok to find one.  It seems the 2016 they have quit making, but according to Honda's website the 2017 will come mid year.  Dealers did not tell us that.

 

The thing is we got so many different answers we could not tell what was true and what was not.  Tried calling the company direct and line always stayed busy. 

 

Supposedly we now have financing.  According to the dealer Honda owns other financing companies and they have agreed to finance at the same terms as Honda Leasing was offering.  Interest rate is only 1% .  Honda has also agreed to pay 2,500 baht each month toward our payment for the first 12 months.  Not sure how that works. 

 

While we could pay cash, it would put a pretty good dent in our savings.  The 1% was hard to pass up.  This whole process has made me leery.  I am concerned that when I sit down with the papers that in some form or fashion they will not be as how I understood the terms.   

 

 

 

 

I thought the Sienta was pretty well loaded, but I will look into it more.

 

The most amazing thing about any car dealerships in this country(or big bike dealerships) is they expect you to buy a car without seeing it. We considered a HRV before, but the dealer didn't have one for viewing....still wanted us to order though.

 

[Ace of Pop]

10 hours ago, Boatman37210 said:

Livina  is on the Nissan website, but we called our dealer and the manager said they no longer make it.  They're pushing the Note which I do not care for.  One thing I can't understand, if the dealer is being straight, is why would a big company like Nissan continue to show the Livina on their website if they no longer will continue to make it.  Is it really about being slow to update their website?

 

We test drove a Sienta, but at least to me it is over priced for what you get.  You can get a Mobilio or Avanza or the Ertega for 100K less.  That's comparing the top models for each. 

 

One of the problems we ran into during our search was models appearing on a company's website only to be told by a dealer that they do not make it anymore.  We were interested in the Avanza.  Told by one dealer they quit making it and was being replaced by the Sienta..  Another dealer said you can get them, but you have to order.  Unable to find any on display.  We are trying to buy a Honda Mobilio.  Was told by one dealer they quit making them.  We had to go to Bangkok to find one.  It seems the 2016 they have quit making, but according to Honda's website the 2017 will come mid year.  Dealers did not tell us that.

 

The thing is we got so many different answers we could not tell what was true and what was not.  Tried calling the company direct and line always stayed busy. 

 

Supposedly we now have financing.  According to the dealer Honda owns other financing companies and they have agreed to finance at the same terms as Honda Leasing was offering.  Interest rate is only 1% .  Honda has also agreed to pay 2,500 baht each month toward our payment for the first 12 months.  Not sure how that works. 

 

While we could pay cash, it would put a pretty good dent in our savings.  The 1% was hard to pass up.  This whole process has made me leery.  I am concerned that when I sit down with the papers that in some form or fashion they will not be as how I understood the terms...........................................   

Honda dont own any other finance, just Honda Leasing. You are being offered finance by a Salesperson who gets commission no Honda. Once turned down by Honda you find your own, and that offer  you quote sounds weird  Whole Story sounds odd, so is TVisa today postings in  odd location