Buying a new car

[chris2004 67]

I am thinking of buying a new Toyota Vios but would rather pay a small deposit and get the rest on finance. The initial reaction from the dealership was that a farang can not get credit unless it is guaranteed by a thai. I can't imagine any thai acting as my guarantor, except my gf and she doesn't earn enough.

 

Has anyone been able to get finance to buy a new car and if so where from. I am here on a retirement visa and own my condo so hopefully can be seen as a good credit risk.

[jacko 8,814]

I am thinking of buying a new Toyota Vios but would rather pay a small deposit and get the rest on finance. The initial reaction from the dealership was that a farang can not get credit unless it is guaranteed by a thai. I can't imagine any thai acting as my guarantor, except my gf and she doesn't earn enough.

 

Has anyone been able to get finance to buy a new car and if so where from. I am here on a retirement visa and own my condo so hopefully can be seen as a good credit risk.

Just to confirm, did you get your retirement visa using proof of income confirmed by the British Embassy or Bank deposit?

[joekicker 53]

You can usually get credit by being employed. Since you're not, and since you're (getting to be) an old fart, you'll almost certainly need a co-signer for decent credit such as from a bank or finance company. The co-signer needn't be a Thai necessarily but (s)he'd have to be a reasonably secured farang. The chances of getting credit without at least a work permit just "because I'm a good credit risk" are very slim.

 

AS ALWAYS never say "never". If you persevere in Thailand, you can *almost* always accomplish what you want. But your getting credit is likely to be quite a slog.

 

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[roomak 0]

Maybe increasing the small deposit to a larger one (25% plus) may do the trick. After all, the dealership wants to feel protected by beeing able to quickly re-sell if you default.

[joekicker 53]

Maybe increasing the small deposit to a larger one (25% plus) may do the trick. After all, the dealership wants to feel protected by beeing able to quickly re-sell if you default.

 

This is a good point, but generally you get credit by having a credit history -- in Thailand or anywhere. The dealer doesn't want to RE-sell the car, and it's highly unlikely he would give the credit at all -- he'd sell the credit contract and get his money and that's that for him. And the finance company/bank doesn't want to repossess it. Yes, definitely there are exceptions. But people give you credit because they think they're going to get their money, not take back a used car/whatever.

 

The OP's problem seems to be he doesn't have a credit history AND he doesn't have anything to guarantee he'll meet the payments, such as a job. Money in the bank isn't much of a guarantee - the day after he takes the car he can go spend that. People giving credit want to see income, not possessions. You can sometimes bribe them with a bigger down payment, as you say. I've done it myself in the US in fact, although never had to do it in Thailand.

 

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[chris2004 67]

My retirement visa is based on income not bank savings so does that represent 'proof of income'. Also my idea of a small deposit was at least 30%. Doesn't sound like I'll get the credit though.

[Fondles 94]

I was under the impression a deposit required on a new car for a foreigner was something like 40%.

[MM 6,562]

I was under the impression a deposit required on a new car for a foreigner was something like 40%.

 

At Honda, Pattaya, I put down 30%, financed the rest, and had a skint TG as my guarantor.

 

They didn't check her income, but they did ask for my work permit and Thai income information.

[sailingbill 1,034]

My LT was able to finance a new Toyota truck for 4 years. So your friend could probably

sign for you.

[joekicker 53]

My retirement visa is based on income not bank savings so does that represent 'proof of income'. Also my idea of a small deposit was at least 30%. Doesn't sound like I'll get the credit though.

 

It's not proof of income if it comes from overseas. That's true in just about any country. In the US, people REFUSED to do a credit check on me outside the country. Thailand is the same. If you have monthly income and can show it for some months, you may convince some credit companies though. Never say "never".

 

30 per cent is a decent down payment, about standard in Thailand for your first car with no trade-in etc.

 

If you gal has ANY regular income from any regular job, she can be your guarantor in the majority of cases. I wouldn't give up if I were you, but sounds like you need to do more shopping.

 

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Edited November 22, 2009 by joekicker

[torrenova 644]

It's not proof of income if it comes from overseas. That's true in just about any country. In the US, people REFUSED to do a credit check on me outside the country. Thailand is the same. If you have monthly income and can show it for some months, you may convince some credit companies though. Never say "never".

 

30 per cent is a decent down payment, about standard in Thailand for your first car with no trade-in etc.

 

If you gal has ANY regular income from any regular job, she can be your guarantor in the majority of cases. I wouldn't give up if I were you, but sounds like you need to do more shopping.

 

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Not sure about that one as immigration takes the US Embassy's sword statement that the income is XYZ as proof enough to issue a retirement extension. If that income then went into a Thai bank account, it may work.

 

MM's WP going back some way and bank account would be key.

 

As for guarantors, then the location of the garage is significant, as is the place where your GF is resident on her Tabien Bahn. I remember Isuzu asking me because mine was from Buriram and as that was not Chonburi, nor a province bordering Chonburi, nor Bangkok, she would not have been able to act as my guarantor. Also, she would not have been able to take the loan in Pattaya herself if she was not on a TB in those provinces. All very ancient way of doing things but then so are the banks locked in that time warp.

 

Speaking to one of the guys from Toyota on Sukhumvit, it was made clear to me that with a decent deposit (say 30/40%) and cash in the bank etc. then there were ways and means of having the finance approved.

[chris2004 67]

Thanks torrenova

 

But it Toyota on Suvumvit that turned my down, even with a 30% deposit. I can't see the point of getting a penniless (or bahtless) TG to act as guarantor. That wouldn't help them if I didn't make the payments.

[joekicker 53]

That wouldn't help them if I didn't make the payments.

 

At that point, where that girls signs for you, it's just a matter of paperwork, satisfying the bean-counters. Toyota are the hardest people to do this. You might do better working the other end from a finance company.

 

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[short 215]

First thing I ever bought on credit was a car. Since I was never late on a payment, the lender never reported the account to credit reporting agencies.

[torrenova 644]

Thanks torrenova

 

But it Toyota on Suvumvit that turned my down, even with a 30% deposit. I can't see the point of getting a penniless (or bahtless) TG to act as guarantor. That wouldn't help them if I didn't make the payments.

 

My understanding of the guarantor is multi faceted. Financially, the person paying the loan back has to have about twice the loan amount in free disposable income. Thus, if the loan was 15k a month, then they'd have to show 30k a month. If they had a mortgage of 10k a month, then they'd have to show 40k a month etc. Then you get onto where they are registered. As a foreigner you can't own land and you might not even own your own condo so it connects the loan to someone who is resident. A westerner having a WP is obviously connecting them to Thailand to a degree. If the guarantor owns land then that is apparently good, presumably because way down the line they could perhaps use that to make the guarantor pay ?

 

All in, the system is archaic and piss poor. I've seen people who cannot guarantee acting as guarantors and vice versa, with quite rich people being refused finance. My impression is that there is a lot of deal brokering going on and not much in the way of risk management.