 AUTO FINANCE USED CAR LOAN TIP
Needed documents for debtor and guarantor
- Copy of Identity card
- Copy of census registration
- Income affirmation
- Copy of retroceded passbook
All document are needed to be completed and apparent. To fasten the approval process, entrepreneur may also submit bank pass book and tax payment to affirm his income. Finance may further assess and investigate his enterprise. |
Finance would assess from financial history and the ability to settle the installment, which comprises of secure profession with consistent income, resident owner, enough income net from responsibilities to pay the installment and if credited, the consistent installment payment history is needed.
Why guarantor is needed?
In order to reduce the risk of debtor not paying his installment. Finance has determined the qualification of guarantor at least not less them the debtor. In case of down payment is high enough, guarantor may be exempted.
Is 100% loan possible?
No, it is not. Finance would request a down payment from debtor which is usually 20-30% of car price.
Why interest rate varies?
Car value depreciates by life and usage. Brand, model, registration year are taken into consideration. Old car is more expensive than new one. Pick-up is more expensive than passenger car. Interest rate also depends on Finance’s cost of fund. Debtor who lives in other provinces would take a higher cost than one in Bangkok. The less down payment with longer period of installment, the higher interest rate is.
Hire purchase contract
After all credit conditions are agreed by Finance and debtor, hire purchase contract will be initiated. Seller will have to do the ownership transfer contract in order the Finance can attach it with “Hire Purchase Contract”. Payment to seller will be prepared. It will take another 1-4 days before actual car ownership transference.
How to do the transference and where?
Car transference takes place at Department of Land Transport. The ownership name changes to Finance. After the transference is completed, buyer will be able to bring the car and seller will receive two parts of payment (one is the down payment from buyer and the other is financial amount from Finance).
Are there any kinds of expenses which buyer has to pay?
Buyer has to be responsible for Finance operations as below :
1. Car transference* (different from Bangkok and other provinces)
2. Stamp duty : 0.5% of financial amount or cost appraisal
3. Insurance, car tax
4. Other expenses such as car tax renewal service.
*According to buyer and seller agreement :
If price is less than 300K, you will have to pay 15K approx.
If price is less than 700K, 20K will do.
If car is already insured, is renewal needed?
Finance usually has the buyer re-insure if the existing one nearly ends.
First class insurance is normally introduced in order to cover the financial amount.
After the credit application
When the transference is completed, buyer has to pay the installment to Finance as agreed.
How to pay the installment?
Many several kinds of method. Such as bank transfer, counter service, postdate cheque, to Finance directly. Buyer can choose for his most convenience.
Beside from the installment, any other expenses?
Beside form the installment, main expenditure would be insurance, car tax and penalty if installment payment as contracted is violated.
If all the installments are done, can buyer take the ownership?
Not yet. Car ownership name need to change to buyer. Then buyer can take the absolute ownership.
Credit application documentation
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Individual |
Juristic entity |
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1. Copy of Identity card
2. Copy of census registration
3. Income slip or income affirmation
4. Copy of 6-month retroceded saving or current account statement |
1. Copy of no longer than 30 day company affidavit and objectives.
2. Copy of company memorandum
3. VAT certification (PP 20.)
4. Copy of 6-month retroceded saving or current account statement
5. Copy of Identity card and census registration of authorized person |
Credit applicant qualifications
1. Age over 20, resident in Thailand
2. Income is twice higher than installment
3. If no guarantor, these regulations are applied.
- not less than 30% down payment
- is a householder or lives with family and census registration in Bangkok or suburbs.
In case of less than 30% down payment or other provinces, guarantor supporting documents are needed (same as buyer)
Expenditure of car buying via Finance
Apart from down payment, other expenses would be
1. Car transference, Bangkok – 2000 Baht, Other provices – 2500 Baht
2. Stamp duty – 0.5% of financial amount (500 Baht of every 100000 Baht of financial amount)
3. First class insurance (17000 Baht annually approximately)
4. Car tax (up to type and CC.)
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