Buying a secondhand car directly from the owner, not from the car tent, is another good choice for those who want to own a car in sound condition with reasonable price. Many car owners drive their cars only few years and tend to change a new one. Most cars are well-maintained by car center, without severe accident history and car mileage is not high. The owners don’t want to sell their cars to the car tent as the price will be marked down so they’d rather post-sales on their own. The buyer also doesn’t trust the car tent as the price is normally higher than buying from the car owner. Fortunately, if both parties agree upon a deal but the buyers don’t have enough cash and need support from a financial institution, they have to contact the bank. You may curious about the process and document to be prepared. We are here to provide you all details and you will find that requesting a car loan from the bank is so simple. Let’s see what you need to do.

1. Buyer must check their financial status

Before applying for a car loan from secondhand Finance, you need to check and plan the amount of your budget, down payment, loan requisition, and monthly installment because a car loan will later become your regular expense for many years. Besides, the buyer should have enough cash for paying a deposit or cash down in case the loan is not fully approved, including few fees such as finance arrangement fee, transfer fee (from car owner to Finance or the bank).

2. Buyer and Seller sign a deposit contract for car reservation

In general, for the non-cash deal, the seller will ask the buyer to make a cash deposit for a car reservation to ensure that the buyer intends to buy the car. The process of car Finance may take about two weeks before the buyer will get money so making a deposit contract can guarantee that the seller won’t waste waiting and doesn’t lose sales opportunities. It’s up to an agreement stating in the contract when the buyer will pay the rest and how long the term and conditions will last, and whether the deposit will be returned to the buyer if the loan is rejected.

3. Buyer contacts the bank for a loan and prepares document demonstrating the ability to pay installments

Next step, the buyer must contact the bank or financial institution to apply for a loan. Buyers should study and compare conditions such as interest rate, installment period, and another fee before selecting the institution that offers the best deal. Once selected, it’s time to prepare a document for submitting to the bank, a document supporting your ability to pay the debt, proving identity like Identification Card, House Registration Book, the most recent or 2-month backdate Salary slip or certificate, a copy of 6-month backdate Savings/Fixed/Current account bank book, home and office map, including a copy of Car Registration Book. The bank has an average price of different types of cars.

4. Wait for the evaluation

After submitting complete documents, the Credit Appraisal Department will evaluate your ability to pay debt and this process takes 3-7 working days. While waiting for the result, a Finance officer will call you to check your financial status and the average price of the car that you want to buy. If the average price is lower than the selling price, you may have to pay the difference on your own. More importantly, your financial history must be “healthy” without any loan debt and remain good status in National Credit Bureau. If you meet the qualification, your loan will be approved smoothly.

5. The bank contacts the seller to check the car

After the buyer applying and submitting documents for a loan to the bank, the Finance will make an appointment with the seller to check the car's conditions, take its picture and collect all loan documents to evaluate the car price, and then approve whether the loan is successful. This consideration process takes about 3-7 days. After that, the seller and the buyer will meet to sign a trading contract, and then transfer the car to the Department of Land Transport. Finally, car ownership is the Finance, and the buyer will be the car holder. Depending on the agreement, either the seller or the buyer will have to prepare some expenses requested by the government official such as transferring fee, tax, or revenue stamp, a total of approximately a thousand baht which is up to the engine power.

6. Get the car

Once all processes are completed, both seller and buyer will meet again to “deliver and get the car”. The seller will receive the money and give the Car Registration Book to the Finance, and then change the name of car ownership to the Finance and the car holder will be the buyer. The buyer will get the car with a copy of the Car Registration Book, and the original book will be given to the buyer when the installment is fully paid or the loan ends.

Now you know that applying for a car loan is simple and doesn’t need complicated documents. If the buyer is able to pay the installment and buys a car at its average price not lower than the selling price, the process will be completely done in a timely manner. For those who are interested in buying a secondhand car, SCB is pleased to offer good deals with fast approval and low interest under a 72-month installment plan.

Reference

https://carmana.com/blog/%E0%B8%82%E0%B8%B1%E0%B9%89%E0%B8%99%E0%B8%95%E0%B8%AD%E0%B8%99-%E0%B8%88%E0%B8%B1%E0%B8%94%E0%B9%84%E0%B8%9F%E0%B9%81%E0%B8%99%E0%B8%99%E0%B8%8B%E0%B9%8C%E0%B8%A3%E0%B8%96%E0%B8%A1%E0%B8%B7%E0%B8%AD2/