She wants to buy a Chevvy with her boyfriend, but they don't have enough money to get finance approved.
They have asked me to buy it in my name, because I earn enough to satisfy the finance company.
I would buy the thing, but Kae and her boyfriend Tum, who have jobs, would pay it off. After 12 months, I can transfer ownership to them.
Kae and her boyfriend assure me they can make the payments, even though the finance company is reluctant to approve the loan.
'We have enough money, but the finance company is worried it may be too little,' Tum told me.
I didn't understand that remark, and told him so.
Confusingly, Tum said he would act as guarantor if they failed to make payments.
'How can they accept you as guarantor when they wont let you buy it?' I asked.
I was unable to get a clear answer. Let's put it down to one of those infallible Thai mysteries.
'At this stage of our lives, we have no debt, so would like to establish our foundations by buying a car,' said Kae.
'In a few years, our son will be old enough to start school. Our expenses will go up, and we may not get this chance again.'
The pair owns a motorcycle, but Kae tells me they have paid it off. Payments on the car would amount to B6,500 a month.
Ball, who is nursing a grievance with his sister since they argued a few weeks ago, doesn't like the sound of it.
'We already own a pick-up truck; why do they want a car as well?' he asked.
'It will only increase financial pressure on Mum, as they are bound to want to borrow money from her if they can't make ends meet,' he told me.
If I sign my name to the arrangement, we have wait for word from the finance company as to whether it is willing to approve the loan. I hope the finance company says no.
If it says yes, I become the owner of a second-hand, five-year old Chevvy.
Who would insure the thing? I have no idea.
I hope the pair don't get into any scrapes in the thing, or hit anyone with it. Nor would I want them breaking the traffic law during the first 12 months while I am owner.
In the event of trouble, the first person the police will come looking for is me.
16 comments:
ReplyDeleteAnonymous21 August 2010 at 19:06
Don't do it!! Really not worth the worry, and can you afford to pay it, if they do not? What does the boyfriend say?
ReplyDelete
Joyce Lau21 August 2010 at 20:48
If your gut feeling is that you secretly hope "the finance company says no," then you should probably go with that instinct.
If you were a millionaire, that's another thing. But you've often written about you and your bf being a bit tight before payday -- this would only add to your risk and burden.
While Kae and her bf sound more responsible than Ball, do you really owe it to them to be their personal bank? If a real bank considers them high-risk, should you take that as a sign?
6500 Baht a month is what? About US $200-250? In any case, it doesn't sound like a small fee.
ReplyDelete
Joyce Lau21 August 2010 at 20:50
Not to go into too much detail here, but I've had bad experiences being generous with friends. Not that these are bad people, but even good friends can be irresponsible when it comes to cash. I've loaned to people who actually earned more than me, and who probably had a higher living standard than me -- and they still lagged on repayments. Never again.
I'm just speaking from my personal past mistakes.
ReplyDelete
Yraen21 August 2010 at 21:11
I have to agree with both Anon & Joyce L.
Never, ever loan money to friends. It is almost sure to break the friendship.
Never, ever give money to people unless you can afford to lose it.
Never, ever go surety for a loan unless you can afford to pay it out when the borrower defaults.
Never, ever buy something for someone else, esp. if it is something you do not need yourself.
Would you buy this car for Maiyuu ? If you wouldn't buy it for your bf/family, why expose yourself to high risk for 'friends' ?
Like Joyce, I have been bitten by going surety and I can assure you that the 'warm-and-fuzzy feeling' is not worth the hassle when the deal goes pear-shaped. Don't do it !
Best wishes, Yraen.
ReplyDelete
Alvin-JKT21 August 2010 at 21:17
Expenses will go up as soon as they have a car. fuel cost can go up to 3-4 times than their motorcycle. maintenance costs for old cars are high especially for non-japanese/korean cars. owning cost and operation costs are way different.
ReplyDelete
Anonymous21 August 2010 at 23:31
If you have any sense, do not buy a car for a third party like this family. Your financial and legal liability will be enormous and you will have no recourse if things go wrong... and they will.
ReplyDelete
Hendrikbkk22 August 2010 at 01:13
I think Chevrolet are nowadays re-badged Korean cars so maintenance will be ok.
Better be sure your boyfriend won't find out.......
ReplyDelete
Michael Lomker22 August 2010 at 02:03
Seems like a risk to me. If there is an accident then they always go after whoever has the most perceived wealth.
ReplyDelete
Anonymous22 August 2010 at 04:26
ReplyDeleteSo I am back on your blog usely I always enter your blog by "bkkmindscape" and suddenly it didn't work anymore . Lucky thru kawadjan I have now the right adress.
What that car concerns , good idea, but don't put it on your name, just lent the money but also let them pay a little interest.
Fryslân
ReplyDelete
Bkkdreamer22 August 2010 at 06:34
Thank you for the generous responses.
Anon: I didn't tell the boyfriend.
Joyce: I told Kae's boyfriend Tum today that I wasn't willing to take on debt on anyone's behalf. That should bring the matter to an end.
Yraen, Alvin JKT: Thais do not appear to worry about what can happen if friends start asking for loans, perhaps bbecause they are always lending to each other.
Anon, Hendrik: I have tried to keep it a secret from the BF, which in retrospect was unfair.
Michael: Too many things could have gone wrong, and I explained that to Tum. He said he understood.
Fryslân: Welcome back.
ReplyDelete
Anonymous22 August 2010 at 08:08
Good you came to your senses and said NO! I bought my Thai friend a motorbike. Fortunately it came with insurance because he immediately ran into a car and had to pay for repairs. S**t happens...
ReplyDelete
popeluzifer22 August 2010 at 22:59
good decision bkkdreamer. never take liability for a third party or sign any guarantees. in my professional life I have seen too many families and friendships to break over such money issues. never mix money with family, never work for family and the same is for friendships, as at the end it is calling for an unhappy end
ReplyDelete
Anonymous23 August 2010 at 00:17
Why can't we have naughty posts of Li&Wang and comment provoking posts such as this. It needn't be either or. Just saying ;)
Silicon Farang
ReplyDelete
Anonymous23 August 2010 at 09:23
i am surprised you even contemplated that..instead of laughing about it...did mum bribe the local cops to get rid of thefuel truck problem? ....or is that still lingering??
ReplyDelete
Bkkdreamer23 August 2010 at 17:38
ReplyDeletePopeluzifer: I am unhappy that Kae thought she could ask me to go into debt on her behalf. I own no debt, and like it that way.
If I was to go into debt, it should be for something I want, not something I am buying on someone else's behalf.
For as long as Kae and her boyfriend Tum are still living with that family, their lives are intertwined. Any financial problem which marched in the door would ultimately affect them all.
Tum told me that they lost B3000 recently when somene stole the money from their bedroom. That money was intended to pay off debt commitments.
Until recently, they were paying off a motorcycle and a laptop. Both debts are now discharged.
When the money went missing, they had to ask Mum for a loan so they could make their debt repayments that month.
Even now, after they have given Mum her share of their pay every month, they go back to her to ask for money to do this and that.
I have no doubt that they are good savers; excellent savers, in fact. Tum works two jobs, and Kae works overtime in her job. Nor do they pose any credit risk.
However, it's unforseeable events such as the stolen money which worry me.
If they were to have an accident in the car, and the other party ask for a cash settlement, their debt repayment plans for that month could come awry again, just as they did when the B3000 went missing from their bedroom.
Everyone in the family would end up sharing their discomfort, as Mum would have to find the money to help them pay their instalment.
ReplyDelete
Bkkdreamer23 August 2010 at 20:01
Silicon farang: The post threatening to hit you with naughty pics unless more comments were forthcoming was meant in jest.
I am pleased the car tale has drawn so many responses. The blog feels like it did at the old site. Readers are interacting with the stories, and telling me what they think.
Anon: The truck problem is still lingering. I will provide a small update soon, but don't want to say too much until the matter is resolved.
ReplyDelete