When acquiring a car in an agency, you must meet certain immovable requirements to obtain an automotive credit even with a Pledge a Car on finance (รับจำนำรถยนต์ติดไฟแนนซ์, which is the term in Thai) which is generally: demonstrate financial stability and have a guarantor, in addition to filling out a credit application, proof of residence, proof of income and a valid identification, among others that each question requires.
Once the credit is approved and the down payment is paid, you will likely start enjoying the car of your dreams, but do not forget that every month, for 3 or 4 years, you will have to pay the monthly payment for the car. What happens when your plans to liquidate it do not go as you wish or you fall behind in a monthly payment? Keep reading.
I Stopped Paying The Car Monthly, What Can I Do?
When the car purchase contract is signed, we promise to cover the payment, and the agency will deliver the car to us, so regardless of the expenses you have, you are obliged to pay.
Failure to pay monthly payments results in the loss of the car. But there is still hope, and if you are going through a similar problem, these tips will come in handy:
1 Refinancing
With this option, you can extend the term to pay. This way, the amount of money you owe is deferred for a while, allowing you to make more easy payments and even pay lower interest rates.
Although it takes longer to pay off your debt, the advantage of this option is that the payments are tailored to your needs.
2 Debt Modification
Negotiating with the bank and the agency is sometimes a good idea, as debt can be renegotiated. This implies an alteration in interest rates and in the monthly amounts to be paid. This option is usually risky since although the monthly payment of the car is reduced, the buyer gets to pay very high interest.
3 Debt Transfer
You can transfer the debt to a family member or friend who will help you pay off, or to a bank that takes over the credit. For this, you must contact the agency and the financial company to carry out the entire process of buying a new car again. The situation of the person will be evaluated, and the terms for the payment of the unpaid monthly payments and what remains to be paid for the car will be established.
After evaluating the options, it is best to review from the beginning how many monthly payments you will pay for the car, interest rates and the payment of the annuity. Evaluate your financial situation to know your ability to pay and carefully read the contract since it establishes the condition of the payments in which the debt will be amortized.
Check the clauses that will apply if you cannot pay, since some agencies seize the car and auction it off to correct the debt. If the debtor refuses to deliver the car, the case can continue in court, which will affect not only your financial stability but also legal.
