Post
by tamada » November 9, 2023, 7:54 pm
The AseanNow thread I mentioned was inconclusive but there could have been more than one. However, a search for 'Thailand pawn cars' offers up a few tales of dodginess over the years from different parts of the country. It appears to be legal and legitimate but open to fraud being perpetrated by dishonest 'car pawn shop' operators.
So it may be a legal but unorthodox way of acquiring a car and its title more cheaply than traditional ways.
1 ) The original car owner has entered into a loan agreement using a fully paid-off and wholly-owned car for collateral with the vehicle title held but not transferred to the loaner.
2 ) For whatever reason, the loanee wants to cash out, be rid of the monthly payments and being in debt but accepts the loss of actual vehicle to third parties willing to pay off the balance of the loan. To me, that's the "only in Thailand" aspect but maybe the loan interest was a killer and this 100% write-off the best solution?
3 ) The loanee doesn't want the vehicle either, he just wants his money which is more understandable. Hence the owner who's name still appears on the title, needs to attend the local DLT office with the prospective new owner to complete ownership transfer whereupon the money paid by the new buyer goes directly to the 'car pawn' operator.
4 ) New owner drives away in a 'new' car, the loanee drives away with the cash and the original owner, now unencumbered with debt, happily walks home.
'Don't waste your words on people who deserve your silence'
~Reinhold Messner~
'You don't have to be afraid of everything you don't understand'
~Louise Perica~
