Instalment plans for cars, motorbikes to become easier in Thailand
The government has come up with new regulations on car and motorbike instalment plans in a bid to make repayments easy, tackle debt issues and improve people’s quality of life.
The new rules will go into effect on Tuesday, government spokesman Anucha Burapachaisri said on Monday. The regulations had been published in the Royal Gazette on October 14 last year.
The new regulations are as follows:
Annual interest rate
• 10% or less for new cars
• 15% or less for used cars
• 23% or less for motorcycles
Discounted interest for people who complete their payment before the contract ends:
• 60% or more for those who pay over a third of the debt
• 70% or more for those paying two-thirds of their debt
• 100% for those who have paid more than two-thirds of the money owed
If vehicles are auctioned off due to termination of the contract, buyers will only be responsible for repaying the remaining principal, instead of both principal and interest.
Sellers, meanwhile, can fine defaulters no more than 5% per annum on the outstanding amount.
Anucha added that the new regulations will only apply to cars and motorcycles bought on hire-purchase contracts after January 10.
“The government is doing its best to ensure nobody is discriminated against in a bid to maintain a fair society,” he said.
People who receive threats from debt collectors can call the 1166 Office of the Consumer Protection Board (OCPB) hotline, contact the authorities via the OCPB Connect smartphone app or visit ocpb.go.th.
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