paying off a financed car early?

[ryanhull]

hello all, me and my wife financed a little suzuki some time ago, essentially we used her land and a small down to do it, i have a little orange card i go into the bank with each month and pay 9200, now ove paid 48 of them id like to just pay it all off and do without the hassle.... question is, if i walk into that orange bank with the pay card and the remaining in cash, is it cheeky to ask for a discount as im paying the rest off early (i did the same many years ago in the uk way back when) also is it that simple as jist going in and clearing it cash? its only 90k bhat or (havent fully worked the final amount out) but be great if i could get a discount to clear that off, plus i wasnt going to even tell the mrs you see, anyone got any info? would you ask for say 10%? no harm in asking but be good to know off others if they did this, thx in advance
 
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[transam]

You will have to read carefully you hire purchase agreement...Our lad didn't do that , they wanted a minimum of 50% of the total interest from the original agreement period...It was in black and white...

Edited September 20, 2018 by transam

[ryanhull]

Hi transam, tbh I have paid 48 of the 60, so I will go with the cash to pay the remaining 12 x 9200 bhat however is it worth trying to get some knocked off as I am paying the interest and car payments in full early, thanks

[ross163103]

I did this a few years back and the bank gladly took my money then made the payments as per the schedule.........not exactly what I wanted. Guess something got lost in translation, or they were very clever and knew what they were doing......still getting the interest. Make sure you understand how they're going to do it, IF, they'll do it.

[Esso49]

Thai finance houses are not controlled by a finance act like in the UK.   Therefore if you pay of early the companies are not obliged to give you any saving on the interest that they would normally have received.  Having said that then some will give a discount but do not expect it to be along the lines of the UK.   Just negotiate.   If it is so small a discount then just don't pay it off if you don't mind the hassle.  If the hassle is too much for you then pay it off and learn the lesson that in Thailand there is little or minimal regulation to protect the consumer.

[ryanhull]

thanks for the tips Esso49, tbh honest I can manage it and always expectected it but just wanted to try and cut my monthlys down a bit and thought may aswell pay it off then its out my hair, be a bonus to get a discount of any kind tbh but id still pay 100% little do they know if they wouldnt heh

[Esso49]

Just now, ryanhull said:

thanks for the tips Esso49, tbh honest I can manage it and always expectected it but just wanted to try and cut my monthlys down a bit and thought may aswell pay it off then its out my hair, be a bonus to get a discount of any kind tbh but id still pay 100% little do they know if they wouldnt heh

no problem glad to help

 

[yankee99]

you simply call the bank for the payoff amount. It is pretty standard to get 50% of the interest reduced as per your agreement 

[Shiver]

I just asked my missus about this kind of set up, and her view is that it depends on the shop - some will, some won't, and it'll come down to your actual contract.

 

Since shops here for cars and bikes make very little  on the vehicle, and their profit is mostly in being a loan broker, they may have factored the interest as if it were profit already achieved.  If instead you went to a bank and only borrowed money rather than borrowing money against a 1st charge on a car (effectively a cash purchase as the shop would see it), then I expect the bank would let go of the interest payment, but there may be a 1 - 3 month interest penalty or something like that.

 

Sounds like you need someone who can interpret the fine print on your contract to get a solid answer.

[transam]

5 minutes ago, Shiver said:

I just asked my missus about this kind of set up, and her view is that it depends on the shop - some will, some won't, and it'll come down to your actual contract.

 

Since shops here for cars and bikes make very little  on the vehicle, and their profit is mostly in being a loan broker, they may have factored the interest as if it were profit already achieved.  If instead you went to a bank and only borrowed money rather than borrowing money against a 1st charge on a car (effectively a cash purchase as the shop would see it), then I expect the bank would let go of the interest payment, but there may be a 1 - 3 month interest penalty or something like that.

 

Sounds like you need someone who can interpret the fine print on your contract to get a solid answer.

I did on our lads ride, it was pages of Thai script with bits that could be added, ie: Loan amount, period,total interest, and the biggy, % payable on early settlement..

His was minimum of 50%....But, he was miss sold the agreement, ended up at the bank to solve it.

Dodgy bank sales rep..

[Bangkok Barry]

My experience of reading several threads on here over the years is that places that look as if they sell cars actually sell the loan. Many have tried to buy a vehicle with cash and suddenly it is no longer available. They will only sell with the loan. Post #9 above seems to underline that.

I would suggest contacting whoever you pay the monthly to and asking them. I'd guess you'd be lucky to get a discount. All you can do is ask though, them and not TV forum members who might all have had different experiences/was told down the pub etc. In Thailand, everyone you speak to (Thais) have a different answer - usually because they don't know the correct answer and will tell you anything so as not to lose face. So good luck.

[watcharacters]

 

There's no harm in asking if they'll give you a discount.

 

When I asked about  about the same as I bought a motorbike from Honda several years ago, I was told if I paid off a loan early I still owed the full interest amount for the loan term.

 

I  opted for a cash sell.

 

[ryanhull]

tx for the replies all, im not following you on some posts as i got the car from suzuki new but pay thanachart bank every month with the orange card, i assumed that bank was the main one funding all car finances here but ill go in later today as if im making a regular payment, ask if i paid in full the remaining would they offer me anything off, maybe theyll call my bluff as ill pay it all off anyway with no discount as i might sell the car on soon anyway, tx all

 

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[transam]

Just now, ryanhull said:

tx for the replies all, im not following you on some posts as i got the car from suzuki but pay thanachart bank, i assumed that bank was the main one funding all car finances here but ill go in later today as if im making a regular payment, ask if i paid in full the remaining would they offer me anything off, maybe theyll call my bluff as ill pay it all off anyway with no discount as i might sell the car on soon anyway, tx all

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You will have a copy of the finance agreement from the bank, in it will tell you % for early settlement..Our lads said 50% minimum...

[watcharacters]

7 minutes ago, ryanhull said:

tx for the replies all, im not following you on some posts as i got the car from suzuki new but pay thanachart bank every month with the orange card, i assumed that bank was the main one funding all car finances here but ill go in later today as if im making a regular payment, ask if i paid in full the remaining would they offer me anything off, maybe theyll call my bluff as ill pay it all off anyway with no discount as i might sell the car on soon anyway, tx all

 

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For the benefit of all those who replied to you, would you please let us know the outcome of your visit to the bank?     I hope you get a discount as otherwise you're paying something for nothing.

 

Good luck.

[superal]

3 hours ago, Shiver said:

I just asked my missus about this kind of set up, and her view is that it depends on the shop - some will, some won't, and it'll come down to your actual contract.

 

Since shops here for cars and bikes make very little  on the vehicle, and their profit is mostly in being a loan broker, they may have factored the interest as if it were profit already achieved.  If instead you went to a bank and only borrowed money rather than borrowing money against a 1st charge on a car (effectively a cash purchase as the shop would see it), then I expect the bank would let go of the interest payment, but there may be a 1 - 3 month interest penalty or something like that.

 

Sounds like you need someone who can interpret the fine print on your contract to get a solid answer.

Got to ask ,  are the payment contracts written in Thai only or are there English translations cos if not , how do you know what you are signing for ? 

[thaikahuna]

No discount at all, they want every baht they can extract from your wallet. Sounds cold but it is a fact.

[DJ54]

Recently paid this off moto didn’t like the monthly payment 

and the interest they charge.

 

Not paid at dealer given a card to pay on which looks like to be a loan company. 

 

It looks like the interest was front loaded so it’s paid first then principle.

We did get a small discount. 

 

Its unfortunate that people who live on minimal funds get stuck with

high interest. If possible best to pay all upfront. 

 

We’ve bought 5 motos  this last one is only one financed and wouldn’t 

finance again if at all possible 

[ryanhull]

hi all, so just to update you all, firstly i went into the bank with the card and asked to pay it all off, she looked at me like i was an alien or had mental issues... anyway I explained that i wanted to pay it all now cash and if i did would i get any discount off the interest. They said they needed to speak to the owner of the agreement however he is quite old now and didnt want to bother him with it, he did go into the bank too and they offered him a massive 0 discount for his troubles lol, anyway no discoint was given, i got the feeling they would prefer you to not pay it off in one, why i dont know as your still paying the same amount. Anyway I paid that, now have to wsit for the blue book, so you wont save anything guys, the lady did say in some cases you can get 5% off the interest but not for me for some reason, just thought id update you all in any case, cheers

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[Crash999]

I paid off my last auto loan with K-Bank in cash. On the card they give you to remind you about the monthly payment and details there's a phone number. Give it a call and depending on the company it'll be an automated system that can tell you how many payments you have left outstanding and the total amount due for paying in full. In the case of K-Bank it was a discount off the balance interest rate.