Thailand vs Laos car loan interest

[ilikethai]

I just put in an order for an Isuzu Mux 3.0 4x4 yr2022 top spec.  All done and happy waiting ????  My buddy in Laos told me the Laos interest rate is only 0.55% for 84 months Mux $58,200 same as everything as my Thailand Mux.  But we're arguing because we're old farts..well my Korat inlaws are arguing with him.  LOL.  He's saying that Thailand's cars and car interest rate are extremely expensive but I told him that it might look expensive but Thailand method is only per year then spread out into months.  And Laos use per month method.  I'm not good with math and finance jargon.   Am I right?  So which would be more expensive let just say 2.50% Thailand vs 0.55% Laos?  Lets just say both cars cost the same at USD$58,200 (33.43 exchange rate x $58,200=Baht 1,945,626).  Thanks.

[jackdd]

0.55% per month?

Is this the real interest rate or APR?

In Thailand they usually state APR, so your 2.5% is actually 5% real interest rate.

[ilikethai]

3 hours ago, jackdd said:

0.55% per month?

Is this the real interest rate or APR?

In Thailand they usually state APR, so your 2.5% is actually 5% real interest rate.

Well you asked the wrong person.  But I actually called Laos Isuzu sales and I just found out that a $58,200 Mux with 30% down payment at 0.55% interest is $709 monthly for 84 months!  That's a ripped off. 

Edited December 5, 2021 by ilikethai

[jackdd]

Looks like it's also APR

So 2.5% in Thailand vs 0.55*12=6.6% in Laos.

Or real interest rate 5% Thailand vs 13.2% Laos.

[ilikethai]

2 hours ago, jackdd said:

Looks like it's also APR

So 2.5% in Thailand vs 0.55*12=6.6% in Laos.

Or real interest rate 5% Thailand vs 13.2% Laos.

Well my buddy in Laos is kicking himself in the nuts for believing Laos 0.55% is cheaper than Thailand's 2.5%  ???????? my neighbor calculated and in Laos for the same price, he's paying $24,612 more.  Ouch!

[Chungju]

By using a common interest rate calculator from internet (https://www.calculator.net/interest-rate-calculator.html) and the info from Laos, the real interest rate for Laos case is around 11.5%.
 

For Thailand case would need to know the same info (price, down payment, monthly payment and how many months) to calculate the teal interest rate, but as jackdd said, usually what is advertised here as 2.5% turns out to be around 5% real interest rate. 

Edited December 6, 2021 by Chungju
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