Auto Interest Rate Calculation

[tcris52]

I'm looking at financing a car. The balance is 480,000. The dealer is quoting 36 months at 4.15% with a payment of 16,043. That seems like closer to 12% when I run it through the interest calculation spreadsheet. When I check the calculators on line, that amount at 4.15% for 36 months comes out to 14,204.

Am I missing something?

Thanks.

Tony

[thaicbr]

Tony the interest in Thailand is per year and added on to the loan at the beginning so

those figures i make it 14,999 a month. i think he's lying about the interest rate.

or check what else they have added. i had to pay the 1st class insurance on the loan as well.

[basjke]

I'm looking at financing a car. The balance is 480,000. The dealer is quoting 36 months at 4.15% with a payment of 16,043. That seems like closer to 12% when I run it through the interest calculation spreadsheet. When I check the calculators on line, that amount at 4.15% for 36 months comes out to 14,204.

Am I missing something?

Thanks.

Tony

In thailand they calculate the interest on the full amount for the full term.That means 4.15 % on 480.000 x 3 years.However there still seems to be something wrong as the normal result would be 14.999 baht a month.

[austinav]

Add 7% VAT to it !

[ignis]

Something wrong there, try another place for a loan...

May last year got finance from 'Tisco' 485,000 over 36 months @ 11,406 month

[basjke]

Add 7% VAT to it !

You are right Austinav,we overlooked the VAT that must be added.

To Ignis,interest rates change all the time but you got for sure the best rate in the world since you will pay back 75.000 baht less then you borrowed.

[LivinLOS]

Something wrong there, try another place for a loan...

May last year got finance from 'Tisco' 485,000 over 36 months @ 11,406 month

erm.. You borrow 485k and pay back 410k over 36 months !!

Are you sure ??

[neverdie]

Something wrong there, try another place for a loan...

May last year got finance from 'Tisco' 485,000 over 36 months @ 11,406 month

erm.. You borrow 485k and pay back 410k over 36 months !!

Are you sure ??

Seems like a great interest rate to me, you only pay 616 baht on a loan over 3 years.....if only i could borrow money like that and invest it.

[ignis]

Opps

Just got out the contract to look, 'Tisco' 485,000 over 36 months @ 11,806 a month [NOT 11,406] it is all in Thai but from what I can see it is 0.99% interest.

Remember the salesman working out the best deal with 10% / 20% / 30% down payment

I went for credit as it was cheaper than paying cash in full, as I was getting 3.2% interest on deposit

[Ski_Goong]

Opps

Just got out the contract to look, 'Tisco' 485,000 over 36 months @ 11,806 a month [NOT 11,406] it is all in Thai but from what I can see it is 0.99% interest.

Remember the salesman working out the best deal with 10% / 20% / 30% down payment

I went for credit as it was cheaper than paying cash in full, as I was getting 3.2% interest on deposit

Ummm...I need to get my next few cars financed through these guys. Looks like you financed 485,000 baht but will only pay back 425,016 baht (36X11,806)........soooooooo they are losing about 60,000 baht on this deal. I don't know many finance company willing to lose 60,000 per car.

Maybe there's something else? Can you give us more detail on this special finance deal?

Ski...

[ignis]

Now you got me worried so took the contract across the road to a Thai friend, she says via her husband, [registered Layer but little English] that after paying the down payment there was 485,000 baht to pay... this included the 0.99% interest, it was difficult to work out as there is so much on the contact......

But it appears there was a cash rebate/gilft from Isuzu........ The total also included 1st class insurance which I did NOT take as my own insurance Company did the cover with a 40% NCB, where as if I had taken the Isuzu Insurance it was 'new' with 0% NCB... With these item deducted the total to pay is 36 months @ 11,806 a month... Appear an odd way to work things out here..!!

In 2004 the new Truck was financed with the same Company no problems..

My new car in August 2004 was not worth going the finance route so paid cash, likewise with its replacement in Sept 2008 also paid cash.

Unlike the UK were all deduction and extras would be 1st take off/added before the calcalations.. Likewise both the 2004 truck and the 2008 truck have canopies, these could not be added at Isuzu and onto the Finance.

[tcris52]

All,

Thanks for the interest (pun intended) in this topic. It appears that it has caused at least a few to go back and look at paperwork. It has also given me a few different ways to look at the deal and some questions to ask.

Thanks for the help and please keep the discussion going, if necessary.

Tony

[tcris52]

I'm looking at financing a car. The balance is 480,000. The dealer is quoting 36 months at 4.15% with a payment of 16,043. That seems like closer to 12% when I run it through the interest calculation spreadsheet. When I check the calculators on line, that amount at 4.15% for 36 months comes out to 14,204.

Am I missing something?

Thanks.

Tony

I asked a friend who had financed a car here about this. I gave him an example of another quote that I got and he explained it pretty well. The quote I was working from was 420,000 for 36 months with a payment of 14038. I'll quote his reply to me:

"Loans over here quote interest at Flat rate. They apply it for each year you borrow on the initial sum.

so you will be charged 52,290 interest making the total payments 472290. divide by 36 and you get 13,119.

So the figure they have given you must include some additional charges such as insurance and tax, maybe for all 3 years. Ask them why not 13,119

You ought to be aware that these are very strictly applied agreements, the car belongs to them until payment completed . If payment defaults they confiscate cars and one does not get much back no matter how much you have paid. There is not much consumer financial protection over here."

This seems to explain it.

Tony

[basjke]

I'm looking at financing a car. The balance is 480,000. The dealer is quoting 36 months at 4.15% with a payment of 16,043. That seems like closer to 12% when I run it through the interest calculation spreadsheet. When I check the calculators on line, that amount at 4.15% for 36 months comes out to 14,204.

Am I missing something?

Thanks.

Tony

I asked a friend who had financed a car here about this. I gave him an example of another quote that I got and he explained it pretty well. The quote I was working from was 420,000 for 36 months with a payment of 14038. I'll quote his reply to me:

"Loans over here quote interest at Flat rate. They apply it for each year you borrow on the initial sum.

so you will be charged 52,290 interest making the total payments 472290. divide by 36 and you get 13,119.

So the figure they have given you must include some additional charges such as insurance and tax, maybe for all 3 years. Ask them why not 13,119

You ought to be aware that these are very strictly applied agreements, the car belongs to them until payment completed . If payment defaults they confiscate cars and one does not get much back no matter how much you have paid. There is not much consumer financial protection over here."

This seems to explain it.

Tony

Austinav gave you the coorect answer already.You have to add 7% vat to the amount.

[ignis]

Also read the small print or get someone to read it...

Thai friend bought a laptop 18 months ago, 1,800 per month for 2 years. This month due date Sunday 1st, he was sick and did not pay until Tuesday 3rd, has received a letter on Friday 20th stating later payment charge 490 baht !!

[torrenova]

Yes, there is a significant and unfathomable late payment charge which they say is interest but which they cannot compute as they know jack shit.