WHITESAND Posted July 27, 2009 Share Posted July 27, 2009 Tisco finance through a toyota dealer main dealer. The interest on a 48 month finance on a new car is worked out in advance, so even in the 4th year I will be paying 2.9% of the original price, so in reality it is 11.6% of the orginal loan. Is this normal for car finance? Link to comment Share on other sites More sharing options...
dave_boo Posted July 27, 2009 Share Posted July 27, 2009 Yes. They figure your payments and then put the 2.9% yearly interest on each 12 months. Link to comment Share on other sites More sharing options...
gmac Posted July 29, 2009 Share Posted July 29, 2009 Tisco finance through a toyota dealer main dealer. The interest on a 48 month finance on a new car is worked out in advance, so even in the 4th year I will be paying 2.9% of the original price, so in reality it is 11.6% of the orginal loan. Is this normal for car finance? Yes, they add the interest at the outset but the true rate is around 5.5% not the 11.6% you quote so not quite so bad. (Just ran it through an Excel payment calculator!) Link to comment Share on other sites More sharing options...
aussiebebe Posted August 1, 2009 Share Posted August 1, 2009 When I first came to Bangkok, I bought a second-hand Toyota using finance and was shocked by the interest. To this day I've no clue how they worked it out, but on a 260,000baht debt, I was charged 35,000baht interest over a two-year period. That figure included some form of tax and was through a finance company to Kinatarin Bank (forget the spelling). Never again! That was a lesson learnt for sure. Since that time, my financial situation improved and I stuck to buying new cars, yet the terms of interest were far worse than originally quoted and I've no idea why. For example, when buying my current car (Wish) I was quoted 2.3% (this was two years ago) and yet the real amount I ended up paying was more like 6%. Link to comment Share on other sites More sharing options...
bojo Posted August 1, 2009 Share Posted August 1, 2009 Tisco finance through a toyota dealer main dealer. The interest on a 48 month finance on a new car is worked out in advance, so even in the 4th year I will be paying 2.9% of the original price, so in reality it is 11.6% of the orginal loan. Is this normal for car finance? It's a pretty good deal as second hand cars are around 5% and money lenders 3% a month no less. Our Jazz works out at 2.8% on capital per annum. Why pay cash when the interest is so low. Regards bojo Link to comment Share on other sites More sharing options...
prakhonchai nick Posted August 2, 2009 Share Posted August 2, 2009 Buy a new car on credit rather than cash Assuming you have the cash - become a loan shark for the duration of the car finance - lend out the money to reliable people (with a guarantee) at a rate of up to 3% a month. That way the new car is practically FREE! Link to comment Share on other sites More sharing options...
prakhonchai nick Posted August 2, 2009 Share Posted August 2, 2009 (edited) dual posting - 2nd one withdrawn Edited August 2, 2009 by prakhonchai nick Link to comment Share on other sites More sharing options...
philo Posted August 31, 2009 Share Posted August 31, 2009 I have a car that was bought on 20 % downpayment, the rest financed over 6 years (stupid, too long). The car is now 3.5 y.o. and I would like to get rid of the debt now that I still have some bank savings. I have two children, living on a pension and we use more than the pension almost every month. My finance was the same as the OP, they said (something like) 4% but it turned out to be effectivly much higher. I have payd half of the 72 installments. If I want get rid of the debt now, is there any way I could negociate with the finance company / bank to just pay half of the original debt + some compensation, and then evrybody is ok. It feels kind of stupid to pay a high interest for the remaining 36 months even if the debt is cleared. Anybody knows? Thanks Link to comment Share on other sites More sharing options...
thaicbr Posted August 31, 2009 Share Posted August 31, 2009 Well i just worked it out and my 200,000b loan at 4.55% per year is cheaper by 1,000baht a month than a personal loan from Halifax Building society for the same length of time. So i'm happy Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now