How To Repay Car Loan Without Paying Full Interest For The Remaining Years

[philo]

I have a car that was bought on 20 % downpayment, the rest financed over 6 years (stupid, too long). The car is now 3 y.o. and I would like to get rid of the debt now while I still have some bank savings. I have two children, living on a pension and we use more than the pension almost every month, so the savings are slowly running down.

I have paid 36 of the 72 repayments. If I want to repay the debt now, is there any way I could negociate with the finance company / bank to just pay half of the original debt (i.e. the rest of the original debt) + some compensation (or at least get discount on the interest for the three remaining years). It is Tanachart Bank.

It feels kind of stupid to pay a high (initially flat calculated for the original debt and for 6 years) interest for the remaining 36 months even if the debt is cleared.

Thanks

[katabeachbum]

I have a car that was bought on 20 % downpayment, the rest financed over 6 years (stupid, too long). The car is now 3 y.o. and I would like to get rid of the debt now while I still have some bank savings. I have two children, living on a pension and we use more than the pension almost every month, so the savings are slowly running down.

I have paid 36 of the 72 repayments. If I want to repay the debt now, is there any way I could negociate with the finance company / bank to just pay half of the original debt (i.e. the rest of the original debt) + some compensation (or at least get discount on the interest for the three remaining years). It is Tanachart Bank.

It feels kind of stupid to pay a high (initially flat calculated for the original debt and for 6 years) interest for the remaining 36 months even if the debt is cleared.

Thanks

In Tanachart you would normally get to pay 60% of remaining interest, iow 40% off on reamining interest. Lets say interest is 20k a year, 3 years remaining is 60k, and you should get away with 36k. Up to you what kind of deal you are able to get.

[philo]

Thanks KBB.

My wife is too lazy to help me (even if it's her car (sic)). Here in Nong Khai nobody in the bank understands my point.

Do you think it could be possible to send all info in an email to some HQ in BKK asking for an offer (even if the car was financed by the Udon branch, no english there either)?

[Mercury]

I heard 50% of the outstanding interest as a "discount".

The problem is that the numbers just don't add up in many cases to make paying it off worthwhile.

The higher the interest rate then the better it is to get out of the loan. The higher the % they want to keep the worse it is.

The calculation is the interest you could get on your money. You could put money on deposit, maturing each quarter, to settle bills as they come, if you can get a high enough rate to make it worthwhile.

[thaicbr]

Philo... kick ya lazy wife up the arse and get her doing some work. Tell her she cannot use the car until you have the information......jeeeze.

And yes send an Email to Thanachart.

[katabeachbum]

Thanks KBB.

My wife is too lazy to help me (even if it's her car (sic)). Here in Nong Khai nobody in the bank understands my point.

Do you think it could be possible to send all info in an email to some HQ in BKK asking for an offer (even if the car was financed by the Udon branch, no english there either)?

In my experience, bring cash to the branch with paymentslip and check out the result on interest discount. If its not satisfying (compard to your savings interest) bring cash home again. If you say you want to sell the car to buy a new one with Tanachart Finance they may discount more...........

Perhaps your wife isnt lazy, she s just tired of all the crap they come up with in the bank

Go yourself, alone, and get the numbers on paper. Pit krap If you go alone, somebody speaks english

[philo]

Thanks to all of you.

I went to their web site in english. No email, 'Contact us' is a complaint form in Thai.

Guess I will try to call 1770 first, then study the information on the payment slips, and search further. No haste.

But I cannot get the cash from overseas now - my wife will spend it all on lottery ...

BTW, I dont have the papers here, but I think car 800k - 20% 160k = 640k loaned. A bit more than 4% interest for six years should be around 160k.

Actually 39-40 repayment has been paid already (I chose to write 36 because it is half of 72), so that gives me about 32-33 months of 12k (the montly repayment) = around 400 k to repay with no discount.

If I get a discount on half of the 160k original interest (i.e. 80k), I will save some 30-40k. Good, but I won't get broke if I don't.

Thanks again, I will use time and give it a try. 30-40k is a lot of beer

[ScubaBuddha]

To confirm some of the above, I just bought a new Yaris using Tanachart to finance 50%. They told me I would be responsible for 50% of the remaining interest at the time I paid it off. I got the same answer from Tisco when I was looking at financing a used car.

[aussiebebe]

I bought a second-hand Vios in January 2006 on a 3-year finance deal and the loan was underwritten (if that's the correct term) by Tanachart Bank. Because I was returning home last year for family reasons, I paid off the remaining year and was charged 60% of the remaining interest; there were no early-repayment penalties. I had to visit the bank (I think it's the main branch) in the Asoke area twice; once to inquire and pay and once to collect the documents and the owners book. The office is on the same main road as Soi Cowboy (don't know the name) it's further down and on the opposite side (same side as MRT station).

My advice to the OP is to get the necessary cash and visit the bank in person, they will help you there. Just don't go there with no money and say 'I'm um, thinking of, you know, maybe paying off my car, possibly with er, cash but.....'

[philo]

Thanks again to all. I can get the cash sent here from abroad within 2-3 days.

But I have to think twice first, and I have to get my wife involved in the final stage because the car is in her name (another stupidity on my part).

Next downpayment is the 20th, and as I am busy with other things, i will use a week or two to get an offer and decide what to do.