New Car Purchase

[Limbo]

Limbo. I seem to recall quite a few 'Working Class Heroes' without Nobel prizes; Liberating a Country to the east of the UK circa 1944-45. I suspect you missed them as you were in school elsewhere.

The Mazda 2 is a nice little Car will27

No, I wasn't born yet, but my town was on the frontline. Before the offensive

the British troops were replaced by Americans and Canadians under the command

of the American General John Anderson. We have still a road called after him.

If I am not wrong it was the 35th Infantry Devision that liberated my town.

The first Americans I ever met as a kid were American soldiers that were based

in Elmpt-Niederkruechten.

With respect! The regiments:. . .

And Will:

The Mazda2 and the Fiesta have many parts in common as they are made

in the same factory by the same company, but not the price.

I guess the package of freebies has a value of roughly 25.000 Baht.

That's good!

The profit margins on new cars are very small because of the

enormeous competition. I think that they are happy if they make five

percent on them. I have been reading somewhere, that the dealerships

stay afloat by the returns of their workshops, not by selling cars.

Mazda2 is a beauty!

Limbo

[Limbo]

Limbo. I seem to recall quite a few 'Working Class Heroes' without Nobel prizes; Liberating a Country to the east of the UK circa 1944-45.

No, I wasn't born yet, but my town was on the frontline. Before the offensive

the British troops were replaced by Americans and Canadians under the command

of the American General John Anderson. We have still a road called after him.

Sorry Will, just a second, but I found a picture taken 65 years ago, 1945, some kilometers

south of my town. American soldiers of the 8th Armoured Division took over the positions

of the British soldiers.

Would like to share it ...

Funny to know that English Tony, who now moved to Payao, was making his

Mae Sai pictures at about the same time. He was a British soldier then.

Didn't see him for a long time. He must be 84 now.

Limbo

. . . . . . .

[scorpio1945]

This is the new car post isn't it? 555 my first use.

Anyway, Bit the bullet and ordered a top of the line Fiesta 4 door. A heads up for the unwary. The interest rate they quote is preety sneaky. They gave me 1.71% but in actualality it is 3.3%. They do not amortize the loan. They simply take 1.71 % of the total loan and add it to the total loan amount. It is what the dealers did a long time ago in the US before the truth in lending law. Not sure if this is a bank or car dealer sneaky. Maybe just Thai way.

I also checked on what the exact same car would cost in the US. Looks like 160,000Bt more. Does anyone know if this goes in the Gov't coffers. 29% tax? on made in Thailand cars seem a bit steep. Again I guess it is the Thai way.

[kandahar]

This is the new car post isn't it? 555 my first use.

It is indeed. I got it confused with the education thread. My apologies.

How long to wait for delivery of the car?

BBQ beef sandwiches on Tuesday for lunch here, I think. Don't forget. I'm expecting you and the little lady unless I hear different.

[Will27]

Thanks for the advice/opinions gang.

I slightly prefer the Ford, but the waiting

time and lack of freebies provided has

pushed me towards the Mazda2.

It's for the wife anyway and she likes

the Mazda.

Regards

Will

[skybluestu]

This is the new car post isn't it? 555 my first use.

Anyway, Bit the bullet and ordered a top of the line Fiesta 4 door. A heads up for the unwary. The interest rate they quote is preety sneaky. They gave me 1.71% but in actualality it is 3.3%. They do not amortize the loan. They simply take 1.71 % of the total loan and add it to the total loan amount. It is what the dealers did a long time ago in the US before the truth in lending law. Not sure if this is a bank or car dealer sneaky. Maybe just Thai way.

I also checked on what the exact same car would cost in the US. Looks like 160,000Bt more. Does anyone know if this goes in the Gov't coffers. 29% tax? on made in Thailand cars seem a bit steep. Again I guess it is the Thai way.

Great choice, I love my Yaris but if the Fiesta was available last year I would have gone for that, the specs of the Fiesta are much higher than any of it's competitors.

The % is normal here for car loans, just the Thai way unfortunately.

[scorpio1945]

How long to wait for delivery of the car?

2-3 months but who knows. Depends on if we get the ladies blue or my dark gray. They said they will let us change color if we don't like it but that will delay delivery.

BBQ beef sandwiches on Tuesday for lunch here, I think. Don't forget. I'm expecting you and the little lady unless I hear different.

I will put on calendar

Edited September 12, 2010 by scorpio1945

[mcgriffith]

I think that's called the "Rule of 64", scorpio1945.

A loan amortisation method that was outlawed in many US states.

I used to sell advertising to auto dealerships, so am aware of the tricks of the trade.

I think you made a good choice.

I'm still going with the Nissan March; I saw the exact color I want to buy today on the street here in CM. Silver.

I'll wait till I can get the exact model and color I want, even if it be next Songkran....

[cmjantje]

Outlawed? So all the time you pay rent for money they have back already?? Strange

[mcgriffith]

Outlawed? So all the time you pay rent for money they have back already?? Strange

Sorry, I misspoke.

It is the "Rule of 78's"

Here's a link on Wikipedia; ignore all the history at the beginning of the article and scroll down to the middle of the page where you will see a reference to the loan calculation method, and mention of it being banned in the US as of the early 1990's:

http://en.wikipedia.org/wiki/Interest

"Flat Rate Loans and the Rule of 78s: Some consumer loans have been structured as flat rate loans, with the loan outstanding determined by allocating the total interest across the term of the loan by using the "Rule of 78s" or "Sum of digits" method. Seventy-eight is the sum of the numbers 1 through 12, inclusive. The practice enabled quick calculations of interest in the pre-computer days. In a loan with interest calculated per the Rule of 78s, the total interest over the life of the loan is calculated as either simple or compound interest and amounts to the same as either of the above methods. Payments remain constant over the life of the loan; however, payments are allocated to interest in progressively smaller amounts. In a one-year loan, in the first month, 12/78 of all interest owed over the life of the loan is due; in the second month, 11/78; progressing to the twelfth month where only 1/78 of all interest is due. The practical effect of the Rule of 78s is to make early pay-offs of term loans more expensive. For a one year loan, approximately 3/4 of all interest due is collected by the sixth month, and pay-off of the principal then will cause the effective interest rate to be much higher than the APY used to calculate the payments. ^[5]

In 1992, the United States outlawed the use of "Rule of 78s" interest in connection with mortgage refinancing and other consumer loans over five years in term.^[6] Certain other jurisdictions have outlawed application of the Rule of 78s in certain types of loans, particularly consumer loans. ^{[5] unquote}

[scorpio1945]

Outlawed? So all the time you pay rent for money they have back already?? Strange

Sorry, I misspoke.

It is the "Rule of 78's"

Here's a link on Wikipedia; ignore all the history at the beginning of the article and scroll down to the middle of the page where you will see a reference to the loan calculation method, and mention of it being banned in the US as of the early 1990's:

http://en.wikipedia.org/wiki/Interest

"Flat Rate Loans and the Rule of 78s: Some consumer loans have been structured as flat rate loans, with the loan outstanding determined by allocating the total interest across the term of the loan by using the "Rule of 78s" or "Sum of digits" method. Seventy-eight is the sum of the numbers 1 through 12, inclusive. The practice enabled quick calculations of interest in the pre-computer days. In a loan with interest calculated per the Rule of 78s, the total interest over the life of the loan is calculated as either simple or compound interest and amounts to the same as either of the above methods. Payments remain constant over the life of the loan; however, payments are allocated to interest in progressively smaller amounts. In a one-year loan, in the first month, 12/78 of all interest owed over the life of the loan is due; in the second month, 11/78; progressing to the twelfth month where only 1/78 of all interest is due. The practical effect of the Rule of 78s is to make early pay-offs of term loans more expensive. For a one year loan, approximately 3/4 of all interest due is collected by the sixth month, and pay-off of the principal then will cause the effective interest rate to be much higher than the APY used to calculate the payments. ^[5]

In 1992, the United States outlawed the use of "Rule of 78s" interest in connection with mortgage refinancing and other consumer loans over five years in term.^[6] Certain other jurisdictions have outlaw ed application of the Rule of 78s in certain types of loans, particularly consumer loans. ^{[5] unquote}

Do not think I am talking about the same thing. Interest in the US is based on a declining balance. Here they take the interest rate times the loan amount times the number of years divided buy the number of months to come up with your monthly payment. The declining balance is no factor. Easy to calculate but not the TRUE interest rate. Makes it look very good till you find out the truth.

[mcgriffith]

Ah, well then I double misspoke, and my apologies!

I guess the consolation is that 3.3% interest rate is still a very attractive one...I envy you as I am single with no Thai co-signer for a loan.

I have to pay cash 100% up front.

Enjoy your new car!

[scorpio1945]

Ah, well then I double misspoke, and my apologies!

I guess the consolation is that 3.3% interest rate is still a very attractive one...I envy you as I am single with no Thai co-signer for a loan.

I have to pay cash 100% up front.

Enjoy your new car!

No apology needed. I learned something. That is never a mistake.

Haven't got the loan yet. I know that nothing in Thailand is an automatic.

Also, car buyers note that there is a 50% penalty on the unpaid interest if you want to pay the loan off early. Lots of tricks to the Thai system.

[sceadugenga]

We need to find Mcgriffith a Thai co-signer.

It's not healthy being single in Thailand.

And NO, you can't try out all the likely applicants Macca.

[mcgriffith]

Scea, I've already decided my move to CR is a done deal.

Lots of new construction in my area in the last 6 months or so.

My district is considered the Beverly Hills of CM.

But it has become Ground Zero (as in NYC) re: incessant redevelopment. Ah well, it was bound to happen I suppose.

Thais see a beautiful area with lots of old growth trees, and hi-so family big properties....Hey, let's start throwing up a few boutique hotels, upscale student housing for rich CMU uni students, etc.

Soon as the rains taper off next month, I'll be up to scout out living arrangements.

Probably move into a condo/apt for a few months whilst exploring long term housing options.

I'll wait till my move to CR before I look for a Thai loan co-signer.....

[cmjantje]

Ah, well then I double misspoke, and my apologies!

I guess the consolation is that 3.3% interest rate is still a very attractive one...I envy you as I am single with no Thai co-signer for a loan.

I have to pay cash 100% up front.

Enjoy your new car!

No apology needed. I learned something. That is never a mistake.

Haven't got the loan yet. I know that nothing in Thailand is an automatic.

Also, car buyers note that there is a 50% penalty on the unpaid interest if you want to pay the loan off early. Lots of tricks to the Thai system.

Only 50%? I wanted to pay the loan and had to pay more than I would have paid every month. When paying in time I got a deduction every month from about 30% of the interest. When trying to pay in one time they "forget"this deduction. Thieves are these private banks!

Finally I decided not to pay anymore because the money I had to pay to the bank would be the same or more of what the garage would give me. I stripped the car and called them. They picked it up within 24 hours... So far My adventure.

Now I have a new one with a normal bank and If my uncle or aunt dies and I can pay the whole amount I don't need to pay interest for the money not loaned.

[dindong]

So, whats the most popular car here in Chiang Rai.

I'm thinking of trading in my 21 yr old mazda for something nice and comfortable.

[misterme]

I bought a Mazda 2 six months ago and love it. Put 11,000KM on it in the first few months, not many since then. It was about 580 with lots of extras, most of which I paid for. They threw in the window tint, first year insurance, and a few other odds and ends (nothing memorable).

I am very happy with the purchase, especially the gas mileage. My first Mazda. Great car!

I decided not to buy the Mazda based on the CVT transmition which I do not find places the best emphasis on fuel economy.

In 1992, the United States outlawed the use of "Rule of 78s" interest in connection with mortgage refinancing and other consumer loans over five years in term. Certain other jurisdictions have outlaw ed application of the Rule of 78s in certain types of loans, particularly consumer loans.

Do not think I am talking about the same thing. Interest in the US is based on a declining balance. Here they take the interest rate times the loan amount times the number of years divided buy the number of months to come up with your monthly payment. The declining balance is no factor. Easy to calculate but not the TRUE interest rate. Makes it look very good till you find out the truth.

Correct. The ADVERTISING gives a deceptive rate, 2.95% in my case. But, your loan paperwork will have the Actualized rate. Basically double the advertised rate. So, my 2.95% is really a 5.9% loan... still good, but darn deceptive.

As pointed out above, they multiply the full balance borrowed, with the interest rate, over the full term. Then this amount is added to the loan, 60,000THB in my case (if I recal correctly). On a traditional loan, the interest paid is on a declining scale, and by the final payment, the only interest paid is on the last few hundred. The THAI way above, collects the same amount of interest every month, based on the full value of the loan, even to the last payment. That's the scam.

I guess the consolation is that 3.3% interest rate is still a very attractive one...I envy you as I am single with no

If you have the dealer financed loan, your 3.3 is really closer to 6.6%. Sorry to break your bubble.

Also, car buyers note that there is a 50% penalty on the unpaid interest if you want to pay the loan off early. Lots of tricks to the Thai system.

This may be the case on bank loans. But NOT on the typical car loan, dealer financing, or TIsco, etc. You pay the full term of interest on the first payment. I've never heard of any discount. The balance remaining is the balance remaining.

PLEASE CORRECT ME IF I AM WRONG>>>> thanks.

[skybluestu]

So, whats the most popular car here in Chiang Rai.

I'm thinking of trading in my 21 yr old mazda for something nice and comfortable.

Depends how much you want to spend. The new Ford Focus is easily the best in class, if something smaller then Mazda 2, Fiesta or Yaris are all good and if smaller still then the Mitsubishi Mirage, Honda Brio or Suzuki Swift. My student's family own CNY auto import and they showed me some of their cars recently, very nice but very expensive! Personally I prefer a pick-up as the roads are so bad here and loads of choice there too, good luck deciding!

Sent from my GT-I9003 using Thaivisa Connect App

[Rimmer]

Off topic, nit picking and bickering posts removed, can we stop this nonsense now please!!

[dindong]

This is ridiculous, soon we can't write about anything here.

I only want to buy a car.,

[villagefarang]

That is the whole point. The deleted stuff had nothing to do with buying a car. Just as your followup comment and mine, have nothing to do with buying a car.

[Will27]

I agree with skybluestu on this one.

The Ford Focus seems to be "the" car in it's class at the minute.

They also have some 1.6 models due in January next year for 759 000 Baht.

For some of the cheaper models like the Suzuki Swift and Nissan March,

there seems to be long waiting periods so that should be taken into account.

The Swift is really popular and I've read the waiting period is up to 12 months.

Other than that, you have your Honda's, Toyota's and Mazda's etc.

IMO, unless you want to spend mega-bucks, you're only going to get something

reliable and pretty basic here in Thailand for your money.

Regards

Will

[villagefarang]

I have always considered maintenance and resale as part of the total cost of owning a vehicle. A quick look at the used car market will give you an idea what holds its value and is easiest to sell.

The tax structure favors pickups, they are more functional and hold up better on some of the rougher roads in the countryside. Most of them run on diesel which is much cheaper than petrol, as well. Not everyone has the same driving habits or needs but the only viable alternatives for me are a pickup or an SUV.

[sceadugenga]

I like my ute/truck even though I don't usually favor larger vehicles.

I get about 43 mpg in diesel out of it... 65litres/100km.... which is pretty good, and you've got that extra bulk protecting you in the event of a collision.

Plus there's all that extra family you get in the back on outings.

[ichingguy]

late to the thread but am very interested in buying a new car here in CR; would like to know if the larger vehicles, ie, Toyota Camray, Nissan Altima, Honda Accord, Mazda ?, are available and if so pricing and availability.

James

[villagefarang]

Looks like we are all doing our best to emulate your Lao Tza saying on your popup.

All these manufacturers have online sites and telephone numbers with numerous sales staff interested in making a sale. I would doubt you will find any takers if your request is to run around to four different car dealer to negotiate terms for you.

Pricing and availability fluctuates over time so without a quote from the dealer, not sure how accurate hearsay might be. Buying a car necessitates a certain amount of legwork and I suggest you find the time to visit the dealers in question, after first checking online.

Edited September 24, 2012 by villagefarang

[sceadugenga]

Four door Isuzu D-Max are still under 900,000, call into Isuzu on the Super Highway just north of the airport turn off for a look. They have an SUV model which is a bit more.

Their service is excellent, have a look at the service area out the back before you decide to buy.

[Big Gary]

Four door Isuzu D-Max are still under 900,000, call into Isuzu on the Super Highway just north of the airport turn off for a look. They have an SUV model which is a bit more.

Their service is excellent, have a look at the service area out the back before you decide to buy.

I bought the new mazda BT50 Pro and its the best vehicle I have ever bought. I change my vehicles every two years(get a good trade in price) and this one might stay with me a bit longer. I can rave on about it but all I can say its the best. You only have to look on the road now as they are everywhere and Sintanee say they have many orders outstanding.

[skybluestu]

Four door Isuzu D-Max are still under 900,000, call into Isuzu on the Super Highway just north of the airport turn off for a look. They have an SUV model which is a bit more.

Their service is excellent, have a look at the service area out the back before you decide to buy.

I bought the new mazda BT50 Pro and its the best vehicle I have ever bought. I change my vehicles every two years(get a good trade in price) and this one might stay with me a bit longer. I can rave on about it but all I can say its the best. You only have to look on the road now as they are everywhere and Sintanee say they have many orders outstanding.

The motoring folk at Bangkok Post agree with you as it was number 1 in a recent test, I have the Ranger which is built in the same factory and very happy with it.

<< Link to Bangkok Post removed as per forum rule 31: http://www.thaivisa.com/forum/index.php?app=forums&module=extras&section=boardrules >>

Edited September 27, 2012 by metisdead