1994 Honda Accord

[kamakashi]

So, I found a 1994 Honda Accord for 200,000 baht. The car has a lot of problems but I pointed them all out and he agreed to fix them. Now everything seems fine and he speaks good english... my concern is. Why does the car only have 91,000 klm on the odometer? The tires were made in the year 2000 and are worn out with cracks. He agreed to replace the tires. I believe the tires match the mileage of the car. I inspected the car for 40 minutes and it has been in one small accident. The last owner used a hammer and popped the dent out on the front passenger side panel above the wheel. He did replace the exhaust since it was all rusted and fell off the vehicle. It was fun to drive a noisy rocket for awhile but I'm glad he fixed that. Now the car is quiet and smooth. The engine runs great and passed all my crazy driving tests. The shocks are good and the ABS works but there is to much play when I step on the brakes... when I pump the brakes the brakes are firm and not soft. Well if he fixes the car then all is well. My only question really is, Is 17% interest to high for this vehicle? It will be financed through his dealership and not the bank. The car payments are around 6111 baht a month for 36 months (3 years). I plan to pay of the car in 6 months. I will give him 80,000 baht down and then pay of the rest in 6 months. Still, 17% interest is pretty high.. how can I talk him down? What is the average interest rate when financing a used vehicle through the dealer and not the bank? Thanks :-D

[MoonRiverOasis]

17% interest is highway robbery.

It's not APR like the West, it's flat-rate, so you'll end up paying 300,000 Baht for a 200,000 Baht car! Even if you think you'll skirt this be paying out early, be sure to check the contract very carefully - normally the best case you'll get for early payout on Thai finance is a 50% discount on the remaining interest due, worst case is no discount at all, or an early payout "fine" which can largely negate the interest saved.

You may be better off putting it on your credit card instead, as that's APR at least.

Have you considered looking at a new vehicle instead? A new base model Nissan March (375K) works out at a toal cost of approx. 400K once interest is factored in (though this varies on downpayment paid, and your negotiating skills on the interest rate) - for 33% more you'd be getting 90% more value...

Note that when financing used cars, the repayments are VAT taxable. When buying new, the vendor can claim an input tax credit on VAT, so VAT is not payable by the lender (you). As a guide, most new car finance is currently between 0% and 2.75% - but the upper end of that can always be negotiated down to low 2's with a bit of haggling.

[kamakashi]

Thank you MoonRiverOasis, Me and my wife have already looked into the Nissan March. The problem is that my wife does not work and we need someone to sign for the car. The payments are between 6,000 - 7,000 baht a month for the Nissan March, but we can't afford it. We will negotiate the price of the Honda Accord at the dealership. Her dad and a guy expert will be with us when we buy the car. We will make sure everything is ok. The car will only be in my wife's name. If we pay 40% (80,000 baht) down then the interest is only 14%. We really would love a new car but we plan to move to America in 5 years. If we pay 20% down and pay 6,000 x 36 17% interest then we pay 50,460 baht interest. If we put 40% down and pay 4,700 x 36 14% interest then we pay 56,000 interest. I'm sure we can haggle a bit and lower the payments and hopefully the high interest. For us to buy another car we need to pay 50% down of the value of the used car. We don't have anyone to sign for us and we can't afford any new car payment plans. I guess we won't pay off the car either since of the early cancellation fees that may apply. We will read the contract carefully .

[wandrinstar]

Depending on your Visa it doesnt have to be in your Wifes name,a Thai Con Trick generally, now most main dealers will listen to your U.S. Bank, and if they speak good on your behalf, no worries on your part. Totota did so for me, not being married doesnt render you useless of hi risk.Good Luck, be carefull with that crazy rate.

[MoonRiverOasis]

Thank you MoonRiverOasis, Me and my wife have already looked into the Nissan March. The problem is that my wife does not work and we need someone to sign for the car. The payments are between 6,000 - 7,000 baht a month for the Nissan March, but we can't afford it. We will negotiate the price of the Honda Accord at the dealership. Her dad and a guy expert will be with us when we buy the car. We will make sure everything is ok. The car will only be in my wife's name. If we pay 40% (80,000 baht) down then the interest is only 14%. We really would love a new car but we plan to move to America in 5 years. If we pay 20% down and pay 6,000 x 36 17% interest then we pay 50,460 baht interest. If we put 40% down and pay 4,700 x 36 14% interest then we pay 56,000 interest. I'm sure we can haggle a bit and lower the payments and hopefully the high interest. For us to buy another car we need to pay 50% down of the value of the used car. We don't have anyone to sign for us and we can't afford any new car payment plans. I guess we won't pay off the car either since of the early cancellation fees that may apply. We will read the contract carefully .

Not really following on your numbers I'm afraid

200,000 Baht, 40% (80K) down (120K financed) @ 14% interest, over 3 years = 50,400 total interest = 4,733/mth and total cost of 250,400

200,000 Baht, 20% (40K) down (160K financed) @ 17% interest, over 3 years = 81,600 total interest = 6,711/mth and total cost of 281,600

Both are assuming VAT has already been factored into the interest rate you've been given, if not everything needs to go up.

By comparison, something like a base model March with 25% down (no need for a guarantor) would cost:

375,000 Baht, 25% (94K) down (281K financed) @ 2.25% interest, over 4 years = 25,290 total interest = 6,381/mth and a total cost of 400,290

If you could get a family member to go guarantor, it's possible to do 20% down and get a 7-year term:

375,000 Baht, 20% (75K) down (300K financed) @2.5% interest, over 7 years = 52,500 total interest = 4,196/mth and total cost of 427,500.

OK, I appreciate that all these numbers look horribly close to me, but may not to you.. But they are close right? heh

[richard_smith237]

Also consider the repair costs...

IF MRO's figures for the Nissan March look attractive that would be a far better option.

Theoretically it will cost you nothing in maintenence or repair costs over the next 3 years due to warranty.

The 1994 Accord is likely to have a constant wave of repair bills which could cripple you out of motoring.

It's diffucult to obtain 1st Class Insurance on a car older than 10 years, so one bump and your repair bills could also cripple you out of motoring.

If you can't stretch for a March - Consider how much you really need a car as a 1994 Accord could end up costing you a lot more in the long run.

[culicine]

And I highly doubt the 90K on the clock is accurate. Does the condition of the car suggest this mileage? An old accord will cost you a lot in repairs over the 5 years you plan to keep it - the march virtually nothing. And the 17% seems way to high. Is this 17% per year??? The dealers I've seen on the net seem to have rates of 6-8% or thereabouts. If you really want a used car, get something a bit newer (and cheaper), such as a hyundai. 200K (which could be 300K) after you paid for it, is a big chunk of change for an old car. Old hondas and toyotas fetch a premium.

[katabeachbum]

And I highly doubt the 90K on the clock is accurate. Does the condition of the car suggest this mileage? An old accord will cost you a lot in repairs over the 5 years you plan to keep it - the march virtually nothing. And the 17% seems way to high. Is this 17% per year??? The dealers I've seen on the net seem to have rates of 6-8% or thereabouts. If you really want a used car, get something a bit newer (and cheaper), such as a hyundai. 200K (which could be 300K) after you paid for it, is a big chunk of change for an old car. Old hondas and toyotas fetch a premium.

No one wants to finance a 17 year old car for less than 15%. No Insurance covers an old car. and 91k km? doesnt really matter if its 91k or 291k km, but..............

Since its a no brand name finance, it is not likely they will discount anything on agreed interest/payments if you decide to pay out early. So if the car is wrecked, you keep on paying, and paying, or bankrupsy or lost knees

Financially you have 2 options only, Nissan March or Proton Savvy, both new at less than 400k baht

or why not a Hyundai, most of them a few years newer and at 30-80 k baht total price

[MoonRiverOasis]

or why not a Hyundai, most of them a few years newer and at 30-80 k baht total price

Any experience with how these older Hyundai's (or the OP's used Accord) will cope with 10% Ethanol (Gasohol)?

I know that the used price for a Suzuki Caribean has plummeted to almost nothing since E10 became standard - they just can't cope at all..

Fuelling these old cars with benzene is an absolute false economy..

[katabeachbum]

or why not a Hyundai, most of them a few years newer and at 30-80 k baht total price

Any experience with how these older Hyundai's (or the OP's used Accord) will cope with 10% Ethanol (Gasohol)?

I know that the used price for a Suzuki Caribean has plummeted to almost nothing since E10 became standard - they just can't cope at all..

Fuelling these old cars with benzene is an absolute false economy..

I would assume non of them would cope for long with E10 gasohol. Engines with valves and head for unleaded usually survives, but fuel tank and system does not

Only makers marketing in Brazil has long time experience with gasohol, VW, Ford, Chevy, Dodge

But there is still petrol around, and probably longer than the lifetime of 13-18 year old cars

IMHO Accord older than 10 years is silly overprised in LOS

[kamakashi]

who should I insurance the car with? Who has the best 1st class insurance at a good price? I also plan to install LPG... do you think this car can use LPG?

[kamakashi]

Thank you MoonRiverOasis, Me and my wife have already looked into the Nissan March. The problem is that my wife does not work and we need someone to sign for the car. The payments are between 6,000 - 7,000 baht a month for the Nissan March, but we can't afford it. We will negotiate the price of the Honda Accord at the dealership. Her dad and a guy expert will be with us when we buy the car. We will make sure everything is ok. The car will only be in my wife's name. If we pay 40% (80,000 baht) down then the interest is only 14%. We really would love a new car but we plan to move to America in 5 years. If we pay 20% down and pay 6,000 x 36 17% interest then we pay 50,460 baht interest. If we put 40% down and pay 4,700 x 36 14% interest then we pay 56,000 interest. I'm sure we can haggle a bit and lower the payments and hopefully the high interest. For us to buy another car we need to pay 50% down of the value of the used car. We don't have anyone to sign for us and we can't afford any new car payment plans. I guess we won't pay off the car either since of the early cancellation fees that may apply. We will read the contract carefully .

Not really following on your numbers I'm afraid

200,000 Baht, 40% (80K) down (120K financed) @ 14% interest, over 3 years = 50,400 total interest = 4,733/mth and total cost of 250,400

200,000 Baht, 20% (40K) down (160K financed) @ 17% interest, over 3 years = 81,600 total interest = 6,711/mth and total cost of 281,600

Both are assuming VAT has already been factored into the interest rate you've been given, if not everything needs to go up.

By comparison, something like a base model March with 25% down (no need for a guarantor) would cost:

375,000 Baht, 25% (94K) down (281K financed) @ 2.25% interest, over 4 years = 25,290 total interest = 6,381/mth and a total cost of 400,290

If you could get a family member to go guarantor, it's possible to do 20% down and get a 7-year term:

375,000 Baht, 20% (75K) down (300K financed) @2.5% interest, over 7 years = 52,500 total interest = 4,196/mth and total cost of 427,500.

OK, I appreciate that all these numbers look horribly close to me, but may not to you.. But they are close right? heh

By comparison, something like a base model March with 25% down (no need for a guarantor) would cost:

375,000 Baht, 25% (94K) down (281K financed) @ 2.25% interest, over 4 years = 25,290 total interest = 6,381/mth and a total cost of 400,290

We will choose this option. I don't want a guarantor Thanks

[kamakashi]

If anyone is looking for a car I recommend NOT reserving the car. I was told that if I decided not to buy the car that I would get my 3,000 baht back from reserving the car. Well he lied and said, no sorry no refund on reserve. I asked him 3 times before I gave him the 3,000 for reserve and he said yes on a refund if I decided not to buy. Beware when you buy a 2nd hand car for many will lie to you. I'm happy that we are getting the Nissan March.

[culicine]

If anyone is looking for a car I recommend NOT reserving the car. I was told that if I decided not to buy the car that I would get my 3,000 baht back from reserving the car. Well he lied and said, no sorry no refund on reserve. I asked him 3 times before I gave him the 3,000 for reserve and he said yes on a refund if I decided not to buy. Beware when you buy a 2nd hand car for many will lie to you. I'm happy that we are getting the Nissan March.

He sounds like an A**hole. You will be happy with the march I'm sure. 3000 baht is a small loss compared to what it would have cost you! Enjoy your ride:)

[stingray]

And I highly doubt the 90K on the clock is accurate. Does the condition of the car suggest this mileage? An old accord will cost you a lot in repairs over the 5 years you plan to keep it - the march virtually nothing. And the 17% seems way to high. Is this 17% per year??? The dealers I've seen on the net seem to have rates of 6-8% or thereabouts. If you really want a used car, get something a bit newer (and cheaper), such as a hyundai. 200K (which could be 300K) after you paid for it, is a big chunk of change for an old car. Old hondas and toyotas fetch a premium.

No one wants to finance a 17 year old car for less than 15%. No Insurance covers an old car. and 91k km? doesnt really matter if its 91k or 291k km, but..............

Since its a no brand name finance, it is not likely they will discount anything on agreed interest/payments if you decide to pay out early. So if the car is wrecked, you keep on paying, and paying, or bankrupsy or lost knees

Financially you have 2 options only, Nissan March or Proton Savvy, both new at less than 400k baht

or why not a Hyundai, most of them a few years newer and at 30-80 k baht total price

30'k for a Hyundai with a few years less. Let me know where they are' i'll buy them all.