Dumb Question!

[beswick]

Hi all,

I'm very green and would like to know if it would work out better to get a loan from the bank and buy a new car outright or finance the car through the car company. I know that it depends on the interest rates that the companies ar offering but am I right in saying I can negotiate more freebees with the dealer? Also, what per centage rate should I be looking to pay for a new car through a dealer? Want to get myself a new car ASAP.

Need your help guys!

Cheers

Bes

[MoonRiverOasis]

Delaer finance will serve you much better - often they are cheaper/more negotiable on rates due to campaigns, and the dealer/salesrep will make their commissions on the loan, making them happier and improving your bargaining power.

Financing yourself is as bad as paying cash.

[beswick]

Delaer finance will serve you much better - often they are cheaper/more negotiable on rates due to campaigns, and the dealer/salesrep will make their commissions on the loan, making them happier and improving your bargaining power.

Financing yourself is as bad as paying cash.

Thanks MoonRiverOasis,

I will go with car finance then. You seem to be very knowledgable in this area. May I ask, what percentage rate should I be looking to pay? 0% would be nice but I doubt I'll get it. I want the new Toyota Vios (5 door) with leather seats, cd player, sat nav etc. I think they are only 510,000 bht. This is the sticker price, should I be looking to knock them down on this? What freebees should I be looking to get? I want to drive a hard bargin.

Your advice would be greatly appeciated - help me get an awesome deal!

[beswick]

I will be purchasing in Bangkok.

[kartman]

As you want ASAP perhaps MRO can tell you estimated delivery time as of today?

[MoonRiverOasis]

May I ask, what percentage rate should I be looking to pay? 0% would be nice but I doubt I'll get it. I want the new Toyota Vios (5 door) with leather seats, cd player, sat nav etc. I think they are only 510,000 bht. This is the sticker price, should I be looking to knock them down on this? What freebees should I be looking to get? I want to drive a hard bargin.

There's no way you'll get 0% interest on a Toyota, expect more in the range of 2.6-3.0% (after negotiating), depending on down-payment and the term of the finance.

There's no VIOS model remotely close to 510K with the features you're asking for though I'm afraid. The absolute base model is 514K (5MT) and doesn't even have electric mirrors. To get leather you'd need to be looking at the G grade, or the TRD sportivo (partial leather). The TRD Sportivo is the only model that features a video monitor (screen), but it doesn't include GPS - that would have to be added aftermarket (at extra cost).

Here's the current VIOS range and pricing for reference (in Thai): http://www.toyota.co...vios&opt=grades

Negotiating a deal on the VIOS will not be easy (nor any Toyota for that matter). While there's no way you'll get a discount off the sticker price, if you haggle enough you should be able to get the following freebies thrown in: 1st class insurance, road tax, weathershields, floor mats, car cover, and perhaps some mirror covers and a chrome exhaust tip cover..

Edited November 6, 2011 by MoonRiverOasis

[MoonRiverOasis]

As you want ASAP perhaps MRO can tell you estimated delivery time as of today?

Nope, can't. Production at Toyota still hasn't resumed, and even when it does it would appear it'll be a slow restart.

I can say that the only hope for getting one within the next 3 months would be if you're lucky enough to find what you want already in stock somewhere (e.g. a car previously ordered and subsequently cancelled by someone else).

Edited November 6, 2011 by MoonRiverOasis

[beswick]

Cheers MRO,

So dont you think I can walk in the showroom and say to the sales man I want your basic model (not that I do) priced at 514,000 but I want to pay 490,000 for it? Serious question as I don't know. I think I'll go for the sport version at 615,000 or whatever it is but can't you negotiate for free sat nav etc, surely they need to sell these cars. A sales a sale as long as they make some profit? I wonder how much they buy them from the supplier for.

I'm just been a tight ba*tard really but still want to get a good deal as it's my first car I've ever bought. I think it might be easier negotiating in the west as cars are more expensive here. Not keen on waiting 3 months though, I'm well impatient.

Cheers MRO, you seem like a good lad

May I ask, what percentage rate should I be looking to pay? 0% would be nice but I doubt I'll get it. I want the new Toyota Vios (5 door) with leather seats, cd player, sat nav etc. I think they are only 510,000 bht. This is the sticker price, should I be looking to knock them down on this? What freebees should I be looking to get? I want to drive a hard bargin.

There's no way you'll get 0% interest on a Toyota, expect more in the range of 2.6-3.0% (after negotiating), depending on down-payment and the term of the finance.

There's no VIOS model remotely close to 510K with the features you're asking for though I'm afraid. The absolute base model is 514K (5MT) and doesn't even have electric mirrors. To get leather you'd need to be looking at the G grade, or the TRD sportivo (partial leather). The TRD Sportivo is the only model that features a video monitor (screen), but it doesn't include GPS - that would have to be added aftermarket (at extra cost).

Here's the current VIOS range and pricing for reference (in Thai): http://www.toyota.co...vios&opt=grades

Negotiating a deal on the VIOS will not be easy (nor any Toyota for that matter). While there's no way you'll get a discount off the sticker price, if you haggle enough you should be able to get the following freebies thrown in: 1st class insurance, road tax, weathershields, floor mats, car cover, and perhaps some mirror covers and a chrome exhaust tip cover..

[MoonRiverOasis]

So dont you think I can walk in the showroom and say to the sales man I want your basic model (not that I do) priced at 514,000 but I want to pay 490,000 for it?

That wouldn't be possible for cash (for a Toyota, maybe for a Chev though), and if financing you must have insurance, which means not enough margin left to offer a cash discount as well.

[wandrinstar]

Or you could but the 11 year old Honda as advertised above at more than it cost New. Chrome Mirror Floor Mats ,and all the 100Bhts worth of Crap included...

[beswick]

Cheers MOR,

I went into the Toyota dealership near me today and they offered no discount on the car and only a few freebees (and she wasn't even clear on these) no mats or anything like that. She even said Toyota don't do the free insurance anymore. Do you reckon that is BS?

Anyway, like you said the per centage is in the range of 3% which I don't mind and the total amount I'd pay back on the finace would be around 100,000.

What do you think? Is it worth going to another Toyota dealer to see if they can do better or will they all be the same?

Cheers,

Bez

[MoonRiverOasis]

Cheers MOR,

I went into the Toyota dealership near me today and they offered no discount on the car and only a few freebees (and she wasn't even clear on these) no mats or anything like that. She even said Toyota don't do the free insurance anymore. Do you reckon that is BS?

Anyway, like you said the per centage is in the range of 3% which I don't mind and the total amount I'd pay back on the finace would be around 100,000.

What do you think? Is it worth going to another Toyota dealer to see if they can do better or will they all be the same?

Cheers,

Bez

No offence but, It appears you walked out of the showroom accepting the "we don't do freebies" line (yes, it's BS), so I'd say you've failed to establish a good negotiating position at that particular dealership

Perhaps it's worth considering getting a Thai speaker to phone a few dealers for you? Get them to cut straight to the chase - e.g. "I have a farang friend that wants a VIOS E - what campaigns can you offer him, and what commission can you give me?". Make sure you get that commission yourself though, hehe

[beswick]

Cheers MOR,

You're probably right, told you this was my first time buying a new car

I'll get my wife to ring around a few dealers tomorrow and see what they can give me. I'll probably put the car in her name to claim the up to 100,000 tax incentive; however I will pay from my salary. Work can provide all the documentation I need but the sales rep said they want to see my wife's bank a/c also. Is this correct as she never uses it as she doesn't work so she won't be able to show any salary or 6 month statements, that will have to be me. What you recon?

Cheers mate, I will work on my negotiation tactics. It's hard though when you don't understand the market. Talk to me about banking investments and I'll bore you to tears

Bes

[MoonRiverOasis]

Work can provide all the documentation I need but the sales rep said they want to see my wife's bank a/c also. Is this correct as she never uses it as she doesn't work so she won't be able to show any salary or 6 month statements, that will have to be me. What you recon?

Just make it clear she doesn't work - if you're legally married, there should be absolutely no problems qualifying for finance based on your (sole) income, with you as her guarantor. But also, don't expect a sales rep to understand that - the finance officer should though.

[sanchobkk]

There's no way you'll get 0% interest on a Toyota, expect more in the range of 2.6-3.0% (after negotiating), depending on down-payment and the term of the finance.

I got a quote from TISCO , they offer me 1,89% on 48 months or 2,29 on 60 months without negotiating for a Triton Plus at 825 000 bahts.

Also, I wouldn't need someone to back me as I have more than 3 years work permit.

Are the finance rate note the same from one brand to another ?

[jombom]

It's truly amazing how many people in this country cannot calculate interest rates properly.

When financial operators (including car finance) tell you 2%, it is more like 6% per western methods of calculation.

When they offer you a saving rate of 5%, they are often only offering 2%.

What is wrong with people%. Since when did financial institutions offer deposit rates of 5% and loan rates of 2% ??

[MoonRiverOasis]

I got a quote from TISCO , they offer me 1,89% on 48 months or 2,29 on 60 months without negotiating for a Triton Plus at 825 000 bahts.

Also, I wouldn't need someone to back me as I have more than 3 years work permit.

Are the finance rate note the same from one brand to another ?

Those lower rates are due to ongoing promotions by Mitsubishi that have been runnning for almost 2 years now.

Lancer CNG finance is currently sponsored down to 0.99%, Triton finance goes through promotional phases where it's down to 0.99% (25% down) or 0% (40% down) , Pajero and Lancer EX finance go through promotional phases where they drop rates to 1.39%-1.69%..

It's truly amazing how many people in this country cannot calculate interest rates properly.

There's nothing at all wrong with the calculations - flat-rate interest is perfectly valid.

What's amazing is the people who keep on struggling with the fact that all Thai car finance is calculated using flat-rate interest, not APR

Edited November 8, 2011 by MoonRiverOasis

[funcat]

I've asked about adjustable rates(APR) ones at the financial office...they did not have a clue how that works !!

[MoonRiverOasis]

I've asked about adjustable rates(APR) ones at the financial office...they did not have a clue how that works !!

APR interest is used in Thailand for credit cards, personal loans, mortgages etc, but for car finance (hire purchase) they only ever do flat-rate.. So it probably wasn't a case that they don't understand APR, but were just confused becauase you were talking about car finance

Edited November 9, 2011 by MoonRiverOasis

[ProThaiExpat]

It is good to keep in mind as you attempt to "negotiate" a better deal than first offered, that Japan is the country of fixed prices and Thailand seems to be so inclined. GM tried to do it in the US a few years back and I have no clue if they succeeded. While unwanted "premiums" are often given, the price of the product rarely is discounted.

Accordingly, as suggested by other posters, perhaps you can get some "freebies", however, your timing is definitely against you as the supply chain of Toyotas has been severely disrupted and I wouldn't be surprised if premium prices will be the norm for some time.

[beswick]

I got a quote from TISCO , they offer me 1,89% on 48 months or 2,29 on 60 months without negotiating for a Triton Plus at 825 000 bahts.

Also, I wouldn't need someone to back me as I have more than 3 years work permit.

Are the finance rate note the same from one brand to another ?

Those lower rates are due to ongoing promotions by Mitsubishi that have been runnning for almost 2 years now.

Lancer CNG finance is currently sponsored down to 0.99%, Triton finance goes through promotional phases where it's down to 0.99% (25% down) or 0% (40% down) , Pajero and Lancer EX finance go through promotional phases where they drop rates to 1.39%-1.69%..

It's truly amazing how many people in this country cannot calculate interest rates properly.

There's nothing at all wrong with the calculations - flat-rate interest is perfectly valid.

What's amazing is the people who keep on struggling with the fact that all Thai car finance is calculated using flat-rate interest, not APR

Flat rate sucks! I am fully competent in working out flat rates / percentages etc; however, I don't know how to convert flat rate to APR. Am I right in saying you divide the flat rate i.e. 3.75 by the total monthly payments i.e. 5 years (60 months) = 3.75/60*100 = 6.25 APR?

The best deal I'm getting at the moment, after ringing around several dealers, is all the freebees and trimmings but no insurance. The best flat rate (so far) is 3.75 for only putting 100,000 down. If I put down 150000 it goes down to 2.75% What do you think MOR?

,

[MoonRiverOasis]

Flat rate sucks! I am fully competent in working out flat rates / percentages etc; however, I don't know how to convert flat rate to APR. Am I right in saying you divide the flat rate i.e. 3.75 by the total monthly payments i.e. 5 years (60 months) = 3.75/60*100 = 6.25 APR?

The best deal I'm getting at the moment, after ringing around several dealers, is all the freebees and trimmings but no insurance. The best flat rate (so far) is 3.75 for only putting 100,000 down. If I put down 150000 it goes down to 2.75% What do you think MOR?

,

Why does flat rate suck? It's the easiest interest type to calculate - you can calculate the total interest payable using flat-rate in your head - I challenge anyone to do the same for APR

There's no single formula for converting flat rate to APR, as the effective APR is totally dependant on the finance term and frequency of payments. But why even bother? All you need to understand is the total interest component in Baht, not what 2.75% flat rate equals as bananas

3.75% is ludicrous, but I have to assume that 100K is a very low downpayment (percentage-wise), therefore the rate reflects the risk.

2.75% sound more like it.

[beswick]

,

Why does flat rate suck? It's the easiest interest type to calculate - you can calculate the total interest payable using flat-rate in your head - I challenge anyone to do the same for APR

While I agree flat rate is the easiest to calculate it is also the most expensive as you are always paying the same interest on the total amount borrowed, even when the loan decreases. I understand why they do this for car sales. Yes, APR takes some serious calculations and would pose a problem for even the best mathematicians.

3.75% is ludicrous, but I have to assume that 100K is a very low downpayment (percentage-wise), therefore the rate reflects the risk.

2.75% sound more like it.

Totally agree with you. 3.75 is ridiculous! To be honest, I'm not really impressed with Toyota at the moment. Although they are having understandable problems with the production, the offers and rates are a joke. I might have a look at the Honda City or Ford and see what they can do.

[kartman]

Posters are stating 6-12 months for Honda so i thiink it's straight to Ford.

[beswick]

Cheers Kartman,

The Mazda 2 elegance looks nice also; the All New Fiesta too! Going to both dealers tomorrow, but after ringing them today, Mazda looks like it is very flexible when negotiating.

I'll keep you posted, can't believe Toyota, set of cranks!

[wandrinstar]

Cheers Kartman,

The Mazda 2 elegance looks nice also; the All New Fiesta too! Going to both dealers tomorrow, but after ringing them today, Mazda looks like it is very flexible when negotiating.

I'll keep you posted, can't believe Toyota, set of cranks!

You are not alone with your " Set of Cranks " remark.. Since they have cornered the Wannabe Market with Tunas n Spivoes they are a bit "Up You.".. Their customers tend to be "The Wife Wants One" type Ferang, or I'm a Poo Yai..Thai. I've been into Mazda ,Mitsu ,Nissan , Honda ,Proton ,Ford as a wheel kicker and been met with only civility and time to talk. The only But Holes ive met have been at G.M. Chev / Isuzu and Toyota Dealers.

[sanchobkk]

If it can help, let me tell me you what I got from Mitsu this week :

TRITON double cab plus 2.5 2012 automatic 5 speed

825000 baht, 1,79% for 48 months payment with 25% down (200k baht or so)

1st class insurance for one year and taxes (porobor)

Leather seat

Rear sensor

Film for windows 3M

Diamond garanty 5 years or 150000km and free service for 36 months

And below the usual crap (in thai, lazy to translate , as you can notice, my English is as crap as the free stuff)

ผ้ายางรองพื้น

กันสาด

คิ้วข้างประตู

พื้นปูกระบะ ลายเนอร์ ครอบไฟเลี้ยวกระจกข้าง เบ้ารองมือเปิดประตูโคเมี่ยม

So, I'll take this offer, as I really need a car right now , and it's the only one available at the moment anyway

As for the rear cover , they quoted it at 20000 baht, the one from Top up (manual)

http://www.topupcover.com/catalogue_mitsubishi.html

They told that the only one available for new Triton, If anyone has any suggestions..

Cheers

[funcat]

The opposite for the new Isuzu 4 dr 3L AT,just reviled in CM Airport Plaza...very good looking in white pearl(+7K) color BTW,but -no deals...no free insurance,or registration,no freebies !!...well,they will give you 3K baht off,if you order the whole package for 13K ...

Price for 2wd is 915K (922K for the white) 25% down,2.75%x60 month...BTW,4x4 top model is 994K !!

???...I'm not interested...and wonder,if anybody here would be...

Edited November 11, 2011 by funcat

[MoonRiverOasis]

The opposite for the new Isuzu 4 dr 3L AT,just reviled in CM Airport Plaza...very good looking in white pearl(+7K) color BTW,but -no deals...no free insurance,or registration,no freebies !!...well,they will give you 3K baht off,if you order the whole package for 13K ...

Price for 2wd is 915K (922K for the white) 25% down,2.75%x60 month...BTW,4x4 top model is 994K !!

???...I'm not interested...and wonder,if anybody here would be...

It's a sellers market..

If you can, I'd suggest holding off until April next year - by then everyone will have stock again (including the new BT-50), and the manufacturers will be begging for your business at the International Motor Show...

[MJCM]

If it can help, let me tell me you what I got from Mitsu this week :

TRITON double cab plus 2.5 2012 automatic 5 speed

825000 baht, 1,79% for 48 months payment with 25% down (200k baht or so)

1st class insurance for one year and taxes (porobor)

Leather seat

Rear sensor

Film for windows 3M

Diamond garanty 5 years or 150000km and free service for 36 months

And below the usual crap (in thai, lazy to translate , as you can notice, my English is as crap as the free stuff)

ผ้ายางรองพื้น

กันสาด

คิ้วข้างประตู

พื้นปูกระบะ ลายเนอร์ ครอบไฟเลี้ยวกระจกข้าง เบ้ารองมือเปิดประตูโคเมี่ยม

So, I'll take this offer, as I really need a car right now , and it's the only one available at the moment anyway

As for the rear cover , they quoted it at 20000 baht, the one from Top up (manual)

http://www.topupcove...mitsubishi.html

They told that the only one available for new Triton, If anyone has any suggestions..

Cheers

Could you tell me which dealer / Province you got this deal

Edit: //

Looking at your username. I bet it's BKK

Edited November 11, 2011 by MJCM