Paying A Car Loan Off Early

[pj123]

I have been looking at options for financing the purchase of a used car. I spoke to my local branch of Bank of Ayudhya about what are the benefits/penalties of paying a car loan off early. I ask as I would like the option to get rid of the loan (and the interest) at a later stage. They said that with their car loan products you receive a 50% discount off the remaining interest payments. Is it worth shopping around for a better discount or is this the best I can expect?

[WarpSpeed]

Given that some will actually charge you more for a short loan term due to potentially lost interest I'd consider that a pretty good deal..

[MoonRiverOasis]

It's the industry standard in Thailand.

For car finance, you won't get a better early payout deal, just as you won't get APR interest rates.

[mogandave]

I guess that makes sense in a country where you get a discount for using a credit card.

Hey, can you use a credit card to buy a car here?

[katabeachbum]

I guess that makes sense in a country where you get a discount for using a credit card.

Hey, can you use a credit card to buy a car here?

at Homepro a Samsung side by side with icemaker, inventer 10 years warranty, is 45k baht cash and 39xxx paid with Krungsri Ayudhua CC

I d like the same deal for cars, just need to raise my limit in CC

[WarpSpeed]

I guess that makes sense in a country where you get a discount for using a credit card.

Hey, can you use a credit card to buy a car here?

Of course you can if your limit is high enough finance is finance, but I think you mean down payment maybe? Still the answer is yes..

[mogandave]

I think my limit is high enough that I could put half down with the order, and pay it off when I pick it up. That's a lot of points!

[Woodsie888]

Early repayments of Hire Purchase are normally calculated using "the rule of 78". This happens all over the world.

Here is a fairly reliable calculator for you to check. Don't forget the VAT element that Thai Finance Companies include!

http://www.hughchou....calc/rule78.cgi

Cheers

[aussiebebe]

My wife got an interest free loan from TISCO on her Chevrolet in 2009; didn't compensate for how bad the car is, or the horrors of Chevy after-sales (non)service. Obviously no charge when she paid it off early (2nd year of 3 year loan), but otherwise Tisco would charge 50% of remaining interest so the Ayudhya deal the OP was asking about seems standard.