Selling Jazz Finance Calculations

[gasman2]

Hi guys,

Im getting ever more confused in my attempt to sell a 4 month old Jazz I bought for 630 plus 2.7 finance with K-bank - 9k * 60.

I've paid a 25% deposit 132k, plus 22k finance and charges, I've also paid 4 month contributions.

So the finance company is expecting 690 full-term, but 50% of this makes it 660 (if following Thail rule where finance is 50% if paid off early)

170k of this has been paid, so k bank needs 490. What is a fair cash price that won't lose me a bundle?

Thanks

[mogandave]

Anything over 490

[JeffreyMcCollum]

Sadly I think you will be hard pressed to sell it at that.

The Jazz, a B segment car against the Yaris, Sonic, City. Vios. But more importantly the Swift, March, and almera. as well as the Mitsubishi all start less and ad the 100,000 rebate that they don't get buying yours second hand

Pay less new car pay more used car ? What would you do ?

[IMHO]

While it's true you will normally get a 50% discount off the remaining interest owing, the interest owing is calculated using the rule of 72 http://en.wikipedia.org/wiki/Rule_of_72 so will be lower than what simple calcs will predict.

[stevenl]

Sadly I think you will be hard pressed to sell it at that.

The Jazz, a B segment car against the Yaris, Sonic, City. Vios. But more importantly the Swift, March, and almera. as well as the Mitsubishi all start less and ad the 100,000 rebate that they don't get buying yours second hand

Pay less new car pay more used car ? What would you do ?

You're not thinking the way a Thai buying a second hand car thinks. So in your perception the car is difficult to sell, but any tent will buy it in a heartbeat. And sell it within a few days as well, financed, etc.

[gasman2]

woohoo comparing the jazz disfavorably against the monstrosities known as the March and Almera.

It easily outclasses the hurtfully clumsy, center-panelled Yaris and is more reliable than the Fiesta

As for the vios and city - your comparing saloons with a hatch (?)

stevenl Thanks for useful advice as opposed to nonsense

[stevenl]

While it's true you will normally get a 50% discount off the remaining interest owing, the interest owing is calculated using the rule of 72 http://en.wikipedia....wiki/Rule_of_72 so will be lower than what simple calcs will predict.

No, not in Thailand. Interest is simply calculated on the remaining time with from the beginning of the loan period till the last month the same interest every month.

[JeffreyMcCollum]

Sadly I think you will be hard pressed to sell it at that.

The Jazz, a B segment car against the Yaris, Sonic, City. Vios. But more importantly the Swift, March, and almera. as well as the Mitsubishi all start less and ad the 100,000 rebate that they don't get buying yours second hand

Pay less new car pay more used car ? What would you do ?

You're not thinking the way a Thai buying a second hand car thinks. So in your perception the car is difficult to sell, but any tent will buy it in a heartbeat. And sell it within a few days as well, financed, etc.

Living here for over 10 years, and working as the only expat in a large Thai company, All are buying new now due to the rebate. And tents only buy at low ball offers. Good luck if they will give you 60 % of new in first year alone. Find a Tent as you call them and see if they will buy at 490 or above, my guess is not

[stevenl]

All are buying new now due to the rebate

So the tents are not doing business at the moment because of the rebate? Just look around and you'll see that you're not making much sense here, and are not on par with reality.

And tents only buy at low ball offers

Every time I have sold a car here the tents offered more than the dealer.

And I have lives here longer than you have (don't know what that has to do with this though).

[JeffreyMcCollum]

All are buying new now due to the rebate

So the tents are not doing business at the moment because of the rebate? Just look around and you'll see that you're not making much sense here, and are not on par with reality.

And tents only buy at low ball offers

Every time I have sold a car here the tents offered more than the dealer.

And I have lives here longer than you have (don't know what that has to do with this though).

Yes, business is way down at the so called tents and business is way up at the new dealers.

first lets both agree, if you have the time, you will get top baht selling it yourself.

A car only has so much value no matter who sells it. A dealer will only keep the top notch cars and recondition them and resell to make a profit. A so called tent buys at a discount, sell it with a down payment and monthly payments hoping they will default and take the car back and start all over again. (so my brother in law who runs a so called tent in Khon Kean.)

I assume you are a smart man, and when you can get a second hand car for a set price,or a new one for the same cost or Less, what would you do ? I think 99% will go with the new one.

Now those with credit or other problems may opt to go to a Tent as you call them to get a lower down and they carry the paper, (note or loan on the car) But again, this gets back to them hoping they will default

[funcat]

All are buying new now due to the rebate

So the tents are not doing business at the moment because of the rebate? Just look around and you'll see that you're not making much sense here, and are not on par with reality.

And tents only buy at low ball offers

Every time I have sold a car here the tents offered more than the dealer.

And I have lives here longer than you have (don't know what that has to do with this though).

Yes, business is way down at the so called tents and business is way up at the new dealers.

first lets both agree, if you have the time, you will get top baht selling it yourself.

A car only has so much value no matter who sells it. A dealer will only keep the top notch cars and recondition them and resell to make a profit. A so called tent buys at a discount, sell it with a down payment and monthly payments hoping they will default and take the car back and start all over again. (so my brother in law who runs a so called tent in Khon Kean.)

I assume you are a smart man, and when you can get a second hand car for a set price,or a new one for the same cost or Less, what would you do ? I think 99% will go with the new one.

Now those with credit or other problems may opt to go to a Tent as you call them to get a lower down and they carry the paper, (note or loan on the car) But again, this gets back to them hoping they will default

...this is pretty much on the par...IMO

[IMHO]

While it's true you will normally get a 50% discount off the remaining interest owing, the interest owing is calculated using the rule of 72 http://en.wikipedia....wiki/Rule_of_72 so will be lower than what simple calcs will predict.

No, not in Thailand. Interest is simply calculated on the remaining time with from the beginning of the loan period till the last month the same interest every month.

Yes, in Thailand. I have paid out early 7 car loans here now, from 5 different lenders. All apply the rule of 72 when calculating your 50% discount off the "remaining" interest.

[stevenl]

While it's true you will normally get a 50% discount off the remaining interest owing, the interest owing is calculated using the rule of 72 http://en.wikipedia....wiki/Rule_of_72 so will be lower than what simple calcs will predict.

No, not in Thailand. Interest is simply calculated on the remaining time with from the beginning of the loan period till the last month the same interest every month.

Yes, in Thailand. I have paid out early 7 car loans here now, from 5 different lenders. All apply the rule of 72 when calculating your 50% discount off the "remaining" interest.

Let's agree to disagree.

[IMHO]

While it's true you will normally get a 50% discount off the remaining interest owing, the interest owing is calculated using the rule of 72 http://en.wikipedia....wiki/Rule_of_72 so will be lower than what simple calcs will predict.

No, not in Thailand. Interest is simply calculated on the remaining time with from the beginning of the loan period till the last month the same interest every month.

Yes, in Thailand. I have paid out early 7 car loans here now, from 5 different lenders. All apply the rule of 72 when calculating your 50% discount off the "remaining" interest.

Let's agree to disagree.

Not trying to turn this into a flame war - I'm just testifying from my own personal experience with Siam Commercial Bank, Thanachart Bank, Kasikorn Bank, Bank of Ayudyah, and SICCO - all have stung me with a substantially less early payout savings than what you're suggesting, due to calculating the amount of interest I'd paid already using the rule of 72.

If you know of a finance co. in Thailand that will use simple math to calculate the remaining interest due, please do share!

[stevenl]

Not trying to turn this into a flame war - I'm just testifying from my own personal experience with Siam Commercial Bank, Thanachart Bank, Kasikorn Bank, Bank of Ayudyah, and SICCO - all have stung me with a substantially less early payout savings than what you're suggesting, due to calculating the amount of interest I'd paid already using the rule of 72.

If you know of a finance co. in Thailand that will use simple math to calculate the remaining interest due, please do share!

From experience: Tanachart. If monthly payment is 10,000 Baht, 1,000 of that interest and still 24 months to go, their calculation: 24 (months) x 1,000 = 24,000 interest still to pay. If ending finance now: 50% discount, still 12,000 Baht interest to pay (plus of course 24 x 9,000 Baht).

[IMHO]

Not trying to turn this into a flame war - I'm just testifying from my own personal experience with Siam Commercial Bank, Thanachart Bank, Kasikorn Bank, Bank of Ayudyah, and SICCO - all have stung me with a substantially less early payout savings than what you're suggesting, due to calculating the amount of interest I'd paid already using the rule of 72.

If you know of a finance co. in Thailand that will use simple math to calculate the remaining interest due, please do share!

From experience: Tanachart. If monthly payment is 10,000 Baht, 1,000 of that interest and still 24 months to go, their calculation: 24 (months) x 1,000 = 24,000 interest still to pay. If ending finance now: 50% discount, still 12,000 Baht interest to pay (plus of course 24 x 9,000 Baht).

When was that? I paid out 48month Thanachart loan back in January (when it was 21 months into the contract), and the bastards stung me using the rule of 72. Are you suggesting that they've changed their policy in the past 8 months? If so, I'm gonna be pissed!

[stevenl]

Not trying to turn this into a flame war - I'm just testifying from my own personal experience with Siam Commercial Bank, Thanachart Bank, Kasikorn Bank, Bank of Ayudyah, and SICCO - all have stung me with a substantially less early payout savings than what you're suggesting, due to calculating the amount of interest I'd paid already using the rule of 72.

If you know of a finance co. in Thailand that will use simple math to calculate the remaining interest due, please do share!

From experience: Tanachart. If monthly payment is 10,000 Baht, 1,000 of that interest and still 24 months to go, their calculation: 24 (months) x 1,000 = 24,000 interest still to pay. If ending finance now: 50% discount, still 12,000 Baht interest to pay (plus of course 24 x 9,000 Baht).

When was that? I paid out 48month Thanachart loan back in January (when it was 21 months into the contract), and the bastards stung me using the rule of 72. Are you suggesting that they've changed their policy in the past 8 months? If so, I'm gonna be pissed!

Quite a few years ago now. So you may be right, and they may be reducing the discount now, would not surprise me at all. I try to avoid finance as much as I can, even for the shop.

[gasman2]

Hi guys, I phoned the bank and they said it was 50% minus minor change i think due to rule of 72 - so total interest of 60k came down to 27k cos paid early, thanks

[stevenl]

Hi guys, I phoned the bank and they said it was 50% minus minor change i think due to rule of 72 - so total interest of 60k came down to 27k cos paid early, thanks

That is more than 50% discount, so can't be rule of 72 or anything like that.

[IMHO]

Hi guys, I phoned the bank and they said it was 50% minus minor change i think due to rule of 72 - so total interest of 60k came down to 27k cos paid early, thanks

That is more than 50% discount, so can't be rule of 72 or anything like that.

Well, the numbers presented in the OP are all screwy - i.e. 25% downpayment = 132K, but total price = 630K - that just doesn't compute

[mogandave]

Hi guys, I phoned the bank and they said it was 50% minus minor change i think due to rule of 72 - so total interest of 60k came down to 27k cos paid early, thanks

That is more than 50% discount, so can't be rule of 72 or anything like that.

Well, the numbers presented in the OP are all screwy - i.e. 25% downpayment = 132K, but total price = 630K - that just doesn't compute

That higher math do get a little rugged...

[babykyo]

All are buying new now due to the rebate

So the tents are not doing business at the moment because of the rebate? Just look around and you'll see that you're not making much sense here, and are not on par with reality.

And tents only buy at low ball offers

Every time I have sold a car here the tents offered more than the dealer.

And I have lives here longer than you have (don't know what that has to do with this though).

I believe you live here very long, the tent are buying old used car to profit, not new used car. The thai are not idiot as you presume. everyone will buy a cheaper new car with rebate than a used car

[stevenl]

All are buying new now due to the rebate

So the tents are not doing business at the moment because of the rebate? Just look around and you'll see that you're not making much sense here, and are not on par with reality.

And tents only buy at low ball offers

Every time I have sold a car here the tents offered more than the dealer.

And I have lives here longer than you have (don't know what that has to do with this though).

I believe you live here very long, the tent are buying old used car to profit, not new used car. The thai are not idiot as you presume. everyone will buy a cheaper new car with rebate than a used car

Damned, so I'm mistaken that they just bought of me my a car less than a year old. And I didn't see cars for sale there less than a year old, all at prices higher than at the dealer but with easier finance.