Did A Bank Have More Profit On A Old Loan Car , Then On A New One?

[Sandman77]

Hi!

Can someone give me more information , about the profit from a loan car by the bank?

My gf told me that our scb loan charge 6 procent for our used car , in total for 3 years, and for a new one it is only the half 3 procent of the total amount!

Is this the normal way the bank do?

[IMHO]

Interest rates for used cars are indeed higher than for new cars, plus the repayments are subject to 7% VAT, which is not the case for new.

As for whether banks make more profit from them though, that's unlikely - a combination of higher risk (lower down payments/ higher default rates) and lower delinquent recovery values probably evens it out.

[stevenl]

If the bank charges double interest for a second hand car, that can mean 2 things:

1) they can ask that rate because there is no/less competition, or, more probable;

2) they have to because the risk is higher.

[Sandman77]

If I beginn to calculate I pay 27000 bath to the bank on prosit within in 3 years!

This mean it's 20 procent profit

not 6 Procenr , something still wrong and i dont know why Pay so much more!

[IMHO]

Interest rates are per year.

[topt]

Interest rates are per year.

I envy you - you are very patient.....