Loan Want Pay The Car More Quickly Finish In First Year , How Bank Handle It!?

[Sandman77]

Bought a used Nisan nv car in January because I was on low money after house build

After we bought the car for 130000 in total I got here on board the aswer that old cars more higher low an taxes then before, first time pay was 50000 bath

Then since half year every month 3ooo in total I already payed 68000

The monthly scb Autofinance bill paper

Say around 89000 left within , so in my calculation the bank win 30 procent of the total value around 20000 to 25000 bath , that's more then double then my home bank charge me for borrow 3500€

Without knowing this , before I leave to Europe when here the rain come , and go home over summer time I plan to pay everything finish in one month ,but how I can exit the loan to hold the bank profit low?

Don't know I'd this possible?

How the bank calculate there winning , every year , begin at the time of purchase?

Rati saw ad !

Good night for today!

[thaicbr]

The loan finance is generally a % put on each year of the loan. Example if it is a 3 year loan of 100 k and the finance charge is 10% then 10% of 100k is 10k baht so 3 years = 30k

So if you paid one year. You may be able to get some discount on the remaining finance charge.

Sent from my i-mobile i-STYLE Q6

[jbrain]

The loan finance is generally a % put on each year of the loan. Example if it is a 3 year loan of 100 k and the finance charge is 10% then 10% of 100k is 10k baht so 3 years = 30k

So if you paid one year. You may be able to get some discount on the remaining finance charge.

Sent from my i-mobile i-STYLE Q6

But I never seen a car finance at 10% a year.

[metisdead]

The loan finance is generally a % put on each year of the loan. Example if it is a 3 year loan of 100 k and the finance charge is 10% then 10% of 100k is 10k baht so 3 years = 30k

So if you paid one year. You may be able to get some discount on the remaining finance charge.

Sent from my i-mobile i-STYLE Q6

But I never seen a car finance at 10% a year.

If you read the post, he used the 10% as an example, it is ok to use examples, isn't it?

[jbrain]

The loan finance is generally a % put on each year of the loan. Example if it is a 3 year loan of 100 k and the finance charge is 10% then 10% of 100k is 10k baht so 3 years = 30k

So if you paid one year. You may be able to get some discount on the remaining finance charge.

Sent from my i-mobile i-STYLE Q6

But I never seen a car finance at 10% a year.

If you read the post, he used the 10% as an example, it is ok to use examples, isn't it?

But the OP mentioned 30% interest over 3 years, isn't it ?

[metisdead]

The loan finance is generally a % put on each year of the loan. Example if it is a 3 year loan of 100 k and the finance charge is 10% then 10% of 100k is 10k baht so 3 years = 30k

So if you paid one year. You may be able to get some discount on the remaining finance charge.

Sent from my i-mobile i-STYLE Q6

But I never seen a car finance at 10% a year.

If you read the post, he used the 10% as an example, it is ok to use examples, isn't it?

But the OP mentioned 30% interest over 3 years, isn't it ?

Look at the post you were replying to, he was using an example. If you want to be pedantic, reply to the OP's post. I don't see any mention of 3 years in the OP.

[jbrain]

My post was actually a reference to the OP's post. How do you reply directly to an OP without a reply button?

The OP pays 36000 Baht a year on a 80.000 Baht loan and is supposed to pay 30% total interest. Sounds like 3 years to me.

Edited June 9, 2013 by jbrain

[metisdead]

My post was actually a reference to the OP's post. How do you reply directly to an OP without a reply button?

The OP pays 36000 Baht a year on a 80.000 Baht loan and is upposed to pay back a total of 108.000 Baht. Sounds like 3 years to me.

Well, if your original reply was to the OP's post why did you quote another member's example post?

[thaicbr]

My post was actually a reference to the OP's post. How do you reply directly to an OP without a reply button?

 

The OP pays 36000 Baht a year on a 80.000 Baht loan and is supposed to pay 30% total interest. Sounds like 3 years to me.

If you buy a 2nd hand car from a tent the finance can be as high as 14+%

Sent from my i-mobile i-STYLE Q6

[Riley'sLife]

Financing a depreciating asset is the epitome of bad money management.

Paying off Thai Finance early is utterly pointless as you will still have to pay the full amount of the interest.

It is for this reason that most vehicles on finance are offered for sale with the finance still in place. The seller needs to find another mug to take over the repayments.

[jbrain]

My post was actually a reference to the OP's post. How do you reply directly to an OP without a reply button?

The OP pays 36000 Baht a year on a 80.000 Baht loan and is upposed to pay back a total of 108.000 Baht. Sounds like 3 years to me.

Well, if your original reply was to the OP's post why did you quote another member's example post?

Because Thaicbr actually used more or less details the OP had posted in the OP, and it isn't possible to quote an OP due to the lack of a quote button.

[thaicbr]

Financing a depreciating asset is the epitome of bad money management.

 

Paying off Thai Finance early is utterly pointless as you will still have to pay the full amount of the interest.

 

It is for this reason that most vehicles on finance are offered for sale with the finance still in place. The seller needs to find another mug to take over the repayments.

Actually it depends on the finance company. Some do discount the interest but you have to ask.

Sent from my i-mobile i-STYLE Q6

[Satcommlee]

If it is anything like the UK you are usually paying the interest element first then the principle sum borrowed at the end..

[Riley'sLife]

Financing a depreciating asset is the epitome of bad money management.

Paying off Thai Finance early is utterly pointless as you will still have to pay the full amount of the interest.

It is for this reason that most vehicles on finance are offered for sale with the finance still in place. The seller needs to find another mug to take over the repayments.

Actually it depends on the finance company. Some do discount the interest but you have to ask.

Sent from my i-mobile i-STYLE Q6

Trying not to be argumentative here...but I doubt any Thai Finance Co would discount any interest under any circumstances. Maybe a Bank would, but even then only if one is a long-standing good customer that they didn't want to lose.

If you have first-hand experience of a Finance Co having discounted the interest for early settlement I would be very keen to know the name of the company...... I never borrow, neither do I lend... but my Thai in-laws have borrowing as a hobby! so it could save them money.

[IMHO]

The reason you pay more interest than capital in the early stages of the finance term (and conversely more capital/less interest towards the end) is because all banks use the Rule of 72.

http://en.wikipedia.org/wiki/Rule_of_72

Its customary in Thailand to receive a 50% discount of the interest owed when paying out a loan early, but that's 50% of what's owed based on the Rule of 72

Edited June 9, 2013 by IMHO

[dezy1801]

Financing a depreciating asset is the epitome of bad money management.

Paying off Thai Finance early is utterly pointless as you will still have to pay the full amount of the interest.

It is for this reason that most vehicles on finance are offered for sale with the finance still in place. The seller needs to find another mug to take over the repayments.

Actually it depends on the finance company. Some do discount the interest but you have to ask.

Sent from my i-mobile i-STYLE Q6

I will confirm that as I have paid off all my cars early and everytime get a discount.

[dezy1801]

Financing a depreciating asset is the epitome of bad money management.

Paying off Thai Finance early is utterly pointless as you will still have to pay the full amount of the interest.

It is for this reason that most vehicles on finance are offered for sale with the finance still in place. The seller needs to find another mug to take over the repayments.

Actually it depends on the finance company. Some do discount the interest but you have to ask.

Sent from my i-mobile i-STYLE Q6

Trying not to be argumentative here...but I doubt any Thai Finance Co would discount any interest under any circumstances. Maybe a Bank would, but even then only if one is a long-standing good customer that they didn't want to lose.

If you have first-hand experience of a Finance Co having discounted the interest for early settlement I would be very keen to know the name of the company...... I never borrow, neither do I lend... but my Thai in-laws have borrowing as a hobby! so it could save them money.

Why don't you lend them? How about they ask the question before going through with the loan from the finance company its always something that I ask no matter where I loan from or what its for.

[stevenl]

If it is anything like the UK you are usually paying the interest element first then the principle sum borrowed at the end..

It is nothing like in the UK. See post #2.

[stevenl]

Financing a depreciating asset is the epitome of bad money management.

Paying off Thai Finance early is utterly pointless as you will still have to pay the full amount of the interest.

It is for this reason that most vehicles on finance are offered for sale with the finance still in place. The seller needs to find another mug to take over the repayments.

Actually it depends on the finance company. Some do discount the interest but you have to ask.

Sent from my i-mobile i-STYLE Q6

Trying not to be argumentative here...but I doubt any Thai Finance Co would discount any interest under any circumstances. Maybe a Bank would, but even then only if one is a long-standing good customer that they didn't want to lose.

If you have first-hand experience of a Finance Co having discounted the interest for early settlement I would be very keen to know the name of the company...... I never borrow, neither do I lend... but my Thai in-laws have borrowing as a hobby! so it could save them money.

Quite often 50% of the interest of the remainder will be waived.

[BSJ]

I am impressed with all you posters for understanding Sandy's predicament. I read the post and my eyes glazed over!

[Riley'sLife]

Financing a depreciating asset is the epitome of bad money management.

Paying off Thai Finance early is utterly pointless as you will still have to pay the full amount of the interest.

It is for this reason that most vehicles on finance are offered for sale with the finance still in place. The seller needs to find another mug to take over the repayments.

Actually it depends on the finance company. Some do discount the interest but you have to ask.

Sent from my i-mobile i-STYLE Q6

I will confirm that as I have paid off all my cars early and everytime get a discount.

Which Thai Finance Company/ies ?

[Riley'sLife]

Financing a depreciating asset is the epitome of bad money management.

Paying off Thai Finance early is utterly pointless as you will still have to pay the full amount of the interest.

It is for this reason that most vehicles on finance are offered for sale with the finance still in place. The seller needs to find another mug to take over the repayments.

Actually it depends on the finance company. Some do discount the interest but you have to ask.

Sent from my i-mobile i-STYLE Q6

Trying not to be argumentative here...but I doubt any Thai Finance Co would discount any interest under any circumstances. Maybe a Bank would, but even then only if one is a long-standing good customer that they didn't want to lose.

If you have first-hand experience of a Finance Co having discounted the interest for early settlement I would be very keen to know the name of the company...... I never borrow, neither do I lend... but my Thai in-laws have borrowing as a hobby! so it could save them money.

Why don't you lend them? How about they ask the question before going through with the loan from the finance company its always something that I ask no matter where I loan from or what its for.

I am more than happy to lend them. If you let me have your address I will arrange their delivery later this week. It could even be a permanent loan arrangement if you wish.

If you mean lend to them...... why would anyone lend money to someone that doesn't have it? Surely that is evidence that they can't manage their lives. My advice to them is always the same..."if you really need a new shiny motorbike, save up for it! ..and when you have enough, buy it!" Or, if they offer me collateral, a Chanote for example, I say, "sell the land and then buy whatever you want!"

Thais don't understand the concept of checking anything before. Buddha deals with what will happen. They just deal with "the now".

[stevenl]

Actually it depends on the finance company. Some do discount the interest but you have to ask.

Sent from my i-mobile i-STYLE Q6

Trying not to be argumentative here...but I doubt any Thai Finance Co would discount any interest under any circumstances. Maybe a Bank would, but even then only if one is a long-standing good customer that they didn't want to lose.

If you have first-hand experience of a Finance Co having discounted the interest for early settlement I would be very keen to know the name of the company...... I never borrow, neither do I lend... but my Thai in-laws have borrowing as a hobby! so it could save them money.

Why don't you lend them? How about they ask the question before going through with the loan from the finance company its always something that I ask no matter where I loan from or what its for.

I am more than happy to lend them. If you let me have your address I will arrange their delivery later this week. It could even be a permanent loan arrangement if you wish.

If you mean lend to them...... why would anyone lend money to someone that doesn't have it? Surely that is evidence that they can't manage their lives. My advice to them is always the same..."if you really need a new shiny motorbike, save up for it! ..and when you have enough, buy it!" Or, if they offer me collateral, a Chanote for example, I say, "sell the land and then buy whatever you want!"

Thais don't understand the concept of checking anything before. Buddha deals with what will happen. They just deal with "the now".

Isn't that what happens worldwide all the time? Buying on credit, buying with credit card. And especially with goods like cars it is really accepted to finance a buy.

[Riley'sLife]

Credit cards, debt, interest creates slaves, and is the bane of modern life.

If you really must borrow money, at least use it to acquire an appreciating asset and make the money work for you, otherwise you end up going backwards.

edit to add:- The fact that people have been brainwashed to accept all this borrowing as the norm just illustrates how perfectly society has been manipulated to serve the 1%. The "little people" always pay, always work, meanwhile the 1% make the real money. Always have.

Edited June 10, 2013 by Riley'sLife

[Woodsie888]

The reason you pay more interest than capital in the early stages of the finance term (and conversely more capital/less interest towards the end) is because all banks use the Rule of 72.

http://en.wikipedia.org/wiki/Rule_of_72

Its customary in Thailand to receive a 50% discount of the interest owed when paying out a loan early, but that's 50% of what's owed based on the Rule of 72

I may well be mistaken IMHO, but isn't the rule of 72 used in relation to investments and the rule of 78 used in relation to borrowing?

[thaicbr]

Credit cards, debt, interest creates slaves, and is the bane of modern life.

 

If you really must borrow money, at least use it to acquire an appreciating asset and make the money work for you, otherwise you end up going backwards.

 

edit to add:- The fact that people have been brainwashed to accept all this borrowing as the norm just illustrates how perfectly society has been manipulated to serve the 1%. The "little people" always pay, always work, meanwhile the 1% make the real money. Always have.

Hang on.. one minute your telling someone to sell the land ... next minute acquire an appreciating asset.... make up ya mind.

Sent from my i-mobile i-STYLE Q6

[IMHO]

The reason you pay more interest than capital in the early stages of the finance term (and conversely more capital/less interest towards the end) is because all banks use the Rule of 72.

http://en.wikipedia.org/wiki/Rule_of_72

Its customary in Thailand to receive a 50% discount of the interest owed when paying out a loan early, but that's 50% of what's owed based on the Rule of 72

I may well be mistaken IMHO, but isn't the rule of 72 used in relation to investments and the rule of 78 used in relation to borrowing?

You are indeed correct... my recollection is always "the rule of 69", but then I realise that's unrelated and it's actually somewhere in the 70's

[Woodsie888]

The reason you pay more interest than capital in the early stages of the finance term (and conversely more capital/less interest towards the end) is because all banks use the Rule of 72.

http://en.wikipedia.org/wiki/Rule_of_72

Its customary in Thailand to receive a 50% discount of the interest owed when paying out a loan early, but that's 50% of what's owed based on the Rule of 72

I may well be mistaken IMHO, but isn't the rule of 72 used in relation to investments and the rule of 78 used in relation to borrowing?

You are indeed correct... my recollection is always "the rule of 69", but then I realise that's unrelated and it's actually somewhere in the 70's

Yes, that's all about the payment and receipt of dividends isn't it?

[dezy1801]

Financing a depreciating asset is the epitome of bad money management.

Paying off Thai Finance early is utterly pointless as you will still have to pay the full amount of the interest.

It is for this reason that most vehicles on finance are offered for sale with the finance still in place. The seller needs to find another mug to take over the repayments.

Actually it depends on the finance company. Some do discount the interest but you have to ask.

Sent from my i-mobile i-STYLE Q6

I will confirm that as I have paid off all my cars early and everytime get a discount.

Which Thai Finance Company/ies ?

bank of ayutthaya, Kiatnakin Bank, and Thanachart Bank

[phutoie2]

My loan 's with Kiatnakin and they will give me diddlysquat for settling up early. SCB were the same too.

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