Vehicle finance interest rates

[stevenl]

Hilux badly need an updated model as Ford are kicking Toyotas ass since the new Ranger came out.

Not sure by which metric you base that on, but it's not sales

Toyota had the biggest chunk of the truck market in Thailand for a long time, and still do, but that sales margin had been cut quite significantly by Ford with their new Ranger. The Vigo is still a great reliable workhorse but it's design is old and tired looking and they need a complete new facelift to keep that top spot. I've driven most of the trucks, and Ford, Toyota, Izuzu and Mitsubishi and they are all pretty much on par with each other performance, specs, cost and reliability wise, but IMHO, the Ranger is the best looking truck and if Toyota don't come up with something new and sexy, even the diehard Toyota drivers will be thinking twice before buying another Vigo.

No, I really think you don't understand the Thai mindset.

[AjarnMartin]

It's a simple flat rate. You finance the vehicle at X years; the interest rate is Y years and you pay X*Y interest.

To convert that to APR, find out how much your monthly payments will be. Let's go with a 1,000,000 over 2 years @ 3%. That's 60,000 baht interest paid. Added with the loan amount that's 1,060,000 divided up by 24 payments...44,167 baht month.

c=^(rP)/_1-(1+r)-N

r=¹/₁₂ interest rate

P=principal

N=number of payments

44,167=(1/12r*1,000,000)/1-(1+1/12r)^-24

Or 5.66% APR.

I took the liberty of whipping up a spreadsheet where you can adjust the parameters of the flat rate loan and it will spit out an equivalent APR. This of course assumes same monthly payments. But I believe that's what you are asking for.

I'll leave the 'best choice' for others. I'm much more active in the motorcycle forum, but am good with math...so that's why I jumped on this thread.

flat rate to apr calculator.xls

Hi Dave,

Thanks for the calculator and the knowledge about lending rates. The most useful piece of information I've received from TV sources! Now I understand it.

What I can't understand is lenders asking for the full interest payments for the duration of the loan if you want to settle early? I shall look more carefully at contracts in the future. Actually, as they're in Thai, it will probably be a Thai lawyer... :-)

[johnbarpic]

What a breath of fresh air On TV a man asks a question & someone responds with exactly what he wanted to know no bullshit & trolling comments thank you using the system as it should Be Well Done brilliant hope i have a question for you to repsond to another day

J B-P

It's a simple flat rate. You finance the vehicle at X years; the interest rate is Y years and you pay X*Y interest.

To convert that to APR, find out how much your monthly payments will be. Let's go with a 1,000,000 over 2 years @ 3%. That's 60,000 baht interest paid. Added with the loan amount that's 1,060,000 divided up by 24 payments...44,167 baht month.

c=^(rP)/_1-(1+r)-N

r=¹/₁₂ interest rate

P=principal

N=number of payments

44,167=(1/12r*1,000,000)/1-(1+1/12r)^-24

Or 5.66% APR.

I took the liberty of whipping up a spreadsheet where you can adjust the parameters of the flat rate loan and it will spit out an equivalent APR. This of course assumes same monthly payments. But I believe that's what you are asking for.

I'll leave the 'best choice' for others. I'm much more active in the motorcycle forum, but am good with math...so that's why I jumped on this thread.

flat rate to apr calculator.xls

[Graemej100]

Dave_boo. Thanks for those points. Now have plenty to think about - and ask.

[ChiangmaiRob]

Hilux badly need an updated model as Ford are kicking Toyotas ass since the new Ranger came out.

Not sure by which metric you base that on, but it's not sales

Toyota had the biggest chunk of the truck market in Thailand for a long time, and still do, but that sales margin had been cut quite significantly by Ford with their new Ranger. The Vigo is still a great reliable workhorse but it's design is old and tired looking and they need a complete new facelift to keep that top spot. I've driven most of the trucks, and Ford, Toyota, Izuzu and Mitsubishi and they are all pretty much on par with each other performance, specs, cost and reliability wise, but IMHO, the Ranger is the best looking truck and if Toyota don't come up with something new and sexy, even the diehard Toyota drivers will be thinking twice before buying another Vigo.

No, I really think you don't understand the Thai mindset.

Yes I do but the sales numbers speak for themselves! The companies buying for business don't care how the truck looks as long as it's reliable so they will continue to buy Vigos regardless, but many private buyers will want to look good in their new family "car" and may well reconsider their options.

[stevenl]

Not sure by which metric you base that on, but it's not sales

Toyota had the biggest chunk of the truck market in Thailand for a long time, and still do, but that sales margin had been cut quite significantly by Ford with their new Ranger. The Vigo is still a great reliable workhorse but it's design is old and tired looking and they need a complete new facelift to keep that top spot. I've driven most of the trucks, and Ford, Toyota, Izuzu and Mitsubishi and they are all pretty much on par with each other performance, specs, cost and reliability wise, but IMHO, the Ranger is the best looking truck and if Toyota don't come up with something new and sexy, even the diehard Toyota drivers will be thinking twice before buying another Vigo.

No, I really think you don't understand the Thai mindset.

Yes I do but the sales numbers speak for themselves! The companies buying for business don't care how the truck looks as long as it's reliable so they will continue to buy Vigos regardless, but many private buyers will want to look good in their new family "car" and may well reconsider their options.

Yes, sales numbers speak. And the old Vigo is still doing very, very well compared to the Ford.

Sorry, but Ford will never gain a serious position here.

[IMHO]

Hilux badly need an updated model as Ford are kicking Toyotas ass since the new Ranger came out.

Not sure by which metric you base that on, but it's not sales

Toyota had the biggest chunk of the truck market in Thailand for a long time, and still do, but that sales margin had been cut quite significantly by Ford with their new Ranger. The Vigo is still a great reliable workhorse but it's design is old and tired looking and they need a complete new facelift to keep that top spot. I've driven most of the trucks, and Ford, Toyota, Izuzu and Mitsubishi and they are all pretty much on par with each other performance, specs, cost and reliability wise, but IMHO, the Ranger is the best looking truck and if Toyota don't come up with something new and sexy, even the diehard Toyota drivers will be thinking twice before buying another Vigo.

Yes it's true that Ford Ranger sales increased from a few hundred units/month to around 2400 units/month since they released the current gen Ranger, but Toyota's pickup market share hasn't wavered too far from a 40% average in that time - so those extra 1600-1700 units/mth Ford sells didn't come from Hilux buyers.

[IMHO]

Yes, sales numbers speak. And the old Vigo is still doing very, very well compared to the Ford.

Sorry, but Ford will never gain a serious position here.

Right, Ford's pickup market share increased from around 2% to around 5%, but without any measurable impact on Toyota's 40%. The only competitor which influences Toyota's pickup market share is Isuzu.

There's a reason we split the market up into 2 tiers - because they represent the companies that compete with each other

Edited January 28, 2015 by IMHO

[Jeffrey346]

I wouldn't count Ford out. They are way ahead when it comes to design and safety features. It's unconscionable that Toyota and Isuzu have not incorporated 4 wheel dick/ABS, front and side airbags traction control etc. Chevy is the only other pickup offering these features.

[IMHO]

I wouldn't count Ford out. They are way ahead when it comes to design and safety features. It's unconscionable that Toyota and Isuzu have not incorporated 4 wheel dick/ABS, front and side airbags traction control etc. Chevy is the only other pickup offering these features.

No Thai market pickup truck has rear disk brakes. Pretty much all have ABS though.

[outlaw11wa]

I bought the Vigo Champ four months ago. Dual cab - 2wd - 2.5lt Diesel VN Turbo - 6speed Automatic. This has the same hi axle well body as the 4wd.

Absolutely brilliant. Love it. Ride is good, power is plenty and economy is magic. Dealer threw in all the flashy chrome add ons - window tinting - etc.

Back in Australia I tried to compare to Hilux here but could not match that closely. 2.5lt Variable node turbo is not available. Australia do do the 3lt diesel a 4lt V6 Petrol and a 2.8lt petrol. At time of my Thai purchase the 6speed Auto was still to be released.

Moral is Toyota mix and match different combinations for different market places. Just depends what jigsaw they make available in you neighbour hood.

What I can tell you is that this would have to be Toyota's most successful current model from my observations. In the 4 months I have had this vehicle they are taking over the road here in Australia and in Thailand. And no it is not the old situation of when you got one you start to notice them more. They seem to be breeding like rabbits.

My friend from Sweden bought a D-Max a few months prior - when I returned to Yaso in December he drove my wife in the Toyota to pick me up at the airpoty in Ubon. He didn't want to let me drive it home...haha now keeps asking if I will swap with him...lol

[WarpSpeed]

What a breath of fresh air On TV a man asks a question & someone responds with exactly what he wanted to know no bullshit & trolling comments thank you using the system as it should Be Well Done brilliant hope i have a question for you to repsond to another day

J B-P

It's a simple flat rate. You finance the vehicle at X years; the interest rate is Y years and you pay X*Y interest.

To convert that to APR, find out how much your monthly payments will be. Let's go with a 1,000,000 over 2 years @ 3%. That's 60,000 baht interest paid. Added with the loan amount that's 1,060,000 divided up by 24 payments...44,167 baht month.

c=^(rP)/_1-(1+r)-N

r=¹/₁₂ interest rate

P=principal

N=number of payments

44,167=(1/12r*1,000,000)/1-(1+1/12r)^-24

Or 5.66% APR.

I took the liberty of whipping up a spreadsheet where you can adjust the parameters of the flat rate loan and it will spit out an equivalent APR. This of course assumes same monthly payments. But I believe that's what you are asking for.

I'll leave the 'best choice' for others. I'm much more active in the motorcycle forum, but am good with math...so that's why I jumped on this thread.

flat rate to apr calculator.xls

Actually that happens more often then you think. At least most of us here in the motoring forum try to do that as often as possible, but many posts are not so straight forward and require a lot of different info and opinions then just a math equation to come to an accurate final solution.

[IMHO]

I wouldn't count Ford out.

I don't think anyone is "counting them out" - they are a solid tier-2 brand (second only to Mitsu - but a 'daylight' second), but if you think they will break into tier-1, you're dreaming

[MartinL]

We've got a new car on order now.

Sum financed is ฿ุ600,000 over 5 years.

Total interest payment over 5 years is (5*12*Monthly payment) - ฿600,000 = ฿74,700 = 12.45% = 2.49% p.a.

Grand total repaid (including deposit) is 107% of purchase price -- (5*12*Monthly payment) + Deposit = 107%.

Simplified calc. maybe but tells me what I want to know so it's good enough for me.

Edited January 29, 2015 by MartinL

[kbelyeu]

It's a simple flat rate. You finance the vehicle at X years; the interest rate is Y years and you pay X*Y interest.

To convert that to APR, find out how much your monthly payments will be. Let's go with a 1,000,000 over 2 years @ 3%. That's 60,000 baht interest paid. Added with the loan amount that's 1,060,000 divided up by 24 payments...44,167 baht month.

c=^(rP)/_1-(1+r)-N

r=¹/₁₂ interest rate

P=principal

N=number of payments

44,167=(1/12r*1,000,000)/1-(1+1/12r)^-24

Or 5.66% APR.

I took the liberty of whipping up a spreadsheet where you can adjust the parameters of the flat rate loan and it will spit out an equivalent APR. This of course assumes same monthly payments. But I believe that's what you are asking for.

I'll leave the 'best choice' for others. I'm much more active in the motorcycle forum, but am good with math...so that's why I jumped on this thread.

flat rate to apr calculator.xls

Hi Dave,

Thanks for the calculator and the knowledge about lending rates. The most useful piece of information I've received from TV sources! Now I understand it.

What I can't understand is lenders asking for the full interest payments for the duration of the loan if you want to settle early? I shall look more carefully at contracts in the future. Actually, as they're in Thai, it will probably be a Thai lawyer... :-)

The company my truck is financed through put it in writing that I would get unearned interest back if I paid the loan in full prior to its maturation date.

Regards,

Kurt