Finance Thai Style

[crepitas]

Few months back investigating a new financed vehicle:
Very low rates but a few hits on a calculator revealed that interest was not charged on declining balance but on original financed amount, it maybe that it is not universal practice but maybe worthwhile taking a few moments on a calculator before committing?

[PeeCoffee]

...and if you want to pay off the loan early - you have to pay all of the interest that would have been owed on the full term of your loan. (Surprise!)

[Luigi]

Just so they can have a new Jazz or Yaris to stick in front of their shithole shack or 1k p/m concrete, viral infected match-box.

[ltnt]

Loan sharks inc.

[wasabi]

I know that this is not new, in the 1980's I also took out a bank loan in London for a motorcycle and it was calculated that I was paying off the interest first.
Early settlement was a waste of money.
U.K mortgages for home buyers where also contracted in the same way.
It was only in the very late 80's that the Australian loan system was introduced.

[adzt1]

4% over 4 years is a straight 16% at time of sale

Not the fastest slip I've ever seen!!

[adzt1]

...and if you want to pay off the loan early - you have to pay all of the interest that would have been owed on the full term of your loan. (Surprise!)

555 That too!

[Iceman123]

Few months back investigating a new financed vehicle:
Very low rates but a few hits on a calculator revealed that interest was not charged on declining balance but on original financed amount, it maybe that it is not universal practice but maybe worthwhile taking a few moments on a calculator before committing?

This is not unique to Thailand, in Australia stage payments for large insurance policies are quoted using the same calculating tactics.

When I left the UK in 1999 car dealers all used the same method to quote interest rates - front loaded.