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  1. #1
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    crepitas's Avatar
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    Finance Thai Style

    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?

  2. #2
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    ...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!)

  3. #3
    'ello 'ello 'ello Luigi's Avatar
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    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.

  4. #4
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    Loan sharks inc.

  5. #5
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    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.

  6. #6
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    4% over 4 years is a straight 16% at time of sale

    Not the fastest slip I've ever seen!!

  7. #7
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    Quote Originally Posted by PeeCoffee View Post
    ...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!

  8. #8
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    Quote Originally Posted by crepitas View Post
    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.

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