What do you need to know when you want to pay off your car?

What do you need to know when you want to pay off your car?

in buying a car Initially, it should be known that there are 2 ways to pay: cash purchase or installment purchase, most of which will be used to buy in installments. Therefore, you should know how to calculate interest on a car loan. for initial financial planning

How to pay off a car

There should be a down payment of about 25% of the car price for the finance company or financial institution to approve the installment. and should have enough monthly income for car payments each month

The calculation method uses the Flat Rate method (fixed interest) to combine the principal and interest together. and then divided into installments, which is the expense that we have to pay for the car installment every month

example

Price of the car 600,000 baht

Down payment 200,000 baht

Must borrow an additional 400,000 baht at an interest rate of 5% per year.

grace period of 4 years

Must pay interest in the amount of 400,000 X 5% = 20,000 baht/year

For 4 years, the total interest must be paid 20,000 X 4 = 80,000 baht.

Total amount of bank debt 400,000 + 80,000 = 480,000 baht

Must pay annually 120,000 baht/year or 10,000 baht/month

Car installment is a fixed payment. which has already calculated the interest that must be paid in advance But in the event that we can find money to cover the entire balance before the next payment The method of thinking will use the Effective Rate, which if we can pay all outstanding balances before the next outstanding balance arrives. We don't have to pay interest in the future anymore.

In the event that the car payment is outstanding for 3 consecutive months because of the problem of not turning the money in time There will be contact from finance. to help solve the problem of arrears But if we can't reach an agreement within 30 days, our car will have to be confiscated. and was sold by auction which if sold at a price less than the money we owe We will have to pay this part anyway.

Car installments are not just paying car installments. There will be other expenses followed by such as various maintenance costs related to the car. The more you buy the more expensive car The cost will be expensive accordingly, so there should be a good financial plan. and studied in detail.

-------------------------------------------------------------------------------------

Details of online marketing services

>> https://www.chatstickmarket.com/langran

Examples of various brands that we take care of online marketing

>>https://www.chatstickmarket.com/portfolio

---------------------------------------------------------------------------------------

💙 Consult our team 💙

📱Tel : 0840104252 📱0947805680

Office Hotline : 034-900-165 , 02-297-0811 (Monday-Friday)

📨 Inbox : http://m.me/ChatStick.TH

┏━━━━━━━━━┓

📲 LINE: @chatstick