Know before you decide! Used car interest rates updated for 2024

Of course, for many people, a car is one of the necessities for traveling. But with the current price and cost of living, buying a used car is a more popular option. Because the price is not much higher than a new car. And there are many options, both brands, models and prices, allowing buyers to choose a car that suits their needs and budget.

However, for those who are interested in buying a used car by applying for a loan from a bank, you may have to consider the interest rates of each used car first. Because the interest rates of each financial institution are different. This article will update the latest car interest rates! Including things to know before deciding to choose a loan to buy a used car.

What factors are considered in the interest rates of used cars?

Type and age of the car

The type and age of the car are the most important factors in determining the interest rate of a car loan. Generally, the type of car that is popular and in high demand in the market will have a lower interest rate than other types of cars. It must be considered along with the age of the car. Because older cars will deteriorate over time, causing their value to decrease, affecting the credit limit and interest rate. In addition, some banks also set criteria for the age of the car in granting loans, such as cars that are no more than 10 years old or no more than 15 years old.

Loan amount

The loan amount is the maximum amount that the financial institution will approve to lend, which will depend on various factors such as the type, age, and condition of the car. Including the borrower's income and existing debts. Before choosing a loan, it is important to consider financial institutions that offer a credit line that is appropriate for your needs and repayment capability. This can be calculated from monthly expenses to leave enough for other necessary expenses. Generally, financial institutions usually provide a credit line for used cars of no more than 75% of the appraised price. The interest rate will decrease according to the age of the car. For example, cars that are no more than 5 years old will have a lower interest rate than cars that are more than 5 years old.

Loan period

The loan period is the period that the borrower must pay off the loan, which will affect the amount of installments to be paid each month. Many people may think that a loan with a longer term will result in a lower monthly payment. But in fact, a longer loan term also means a higher total interest. Therefore, you should choose the shortest loan term possible so that you do not have to pay too much total interest.

How many percent is the interest rate for used cars from each bank?

Generally, used car interest rates vary in many factors. The ceiling interest rate for used cars that is effective for all banks (based on 2023) is 15 percent per year. Financial institutions that provide loans include:

TISCO Bank Used Car Hire Purchase Loan
Maximum approval amount 95% of the appraised price
Maximum repayment period 72 installments
Actual interest rate 9.24% - 14.84% per year
Siam Commercial Bank (SCB) Used car loan
Maximum approval amount 90% of the appraised price
Maximum repayment period 84 installments
Actual interest rate 7.51% - 14.84% per year
Kiatnakin Bank (KKP) Used car hire purchase loan
Maximum approval amount 110% of the appraised price
Maximum repayment period 84 installments
Actual interest rate 7.46% - 15.00% per year
TMB Thanachart Bank (TTB) Used car loan TTB Drive
Maximum approval amount 100% of the appraised price
Maximum repayment period 84 installments
Actual interest rate 7.48% - 15.00% per year
Krungsri Bank (Krungsri) Used car loan
Maximum approval amount 80% of the appraised price
Maximum repayment period 84 installments
Actual interest rate 5.31% - 15.00% per year
Kasikornbank (KBANK) Used car loan
Maximum approval amount 90% of the appraised price
Maximum repayment period 84 installments
Actual interest rate 7.29% - 15.00% per year

How to calculate interest for used cars and new cars

What is the difference between interest rates for used cars and new cars? How is it calculated?

Generally, the interest rate for used cars is higher than the interest rate for new cars. Because used cars are cars that have been used, they are at higher risk, which may reduce the resale value. New cars have an actual interest rate of no more than 10% per year, which is different from used cars that have an actual interest rate of no more than 15% per year. Before deciding to buy a car, you must carefully consider the price including the interest to be paid. If you are wondering how to calculate interest rates for used cars and new cars to get the amount of interest to be paid per year or throughout the contract, you can calculate it by taking the total amount of the purchase or purchase amount. This is the remaining price after deducting the down payment. Calculate using the following formula:

Annual interest: ‘Total amount financed x Interest rate (%)’

Interest throughout the contract period: ‘Interest per year x Number of years of installments’

Total loan including interest: ‘Interest throughout the contract period + Total amount financed’

For those who are looking for an alternative to buying a used car, you should study the loan and interest in detail because the interest on a used car is an important expense to consider before making a decision. However, for those who are worried that they will not have time to choose and study the loan that is worth it, you can choose to buy a used car at Autovilla, a used car market with finance available in every province nationwide, with the lowest interest rates in the market and approval in as little as 3 hours.

For more information, please contact:

Srinakarin branch, Tel. 097-921-9552

Romklao branch, Tel. 095-906-0633

Lam Luk Ka branch, Tel. 092-940-5098

Reference:

Is the interest on a used car really expensive? How should it be calculated? Retrieved on January 23, 2024 from https://www.matichonweekly.com/publicize/article_740267.