| View previous topic :: View next topic |
| Author |
Message |
Nice2CU
Joined: 02 Sep 2014
|
 Posted: Sun Apr 03, 2016 12:00 pm Post subject: How much do you pay in interest on your car loan? |
 |
|
Dear friends,
(feel free to move to the appropriate sub forum)
Long story short, I'm buying a car. Been renting one for over a year now, it's getting annoyingly expensive.
I contacted a guy at Hyundai Capital, but I haven't heard back from him after asking some concrete questions. Might as well check here instead.
What is the going rate these days?
Can you get a fixed rate?
Over how many months do you pay?
Using the calculator at encar they predict a staggering 19% interest rate over 60 months - if you go in with 20% yourself. It sounds extremely high. I honestly don't know what to expect, but you'd get better rates at your local drug dealer's if 18-20% is the going rate in SK.
Thanks for any input. |
|
| Back to top |
|
 |
Coltronator
Joined: 04 Dec 2013
|
| Posted: Sun Apr 03, 2016 1:27 pm Post subject: |
|
|
| 19% total over 60 months doesn't sound bad that is like 4% annually. |
|
| Back to top |
|
|
Nice2CU
Joined: 02 Sep 2014
|
| Posted: Sun Apr 03, 2016 2:00 pm Post subject: |
|
|
| Coltronator wrote: |
| 19% total over 60 months doesn't sound bad that is like 4% annually. |
Hello new friend,
If the car cost is, let's say 26M Won, with 20% down you'd pay 550.000W per month in payments, when the offered rate is 19%. If the interest rates were ~4%, you'd pay in the neighborhood of 390.000W.
Total loan will then be close to 33M Won. So over a period of 5 years the total interest will be over 11M. It's very expensive. With a "normal" rate of ~5-6%, a similar loan should only cost you 2.5-3M total over 60 months.
I can only assume the rate they are displaying on encar.com is for an unsecured loan. |
|
| Back to top |
|
|
Weigookin74
Joined: 26 Oct 2009
|
| Posted: Sun Apr 03, 2016 3:37 pm Post subject: |
|
|
| I hate to say it, but you're getting the $h!tty foreigner rate. That's a pretty high rate. That's Canadian credit card rates. Cars back home would be anywhere's from 0% to 2 to 4 % for really good credit and much much higher for really terrible credit like 29% or so for those with recent bankruptcies and major defaults. |
|
| Back to top |
|
|
Nice2CU
Joined: 02 Sep 2014
|
| Posted: Mon Apr 04, 2016 12:21 am Post subject: |
|
|
| Weigookin74 wrote: |
| I hate to say it, but you're getting the $h!tty foreigner rate. That's a pretty high rate. That's Canadian credit card rates. Cars back home would be anywhere's from 0% to 2 to 4 % for really good credit and much much higher for really terrible credit like 29% or so for those with recent bankruptcies and major defaults. |
Thanks for your reply.
I was thinking that I could get a secured loan, using the car itself as security. This is the way it works in my country - and you'll then get interests in the low single digits. Guess I should revisit the rental car budget again. |
|
| Back to top |
|
|
Weigookin74
Joined: 26 Oct 2009
|
| Posted: Mon Apr 04, 2016 2:13 am Post subject: |
|
|
| Nice2CU wrote: |
| Weigookin74 wrote: |
| I hate to say it, but you're getting the $h!tty foreigner rate. That's a pretty high rate. That's Canadian credit card rates. Cars back home would be anywhere's from 0% to 2 to 4 % for really good credit and much much higher for really terrible credit like 29% or so for those with recent bankruptcies and major defaults. |
Thanks for your reply.
I was thinking that I could get a secured loan, using the car itself as security. This is the way it works in my country - and you'll then get interests in the low single digits. Guess I should revisit the rental car budget again. |
You can also save money if you wait for a car. I mean if you are able to save 5 to 800 a month, over the course of 8 to 10 months, that'll get you a decent amount towards a good used car. You can pay in cash and avoid having to make monthly payments and get a car probably around 4 to 6 years old depending on that model which should still be good. (I'm thinking 6 to 9 million won.) It might even be cheaper than this. You have to check that encar site to see what prices are and then get an ajossi to go with you to a good used car place and negotiate like a mofo. I actually bought a used car that was 6 years old 4 years ago for close to 4 million won.
If you get a car and don't have a credit card, though, for emergencies, you should have one to 1.5 million won in your bank account for emergency repairs if something needs fixing. |
|
| Back to top |
|
|
Nice2CU
Joined: 02 Sep 2014
|
| Posted: Mon Apr 04, 2016 6:07 am Post subject: |
|
|
| Weigookin74 wrote: |
| Nice2CU wrote: |
| Weigookin74 wrote: |
| I hate to say it, but you're getting the $h!tty foreigner rate. That's a pretty high rate. That's Canadian credit card rates. Cars back home would be anywhere's from 0% to 2 to 4 % for really good credit and much much higher for really terrible credit like 29% or so for those with recent bankruptcies and major defaults. |
Thanks for your reply.
I was thinking that I could get a secured loan, using the car itself as security. This is the way it works in my country - and you'll then get interests in the low single digits. Guess I should revisit the rental car budget again. |
You can also save money if you wait for a car. I mean if you are able to save 5 to 800 a month, over the course of 8 to 10 months, that'll get you a decent amount towards a good used car. You can pay in cash and avoid having to make monthly payments and get a car probably around 4 to 6 years old depending on that model which should still be good. (I'm thinking 6 to 9 million won.) It might even be cheaper than this. You have to check that encar site to see what prices are and then get an ajossi to go with you to a good used car place and negotiate like a mofo. I actually bought a used car that was 6 years old 4 years ago for close to 4 million won.
If you get a car and don't have a credit card, though, for emergencies, you should have one to 1.5 million won in your bank account for emergency repairs if something needs fixing. |
The thing is that I need a car all the time for my work, so I have to continue with the rental or buy something that lands me in the same range per month.
Out of curiosity - how much do you pay in insurance? Do you go with the bare minimum? |
|
| Back to top |
|
|
Weigookin74
Joined: 26 Oct 2009
|
| Posted: Thu Apr 07, 2016 8:10 pm Post subject: |
|
|
| Nice2CU wrote: |
| Weigookin74 wrote: |
| Nice2CU wrote: |
| Weigookin74 wrote: |
| I hate to say it, but you're getting the $h!tty foreigner rate. That's a pretty high rate. That's Canadian credit card rates. Cars back home would be anywhere's from 0% to 2 to 4 % for really good credit and much much higher for really terrible credit like 29% or so for those with recent bankruptcies and major defaults. |
Thanks for your reply.
I was thinking that I could get a secured loan, using the car itself as security. This is the way it works in my country - and you'll then get interests in the low single digits. Guess I should revisit the rental car budget again. |
You can also save money if you wait for a car. I mean if you are able to save 5 to 800 a month, over the course of 8 to 10 months, that'll get you a decent amount towards a good used car. You can pay in cash and avoid having to make monthly payments and get a car probably around 4 to 6 years old depending on that model which should still be good. (I'm thinking 6 to 9 million won.) It might even be cheaper than this. You have to check that encar site to see what prices are and then get an ajossi to go with you to a good used car place and negotiate like a mofo. I actually bought a used car that was 6 years old 4 years ago for close to 4 million won.
If you get a car and don't have a credit card, though, for emergencies, you should have one to 1.5 million won in your bank account for emergency repairs if something needs fixing. |
The thing is that I need a car all the time for my work, so I have to continue with the rental or buy something that lands me in the same range per month.
Out of curiosity - how much do you pay in insurance? Do you go with the bare minimum? |
My insurance is "the K" or called "educar". My first year a few years back was a million won for a year (just under) and nowadays, I pay about 450,000 won a year. I pay all at once for the year. I get the basic minimum as it's a used car. I spent just over 4 million on my latest car about 4 years back. Did a few cash advances on the Canadian credit card for that (not best strategy).
You can get a Korean to call them. 1566-3000 or 0506-493-8450 is listed on my card. |
|
| Back to top |
|
|
chrisinkorea2011
Joined: 16 Jan 2011
|
| Posted: Thu Apr 07, 2016 9:56 pm Post subject: |
|
|
I bought a new 2015 Kia sportage last year and i am paying 550 a month for 4 years so my interest is 4.5% I am a gyopo and have had a credit card since 2012 as well as bought a used car in 2012 so im sure that it helped my credit.
Id advise getting a credit card regardless of when you are buying a card as it builds your credit. Just do it! haha |
|
| Back to top |
|
|
Weigookin74
Joined: 26 Oct 2009
|
| Posted: Thu Apr 07, 2016 10:14 pm Post subject: |
|
|
| chrisinkorea2011 wrote: |
I bought a new 2015 Kia sportage last year and i am paying 550 a month for 4 years so my interest is 4.5% I am a gyopo and have had a credit card since 2012 as well as bought a used car in 2012 so im sure that it helped my credit.
Id advise getting a credit card regardless of when you are buying a card as it builds your credit. Just do it! haha |
I'm guessing you had an easier time as a Gyopo and being on the F4 visa and not an E2 Visa.
But, a credit card here or anywhere definately does build up credit in a country. I have heard the last couple of years that it's easier to get a credit card here compared to several years ago when I first got here? Limits are often low and balances non revolving. Anyhow, if I had no debt, I'd just save for a year and a half and buy a car outright and drive used until then. But only if I had a more permanent visa type here. |
|
| Back to top |
|
|
Jimskins
Joined: 07 Nov 2007
|
| Posted: Fri Apr 08, 2016 2:03 am Post subject: |
|
|
I think as an earlier poster said you're better saving for a bit and getting a decent used car. As an asset that is only going to depreciate in value (with some extremely rare exceptions), the bottom line is if you have to take out a loan to buy a car, then that car is out of your price range.
You can pick up a decent used car for a few million won, the problem is buying it from a place you trust. As always, buying off a friend or relative is the best situation, but if none are available then Korea is admittedly a very dicey place to buy a used car. We were lucky in that a brother of a guy I was friendly with at my boxing gym sorted us out. I would strongly advise against showing up at a random used car lot and asking what they have in Korea. |
|
| Back to top |
|
|
Weigookin74
Joined: 26 Oct 2009
|
| Posted: Fri Apr 08, 2016 5:00 am Post subject: |
|
|
| Jimskins wrote: |
I think as an earlier poster said you're better saving for a bit and getting a decent used car. As an asset that is only going to depreciate in value (with some extremely rare exceptions), the bottom line is if you have to take out a loan to buy a car, then that car is out of your price range.
You can pick up a decent used car for a few million won, the problem is buying it from a place you trust. As always, buying off a friend or relative is the best situation, but if none are available then Korea is admittedly a very dicey place to buy a used car. We were lucky in that a brother of a guy I was friendly with at my boxing gym sorted us out. I would strongly advise against showing up at a random used car lot and asking what they have in Korea. |
Used car dealers are suppose to provide the accident history. Given how many drive here and cramped parking spaces, there will be minor fender benders. So, don't be too taken aback by something minor. That said, get an ajossi to go with you and talk up a storm in Korean. He'll prob know the reputation of the place in question too. You will spend a lot on gas as cars idle and wait at lights for a long time and the line of cars are slow to get moving once the light does turn green. So, you may want to consider an LPG car, except for in Seoul. LPG stations are on the edge of the cities due to the storage containers being explosive. So, Seoul might be difficult to find a station. But if you're out in the provinces, I'd say go for it. Save some money. |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
