Thanks for the help, that is what I made it when I was trying to understand it all though I think there is also 7% VAT added onto that monthly repayment figure to make it 11,481.10.

I will go and speak to them tomorrow, though the last thing I want for is for them to realise their mistake (if that is what it is) and charge me more.

Very roughly I think the monthly payment is made up of the original sum borrowed divided by 72 = 629,100/72 = 8737.50 plus the interest element. The total interest payment (very roughly as it probably decreases as the capital gets paid down) is 629,100 (sum borrowed) x 0.038 (interest rate) x 6 (the number of years of the loan) = 143,434 so the monthly element is 1,992. Total monthly repayment very roughly = 8,738+1,992 = 10,730. Not far off what you've been quoted.

If you still don't understand then you need to make them write it down for you.

Hello all,

I've recently purchased a new car and am quite confused about the total loan amount and monthly repayments that I have to make. While I know that this may sound like something I should be in complete understanding of before handing over any money, let me explain why it is not so simple.

I live in Thailand and while I can speak Thai on a basic level, I am still learning.

The car was purchased from a main dealership for the book price of 699,000 Thai baht.

I put a 10% down payment on it, which would take the total loan amount to what I thought was 630,000 baht.

The finance period is 72 months, and the interest rate is 3.8%. There is no final payment.

This initially led me to assume that I would be paying 3.8% on the full 630,000 baht, but then somebody explained that the interest is compounded, so that means that in the end I will be paying nearly 25% interest by the end of the term.

Anyway, my issue is that I have been told to make payments of 11,084 Baht per month.

The 11,084 includes 7% VAT, so that would be 10,308.12 without.

Basically, I don't understand the mathematics behind it, there must be something simple I am missing here.

So after all that, my question is, is this correct? If so, can somebody explain it to me please so that I can sleep easier at night!