Has anybody really figured out how car loan interest rates are calculated in Qatar.
From my 2-cent calculations, a 5-year car loan that you take at 3.99% this year will be approximately
7.98% - 2nd year,
11.97% - 3rd year,
15.96% - 4th year
19.95% - 5th year.
These are not actual rates, since the actual car loan calculations in qatar can baffle mathematicians.
They don't tell you all this.. They tell you the monthly payment and you have to calculate the total cost of all the monthly payments minus the cash cost of the car and then start figuring out the interest rates that they have applied.
Apparently, the interest rate calculations for car loans in Qatar goes like this. It is calculated at 3.99% per year, not 3.99% for the entire loan period.
Since they add 3.99% for every additional year, it would be wise to pay it off as early as possible, say in around 1 - 2 years. This is again assuming that the car loan sales agent sitting in the showroom knows how to calculate it for 1 or 2 years since he would have been provided with a chart with the monthly amount for all the models over a 5-year period. Asking him to provide you figures for 1 - 2 years would be similar to asking him to re-calculate, something that he is not trained to do..
And I haven't even mentioned management fees and annual fees!!
Has anybody really figured out how car loan interest rates are calculated in Qatar.
From my 2-cent calculations, a 5-year car loan that you take at 3.99% this year will be approximately
7.98% - 2nd year,
11.97% - 3rd year,
15.96% - 4th year
19.95% - 5th year.
These are not actual rates, since the actual car loan calculations in qatar can baffle mathematicians.
They don't tell you all this.. They tell you the monthly payment and you have to calculate the total cost of all the monthly payments minus the cash cost of the car and then start figuring out the interest rates that they have applied.
Apparently, the interest rate calculations for car loans in Qatar goes like this. It is calculated at 3.99% per year, not 3.99% for the entire loan period.
Since they add 3.99% for every additional year, it would be wise to pay it off as early as possible, say in around 1 - 2 years. This is again assuming that the car loan sales agent sitting in the showroom knows how to calculate it for 1 or 2 years since he would have been provided with a chart with the monthly amount for all the models over a 5-year period. Asking him to provide you figures for 1 - 2 years would be similar to asking him to re-calculate, something that he is not trained to do..
And I haven't even mentioned management fees and annual fees!!