Are you applying for a loan for the Toyota Yaris 2021?

Only recently the official prices for the Toyota Yaris 2021 were published. The Yaris currently competes with the Honda Jazz but will be replaced by the Honda City Hatchback in 2021.

In this article we are going to take a closer look at how much you need to earn each month before applying for a loan to buy the Toyota Yaris.

How much should I Iearn?

The Toyota Yaris has a starting price of 524,005 THB (en route, no insurance), which means the monthly repayment, taking into account an interest rate of 2, is around 5,244 THB per month. 27% with a 9 year loan.

Follow the recommended guideline that you shouldn't be paying more than 20% of your monthly salary for your car refund. You must bring home a take-away payment of at least THB 26,591 per month.

The high-end 1.5G Yaris costs 626,442 THB, which means the monthly repayment is around 6,278 THB per month. The Yaris 1.5 G requires a minimum wage of at least 31,762 THB per month.

With the cost of insurance, maintenance, tires, and other related running costs, your car expenses shouldn't exceed 30% of your monthly salary.

However, interest rates are constantly changing. Given our current situation, the interest rates are very low, but you still need to check with your respective banks for the latest interest rates.

Don't take the 9 year loan option

You don't need to be briefed by a financial specialist: don't take the 9 year loan option. Going for a shorter term of 5 years is a much smarter choice.

For comparison: if you aim for a term of 5 years for the Toyota Yaris, the monthly payout is 8,716 THB. This number is a little longer than the 9-year term, but there are some advantages as explained below.

One of the reasons 9 year loans are not recommended is because of the interest. Once you have chosen the 9 year loan option, you will be spending almost THB 96,025 on interest only. However, if you have opted for the shorter term of 5 years, the interest amount is reduced to around 53,183 THB.

The problem with 9 year loans is that the term is so long that the value of your car will decline faster than your ability to repay the loan.

You could also find yourself in a situation where if for some reason you are forced to sell the car or claim total loss of your insurance, you need to load up more money before you can repay your loan due to the outstanding balance. is greater than the market value of your car.

Do this before you sign a 9 year loan.