I did not mention nominal interest rates, but "nominal" interest rates. They are called "nominal" interest rates in Indonesia in the car leasing market, and these are the numbers that you see in ads or promo material.

The payments for the Indonesian lease are calculated as follows, here is an example.

Car is 100 million on 3 years/7 % loan. Interest is calculated by stated "nominal" interest as follows:

100 million x 3 years x 7%=21 million. This kind of calculation is misleading as it does not take the effect of the diminishing principal.

So, total payments are 100 million+21 million spread over 36 payments (121 million/36 million=3.361.000 per month. If you translate this to an equal-month payment loan (like a house mortgage-style), the interest is around 13%-you can check with mortgage calculators. If you translate to effective interest rare, it is even slightly higher.

So, with the above example, you can see that a "7% loan" is at least 13%.

The lease/dealership always has the effective interest rate in their Excel sheets for their own calculations, so they know how much are they ripping you off, and they never show it to the customers.

Cara hitung kredit mobil yang sesuai dengan kebutuhan dimulai dengan menghitung DP, besaran pokok kredit, suku bunga, biaya asuransi…

otoklix.com