# What is the amount of the interest rate?

The interest rate varies from a bank to another depending on the loan period.

# Is the insurance included in the monthly payment?

When you are using credit facilities from a certain bank, the insurance will be automatically added to the monthly payment.

# What's the monthly payment?

The monthly payment is a certain amount of money paid on monthly basis to the bank during the loan period that might vary from a year to six.

# Is the interest rate flat or not?

The interest rate depends on each bank’s term and condition; if the plan was 4.5% flat, then the rate will remain the same for the loan period. If it is ascendant, then it will increase year by year, as a result, it will be 4.5% for the first year, 5% for the second, etc... ( depending on each bank’s conditions)

# What is a Down Payment?

A down payment is a certain amount of cash deposited when the car it bought depending on the rate that the banks set. Some banks have 0% down payment, some varies from 10% to 30% depending on each bank's conditions.

# What are the insurance conditions?

The insurance conditions vary between different companies that the bank might be dealing with; for example, it can have: -No depreciation on spare parts -Zero franchise -Hold up coverage -Theft and fire coverage -Car repair at RYMCO service centers.

# Am I obliged to pay the bank's required down payment or I can pay whatever I want at first?

Each bank has a minimum down payment that you should follow in case you want to use its program; in case the down payment exceeds the one that the bank has already set, therefore you might benefit from a lower interest rate.

# If I pay cash for my car, will I benefit from the insurance?

When you pay immediately for the car, you will have to insure it by yourself or use our insurance plan that is 3.9% of the price of the car for 2 years. This insurance endorses: -No depreciation on spare parts -Zero franchise -Hold up coverage -Theft and fire coverage -Car repair at RYMCO service centers.

# How do I calculate the monthly payment?

Having the price of the car and the interest rate and insurance rate, we can calculate the monthly payment as follows:
RYMCO Vehicle:A \$20,000
Bank X rate: 4.5% ( per year)
Insurance rate: 10% ( on 5 years)
Loan period: 5 years or 60 months (Meaning 60 payments)
Down payment: 20%

Down payment = car price x Down payment rate
= \$20,000x 20%
= \$4,000

Interest costA A A = total price x insurance rate
=\$20,000 x 10%
=\$2,000

Cash to finance = car price – down payment
= \$20,000- \$4000
= \$ 16,000

Total to finance = Cash to finance + Interest cost
= \$ 16,000 + \$2,000
=\$ 18,000

Interest amount over 5 years =Total to finance x interest rate x 5 years
= \$ 18,000 x 4.5% x 5
=\$ 4,050

Monthly payment = total to finance + interest amount over 5 years / 60 payments (60 months)
A A A A A A A A A =(\$18,000 + \$4,050) /60
A A A A A A A A A =\$ 367.5

Therefore, we will have the following:
Car price : \$20,000
Down payment: \$4,000
Loan period: 60 months
Insurance amount: \$ 2,000
Monthly payment: \$ 367.5