Buying a motorcycle of your choice be it the very first motorcycle or your dream motorcycle is definately every persons' desire and dream...however buying it and ended up in liabilities or legal issues is not the preferred scenario for all Hirers.
Before committing to a Hire Purchase Scheme for a motorcycle, the Hirer must be able to establish and work out a financial plan that comfortably suit his/her lifestyle and necessity. Have a plan in hand with all commitments that you are likely to face and lastly finalise on a amount that you are comfortable in with all costs of maintaining that include annual insurance renewal, road tax renewal, periodic maintenance of the motorcycle, repairs that may occur and petrol. With the cost of petrol rising at a rapid rate, Hirers must take this into consideration.
Work out on the repayment period of your motorcycle and again work within your budget. Do not strain your monthly salary and ended up paying in a shorter repayment timeframe in order to save up on the interest. Be sure to do a calculation as usually on the interest incurred it is not a significant sum. However, should you be comfortable on a shorter repayment timeframe, there's definately no issue on the above statement.
The interest available in the market will varies as accordingly, however as the sum involved on the loan is small having a 3.5 % to 5 % ( New motorcycle ) interest rate charged would not make an astronomical difference and the calculation is based on straight line accounting method.The important issue is on the after sales services and hassle-free repayment procedure provided by your respective motorcycling companies. After working out on the budget, it will be time to make the long-awaited commitment.
1) Always make your repayments on time.
2) Should you have any financial problems kindly contact your respective Hire Purchase company to reach an
agreement and resolve on the issue.
3) Keep your motorcycle in a roadworthy condition.
4) Maintain insurance coverage of your unit throughout the stipulated loan period.
5) Update on all your particulars to the hire purchase company should you be changing any of your address and
Don'ts (Breach of Clauses under the agreement)
1) Default payment of more than 2 months.
2) Laying up of vehicle. (Without prior notice to the hire purchase company)
3) Late renewal of road tax. (Warrant of arrest to be issued)
4) Late renewal of insurance coverage.
5) Placing the vehicle at any secluded area and to be impounded by LTA. (Warrant of arrest to be issued)
6) Parking of vehicle at another location as declared on the hire purchase agreement. ( Without prior notice to the
hire purchase company )
7) Hire purchase vehicle in a non-roadworthy condition.
8) COI. ( Carry on Instalment )
9) Attempt to transfer the vehicle under hire purchase scheme.
With all Do's and Dont's stated above as accordingly, Hirer must know all responsibilities that he/she will be involved and should there be any breach in the agreement, the liabilities will be as follows:
1) All arrears of hire up to the date of termination.
2) Interest incurred for the default period.
3) Repossession Fees. (Repo Vehicle)
4) Administration Fees.
5) Legal Costs.
6) Repair Costs. (Repo Vehicle)
7) Storage Costs (Repo Vehicle)
8) Any other costs incurred to resume possession or in endeavouring to enforce payment.
Should you as a hirer in any way unable to fulfil the commitment and wishes to return the vehicle, you will be liable for the liabilities stated above less the current market value as determine by the hire purchase company based on the condition of the motorcycle at the point of return.
Hope we have provide all potential Hirers a piece of advice and guideline that prudent financial planning will offer you a hassle free commitment to your next motorcycle purchase.