Reloan: Transparent

[ridleysretro]

Hi there

 

I would like to comment on this shop since I find its reloan procedure very transparent and clear. No cheat. No gimmicks. No GST. The lady in charge is by the name of Miss Chan. The details are as follows:

 

Pleasure Motorsports

 

Blk 3 unit 142 Kallang Ave Industrial Centre

(moving to Ubi soon, taking over motorsales)

 

6292-0004

 

11am - 7pm

 

Interest rate per annum: 4.75%

 

Agreement Fee: $150.00

 

Anyway I'm nt related to them in any way and it is my first visit to them as well. Jus feel they are creditable people who operate in a transparent way, let you know all the charges before hand. So to reloan from them or nt if u hav the need is up to u.

[zniper]

agreement fee $150??? hate shops wif agreement fees... for wat? it's juz for their paperworks and mayb a few photocopies papers...

[Guest NPNT]

yah lor. bullshit agreement fees.

[MiCmAsTa]

Originally posted by zniper+Jan 9 2006, 03:00 AM-->

QUOTE (zniper @ Jan 9 2006, 03:00 AM)

agreement fee $150??? hate shops wif agreement fees... for wat? it's juz for their paperworks and mayb a few photocopies papers...[/b]

[HONG]

where can u find such a reloan with such low interest?? $150 is what they deserve... where got bullshit??

[MiCmAsTa]

Originally posted by HONG@Jan 9 2006, 05:47 AM

where can u find such a reloan with such low interest?? $150 is what they deserve... where got bullshit??

And another thing.... B4 i got my present ride, i went to many shops for reloan.

 

Amount $6,000 - $7,000

 

AS Phoon Ubi - 10%

Excel - 6% (Bike still under installment with them from the previous owner)

Hitachi Credit - 5.25% (must earn at least $2,000/mth)

Pleasure Motorsports - 5% (as of aug 05)

 

If you do your maths correctly, Pleasure motorsport will actually save you alot of money. Whats the $150? Its nuttin compare to the interest you are paying.

 

[Flaky_Boi]

Moral of the story is to tink far ahead... For dis case, u r jux losin a bit initially, but u'll be gainin much more in the long run....

[Razgriz]

haha.. maybe we should start/rename tis thread as a thread for those interest rate or among loan liddaT? hmm

 

like ur signature Flaky_Boi... haha...

 

take care on road always.. :cheeky:

[MiCmAsTa]

Originally posted by Razgriz@Jan 9 2006, 08:34 AM

like ur signature Flaky_Boi... haha...

I like yours too

 

[misterbean]

Ya, very transparent practices ... they even advised me not to stretch the term for too long and to pay as much downpayment as possible to reduce the interest charges ... almost wanted to get a loan from them a few months back but managed to get a lower rate from Hitachi at the last minute

[Tyrian]

wondering how come interest rates for bike are higher than those to car loans..

[StarWarsII]

Because car loan amount very high with the low interest it is already a lot on the principal amount.

 

Anyway back to the topic, stating the agreement fee upfront is not bullshit man u have the choice to take the loan or walk away. BUT not stating it and making u to pay a fee after everything is processed now that is big time b u l l s h i t.

[karmatrix]

yah, helped my friend did his reloan there too...very good service and one of the lowest interest rates ard...bad side is need they need another guarantor even if owner is over 21 an earning above 2k...

 

overall, a

[StingRhea]

:thum: lowest interest rates at moment~ the $150 saves u the interest in long term, and definetely they haf to earn in some way.

[lo-on]

Originally posted by karmatrix@Jan 9 2006, 12:18 PM

yah, helped my friend did his reloan there too...very good service and one of the lowest interest rates ard...bad side is need they need another guarantor even if owner is over 21 an earning above 2k...

 

overall, a

Er .... if i not wrong, even Hitachi Credit also needs a guarantor right?

[misterbean]

Originally posted by alj@Jan 9 2006, 12:33 PM

Er .... if i not wrong, even Hitachi Credit also needs a guarantor right?

I think it depends on the applicant's income level

[Guest NPNT]

okla since its a loan to buy bike, and think $150 is nothing, go ahead! lucky i buy bike no Agreement Fee.

[Tyrian]

Originally posted by StarWarsII™@Jan 9 2006, 01:10 PM

Because car loan amount very high with the low interest it is already a lot on the principal amount.

 

Anyway back to the topic, stating the agreement fee upfront is not bullshit man u have the choice to take the loan or walk away. BUT not stating it and making u to pay a fee after everything is processed now that is big time b u l l s h i t.

it is only logical that the more u loan, the more interest u have to pay because in the view of the bank, they will treat the so called "high loan" as risky..

 

how much does one need to loan for an R1? lets say 100% loan of $23K compared to a honda civic 1.8 VTI of $72K.. it will be bullshit if i lend $72K at 5% and $23K at 8%..

[lo-on]

Hey guys,

 

Just want to share my point of view for the $150 agreement fee .....

 

Some shops don't charge the agreement fee. But after calculating the cost everything, some bikers actually pay up to alot more than what they should right? Example ...

 

A bought his SP for $2500. After include insurance (e.g $800 2nd party fire and thief), road tax ($40) transfer ($e.g. $50) and having a downpayment of $1000, reloans $2390 right? So if the salesman told him a 4% interest per year for example again and divides it by 2 years, A should pay $107.55 flat for 24 months right? But usually he ends up paying for $150 and above which is really hidden and a puzzle to many of us as in what are the additional costs that is hidden or any extra things that the salesman added inside.

 

But if the same situation applies where the salesman tells A that he needs to pay another $150 agreement fee which he needs to come up with $1150 for the downpayment but yet really pays $107.55 would be a perfect thing for the buyer right?

 

but then again, there are some shops that uses the method of hidden costs + that agreement fee which is a killer to buyers and is a bad experience to most encountered .....

 

Just my 2 cents worth of input

[Axxis]

Originally posted by ridleysretro@Jan 9 2006, 01:57 AM

Hi there

 

I would like to comment on this shop since I find its reloan procedure very transparent and clear. No cheat. No gimmicks. No GST. The lady in charge is by the name of Miss Chan. The details are as follows:

 

Pleasure Motorsports

 

Blk 3 unit 142 Kallang Ave Industrial Centre

(moving to Ubi soon, taking over motorsales)

 

6292-0004

 

11am - 7pm

 

Interest rate per annum: 4.75%

 

Agreement Fee: $150.00

 

Anyway I'm nt related to them in any way and it is my first visit to them as well. Jus feel they are creditable people who operate in a transparent way, let you know all the charges before hand. So to reloan from them or nt if u hav the need is up to u.

[misterbean]

Originally posted by Tyrian@Jan 10 2006, 05:28 PM

it is only logical that the more u loan, the more interest u have to pay because in the view of the bank, they will treat the so called "high loan" as risky..

 

Personally, if I am a banker, I will see bike loan as more risky than a car loan. The credit risk profile of bikers tend to be higher than car owners. Car loans require proof of income etc etc. For bike loans this is sometimes omitted, so you may have people securing bike loans when they do not have a steady source of income.

 

A bike can be stolen or damaged more easily than a car ... and given the high casualty rate in connection with bike accidents, you may even need to take additional actions to recover the o/s amount from the guarantor ... in the event of a default, I think higher chance of locating a car (to reposess it) as compared to bike.

 

Assuming my bank has 100k cash ... I can loan this amount to one person and secure the borrowings on his car ... or I can split this into 10 bike loans of 10k each ... the cost of credit assessment, administration, recovery etc will go up the more I split ...

 

Lastly, I think competition plays a part. Obviously, the car loan market must be profitable, with so many banks offering loan schemes aggressively ... and forcing the rates down. Not so for bike loans, unfortunately

 

Just my humble comments

[StarWarsII]

Originally posted by Tyrian@Jan 10 2006, 05:28 PM

it is only logical that the more u loan, the more interest u have to pay because in the view of the bank, they will treat the so called "high loan" as risky..

 

how much does one need to loan for an R1? lets say 100% loan of $23K compared to a honda civic 1.8 VTI of $72K.. it will be bullshit if i lend $72K at 5% and $23K at 8%..

 

I do not know what's the point u r making here. Anyway I dunno the real reason was just a suggestion.

 

Some things to consider also, u might not get 100% loan for bike, maybe some shops do. Some bike loans r finance by bike shops themselves n not bank. Perhaps those who's got higher interest is because shop take loan from finance company and shop themselves also want to earn. For eg the finance co charge 4% but shop tell u 7% so the difference they can earn.

[Tyrian]

Originally posted by misterbean@Jan 11 2006, 11:50 AM

Personally, if I am a banker, I will see bike loan as more risky than a car loan. The credit risk profile of bikers tend to be higher than car owners. Car loans require proof of income etc etc. For bike loans this is sometimes omitted, so you may have people securing bike loans when they do not have a steady source of income.

 

A bike can be stolen or damaged more easily than a car ... and given the high casualty rate in connection with bike accidents, you may even need to take additional actions to recover the o/s amount from the guarantor ... in the event of a default, I think higher chance of locating a car (to reposess it) as compared to bike.

 

Assuming my bank has 100k cash ... I can loan this amount to one person and secure the borrowings on his car ... or I can split this into 10 bike loans of 10k each ... the cost of credit assessment, administration, recovery etc will go up the more I split ...

 

Lastly, I think competition plays a part. Obviously, the car loan market must be profitable, with so many banks offering loan schemes aggressively ... and forcing the rates down. Not so for bike loans, unfortunately

 

Just my humble comments

If omitting of credit risk for bike loan is omitted, isn't the bike shop putting more risk in themselves? car dealers requires proof of income to ensure that the person would not default on the loan. i see no reason why bike shop can't do that.. now i smell sterotyping that bikes are poor man's transport..

 

i see no link between high accident rates and high interest rates.. if repair cost is a concern, the car owner will definitely claim more than a bike would..

 

if i have 100K cash, and i lend it just to one person, my risk is very concentrated to that person only.. anything happened to that person and i will lose out big time.. if i spread my risk to 5 bikers lending them 20K each, my risk is reduced to 20% per person.. although not a diversified investment, it is still better than having 100% risk on 1 person.. it is always easier to steal a car at one time than to steal 5 bikes at one time

 

i have to agree with u regarding competition for car loans.. bike loan has very little competition which is very sad i would say..

 

these are juz my humble opinions..

 

at the end of the day, i feel that bike loans should be lower than car loans based on the amount of money that is being lended by the banker.. like i said in the earlier post, it is bullshit to charge 8% for $23 and 5% for $72K..

[Tyrian]

Originally posted by StarWarsII™@Jan 11 2006, 12:20 PM

 

I do not know what's the point u r making here. Anyway I dunno the real reason was just a suggestion.

 

Some things to consider also, u might not get 100% loan for bike, maybe some shops do. Some bike loans r finance by bike shops themselves n not bank. Perhaps those who's got higher interest is because shop take loan from finance company and shop themselves also want to earn. For eg the finance co charge 4% but shop tell u 7% so the difference they can earn.

My point is that it is unfair to charge a bigger interest amount to smaller loans.. in my case, 8% on $23K compared to 5% on $72K.. which one would u borrow?

 

regarding 100% bike loan, i oso know it's not possible.. same goes for car loan.. but to make it simple, we shall assume that the bank allows 100% loan amount..

 

if u were to go to sgcarmart.com, u can see some ads providing in-house finance @ 3.25% or some even as low as 2.9% compared to DBS bank which charges 3% for the first 6 years and 3.25% between 7-10 years.. ur logic of the dealer borrow money from bank and charge higher interest to recover their cost would no longer be vaild as their rates are rather competitive..

 

sorry for being off-topic but i feel that the market right now for bike loan juz sucks.. now u know why the rich gets richer..

[Tyrian]

Originally posted by ridleysretro@Jan 9 2006, 02:57 AM

Hi there

 

I would like to comment on this shop since I find its reloan procedure very transparent and clear. No cheat. No gimmicks. No GST. The lady in charge is by the name of Miss Chan. The details are as follows:

 

Pleasure Motorsports

 

Blk 3 unit 142 Kallang Ave Industrial Centre

(moving to Ubi soon, taking over motorsales)

 

6292-0004

 

11am - 7pm

 

Interest rate per annum: 4.75%

 

Agreement Fee: $150.00

 

Anyway I'm nt related to them in any way and it is my first visit to them as well. Jus feel they are creditable people who operate in a transparent way, let you know all the charges before hand. So to reloan from them or nt if u hav the need is up to u.

I happen to found their website over here..

 

http://www.twowheels.com.sg/

 

should be the same shop rite?