Any idea?

[greysnail]

Bike price-10.8k

Down -2k

 

So 8.8k for 5yrs loan

total - 16.5k....how does this figure can be double?

pls enlighten me...

 

and its an 02 registered bike

[wX]

we will need more info than that:

 

1) Interest Rate?

2) Insurance added in?

3) Other charges? eg: admin fee, gst, and what not

[BlackBandit]

bro greysnail,

 

what bike, huh?? You changing your Bird or what???

 

To me, the doubling of the price seems a bit ridiculous leh..... Do you have the breakdown??

[three]

Let me see...

 

Assuming u are taking a loan of $8,800 FLAT and the price shoot up to $16,500. Thats equivalent to 21.875% per annum interest.

 

5 Years is 87.5%

 

Then again.. u did not state what additional cost the shop added BEFORE computing the interest.

[greysnail]

Bike price-10.8k

Down -2k

 

So 8.8k for 5yrs loan

total - 16.5k....how does this figure can be double?

mthly is 242x60=14520

[paiseh]

Principle loan amount: $8800

Total amount owned: $14520

Total interest incurred: $5720 = 65% of principle amount

Considering compound interest: 13% P.A, so 5 yrs = 65%.

 

Meaning your loan interest rate is 13% P.A. First hand bike usually 4% P.A. 2nd hand varies from 4% - 8%. If reloan from shop w/o buying bike from them is between 10% - 12%.

 

your 13% is a bit too far fetched.

 

P/S: Figures are roughly current market figures. Different bike shops practise differently.