What is 'break even'?

[Fizeppelin]

Does anyone know what does the real meaning of break even mean and what it does. Because I have different views from different sources.

 

Here's how

 

1)Installment break even already

2)$1500 of installment left

3)Bike Value $1200

4)Still left $300

5)Shop got early settlement fee

 

 

a) I can push back the bike to shop, no need to pay remaining $300, pay early settlement fee only?

b) I can push back the bike to shop, need to pay remaining $300 plus early settlement fee?

 

So which one is correct, A or B?

[IvikaRazI]

I maybe wrong, Should be Scenario B for your case.

 

Are you changing bike or selling off the bike to shop? If you are changing, why not push the bike in the shop and get a new bike from the shop? Early settlement fee won't be in effect.

[fir_chan]

The best person to give you the answer would be asking the shop itself what the procedures are. U do not need to make a decision there and then.

 

Ask the right people, you'll get the right answers.

 

Because different shops differs in policies. People have different experience.

[Giles-Damien]

Does anyone know what does the real meaning of break even mean and what it does. Because I have different views from different sources.

 

Here's how

 

1)Installment break even already

2)$1500 of installment left

3)Bike Value $1200

4)Still left $300

5)Shop got early settlement fee

 

 

a) I can push back the bike to shop, no need to pay remaining $300, pay early settlement fee only?

b) I can push back the bike to shop, need to pay remaining $300 plus early settlement fee?

 

So which one is correct, A or B?

if u push ur old bike ($1200) back to the same bike shop u buy from n get a new bike from them, most probably u are not required to pay the early settlement fee... u may still need to pay the $300 different....

 

break even means bike shop buying ur bike at $1500 and u still owe them $1500 in instalment... that means u does not require to pay anything... this is wat break even means...

 

another scenario is bike shop buy ur bike at $1800 but u still owe them $1500 in instalment... this means that YOU CAN GET BACK $300...

 

in ur case, you shld required to pay the $300 different plus eearly settlement... if u intend to get a new bike go back to the same shop and work out with the sale person... maybe the may jus require you to pay for the new bike only...

[Chaoz]

hehe.. learnt something new.. so i assume the best way is to get another bike from the same shop ba..

[nhya]

Hi, I just want to clarify so if break even right if i wanna change my bike to another bike, how does it works? 

my bike is for 5 years so the break even is 2.5yrs then i can go back to the shop to sell my bike and change to another one?

thanks in advance ya

[SBF]

On 4/19/2021 at 9:41 AM, nhya said:

Hi, I just want to clarify so if break even right if i wanna change my bike to another bike, how does it works? 

my bike is for 5 years so the break even is 2.5yrs then i can go back to the shop to sell my bike and change to another one?

thanks in advance ya

@nhya Nope, it really depends on case to case basis. Not exactly at the half of lifespan mark.

Breakeven means:

Selling price of the bike EQUALS or MORE than your current outstanding liabilities/loan on the bike.

i.e.

You sell your bike for $3,000 but you owe the bank $4,000 = You HAVE NOT reached breakeven

You sell your bike for $3,000 and you owe the bank $3,000 = Breakeven point reached

You sell your bike for $5,000 and you owe the bank $3,000 = Break even point reached and surpassed

Hope this helps!

[0ew0umza]

very interesting read. 

so may i conclude that the best thing is to always get the bike from the same shop? 

If so, any recommendations for the bike shop which has a good variety of bikes?

thanks in advance.