GST, Early Settlement Fees instead or Interest Rebate? Are Bikes Inferior to Car?

[vijayi]

Hi to all bikers, I am rider for 4 years and have changed over 7bikes during these period. After my first 3bikes. I had enough of bike shop and realised that its all ($$$$). U can buy a bike for 1.6k but add interest and all other rubbish where it can snowball to almost 3k... The issue i want to let ppl realise here today is:

 

EARLY SETTLEMENT FEES:

Why in the world should we pay money to sell our bike when the shops are counting our installment in simple interest already? Moreover, whether we sell one month later or 2 years later. The interest is earned already at the end of the day. We nvr get interest rebate like car considered very good liao. Still, torture ppl whose bike under finance and want to sell off their bike with early settlement fees. Pure Rubbish. Then Ppl COI their bikes to others, to escape these fees in the end, kanna swindled or summons...

 

 

INTEREST REBATE:

Should the motorcycling industry start thinking that according to LTA there is over 100,000 bikes on the road. If 50%(very conservative figure) of the bikes are under-finance and every single bike has an early settlement fee of $300, the amount snowballs to $15 million dollars. Thats huge some of money. Plus bigger cc bike got early settlement fees from 500 to 1k... sad but true. (not many ppl can hold on to the same model for 2,3 or 4yrs!!)

 

Isnt it time, bikers should get back some interest rebate? Aren't car-financing companies doing that? Plus, our amounts are small compared to car, so the risk is lesser and bikers dont get to take 10yrs loan!!! Better not anyway, the interest rate will kill us anyway...

 

Cars, who sell their cars earlier when during the lock in period only get penalised with 20% of the interest rebate deduction. But we no interest rebate yet have to pay early settlement fees.

 

GST for secondhand bikes:

According to IRAS (GST Guide for MOTOR-TRADERS), we, the buyers, only need to pay GST for 50% of the machine price of the SECONDHAND bike. No GST is to be charged for the insurance or the interest charged (insurance company already charge u). However agreement fees, adminstrative fees are all GST chargeable(cos Service rendered by shop aka kopi money). So just imagine,some (not all) bike shops add all the figures, times 7% and tell you "so this is the price".

 

this is the link from IRAS:

http://www.iras.gov.sg/irasHome/uploadedFiles/Quick_Links/e-Tax_Guides/GST/GST_for_specific_industries/gstguideformotortraders_final_27062007.pdf

 

Pure Appalling from the amount of money the bike shops earn from us!!!

 

Guys, give your views!

 

Biker Shop Owners and other authorities please review the system which has been predominately negative to the biking community for so many years! U already made so much, so time to give some slack and better service to the 100,000 over of us in here! Thanks on the behalf of everyone!

[redbeacon]

I also feel it's ridiculous for them to include miscellaneous charges on top of the machine price + various SG administrative prices and taxes. There has to be some regulation here.

Hopefully an authority, whether a person or a gahment official, will see to this 'mouth-talk' trade and impose some sort of requirement for shops to be transparent about their products pricing from import to the final sale to the customer.

 

P.S.: I'm guessing that in short if all bikeshops are doing this -- that is, inflating prices in unison, I have a feeling that the near similarity in prices across the board wouldn't be a cause for alarm to the authorities if we were to report this to them.

 

P.P.S.: If I so choose in the future, I have no problems hire-purchasing a new bike, even if it's still tagged with a ridiculous price tag inherent in shops on our reddot island.

[greysnail]

Gr8 info man.But no matter how,they twist here and there to get their earnings.

[DM]

not to burst your bubble but our beloved gahment don't give 2 hoots about welfare for 2 wheelers. writing in to case won't do jacksh*t, you can't press charges because if you do have the money to do so, you won't be pressing charges over the money they conned you of, i too would like justice for us bikers but it's a fight that we will never win without the intervention of the media or the gahment.

[vijayi]

Hello Guys, imo think it is fair to pair 50% of the GST of the machine price of the bike (3.5% of the machine price la). but when bike shops do scruplous things like making u paying for GST for every single thing which u not suppose to... its very unfair for consumer.Plus all bike finance company, if u realise require 1 or 2 guarantor (if big bike) even after producing 3 mth payslip. Siao sia... Worse than buy car. The amt we loan so small, interest high, than must trouble 2 ppl to guarantee... haiz, i have really given up... After 3 bad experience, i always buy bike cash liao. Can happily sell whenever i like, not bound by bike shop and their ridiculous terms and conditions is the happiest thing!

[vijayi]

Gr8 info man.But no matter how,they twist here and there to get their earnings.

 

Hahaha, would just want to know what do u guys thing if one shop offer interest rebate, 2.88% for new bike, 3.88% for secondhand bike and only agreement fee (lawyer fee to endorse the loan). borrow up to 10x of pay. if more need 1 guarantor. No early settlement fee or unnecessary fees. If got one shop like that, that shop would really break the market trend, and win over alot of bikers and their hearts! :thumb:

 

Any Rich biker here who can start finance company to help fellow bikers? hahahahx! :cool:

[swoosh]

Most of these bike shops are finance companies in disguise...

[Ronsonal]

Hello Guys, imo think it is fair to pair 50% of the GST of the machine price of the bike (3.5% of the machine price la). but when bike shops do scruplous things like making u paying for GST for every single thing which u not suppose to... its very unfair for consumer.

 

Any form of GST paid by consumers goes straight to gahment (IRA) and should be accounted for, rite? if a bikeshop charges GST for irrelevant items, it should be considered a case of tax fraud, wouldn't it?

[lacrimosae]

Any form of GST paid by consumers goes straight to gahment (IRA) and should be accounted for, rite? if a bikeshop charges GST for irrelevant items, it should be considered a case of tax fraud, wouldn't it?

 

In that case, can we call IRAS and request them to investigate the company we are purchasing the bike from, in hope that the pressure from the taxman will reduce our costs?

 

(Am thinking of purchasing a new bike for transportation.... dunno if can play the "tax fraud" card to lower fees)

[vijayi]

Wahaha nice one... i even heard of a famous bike shop... their practice very scary one... tell u u downpayment $X amount, installment like this... my friend ask got early settlement fees... say nope... best part, straight away ask my friend for atm card swipe half of the downpayment amt... and press. no paper work done yet.. then collect money first... then, later all their pattern come out...

 

guess guys who knows most bike shops also know this shop... famous for their low machine prices... but after add everything same as other shop... siao! say one to pay cash, suddenly got extra amount pop out from nowhere!!!! (cant name the shop cos many ppl in the forum kanna from them liao, then must make public apology... )

[vijayi]

New bike, very unlikely kanna this kind of things, unless the shop charges GST for ur insurance... (cos LTA will charge u GST for registering the bike!).

Secondhand bike, very power one (esp class 2b bikes ), already young riders have to pay extra loading insurance, then add all this stupid fees can add up to more than half the machine price of the bike!!

[eFzek17]

all 2b sure kena makan. kena once, first bike from some big shop.

 

from the on, either buy from private seller or from a low-profile shop which i tried before.. better to deal with low profile shop than profilic ones...

[lacrimosae]

Woah.... I never bought a 1st hand bike before. Didn't know there's so many unethical practices around.

 

My first bike is a 2nd-hand Aprilia in showroom condition, bought direct from seller, including all road tax insurance payments - $3,000.

 

Been riding that old girl for 5 years. Now thinking of getting a transport bike and converting the Aprilia to track toy.

 

Vijayi, you have PM.

[contrarian]

New bike, very unlikely kanna this kind of things, unless the shop charges GST for ur insurance... (cos LTA will charge u GST for registering the bike!).

 

Most shops don't charge GST for insurance. Read carefully - they collect GST on the premium on behalf of the insurer. So the GST you see there, is not the shop charging it, but the insurer.

 

LTA does not charge GST on registration fees. That is why the GST portion on a new vehicle is only for the machine price, excluding the RF and other LTA fees and customs duty.

[contrarian]

In that case, can we call IRAS and request them to investigate the company we are purchasing the bike from, in hope that the pressure from the taxman will reduce our costs?

 

(Am thinking of purchasing a new bike for transportation.... dunno if can play the "tax fraud" card to lower fees)

 

You should always ask for a tax invoice when they charge GST. If the GST is not in order according to the GST rules, then you can ask Comptroller of GST to investigate.