Bike Loan Confusion

[deftones80]

A bit of a confusion about the whole bike loan thingy. I want to get a bike in the next month or so under loan for maybe 5 years. Prefer a 600cc bike.

 

But problem is due to my work I could be posted to a foreign country after a year or so. Not sure if it will happen but jus wanna be prepared.

 

1. What I wish to clarify is, if no one wants to C.O.I my bike can I push it back to the shop at the end of a year?

 

2. Any penalty?

 

3. Lets say the bike works to 14k OTR, and I would have paid up 2800 for the first year of the loan, and I push it back to the shop, Will I get back any cash for that bit?

 

4. Or if i keep the bike, how long will it be before i break even and not lose too much when selling?

 

Dun flame and ask me to buy class 2b or 2a pls thnkz

 

Any one with experience kindly respond

[Nicholai]

You can do a check with the staffs at the shop you're getting the motorcycle from as they are the best people for your queries

 

My opinion is if you are definitely to be posted overseas when you've already bought the motorcycle do try to transfer or sell the ride to someone else perhaps 5 to 3 months before your departure. That way you can avoid any hassle which you may encounter with the shop (penalties and such are possible). However, if the resale value of the ride is more than or equal to the amount you still owe in installments then go ahead and bring it back (if lower by a bit then perhaps you can top up the difference).

 

Regarding the breaking even issue that depends on the period of installment that both you and the shop agree on. Usually, half that period will be good enough to break even (for new motorcycles, the used ones you'd have to do a research on the market value).

 

Based on the amount you've calculated which you will pay in the first year of installment I believe you already have gotten the breakdown on a particular model with the shop.

[kish_garfield]

buy cash. easiest

[thenation]

buy cash. easiest

 

That's a pretty unconstructive comment. TS obviously doesn't have the financial capability to pay the full amount upfront or he wouldn't be starting this thread.

[deftones80]

Thats true haha, not everyone can pay full cash

 

That's a pretty unconstructive comment. TS obviously doesn't have the financial capability to pay the full amount upfront or he wouldn't be starting this thread.

[deftones80]

Well the model I am looking at is a 3 year old cbr600, I think market value ard 10K with miles on it. Shop quoted me 10.5k with pipe and stuff. How much can I expect the value to drop in a year? since I am already paying up nearly 3k per year, Will it still be an issue?

 

 

 

Based on the amount you've calculated which you will pay in the first year of installment I believe you already have gotten the breakdown on a particular model with the shop.

[Team_Commander]

it all depends on how much u down.... then the length of loan period.. what kills the price is the loan interest.. u need to do a carefull calculation...

[BlackDawn]

1. What I wish to clarify is, if no one wants to C.O.I my bike can I push it back to the shop at the end of a year?

You mean you want to terminate the hire purchase after a year? There will be financial consequences.

 

2. Any penalty?

There will be penalty because you are defaulting/terminating a hire purchase contract.

 

3. Lets say the bike works to 14k OTR, and I would have paid up 2800 for the first year of the loan, and I push it back to the shop, Will I get back any cash for that bit?

The question may be how much YOU NEED TO PAY the bike shop to terminate the hire purchase. Getting $ back? Don't even think about it.

 

4. Or if i keep the bike, how long will it be before i break even and not lose too much when selling?

For a 5 year loan, I doubt you will ever break even. The interest you are paying will be astronomical. Losing money is a guarantee in the situation that you are describing, & my guess is it will be quite a healthy sum.

 

Dun flame and ask me to buy class 2b or 2a pls thnkz

This will always be an option, don't close the door yet.

[sICkbOi-dOt-cOm]

Hefty sum bro..

[sICkbOi-dOt-cOm]

For a 5 year loan, I doubt you will ever break even. The interest you are paying will be astronomical. Losing money is a guarantee in the situation that you are describing, & my guess is it will be quite a healthy sum.

 

This will always be an option, don't close the door yet.

 

Hefty Sum Bro...

 

btw wats the current interest is like?

[deftones80]

shope at bukit merah quote me 6%

 

Hefty Sum Bro...

 

btw wats the current interest is like?

[deftones80]

interest would work out to 3000 for a 10k bike over 5 years...

 

I think the more you down the better...grr

 

Hefty Sum Bro...

 

btw wats the current interest is like?

[BlackBandit]

Bro,

From the way I see it, there are two ways out of this conundrum. First is to come up with a sizeable downpayment. Enough to cover for the interest. 4K would be a safe figure. But if you're buying anything other than a Honda, be prepared to face a big depreciation. At most, you break even without a single cent coming your way.

 

Second option is what BlackDawn suggested, which is to get a smaller bike. Smaller depreciation.

[Team_Commander]

shope at bukit merah quote me 6%

 

ASPhoon flat 5%.

Meng motor (jalan besar) 4% if u know him well or know how to nego if not 5%

heng motor @ kembagang there 7%

[apitBIOL]

ASPhoon flat 5%.

Meng motor (jalan besar) 4% if u know him well or know how to nego if not 5%

heng motor @ kembagang there 7%

 

interest rate for big bikes not the same as per small bikes like NSR:cheeky:

interest rates also depends on how long u take the loan on.

[deftones80]

Hum thanks for that...any more guys know shops with lesser interest? any thread here on that?

 

ASPhoon flat 5%.

Meng motor (jalan besar) 4% if u know him well or know how to nego if not 5%

heng motor @ kembagang there 7%

[Team_Commander]

interest rate for big bikes not the same as per small bikes like NSR:cheeky:

interest rates also depends on how long u take the loan on.

 

from what i know this interest rates were given up to 400cc bikes... dono about above than 400cc.

[Xr_nathan]

most shops offer 5% for 2nd hand big bikes. big bikes refers to class 2 bikes. anything smaller, interest rate wld falls sumwer btwn 6%-8%. if u're taking a 2nd hand bike and tink u wld be using for a year, go for more downpayment if u hf the moolah and tied it at 2yrs max. bt mthly wld be xiong ah. if u tied for 3yrs, interest wld be abt 15% of the bike price whc works out to ard 1.5k for 3yrs of interest. usually i wld find shops dat can do COI. easier. eg: HKL. 3mths upfront, u sell to ppl can get back some cash provided there's alot of goodies and ppl wld we willing to COI yr balance of installment. but if u're asking for 2k or more + COI, most ppl don't wanna fork out dat much. they wld rather fork out dat amt for a new bike. but it also depends on each individual. some ppl dun mind buy 2nd hand as long as got all acc that he loves, they'll be glad to pay u some tokens. some will calculate the depreciation lah + yr acc amt lah etc. in the end, its all up to individual. but best bet wld be max go for 2yrs if u plan to used for 1 yr

[Xr_nathan]

A bit of a confusion about the whole bike loan thingy. I want to get a bike in the next month or so under loan for maybe 5 years. Prefer a 600cc bike.

 

But problem is due to my work I could be posted to a foreign country after a year or so. Not sure if it will happen but jus wanna be prepared.

 

1. What I wish to clarify is, if no one wants to C.O.I my bike can I push it back to the shop at the end of a year?

 

yes u can.

 

2. Any penalty?

 

usually if u sell back to the shop that u buy, there'll be no penalty but den better for u to ASK 1st but provided the amt that they're taking in already exceeds yr balance of installment. EG: u buy bike otr at 14k d/p 1.5k the rest inst for 5yrs. they'll calculate like 14k + 5% per annum like in yr case 5yrs = 25% just for interest den they'll minus yr d/p amt. the rest is spread in yr installment. after 1 yr, they take yr bike at 11k. but if u tied at 5yrs u will nid to fork out cash definately. bike depreciation is very fast. some can depreciate up to 6k per yr. anyway u selling back to them, they'll definately take cheapest but if u trade-in they can take highest

 

3. Lets say the bike works to 14k OTR, and I would have paid up 2800 for the first year of the loan, and I push it back to the shop, Will I get back any cash for that bit?

 

no chance unless u d/p say 8k den mebe

 

4. Or if i keep the bike, how long will it be before i break even and not lose too much when selling?

 

usually agn, on avg of 1.5k - 2.5k d/p for 5yrs inst, break even wld likely be on yr 3rd - 4th yr

 

Dun flame and ask me to buy class 2b or 2a pls thnkz

 

Any one with experience kindly respond

 

hope this helps

[deftones80]

Yeah..thats what i am going ard bike shops and asking, who allow transfer and c.o.i. bike producation and asphoon seem to do that. And reloan too. time to save up moolah....heh

 

most shops offer 5% for 2nd hand big bikes. big bikes refers to class 2 bikes. anything smaller, interest rate wld falls sumwer btwn 6%-8%. if u're taking a 2nd hand bike and tink u wld be using for a year, go for more downpayment if u hf the moolah and tied it at 2yrs max. bt mthly wld be xiong ah. if u tied for 3yrs, interest wld be abt 15% of the bike price whc works out to ard 1.5k for 3yrs of interest. usually i wld find shops dat can do COI. easier. eg: HKL. 3mths upfront, u sell to ppl can get back some cash provided there's alot of goodies and ppl wld we willing to COI yr balance of installment. but if u're asking for 2k or more + COI, most ppl don't wanna fork out dat much. they wld rather fork out dat amt for a new bike. but it also depends on each individual. some ppl dun mind buy 2nd hand as long as got all acc that he loves, they'll be glad to pay u some tokens. some will calculate the depreciation lah + yr acc amt lah etc. in the end, its all up to individual. but best bet wld be max go for 2yrs if u plan to used for 1 yr

[IvikaRazI]

Its a bit of a risk to take the bike and returning it before you hit half-way thru the agreement.

 

Anyway my advice is for you to refinance the bike when you are transfering to someone. DO NOT COI. Very risky. Imagine you come back to Singapore and found that you need to pay outstanding balance (which will be more) because the person you COI to have disappeared.

 

My advice.

[thenation]

I suppose the best course of action for you would be to make sure your finances are in order first before jumping into the purchase. Save up enough for a decent down payment, ensure you can afford to take up a shorter loan to save on interest payments while not eating grass as a result. Don't spend beyond your means.

 

But if you do decide to go ahead with your original decision (5 year loan for the bike) then at least ensure that you calculate the costs fully before committing and have the shop give you the black and white for terms and conditions when it comes down to early termination, pushing back to the shop and so on. Of course I would personally advise against this course of action if you intend, as you stated, to keep the bike for only a year.

[Dirt_Diver]

This thread very informative...

[deftones80]

Yes that is risky to COI, but shops allow coi after transfer of ownership with three months installment upfront.

 

Its a bit of a risk to take the bike and returning it before you hit half-way thru the agreement.

 

Anyway my advice is for you to refinance the bike when you are transfering to someone. DO NOT COI. Very risky. Imagine you come back to Singapore and found that you need to pay outstanding balance (which will be more) because the person you COI to have disappeared.

 

My advice.

[deftones80]

Yeah i calculated i gotta put half the amt down and loan the rest for 2 years. Would be just nice for a 10k bike

 

I suppose the best course of action for you would be to make sure your finances are in order first before jumping into the purchase. Save up enough for a decent down payment, ensure you can afford to take up a shorter loan to save on interest payments while not eating grass as a result. Don't spend beyond your means.

 

But if you do decide to go ahead with your original decision (5 year loan for the bike) then at least ensure that you calculate the costs fully before committing and have the shop give you the black and white for terms and conditions when it comes down to early termination, pushing back to the shop and so on. Of course I would personally advise against this course of action if you intend, as you stated, to keep the bike for only a year.