How to settle loan - which way better?

[sexyh]

I am wonering whether i am on the right track?

 

If i bought a bike at say 15K, put a down payment for 5K and have a loan of 10K taken out over a period of 4 years at 5% per year = total would be 12k over 4years or would be $250 per month.

 

Say again if i paid up 6 months till date and have balance of 42 months x $250 = total $10,500.

 

1) is it wiser or correct move to paid up everything now and probably get rebate from early payment and then sell the bike back to the shop later. Would this move save me some $$. Or

 

2) Just go ahead and ask the shop owner to buy back my bike and work the difference of outstanding loan owing to the shop.

 

I think that the 1) would be a better move and a better way to cut extra $$. Am i correct? Anyone care to comment cos i need your input. thanks