How does COI work?

[tigershue]

I'm new to forum.

 

How does COI work?

 

1) Who retains legal ownership of the bike?

2) Is there a new loan document in the buyer's name?

3) Insurance: same question relates to No.1.

4) More or less expensive than refinancing with a separate lender? isit called the "reloan"?

5) or you can pay the installments while everything still under the seller's name until the full payment is completed, then transfer of ownership takes place?

 

I can't really find a specific thread that discuss this type of transactions in depth. Would appreciate of someone can post the link if there's such thread.

 

Thanks in advance.

[MC28]

1) The seller still retains the legal ownership

2) No new loan documents

3) The owner will be the policy owner although he can be listed as a non-riding owner

4) Cheaper cos interest is already factor in and not recalculated

5) That's correct

 

And the best way to COI is to add the buyer name in as one of the guarantor so that when the buyer fails to pay the installment, he is binded by contract as the guarantor as well(Somehow covers your arse).

[-PiE-]

bro, u should also ask about the disadvantages of COI...

[mfaisalby]

Disadvantages of COI!!!! If owner play punk... you suck thumb!!! Becareful on this!!!

 

Let say you gonna pay finish instalment, or you do up the bike swee swee liao then skali owner said he wants back the bike.. den GG liao... cuz legally bike ownership still under him.

[AliDavidSum]

You can see some tragic mistake of others from this link

 

http://www.singaporebikes.com/forums/showthread.php?t=278752

 

It is good that you ask before you do COI. By learning many costly mistake of others, you can save yourself from potential big headache.

[rjbinghay]

so does it mean that buying motorcycle in full price is advisable?

[panclanrider]

But of course...

[RedGixxer688]

If you want savings, COI is a good option BUT not the only option. COI has lots of pros and cons as mentioned by others above. But usually, what is advisable is to have the "COI deal" with people who you can really trust. But if you are the type that trust no one, then better get from shop.

[AliDavidSum]

so does it mean that buying motorcycle in full price is advisable?

 

This is the best option.

 

However, in most case, you cant afford to make full payment. Also, many Hire purchase companies may not loan you for small amount, or will charge you very high interest for it.

 

When this is the case, start saving.

 

COI has turn best friends into worst enemies you never imagine. No hard to find such link and history in this forum. You can't forsee how it will turn sour, so best to avoid COI.

 

If you have to COI, or if bike shop required you to have guarantee, it usually means you do not have the means. After all, don't expect condition of 2nd bike to be that of 1st hand, and this can cause much $$$, and you can't get loan for bike repairs.

[SpiritualRain13]

Best dun COI :thumb: In tiz World anyting goes...

[haoKR]

so...wads e disadvantage of COI ?

 

gt a seller selling bike,still left coi.

if i wanna continue e coi

wad shld i look out 4?

 

buy from private seller.of coz coi nid pay at e shop

[AliDavidSum]

The best answer is "Don't COI". A few here have such advise already. COI has no legally binding and recourse hor...

 

What to look out for? Look out for bikers' COI nightmare experience in this forum, and then ask yourself if it is worth to save few hundard $$$ in exchange of possible unlimted nightnmare.

 

When you COI, the bike is legally under the seller. After you pay all, and he runs away with his bike, what can you do? Report to police that Owner steals his own bike??? This has happen hor...

 

Start saving if you can't afford now or can not take loan.

Edited September 2, 2010 by AliDavidSum

[haoKR]

but wad if i COI.dan go LTA or any bike shop transfer to my name ?

 

litat e bike not mine ??

[SpiritualRain13]

Nw Bike still under,

- Owner = Shop

- HirePurchase Scheme = The Guy that U wanna COI from.

So U will b his 2nd Rider. Can't do anyting at ALL. No Power of Immunity watsoever.

In any Situation U will have NO SAY AT ALL...

[SpiritualRain13]

The only way it can werk Safe is either U...

1) Pay the Bike Shop full settlement for the Bike then straight go & Transfer Ownership at LTA.

2) The Previous Owner Sell Bike back 2 Shop, U then buy fr Shop like buying a 2nd Hand Bike. Then U'll have 2 settle the DownPayment, Intrests Issues etc... Which is of course nt possible as i dun tink the "Owner" gt $$$ at hand 2 settle the extra charges. Thats y he is looking for sum1 2 COI...

3) Go 2 a Lawyer 2 get an Agreement Drafted out [need 2 pay a "$Fee$"]... Tiz can save ur Ass inlotz of way... As it is Legally binded...

[rjbinghay]

I see.... I get it now...

 

I guess buying bikes in full cash is the way to go... although takes time to save.. but it saves me from NIGHTMARE!

[haoKR]

sianx..haix

headace

 

so go shop coi beta dan coi from private seller ? safer ?

[SpiritualRain13]

Other then Full Cash Settlement, U go 2 Shop & buy it the Usual Way la:

Select ur Ride, Discuss on Freebies etc, DownPayment, Mntly Instalment & werk ur way slowly 2 clear the Bike $$$. Once Bike has reached a certain Paid-Value / BreakEven, U can choose 2 remain paying or TradeOver 2 other Rides Its an ez no hassle method Guys...

[haoKR]

ic.thx there

[cheebeeporhandred]

Other then Full Cash Settlement, U go 2 Shop & buy it the Usual Way la:

Select ur Ride, Discuss on Freebies etc, DownPayment, Mntly Instalment & werk ur way slowly 2 clear the Bike $$$. Once Bike has reached a certain Paid-Value / BreakEven, U can choose 2 remain paying or TradeOver 2 other Rides Its an ez no hassle method Guys...

 

yah lahhh... but foreigners e pass holder like me needs someone to guarantor. I think I will became a sub rider if I have a guarantor.

[SpiritualRain13]

Then Singaporeans dun need a Gurantor Izzit

[AliDavidSum]

Then Singaporeans dun need a Gurantor Izzit

 

No. Singaporeans will need a Guarantor, if Hire Purchase companies do not think you can afford to pay back.

 

3) Go 2 a Lawyer 2 get an Agreement Drafted out [need 2 pay a "$Fee$"]... Tiz can save ur Ass inlotz of way... As it is Legally binded...

 

If you can afford lawyer's fee for COI, you can afford to buy the bike easily.

 

Moreover, lawyer's letter has no binding. If anything happen, the name of bike owner in LTA registor kanna, not the name in lawyer's letter. see Hire Purchase Act and you will understand.

 

 

There is no need to rush to buy a bike when you have licence. It is important to do budgeting before you buy a bike. As a thumb of rule, you need at least $500 per month if you have installment for 2B bikes, including road tax, insurance, petrol, repair etc.

[haoKR]

n y $500 ?

installment ard $150.

road tax haf yr,insurance paid