Financially-off ppl shd learn to curb their desires for exp bikes (LONG POST)

[mechwira]

No, not all loans work like that. My study loan, for instance, was on a monthly rest basis. The principal on which interest is paid is reduced every month as I pay off the loan.

 

My HDB loan was the same. Interest payable becomes reduced as I pay off the principal sum.

 

The total interest payable would be much less than had I paid a flat interest on the full principal.

 

The bike loan offered at the shops has the interest rate applied flat on the full principal. Very, very expensive loan.

 

ok, i stand corrected. i guess coz i only ever look at hire purchase of items. i never took study loan or mortgage so i'm not aware of such reducing principal type of loans.

[crazydj]

So can anyone list out all the typical types of motorbike loans, including examples?

[papabread79]

No, not all loans work like that. My study loan, for instance, was on a monthly rest basis. The principal on which interest is paid is reduced every month as I pay off the loan.

 

My HDB loan was the same. Interest payable becomes reduced as I pay off the principal sum.

 

The total interest payable would be much less than had I paid a flat interest on the full principal.

 

The bike loan offered at the shops has the interest rate applied flat on the full principal. Very, very expensive loan.

 

ok, i stand corrected. i guess coz i only ever look at hire purchase of items. i never took study loan or mortgage so i'm not aware of such reducing principal type of loans.

 

So can anyone list out all the typical types of motorbike loans, including examples?

Hah? What talking you?

 

All under Hire Purchase Act la.

 

http://statutes.agc.gov.sg/non_version/cgi-bin/cgi_retrieve.pl?&actno=reved-125&date=latest&method=part

[pyro13]

Good point ts.. D number of big bikes ob the road now is atrocious.. Wen i started riding 5 years ago, to see a r1 on the road is like seeing a ducati now.. Quite rare..

 

Now, at every traffic light can see at least one class 2 bikes.. A malaysian once asked me if singaporeans are rich?!

 

My reply, they are nt rich.. Jus brave enuf to take hefty loans..

 

I feel tat if u take loans.. Calculate veryting.. Dun calculate only installment.. Calculate insurance, maintenance and some more just in case of mishaps.. In short, ur jus using tmrs money to pay for todays wants..

[wait4me]

installment here ,installement there can have many many things

full cash onli can have one thing

 

quote from jack neo movies

[CoStar]

my opinion is if you think you can secure your job for the next 5 years and can pay your installments paycheck to paycheck..go ahead and buy. but your job suddenly retrenches you or you do something wrong you got fired, so who is gonna feed you? who's gonna maintain the bike?

another important note is to have a nest. thats what my dad always tell me and i regretted not doing so at an early age. with a savings nest, if you somehow get into a financial difficulty you can still tide over a bit. my views i believe have be reiterated by other brothers here.

[Pandoras Kitten 3]

I feel tat if u take loans.. Calculate veryting.. Dun calculate only installment.. Calculate insurance, maintenance and some more just in case of mishaps.. In short, ur jus using tmrs money to pay for todays wants..

 

The issue with hire-purchase is that it's tempting to fall into that ($0.50 a day for a giant plasma TV!) sort of advertising, to take a note from Courts. Some years back they were hiring a lot of "credit officers" with a salary of $1800 and little education required.

 

In some other countries their youth also have problems with credit cards and overspending. Mankind is easily tempted

 

Bikes can now be an alternative example to teach the next generation that proper planning prevents piss poor financial situations. And for my part it's easier to explain all the hidden costs of vehicle ownership than to go into the evils of credit cards and bulk furniture purchase (cos I don't use furniture, I'm a cat )

 

Kids these days need a bit more than just "don't use credit card ah, very bad one ah!". Technical competence required to get the message across

[Throttle]

Hah? What talking you?

 

All under Hire Purchase Act la.

 

http://statutes.agc.gov.sg/non_version/cgi-bin/cgi_retrieve.pl?&actno=reved-125&date=latest&method=part

 

Yo Rotiboy, people are talking about the loan structure not about which act it is under lah.

Although I didnt read the link, I'm quite sure mortgage loan does not come under hire purchase act.

 

And even if it does come under the Act. the loan structure between a mortgage loan and a simple vehicle loan is different as pointed out by myself and lutein.

 

What talking YOU? hahaha

[Throttle]

installment here ,installement there can have many many things

full cash onli can have one thing

 

quote from jack neo movies

 

Hahah, in the movie, you also get to see what happens when you instalment here and instalment there.

 

actually instalment is fine. as long as got money to pay.

choosing to pay by instalments is not wrong if it gives one an advantage over other paymetn schedules.

 

However choosing to simply pay by instalment becos one absolutely cant pay otherwise, then it's time to relook at whether one should be buying or not.

[wait4me]

Hahah, in the movie, you also get to see what happens when you instalment here and instalment there.

 

actually instalment is fine. as long as got money to pay.

choosing to pay by instalments is not wrong if it gives one an advantage over other paymetn schedules.

 

However choosing to simply pay by instalment becos one absolutely cant pay otherwise, then it's time to relook at whether one should be buying or not.

 

cant imagine if u can pay ciggie /cigarettes with installments

[Throttle]

cant imagine if u can pay ciggie /cigarettes with installments

 

especially for cheap items , if one has to resort to paying instalments, I would recommend not to buy.

 

I know people who buy $20k watch also want to pay instalment.

KNN, want to haolian by wearing $20k watch but actually cant afford to buy upfront, must pay instalment. how bloody lame is that ?? wah kao, cant stand these people, sibei throw face.

[wait4me]

especially for cheap items , if one has to resort to paying instalments, I would recommend not to buy.

 

I know people who buy $20k watch also want to pay instalment.

KNN, want to haolian by wearing $20k watch but actually cant afford to buy upfront, must pay instalment. how bloody lame is that ?? wah kao, cant stand these people, sibei throw face.

 

what brand wan ??

phillipe p ?

no choice also , all abt face and the wow wow

[welly]

I would love to reiterate my point, but too lazy to type out.

 

Btw, ride in Msia is cheaper.

 

hmm..ride in India's waaay cheaper...S$2k can get a bike..not bad looking either

[welly]

especially for cheap items , if one has to resort to paying instalments, I would recommend not to buy.

 

I know people who buy $20k watch also want to pay instalment.

KNN, want to haolian by wearing $20k watch but actually cant afford to buy upfront, must pay instalment. how bloody lame is that ?? wah kao, cant stand these people, sibei throw face.

 

the world is full of interesting ppl...

[kmax]

http://www.singaporebikes.com/forums/showthread.php/296780-MWTS-R1-04-or-R6-06-(coi-only)

 

very good response for COI, much better than cash sales...

 

[papabread79]

Yo Rotiboy, people are talking about the loan structure not about which act it is under lah.

Although I didnt read the link, I'm quite sure mortgage loan does not come under hire purchase act.

 

And even if it does come under the Act. the loan structure between a mortgage loan and a simple vehicle loan is different as pointed out by myself and lutein.

 

What talking YOU? hahaha

Hi Twisted Throttle,

 

In my last post, i had inadvertently quoted lutein and the other person. It was meant to be directed to crazydj only. To point to him that for motorcycle loans, its all under HP Act.

 

Obviously mortgage loan etc are calculated in different ways.

[mechwira]

man, i just got referred to as "the other person".......

 

anyway yeah all bike loans and car loans are hire purchase, just like small ticket items like furniture and computer and stuff. there are no 'different type of bike loan'.

[crazydj]

Yay! I was mentioned. Alright bros! Haha. Anyway, i remember attending one course and the trainer, a retired army officer, told us about one lady who went to Courts to buy a $24 iron and wanted to pay installments of $2 a month for a year. Hehe.

[Throttle]

Hi Twisted Throttle,

 

In my last post, i had inadvertently quoted lutein and the other person. It was meant to be directed to crazydj only. To point to him that for motorcycle loans, its all under HP Act.

 

Obviously mortgage loan etc are calculated in different ways.

ok now you explain, i accept. but the way you structure your post, sibei koyak. by quoting all 3 , you are directing your response to all three.

just take it i stupid ok.

[papabread79]

man, i just got referred to as "the other person".......

Sorry Sir. Using a small screen PC, too lazy to scroll up.

[cougar]

All very good. Tell that to car owners living beyond their means, so that maybe the roads be less congested for me to enjoy my ride.

[kmax]

All very good. Tell that to car owners living beyond their means, so that maybe the roads be less congested for me to enjoy my ride.

 

pls dont tell HDB (or condo) owners that they are living beyond their limits..

[Throttle]

All very good. Tell that to car owners living beyond their means, so that maybe the roads be less congested for me to enjoy my ride.

 

Not all car owners....but i suspect at least 30% are coughing hard just to own a car and will get into serious serious financial problem the moment their jobs are lost.

 

I do tell these people all the time that they are living beyond their means.

[Throttle]

pls dont tell HDB (or condo) owners that they are living beyond their limits..

 

some of them really are

[lutein]

Housing loan is cheap. If you can get a good loan package and your DTI (debt to income ratio) is manageable (say 30-40% of income), housing loan is actually a good loan because there is a chance of asset appreciation.

 

But if your DTI is like 70-80% then u have to be prepared to eat grass if you lose your job. May even need to do fire sale liao...