Full settlement of OS installments

[wrmicron1]

HI guys, i have bought a 1st hand bike from a motorshop = new s***hern motors with a 5 yrs loan .. being riding for 1 yr + liao. now thinking of selling. so i asked the shop if i sell back to them how do they calculate etc.

currently i have 47 mths of installment left x $400 (full amt including interest 4%)

 

the shop person told me that even if i full settle i still need to pay all = 47 x $400 and not any lesser cos there will be no int rebate when i full settle?

 

im not realli sure abt this cos i thot when we full settle any instalments there shld be some sort of int rebate rite ? am i being cheated or wat ? for i know that for car loans when u do full settlement there would be int rebate .. i told the shop person abt the car thingy and he said for car there is int rebate but for MC industry there will be no rebate.

 

im realli green in this MC loan thingy ... can anyone help to verify if its true or is the person bluffing me ??

thanks very much...

[eversman]

i dun think there would be any rebate if u do full settlement as the bike shop wanna earn ur interest $$

[YEN96]

Originally posted by wrmicron1@January 22, 2007 07:01 pm

HI guys, i have bought a 1st hand bike from a motorshop = new s***hern motors with a 5 yrs loan .. being riding for 1 yr + liao. now thinking of selling. so i asked the shop if i sell back to them how do they calculate etc.

currently i have 47 mths of installment left x $400 (full amt including interest 4%)

 

the shop person told me that even if i full settle i still need to pay all = 47 x $400 and not any lesser cos there will be no int rebate when i full settle?

 

im not realli sure abt this cos i thot when we full settle any instalments there shld be some sort of int rebate rite ? am i being cheated or wat ? for i know that for car loans when u do full settlement there would be int rebate .. i told the shop person abt the car thingy and he said for car there is int rebate but for MC industry there will be no rebate.

 

im realli green in this MC loan thingy ... can anyone help to verify if its true or is the person bluffing me ??

thanks very much...

this is simple...go find the clause about interest rebate for full settlement

 

if it does mention then ....show/ proof to them

 

when u put your signature on the dotted line, u shld be responsible for wad u sign

[guwakzai]

lol think no rebate....anyway last time i buy my bike from the shop beside urs onli...settle early still must pay additional $200!!! and mind u its onli 3 more installment to go onli..

[compfused]

Some shop got rebate some don't have..Think I read somewhere AS Phoon got rebate..But I'm not sure..

[lazy05]

Some bike shops will do rebate, some dun..

[Dixion]

some shops like asphoon do give rebate if u clear ur remaining installing early.. but how much rebate do they actually give back to u this i'm not sure abt that

[wrmicron1]

okies thanks alot for the input guys ... looks like i need to ask my bike shop for the loan documents to see the clause for the int rebate thingy liao ...

cos i have no documents at all except insurance cert n photocopy logcard

 

most prob will go to other motor shops tts nearby my area to clarify too on the motor loan industry std ....

 

thanks again guys

[hit.man]

Actually you should have a copy for the agreement too... usually there's one customer's copy...

[wrmicron1]

was not given at all .... thanks ill go ask for a copy from them

[Strong Eagle]

Gents (and Ladies):

 

After reading this thread, I have to say: Never be gullible. Always know what you are getting yourself into.

 

Never ever obligate yourself to any commitment to pay money without a written contract, executed in duplicate with both your signature and that of the bike shop on both copies. Make sure you get a copy.

 

At a very minimum the contract should show:

 

a) The exact selling price of the bike.

b) The exact amount of license, fees, paperwork charges, etc.

c) The exact amount to be financed.

d) Clear financial terms: Payment amount, number of payments, interest rate, and total amount to be paid to clear the bike.

e) How full title is transferred to you upon payment completion.

f) What insurance requirements you must maintain and whether you must go through the bike shop or an independent agent.

g) Penalities for late payment, and under what conditions your bike can be repossessed.

h) Process for paying off bike early. Do you get a rebate? If so, how much and how is it calculated?

 

It's not really a deal if you get a cheap price on a bike then pay through the nose for a really bad financing deal. Better to pay more for the bike and get a good financing deal.

[Arcfire]

Originally posted by Strong Eagle@January 24, 2007 11:26 am

Gents (and Ladies):

 

After reading this thread, I have to say: Never be gullible. Always know what you are getting yourself into.

 

Never ever obligate yourself to any commitment to pay money without a written contract, executed in duplicate with both your signature and that of the bike shop on both copies. Make sure you get a copy.

 

At a very minimum the contract should show:

 

a) The exact selling price of the bike.

b) The exact amount of license, fees, paperwork charges, etc.

c) The exact amount to be financed.

d) Clear financial terms: Payment amount, number of payments, interest rate, and total amount to be paid to clear the bike.

e) How full title is transferred to you upon payment completion.

f) What insurance requirements you must maintain and whether you must go through the bike shop or an independent agent.

g) Penalities for late payment, and under what conditions your bike can be repossessed.

h) Process for paying off bike early. Do you get a rebate? If so, how much and how is it calculated?

 

It's not really a deal if you get a cheap price on a bike then pay through the nose for a really bad financing deal. Better to pay more for the bike and get a good financing deal.

Agreed... at the very least you should have a copy of the agreement letters so that you can refer to it.

 

And always ask everything and read everything before you sign on the dotted line. Don't be pressured/tempted into making a decision on the spot. Think clearly somewhere else and go back again if you have any more doubts. Better to be safe than to be ripped off.