Purchase New Bike

[jvsss]

Hi,

 

New to this. Just passed my TP on 14/08/20.

 

Planned on purchasing my first bike, but I have a few things I like to know -

 

Intend to buy a new CB150R 2020, saw it going for $14,500, what is the nominal interest rate when loaning a bike?

And if I intend to upgrade to 2A next, how would it affect the loan? Would I be able to trade in and re loan a 2A bike?

 

Help Thank you.

[khan005]

Hey !

 

Coming back go this forum after a long time. Loans from bike shop can really cut you up to 6 to 8% high. Plus got got a lot of "fees" like admin fee, termination fee, drink kopi fee.

These fees can otherwise can be used towards paying for your bike but instead its "wasted" on these extra expenses. So rule of thumb will always be to save up as much as you can so most of your money is going to the bikes.

 

But we are not rich but the heart does not listen so how? .. next option is actually to go for personal loan from a bank. This is because the you control the terms and if you manage to get bonus or strike 4d you can pay off the loan and save money. If no choice have to go to bike shop try to go to those with no termination fee. Will make your life much easier when you are trading up.

Can recommend Loois, the bikes and services may be slightly higher than the norm but you know you will always be supported should something happen to your bike.

 

As for upgrading to 2A... the moment you sign the loan contract your ass belongs to the bank/bike shop until the value of the bike can pay for itself/ release you from your loan.

 

EG:

2020 CB150R

D/P 500

Loan 14000

Interest per annum 6%

No of years 3 yrs ( Since you want to upgrade to 2A/2)

Total Interest = 3x6 = 18%

Loan Ammount = 14000 + [18/100 *14000] = 16250

 

Installment = 16250 / 36 ~ 459.

 

So lets say you pay for 12 mth and want to upgrade because you pass your 2A

12*459 = 5508.

Remaining Loan = 10,742.

You cant get rid of your bike unless you pay off 10,742. But if your bike value is equal or more than this amount, you maybe able to trade in.

 

My suggestion would be to skip 2A and keep the 2B bike for till you change to class 2 and save up for your class 2 bike along the way. May seem a long way but when the day finally arrives, its the best feeling ever. =) All the best!

[khan005]

Yea it has a classic looks. Decent Power too.

[Bluetooth]

Buy bike just pay the full amount....especially if small bikes or scooter or whatever ..don't loan here ..loan there ,as many many older bros here have said many times already!!

[SBF]

On 8/21/2020 at 10:23 PM, khan005 said:

Hey !

 

Coming back go this forum after a long time. Loans from bike shop can really cut you up to 6 to 8% high. Plus got got a lot of "fees" like admin fee, termination fee, drink kopi fee.

These fees can otherwise can be used towards paying for your bike but instead its "wasted" on these extra expenses. So rule of thumb will always be to save up as much as you can so most of your money is going to the bikes.

 

But we are not rich but the heart does not listen so how? .. next option is actually to go for personal loan from a bank. This is because the you control the terms and if you manage to get bonus or strike 4d you can pay off the loan and save money. If no choice have to go to bike shop try to go to those with no termination fee. Will make your life much easier when you are trading up.

Can recommend Loois, the bikes and services may be slightly higher than the norm but you know you will always be supported should something happen to your bike.

 

As for upgrading to 2A... the moment you sign the loan contract your ass belongs to the bank/bike shop until the value of the bike can pay for itself/ release you from your loan.

 

EG:

2020 CB150R

D/P 500

Loan 14000

Interest per annum 6%

No of years 3 yrs ( Since you want to upgrade to 2A/2)

Total Interest = 3x6 = 18%

Loan Ammount = 14000 + [18/100 *14000] = 16250

 

Installment = 16250 / 36 ~ 459.

 

So lets say you pay for 12 mth and want to upgrade because you pass your 2A

12*459 = 5508.

Remaining Loan = 10,742.

You cant get rid of your bike unless you pay off 10,742. But if your bike value is equal or more than this amount, you maybe able to trade in.

 

My suggestion would be to skip 2A and keep the 2B bike for till you change to class 2 and save up for your class 2 bike along the way. May seem a long way but when the day finally arrives, its the best feeling ever. All the best!

@khan005 Thanks! This post is very informative for newbies looking to purchase or finance their first bike. Great break down on the numbers.

On a side note.. Never understood the crazy high interest rate for bikes? Why not take a personal loan from the bank for 3% instead of paying 6-8%? Maybe someone in the industry can enlighten us?

[TRI333PLE]

On 12/9/2020 at 11:55 PM, SB said:

@khan005 Thanks! This post is very informative for newbies looking to purchase or finance their first bike. Great break down on the numbers.

On a side note.. Never understood the crazy high interest rate for bikes? Why not take a personal loan from the bank for 3% instead of paying 6-8%? Maybe someone in the industry can enlighten us?

You always pay more for convenience? 

[The_Sunday_Studio]

As many bros had mentioned in this forum before, buy bikes best to pay in full.

However, I am thinking if u are buying a Class 2 bike and really need the loan, what is the best approach other then a personal bank loan?

Thanks!

[adesmond2]

13 hours ago, The_Sunday_Studio said:

As many bros had mentioned in this forum before, buy bikes best to pay in full.

However, I am thinking if u are buying a Class 2 bike and really need the loan, what is the best approach other then a personal bank loan?

Thanks!

You mentioned all in your post already.. LOL

1) Save and buy (0%)

2)  Bank loan (3%)

3) Motorcycle shop loan (6-8%)

 

one last option - borrow from your family members lor.. also 0%

Never borrow from your friend unless you wan to block them or kanna block by them for life.

Edited December 29, 2021 by adesmond2

[SBF]

On 12/29/2021 at 5:55 PM, The_Sunday_Studio said:

As many bros had mentioned in this forum before, buy bikes best to pay in full.

However, I am thinking if u are buying a Class 2 bike and really need the loan, what is the best approach other then a personal bank loan?

Thanks!

1. Family loan - 0%
2. Bank loan - 2-3%
3. Hire Purchase Loan - 3-4%
4. In-House Loan - 6-10% (Usually for those with poor credit that cannot get loan approved elsewhere)

@The_Sunday_Studio These are your few options. Good luck!

Do remember to read the fine print, especially for number 4, as there are early settlement fees, you must buy your insurance from them, cannot sell without their approval, etc. Best to avoid #4 if possible.