Admin fee for brand new bike

[Victozy]

Hi guys.... need advice... i'm surveying for brand new class 2A bike... there is this shop owner says that if want to full cash then there will be an Admin Fee of $500... if by installment plan there will be no Admin fees and 4% interest rate and no early settlement fees..  so my question is the admin fee price too pricey or reasonable price?

 

Appreciate the help guys..

[adesmond2]

11 hours ago, Victozy said:

Hi guys.... need advice... i'm surveying for brand new class 2A bike... there is this shop owner says that if want to full cash then there will be an Admin Fee of $500... if by installment plan there will be no Admin fees and 4% interest rate and no early settlement fees..  so my question is the admin fee price too pricey or reasonable price?

 

Appreciate the help guys..

admin fees can go up to thousands.. so it varies from bike shops to bike shops..

cause they can't earn interest rate.. so they earn you by admin fees lor..

[Victozy]

What... can go up to thousands... that's crazy..

Speaking of interest rate, have any idea how the shops calculate the interest rate? Most shops that i surveyed have 4% interest rate for installment plan..

[adesmond2]

37 minutes ago, Victozy said:

What... can go up to thousands... that's crazy..

Speaking of interest rate, have any idea how the shops calculate the interest rate? Most shops that i surveyed have 4% interest rate for installment plan..

interest highest I've heard of is 7-9%... nowadays is about 4% 

[hellhole]

https://www.sgcarmart.com/services/calculator.php?

i think using car calculator can be the same...

like cars...if you take loan.. the shop can get a amount from the bank base on the how much your loan is.  its a one time money they get.

so.. if you dont take loan, they cant get this money. so they put a admin fee onto the price of the bike lor...

correct me if i am wrong.. that is roughly how the car buying works...