enquiry on installment,

[new licensee]

hi all expat... max. period of time a class 3 can drag for 10yrs, wat about bike, i mean 1st hand 2A bike like s400???

[undead]

hi all expat... max. period of time a class 3 can drag for 10yrs, wat about bike, i mean 1st hand 2A bike like s400???

 

Most of them is 4 years..... but since bike price is a lot cheaper than car, the monthly installment technically should not be too tough for most of us **.

 

 

** Up to 2A bike; If class 2 bike like BMW, Harley and others, then exp...

[panclanrider]

Some of my fren is taking 5 years installment....

 

I heard more than 5 years in some shops also can but depends on the type of bike like undead mentioned...

[BlackDawn]

I have heard of 7 year installments before for a new class 2 bike. But it would be foolish for a buyer to agree to such terms. At 4% interest, that works out to be 28% for the entire load period!

 

IMHO, 3 years max for a bike loan. Anything more and you will be paying way way too much in interest.

[Joyboi]

My bikeshop max is 6 years at 4%...

[new licensee]

thks for all ur reply....

[Darkness19]

my bike shop 4.3% -4 years

[Strong Eagle]

All,

 

I would just like to make a couple of comments about the interest rates posted here. They are SIMPLE interest rates. What this means is that every year you get charged 4 percent on the original loan amount, EVEN THOUGH YOU HAVE BEEN PAYING BACK THE LOAN AND NO LONGER OWE AS MUCH. This type of interest computation in the US is illegal, simply because it understates how much interest you actually pay.

 

Consider this. You buy a bike for $20,000, a very nice class 2 job. You get quoted a 4 percent interest rate for 4 years. This works out to $800 interest per year or or $3,200 for the life of the loan. So you pay $23,200 for your bike. Divide this amount by 48 months and your payments will be $483.33 per month.

 

But the reality is that every month you make a payment, and every month you owe less princicple. For example, if you divide the cost of the bike by 48 months (4 years payments), then you pay down about $20,000 / 48 = $416.67 of the principle. So after the first payment you really only owe $19, 582.33 yet you still get charged interest on the principal you already paid. After one year you will have paid back $5,000.04, leaving a balance of $14,999.96 but the next year you still get charged 4 percent on $20,000. So, 4 percent is false.

 

By AMORTIZING the loan amount (paying interest only on the amount outstanding) you get a truer picture of the actual interest rate you are paying. Using a financial calculator, I compute the actual amortized interest rate as 7.5 percent. Not terrible but not 4 percent either.

 

The more years you finance at simple interest rates the uglier the real interest rate gets. Now, it doesn't look like the bike shops are going to start quoting amortized rates anytime soon... just be aware that over 7 years your bike will cost you 25 percent more than cash price at 4 percent.

[panclanrider]

Absolutely correct...

 

It's the same as we (Asean) are being paid 12 months wage per year plus a 13th month so called "bonus" whereby in Europe they are being paid 52 weeks wages...

[nongsao]

By the way, what kind of interest are they charging in US base on your method of calculation? If motorshop follow your method they might up interest to 8% or more.

[Strong Eagle]

By the way, what kind of interest are they charging in US base on your method of calculation? If motorshop follow your method they might up interest to 8% or more.

 

Good question. If your credit is real good you can get 0 to 4 percent real interest financing. Average to poor about 8 percent. Poor credit 10 percent or more. So 4 percent simple over 3 or 4 years is competitive.