Help needed urgently..pls help me..

[Sillyduckz]

Hi Bro/Sis, need some help..pls advice if u encounter this before..

Here it goes..

 

Went to shop B to buy bike,but still have some outstanding loans wif shop S.

so i call shop S to check how much i left. left wif 1.3k like tat,n they say if i wan clear now. muz pay $400..smlj sia?i tio 4D/TOTO then wan clear my loans, still nid to pay xtra? WTF sia?

 

any1 encounter b4?? pls help me..i hate shop S..i dun wan them to earn the $400. is there any way to counter them back? :angry: :angry:

[prego08220]

This is quite common.. I ever encounter Early settlement fee of $800... Dun think thats any way u can solve this unless u pay the $400.. They also have the upper hand cuz thats a form that u signed that stated that but u didnt read it.. Just learn from ur lesson bro..

[Sillyduckz]

This is quite common.. I ever encounter Early settlement fee of $800... Dun think thats any way u can solve this unless u pay the $400.. They also have the upper hand cuz thats a form that u signed that stated that but u didnt read it.. Just learn from ur lesson bro..

heard from my fren tat work in motortiam..there is no such fee stated in the form that we signed..

realli cb leh..pay xtra $$.. :angry:

[Maddyks]

heard from my fren tat work in motortiam..there is no such fee stated in the form that we signed..

realli cb leh..pay xtra $$.. :angry:

 

Well if there is nothing stated in the form and you have a copy, you can try telling them that.

 

But usually loans have an early settlement fee.

[h_LoNg]

First of all, go and dig out the loan agreement for the bike.

Then screen through all clauses stated, look out of any early settlement clauses sating for extra charges.

 

If yes, then u LL need to pay.

 

If no such clauses, ask the motor shop for any form of written agreement proof that have such clauses stated. If they cant show, be firm and insisted your right. Force them to release your bike under no extra charges. If need be, get the authories involved.

 

Been in this situation, done the above before

[Sillyduckz]

First of all, go and dig out the loan agreement for the bike.

Then screen through all clauses stated, look out of any early settlement clauses sating for extra charges.

 

If yes, then u LL need to pay.

 

If no such clauses, ask the motor shop for any form of written agreement proof that have such clauses stated. If they cant show, be firm and insisted your right. Force them to release your bike under no extra charges. If need be, get the authories involved.

 

Been in this situation, done the above before

fcuk sia..dunno where i kept the form..very unfair to pay the $ man!!

nt asking for interest refund oso..

[kenNUFC]

mostly sure got de. early settlement fees. my friend paid extra 300-500 for it i think.

[Sillyduckz]

mostly sure got de. early settlement fees. my friend paid extra 300-500 for it i think.

my fren gt $80 refund for early settlement..shop A

[h_LoNg]

fcuk sia..dunno where i kept the form..very unfair to pay the $ man!!

nt asking for interest refund oso..

 

Alternative, u can try asking a copy from them to check.

But quite hard as they will come out with a lot of crap to prevent access to the legal documents.

[h_LoNg]

This is quite common.. I ever encounter Early settlement fee of $800... Dun think thats any way u can solve this unless u pay the $400.. They also have the upper hand cuz thats a form that u signed that stated that but u didnt read it.. Just learn from ur lesson bro..

 

Well if there is nothing stated in the form and you have a copy, you can try telling them that.

 

But usually loans have an early settlement fee.

 

I bought 4 bikes before from 4 different shops. All agreements Do Not have any early settlement charges. This is usually a verbal clause used as a trick to force people to buy the next bike from them also.

 

In fact some of them do give interest rebate. 1 such shop is Loois Motor.

[luckystar]

my fren gt $80 refund for early settlement..shop A

 

I heard from my bikeshop only those old contracts are entitled to interest rebate... Since 2005, all hire purchase for motorbike dun ve interest rebate but early settlement fee

 

This is veri common bro...

[kenNUFC]

actually depending on the bikeshop de lah, some bike shop just purposely de. anyway my friend's bike shop is albert ..... issit same? i think first time my friend went they siad extra 300 then became extra 500.... dunno wth they doing.

[Sillyduckz]

Alternative, u can try asking a copy from them to check.

But quite hard as they will come out with a lot of crap to prevent access to the legal documents.

 

juz called the shop..frenly aunty tok to me..she said tat its stated in the form tat i sign, but she oso tell me they dun keep the original copy. n she haf mailed me the 2nd copy..fcuk man..now muz go look for it liao..

if cant find, where can i get the original 1? from the finance coy?

[Sillyduckz]

actually depending on the bikeshop de lah, some bike shop just purposely de. anyway my friend's bike shop is albert ..... issit same? i think first time my friend went they siad extra 300 then became extra 500.... dunno wth they doing.

nt albert..shop S..dun wan to say the full name..they might haf ppl looking in this forum..hahaha..browse thru the same folder..u will see the answer..

[Sillyduckz]

I bought 4 bikes before from 4 different shops. All agreements Do Not have any early settlement charges. This is usually a verbal clause used as a trick to force people to buy the next bike from them also.

 

In fact some of them do give interest rebate. 1 such shop is Loois Motor.

 

which 4 bro? any shop start wif a S??

[luckystar]

actuali i believe this is bikeshop against bikeshop....

 

eg. bike shop A full settle a bike from bike shop B, B charge A penatly 300 then of course A also use this early settlement charge in order to revenge the 300 he paid to B.

 

But usually if Owner make full settlement directly they usually dun charge the penalty

[Sillyduckz]

actuali i believe this is bikeshop against bikeshop....

 

eg. bike shop A full settle a bike from bike shop B, B charge A penatly 300 then of course A also use this early settlement charge in order to revenge the 300 he paid to B.

 

But usually if Owner make full settlement directly they usually dun charge the penalty

i fall in ur eg. grp..changing bike..still find it very unfair..

[Sillyduckz]

this time jialat liao..call shop S again..n ask for the duplicated copy..she say juz write in n wait for them to send back..she sound so zai..tink its stated in it liao.. :giddy:

[adesmond2]

den why not carry on paying in installment since you tio 4D??

[Sillyduckz]

den why not carry on paying in installment since you tio 4D??

i didnt tio 4D..was juz stating an explame..n i m changing bike n nt taking from shop S..

[Yatz86]

just carrying on installment lah...like dat shop s dont gain anything...u using ure current bike as downpayment issit...

[Sillyduckz]

just carrying on installment lah...like dat shop s dont gain anything...u using ure current bike as downpayment issit...

yes sir..tats y i cant let shop S eat my $400..in another words..i nid to come out wif $400..

[h_LoNg]

which 4 bro? any shop start wif a S??

 

Nope, none of them starts with S.

 

The shop that tried such stunt when i did an early settlement before first word is a christian name.

[josephsbs]

~ purpose of early settlement is to save on the interests payable on the outstanding loan amount

~ purpose of early settlement penalty is to compensate the financer the interest he would otherwise continue to earn

~ purpose of early settlement discount in earlier loan contracts is to encourage financee to pay up, thus lowering risk on financer (no longer applies, especially when bank interests are so miserably low)

 

so is early settlement penalty worth paying or should continue installment?

it depends on how much interests is still outstanding

 

e.g. i buy a bike for $12k OTR, dp $2k, loan $10k over 4 years at 4% (straight line flat interest):

total interests payable = 4% x $10k x 4yrs = $1.6k

monthly installment = ($10k + $1.6k)/48mths = approx $241.67

 

suppose pay installments for 36 mths then tio 4D, opt for early settlement...

loan principal paid = $7.5k ... $2.5k outstanding

loan interest paid = $1.2k ... $400 outstanding

 

if penalty is $300... early settlement saves me $100

if penalty is $400... early settlement saves me nothing, continue installment lah

if penalty is >$400... motortiam trying to rip me off

 

think there's also a early settlement admin fee payable

 

[h_LoNg]

~ purpose of early settlement is to save on the interests payable on the outstanding loan amount

~ purpose of early settlement penalty is to compensate the financer the interest he would otherwise continue to earn

~ purpose of early settlement discount in earlier loan contracts is to encourage financee to pay up, thus lowering risk on financer (no longer applies, especially when bank interests are so miserably low)

 

so is early settlement penalty worth paying or should continue installment?

it depends on how much interests is still outstanding

 

e.g. i buy a bike for $12k OTR, dp $2k, loan $10k over 4 years at 4% (straight line flat interest):

total interests payable = 4% x $10k x 4yrs = $1.6k

monthly installment = ($10k + $1.6k)/48mths = approx $241.67

 

suppose pay installments for 36 mths then tio 4D, opt for early settlement...

loan principal paid = $7.5k ... $2.5k outstanding

loan interest paid = $1.2k ... $400 outstanding

 

if penalty is $300... early settlement saves me $100

if penalty is $400... early settlement saves me nothing, continue installment lah

if penalty is >$400... motortiam trying to rip me off

 

think there's also a early settlement admin fee payable

 

 

 

Yes, this is the original purpose, BUT since bike shops in sillypore does not practise refund of interest for oustandstanding amount, what is there to compensate?

 

Therefore i believe the early settlement charge is a hoax unless u see it written physically in your hire purchase agreement with the bike shop.