Calculation

[N e F e r T i T i]

Guyz,need some tips here.....

How do we exactly calculate the interest / instalments(after downpayment)

when buying a brand new bike

or 2nd hand??

Thanxx loads...

[Refugee]

like normal instalment plan lor...

 

Interest Per Annum = Principal Sum X Interest Rate

 

Total Interest Payable = Interest Per Annum X Number of Years.

 

Total Amount Loaned = Principal Sum + Total Interest Payable

 

Installment Per Month = Total Amount Loaned / Number of Months.

 

practice mathematics.. quite fun

[mohgui]

all i know is... in the end, you end up paying more... haiz.

 

sadly, most bike shops will not take cash payment... double haiz.

[N e F e r T i T i]

Hahaha,totally agree wif u 'mohgui'...

[DeusExMachina]

Guyz,need some tips here.....

How do we exactly calculate the interest / instalments(after downpayment)

when buying a brand new bike

or 2nd hand??

Thanxx loads...

 

I'll talk abt new bike. It's simpler.

Lemme give you a layman's view of things in a little example.

 

You'll need a few figures to begin with.

 

1. You need the OTR (on the road) price of the bike. Nowadays... this means... Machine price + Registration + Insurance... but may not include IU.

2. You'll next need to know your own downpayment amount.

3. Next you'll need to know the interest rate per annum (and whether it's flat or not) Flat int rates mean that it's the same throughout the loan period. There are incremental rates.

 

 

Let's talk abt a bike worth $15000. That's the OTR price.

You wanna downpay $5000.

 

So you are loaning $10000. (15K-5K=10K... U subtract your DP from the OTR)

 

Now let's say the shop sayz the interest rate is 4% per annum. Flat.

You wanna loan for 3 years.

U multiply the interest w/ the no of yrs, and you get 4 X 3 = 12%.

 

Not you take your loan amt and add the interest.

i.e. $10,000 x 1.12 (That's adding 12% interest on top)

= $11,200.

 

 

Lastly, you take that total amt w/ interest and divide it by 3 years... in the form of months. That's 36 months... just in case your calculator is broken.

 

So Per month, you pay $11,200 / 36 = $311.11111111

 

But of course, we don't have 11.1111111 cents. So you'd prob arrange w/ the bike shop to pay something like $315 for 35 months... and the final month, you'll pay less.

 

 

All this is assuming the paperwork is transparent. Does not include any hidden costs or extra stuff in like the IU unit.

[DM]

to play safe, always ask if OTR price includes IU and gst. if the bikeboss cuts you off while you're asking, just tell him to clam up and make your enquires clear. some shady salesmen have different definitions of OTR price, you have to dumb it down for them.

[xiaobanz]

Haha some shops do take in full payment like when i bought my bike. But then the look on the boss face totally changed.

[N e F e r T i T i]

Thanx for the info bros...

[newsaferider]

wat is IU?

[Michael-]

the machine that when u went pass erp , deduct of $$ from your cashcard that u slot in

[Refugee]

IU is a device that the government give you... to say "i love you"

[SparkerS1]

IU is a device that the government give you... to say "i love you"

 

the government dun give us IU unit loh, we need to buy ourselves loh

[Refugee]

the government dun give us IU unit loh, we need to buy ourselves loh

 

okie.. my bad...

 

gov say.... "We do love you road users.. but to prove you love us as well... please buy our "IloveyoU' device as a token of our love"

 

150 bucks + GST please.

[SparkerS1]

okie.. my bad...

 

gov say.... "We do love you road users.. but to prove you love us as well... please buy our "IloveyoU' device as a token of our love"

 

150 bucks + GST please.

 

haha, i dun love the IU unit, i dun even wan the gov's "love" this way:cheeky: