Motorcycle Finance rates

[alx123]

For those who are buying on finance..

 

Honda seem to be running around at 18% or more per annum..

 

Yamaha around 16%.

 

Lowest i saw was Kawasaki dealer at 6%/year. 

 

Suzuki?

 

Sym?

 

Though this is not the standard everywhere, it really depends on the dealer. 

 

Honda prices and int rates are ridiculous, imo. But Thais love them..

 

 

[Kwasaki]

It can be more than 18% the way they work it out. ?

[alx123]

I agree, more like a 20+% flat interest rate. It's quite confusing as the law said Loan sharks cannot even charge more than 15% per year but motorcycle loan capitalist can. 

 

http://englishnews.thaipbs.or.th/stiffer-anti-loan-shark-law-now-effective/

Edited July 5, 2018 by alx123

[alx123]

Example of PCX 150 at 19.08% per year.

 

 

 

[alx123]

Kawasaki Z250SL at 6%/year

[Kwasaki]

Example APS Honda 24 months on 75,000 @ 24.80% = 93,600. ?

[uwe_rayong]

1 hour ago, alx123 said:

Example of PCX 150 at 19.08% per year.

 

 

 

Firstly Aphonda recommended a price of 82300 THB for the 2018 PCX.

 

Right now I think most Honda dealers want 93000 THB if you are going to pay cash, which they don`t like at all.

Secondly is totally ridiculous how they calculate the interest rates here. Even tough 19.08% sounds already extremely high it is a lot more if calculated the correct way.

 

Motorbike 98,000 THB, down payment 10,000 THB. 88,000 to finance for two years.

 

24 x 5066 =121,584 THB

That means you paid 33,584 THB interest on 24 month.

That are are over 33% annual interest rate (APR).

 

 

Only a  idiot would buy a scooter with that finance condition. 

If you buy a "Big Bike" at Honda or Kawasaki the conditions are much better (Honda / Kawasaki uses Krungsri bank) , usually around 10% annual interest rate from the real world or 3.5% to 7% flat year,.

 

 

 

 

 

 

Edited July 5, 2018 by uwe_rayong

[BEVUP]

Same goes for cars

When you think you got 2.5% it is actually 5%

 

I put the payments p/mth into an Aussie bank calculator & matched it with the Loan & mths - Got the equation above 

 

It would be interesting to see how Ford calculates their's as I'm sure they were offering 0% to try & sell them

[alx123]

36 minutes ago, uwe_rayong said:

 

Motorbike 98,000 THB, down payment 10,000 THB. 88,000 to finance for two years.

 

24 x 5066 =121,584 THB

That means you paid 33,584 THB interest on 24 month.

That are are over 33% annual interest rate (APR).

 

It'll still be at around 19% per year on my calculations. 

Most Thais buy on finance, and Honda is their preferred brand.

Glad to see Kawasaki trying to enter the market with lower rates.

I heard that Big bikes rates are quite decent, like cars. Wouldn't mind a 6-7%/year if I can't afford to buy it in cash. 

 

 

Edited July 5, 2018 by alx123

[alx123]

Imagine putting a DP of 30,000 Thb on both PCX and the Z250SL for 36 months finance, and the Kawasaki will end up more cheaper than the PCX. ?

[jackdd]

Yes, interest rates here in Thailand are very high in general. But as somebody mentioned already, for example Honda Big Wing (they advertise 3.75%, but probably some additional fees will be added) is a lot lower than the finance options for the scooters.

The law limits the "official" interest rate to 15%, but everything above 15% is simply called "fees" by the banks so that it's legal. Effectively you may very well end up paying 30% per year.

Many people don't understand what an "interest rate" actually means, not limited to Thais, but the percentage of Thais who don't understand it is much higher than for westerners.

They just see "10000 down payment, 4000 per month" which is something they can afford to have a new "status symbol" and they buy it. They have no idea how much it actually costs them and don't realize that if they had just saved the money first and then bought the bike it would have been much cheaper (or just get a second hand bike instead a new bike).

In my opinion anybody who buys "luxury items" (a new bike is a luxury item) on finance is just stupid.

Edited July 5, 2018 by jackdd

[johng]

10,000 down payment and 36x3844 = a whopping 148,384 baht for a 150 cc scooter !

[KhunBENQ]

4 hours ago, alx123 said:

Loan sharks cannot even charge more than 15%

Loan sharks (private to private) start at 3% per month with some security/personal creditworthiness.

5% per month is still not considered extreme.

[ktm jeff]

48 minutes ago, johng said:

10,000 down payment and 36x3844 = a whopping 148,384 baht for a 150 cc scooter !

I worries me why people dont work out the final total figure .148,000 for a PCX is just insane.  Just buy the far better 80K Yamaha N-Max. Even on finance , if you start at the recommended price , it works out much cheaper , for a better bike !.  Honda dealers  price gouge , yet many still fall for it.

[ktm jeff]

5 minutes ago, KhunBENQ said:

Loan sharks (private to private) start at 3% per month with some security/personal creditworthiness.

5% per month is still not considered extreme.

There are "pay day" loan companies in England - supported by the goverment - that charge over 1250 %. That is not a typing mistake. One thousand two hundred and fifty percent. Keep the working class poor , and they will be subservant.

[jackdd]

10 minutes ago, ktm jeff said:

I worries me why people dont work out the final total figure .148,000 for a PCX is just insane.  Just buy the far better 80K Yamaha N-Max. Even on finance , if you start at the recommended price , it works out much cheaper , for a better bike !.  Honda dealers  price gouge , yet many still fall for it. 

The NMAX is cheaper, but still 127,000 if you choose the 10k + 36 months finance plan ?

 

[ktm jeff]

But Yamaha have , at least , started off at the correct price , and not "front loaded" it an extra 25% , as Honda do.

Edited July 5, 2018 by ktm jeff

[Kwasaki]

44 minutes ago, ktm jeff said:

There are "pay day" loan companies in England - supported by the goverment - that charge over 1250 %. That is not a typing mistake. One thousand two hundred and fifty percent. Keep the working class poor , and they will be subservant.

Yeah seen that report, one wonders how they get into that situation I expect more of a sweet talking person saying sign here.

My Wife cousins I helped years back borrowed money on his truck and was gonna loose if I didn't help.

To cut story got a settlement and paid off in full,  he paid me back.

Looking at the money borrowed and payments he would of been paying 53% interest had he gone full term.

[alx123]

I think the price front loading depends on the dealer and not the brand of the bike. 

 

If I'm looking for a bike right now, it'll be a Honda for sure.. 

 

I'm gonna try and look up other brand's finance rates and post it here. 

Edited July 5, 2018 by alx123

[alx123]

Benelli running rates seems to be around 6-8%/year 

 

 

[OneMoreFarang]

KTM has finance for 3.29% up to 7.5% per year. It depends on the bike and the down payment.

 

[uwe_rayong]

4 hours ago, alx123 said:

Benelli running rates seems to be around 6-8%/year 

 

 

 

1.) Big Bikes are financed by a Bank, very often Krungsri Bank.  That is cheaper.

2.) the figures you see there are not the APR rate that you know from  the US or Europe. They calculate a flat rat interest for the entire credit time, which looks better as it is.

 

Here is a simple APR rate calculator:

 

https://www.calculatestuff.com/financial/apr-calculator

If you check it you'll see that your 8% Benelli example from above is 14.5% if you calculate it the correct way. So it is not really cheap.

 

Honda also offers a flat interest rate from 3.75% (real rate about 7.5%) but only 500ccm up...

 

 

 

 

 

 

[alx123]

It is clear that Thai rates are FIXED rates. Meanwhile, majority of the rest of the world are using diminishing interest rate. 

[alx123]

5 hours ago, alx123 said:

I think the price front loading depends on the dealer and not the brand of the bike. 

 

If I'm looking for a bike right now, it'll be a Honda for sure.. 

 

I'm gonna try and look up other brand's finance rates and post it here. 

What I meant to write is, it WON'T be a Honda anymore...

Edited July 5, 2018 by alx123

[uwe_rayong]

11 minutes ago, alx123 said:

What I meant to write is, it WON'T be a Honda anymore...

Ok, have you had any problems with your last Honda?

 

 

Honda, Yamaha, Kawasaki I think usually all good quality. 

If PCX or Nmax I would say Nmax.

Forza or Xmas, I like the Forza better.

 

Benelli I don't know nothing about, but I do follow car and bike auctions in Bangkok. Benelli is not very popular on the 2nd Hand market...

 

So if you buy Benelli you better keep it a couple of years, otherwise it is expensive.

Kawasaki Z300 - 175k THB,  they have a promotion 18k THB voucher.

If you want to finance, you can use the voucher to increase your down payment. So in theend the Z300 = 157000 THB.

 

If you compare with Benelli just 18k THB more. If you sale it in 2-3 years, it will pay back and you need less cash for the down payment.

[alx123]

11 hours ago, uwe_rayong said:

Ok, have you had any problems with your last Honda?

 

 

Honda, Yamaha, Kawasaki I think usually all good quality. 

If PCX or Nmax I would say Nmax.

Forza or Xmas, I like the Forza better.

 

Benelli I don't know nothing about, but I do follow car and bike auctions in Bangkok. Benelli is not very popular on the 2nd Hand market...

 

So if you buy Benelli you better keep it a couple of years, otherwise it is expensive.

Kawasaki Z300 - 175k THB,  they have a promotion 18k THB voucher.

If you want to finance, you can use the voucher to increase your down payment. So in theend the Z300 = 157000 THB.

 

If you compare with Benelli just 18k THB more. If you sale it in 2-3 years, it will pay back and you need less cash for the down payment.

i have a PCX right now, didnt have any problem with the scoot so far..

 

Well, aside from me wanting ABS brakes, Im quite satisfied with the PCX. 

 

Honda is great but the higher interest rate on finance is turning me off..

 

I understand that Benelli or any other not so famous brands will have a very low resale value..Which make sense thinking about buying these brands used..

[uwe_rayong]

Yes I can understand 

55 minutes ago, alx123 said:

i have a PCX right now, didnt have any problem with the scoot so far..

 

Well, aside from me wanting ABS brakes, Im quite satisfied with the PCX. 

 

Honda is great but the higher interest rate on finance is turning me off..

 

I understand that Benelli or any other not so famous brands will have a very low resale value..Which make sense thinking about buying these brands used..

Yes I can understand that, the Honda dealers are really taking the piss. New Honda PCX often 10.000 THB above the recommended AP Honda prices. Now the new Click 150 they also started to sale above the recommended prices plus the extremely expensive finance options. If you want a scooter around 150ccm with ABS I think the only option is Yamaha. Nmax front and back ABS, Aerox only in the front. 
 

In Samutprakarn AP Honda has a factory shop, never been there only saw on youtube
 

 

 

Edited July 6, 2018 by uwe_rayong

[Henryford]

The Thais are crafty and only quote flat interest rates. So a 19% flat rate is really about 38% APR. Even for cars 3% or so doesn't sound too bad but it's really 6%.

[Damrongsak]

 Perhaps these rates are the reason many used motorcycles are overpriced.  Can these loans be paid off early without penalty?  Or do they want the full payment for all remaining months?

[eisfeld]

If you can't pay for a bike in cash then that's a good hint to you that you can't afford it (at this point in time) and should most likely not buy the thing (now). Buy something cheaper second hand until you can afford the toy that you really want. Taking out loans is the reason why poor people stay poor. It's a sick, twisted reality where financially weak people have to pay higher prices and therefor get financially weaker. Imho the law should require some kind of proof of financial planning capability and knowledge before allowing people to take on debt similar to how they require certain knowledge/experience if you want to participate in some investment schemes. Sorry for the mini rant ?