Motorcycle Finance rates

[CLW]

I just saw accidentally on the GPX homepage looking for their new Razer 220.
They are offering an interest rate of only 1.59% for all percentage of DP.

Lowest DP starts at 10% which is 6.900 Baht.

[alx123]

6 hours ago, CLW said:

I just saw accidentally on the GPX homepage looking for their new Razer 220.
They are offering an interest rate of only 1.59% for all percentage of DP.

Lowest DP starts at 10% which is 6.900 Baht.

That would be monthly rate I guess, which will total to around 20% a year. Tricky  

[alx123]

On 7/7/2018 at 12:42 AM, eisfeld said:

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 ?

I agree, taking ridiculous loans is destructive. But there are cases where getting a cheap bike on loan make sense. ME and the wife usually spends around 8k a month for transpo expenses with BTS and motorcy fare combined. With the scoot, at almost 3k a month on finance, we can put the extra 5k into savings or other investment. We use the scoot almost everyday, unless it rains. I can certainly buy it in cash, but I don't want to shell out cash I am using in other income generating investment. 

[fxe1200]

On 7/5/2018 at 11:24 AM, alx123 said:

Example of PCX 150 at 19.08% per year.

 

 

 

Bullshit! This is an annuity, which Thais refuse to calculate. Example 88.000 THB for 12 month at 8733 THB per month are

 

39.213 % effective interest per annum

 

Example  68.000THB 36 month at 2970 are

 

37.430 %  effective interest per annum

 

 

 

[fxe1200]

On 7/5/2018 at 4:53 PM, alx123 said:

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

 

 

Example 1 139.000 at 8649 THB for 18 month is

 

15.682 % effective interest per annum.

 

 

[jackdd]

1 minute ago, fxe1200 said:

Example 1 139.000 at 8649 THB for 18 month is

 

15.682 % effective interest per annum.

 

 

Somebody else wrote this 5 months ago already on page 2 ????

[fxe1200]

On 7/5/2018 at 3:37 PM, jackdd said:

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

 

Example 76.000 at 7701 THB for 12 months calculates to

 

44,990 % effective interest

 

I am really surprised, that nobody here can do the math.

 

Edited December 25, 2018 by fxe1200

[fxe1200]

On 7/9/2018 at 7:46 AM, alx123 said:

That would be monthly rate I guess, which will total to around 20% a year. Tricky  

Example from the razer website: price 72.500 cash, 7.250 down, finance 65.250 at 5.573 THB month for 12 month.

 

Effective interest rate is 4,666 % per annum. That is by far the best offer I have seen.

[fxe1200]

On 7/5/2018 at 1:09 PM, alx123 said:

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. 

 

 

(

On 7/5/2018 at 12:39 PM, 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).)

 

You are wrong with your 19%. It is 38.735% effective interest, or 33.19 nominal If you cannot calculate an annuity, try that:  http://vindeep.com/Calculators/EMICompare.aspx

 

 

 

 

 

[Los Luver]

Guys:

I wonder i one can buy a MC with monthly down payments on tourist visa. I travel 4 times/ year to LoS and tay 2-5 weeks each time. I saw a Honda at mityon.co.th and they offer a financial payment. I want to pay 120K cash and the rest over 12 months.

I have to mention that I always pay 800-1000 / day for bike rent when I'm in Patts...I have Thai DL

PS! I do not like scooters. I ride Yamaha Dragstar home...

[alx123]

On 12/25/2018 at 1:47 PM, fxe1200 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).)

 

You are wrong with your 19%. It is 38.735% effective interest, or 33.19 nominal If you cannot calculate an annuity, try that:  http://vindeep.com/Calculators/EMICompare.aspx

 

 

 

 

 

Thanks for pointing this out. I suck at interest rates calculation LOL. 

 

All I did was getting the total interest return and divided them over the number of periods. 

 

i need to read on this topic more. LOL

 

One thing is for sure, the dealers are capitalizing our lack of knowledge on the subject. I wonder if the practice is actually legal in thai laws? hmmm

 

 

[johng]

16 hours ago, Los Luver said:

I wonder i one can buy a MC with monthly down payments on tourist visa

Doubtful  unless you could find someone (silly enough) to act a your guarantor.

why not just buy the bike straight out with cash...so saving the mark-up interest..even more savings buying second hand.

[uwe_rayong]

23 hours ago, Los Luver said:

Guys:

I wonder i one can buy a MC with monthly down payments on tourist visa. I travel 4 times/ year to LoS and tay 2-5 weeks each time. I saw a Honda at mityon.co.th and they offer a financial payment. I want to pay 120K cash and the rest over 12 months.

I have to mention that I always pay 800-1000 / day for bike rent when I'm in Patts...I have Thai DL

PS! I do not like scooters. I ride Yamaha Dragstar home...

Ususally everything below 300ccm is financed by a smaller Leasing company or the seller shop. With a sufficient down payment I would say a seller based finance should be possible.

If Big Bikes the yearly interest rate is usually a lot less, but most times a big Bank act as a Leasing partner.

I don't belive it is possible to get a regular leasing contract with KTB or Thanachart etc. if you stay here only on a Tourist Visa.

Used Bikes, private finance with relatively high down payment (and high interest rate)  should be possible, but you may have to search for it.