Exorbitant Interest Rates For Suzuki Motosai Financing

[roban]

I recently bought a Suzuki Skydrive from a burst financing...

I received the original financing document from "Suzuki Leasing International" and couldn't believe it.

Price Suzuki Skydrive: 48.000 Bt.

Pre-payment: 500 Bt

Open: 47.500

monthly rate (36): 2315.00 Bt

Interest rates: 35.840 Bt

All together: 83.340 Bt.....for a 48.000 Bt Bike

wow...I knew, interest rates (dogbia ดอกเบี้ย) are far away from cheap conditions.....but this...

Edited December 10, 2011 by roban

[BigBikeBKK]

It's a cheap arse scooter. Just buy cash!

[roban]

It's a cheap arse scooter. Just buy cash!

You read my post completely?

[thaicbr]

But then if you take into account that it's ONLY a 500b deposit.

And there are NO credit checks.

You only have to have a job and proof of employment/salary for 6 months.

It's not so bad.

about 1.75-2 percent per month.

[roban]

Ok..but one more question.

The bike is ~ 1 year old, lets assume, the monthly rates had been payed 9-10 times... ~23.000 Bt.

And lets assume I paid 20.000, so we have a total of 43.000 BT.

But..... what is with the remaining amount of nearly 40.000 Bt? Who is responsible for that?

I don't believe, that the finance company will write off the 40.000

[thaicbr]

Ok..but one more question.

The bike is ~ 1 year old, lets assume, the monthly rates had been payed 9-10 times... ~23.000 Bt.

And lets assume I paid 20.000, so we have a total of 43.000 BT.

But..... what is with the remaining amount of nearly 40.000 Bt? Who is responsible for that?

I don't believe, that the finance company will write off the 40.000

Not sure. But as far as i'm aware that's what happens. sometimes they can have the interest taken from the salary.. That's one of the reasons the interest is so high.. it is just like a roundabout..high interest because the people do not pay. And the reason they can'y afford to pay is because the interest is so high.

[Rider808]

dam_n

[ignis]

The down payment here appear to make the difference on the interest rate., always check and see if putting more down is a lot cheaper. normal is between 20 - 30 % = much lower interest rate.

Other option is get an 'Aeon' account, they run promotions all the time, last few months has been on Honda bikes @ .79 interest.. must have put promotion advert in the bin but Suzuki bikes was .99 % as far as I remember.

[CMX]

Stating interest rates in monthly terms rather than annual (an example in the U.S. being APR) is grossly misleading to those of us who don't realize the method and what it means. It is presented in this way (monthly) in many borrowing situations. Generally speaking, using one's credit card from the home country - assuming one has such a thing - is cheaper! Aeon may be relatively cheaper, but it is expensive.

On the other hand, cash sometimes can gain a small reduction in the asking price.

[ignis]

Found this http://www.motorcycle.in.th/staticpages/index.php/Suzuki_Motorcycle_Financing

OK it is from early 2010, but interest rates have come down since then, looks from this you should be on 24 months not 36 monthly payment ?

Did look at finance V cash on the Honda PCX, early in the year, Interest was about 20k total via Honda Finance, with 6k down payment

Edited December 11, 2011 by ignis

[roban]

On the other hand, cash sometimes can gain a small reduction in the asking price.

But not here?

I heard a *rumour*, that the motorbike shops prefer selling on finance, because they get their piece of cake, from the finance company too.

[BigBikeBKK]

It's a cheap arse scooter. Just buy cash!

You read my post completely?

Yeah, I read your post, and it sounds like you signed a contract without understanding the terms. Som nam na

[pokerkid]

It's a cheap arse scooter. Just buy cash!

You read my post completely?

Yeah, I read your post, and it sounds like you signed a contract without understanding the terms. Som nam na

So re-read it again please. especially the first sentence of the original post........ get it now? Edited December 11, 2011 by pokerkid

[BigBikeBKK]

It's a cheap arse scooter. Just buy cash!

You read my post completely?

Yeah, I read your post, and it sounds like you signed a contract without understanding the terms. Som nam na

So re-read it again please. especially the first sentence of the original post........ get it now?

Sorry, I have no idea what "burst financing" is... Perhaps English is not the OP's first language?

[chris2004]

I have previously bought a motorbike with 50% down and 0% interest over 6 months. But if you go for the low deposit over 24 months then the interest rates are about 2% PER MONTH. I guess many thais buy bikes this way as they can not find the full cash up front. It would be crazy for any farang to buy this way though.

[VocalNeal]

I heard a *rumour*, that the motorbike shops prefer selling on finance, because they get their piece of cake, from the finance company too.

No Kidding? In UK they've been doing that for at least 45 years.

[pokerkid]

Yeah, I read your post, and it sounds like you signed a contract without understanding the terms. Som nam na

So re-read it again please. especially the first sentence of the original post........ get it now?

Sorry, I have no idea what "burst financing" is... Perhaps English is not the OP's first language?

well i got it although english is not my first language and i am pretty sure more readers understood, just not you..... Maybe non -english native speakers are a bit more flexible language wise . not sure if i wrote that correct but you should be able to understand it i hope.

[BigBikeBKK]

well i got it although english is not my first language and i am pretty sure more readers understood, just not you..... Maybe non -english native speakers are a bit more flexible language wise . not sure if i wrote that correct but you should be able to understand it i hope.

So enlighten me genius, what the hell is "burst financing"???

And why was the OP so stupid as to sign a contract he didn't understand?

[thaicbr]

I think the OPdid NOT sign a contract he did not understand.

because i think that he bought the bike from a finance company after the original owner defaulted / burst the original finance agreement. The OP probably got the bike from an auction.

So he got it cheaper.

Edited December 11, 2011 by thaicbr

[billd766]

A few years ago I bought a Yamaha Mio Fino for my wife.

As far as I can remember this was what I paid.

Cash price was around 43,500 baht.

I put 10,000 baht down and paid 1,750 baht a month for 24 months.

The finance cost 42,240 + 10,000 deposit, total of 54,240.

The interest over 2 years came to 8,740 baht or about 365 baht per month.

[thaicbr]

I have previously bought a motorbike with 50% down and 0% interest over 6 months. But if you go for the low deposit over 24 months then the interest rates are about 2% PER MONTH. I guess many thais buy bikes this way as they can not find the full cash up front. It would be crazy for any farang to buy this way though.

Personally i prefer the monthly rate which is really a yearly rate way over APR its much easier to work out. Probably why they do it.

example a 1.5% monthly rate rate is 18% per year. APR rate for same is 19.56% compounded. so similar to the credit card.

(don't know what that compunded means, but that's what the APR calculator said )

Its so much easier working out the basic rates than the APR rate which is really there to hide the banks extra charges.

Aeon are one of the the few that do proper credit checks thats why you can get the lower interest on the card. Also some times the interest is subsidised by the seller.

interest rate calculator here http://www.stoozing.com/mon2yr.htm

[pokerkid]

I think the OPdid NOT sign a contract he did not understand.

because i think that he bought the bike from a finance company after the original owner defaulted / burst the original finance agreement. The OP probably got the bike from an auction.

So he got it cheaper.

I hope this post is clear enough for BBB to understand

oh yeah, almost forgot ...

[katabeachbum]

But then if you take into account that it's ONLY a 500b deposit.

And there are NO credit checks.

You only have to have a job and proof of employment/salary for 6 months.

It's not so bad.

about 1.75-2 percent per month.

ad the fact of no insurance for bike and very easy export, the interest reflects the risk here

same interest as a credit card, same secutity

[ignis]

I think I understand now, but not the OP 1st post..

He bought the bike after if had been repossessed by the Finance Company.. ? The Finance for the 1st owner [the 1st owner fail to pay] was the paper he is talking about ?

[BigBikeBKK]

I think the OPdid NOT sign a contract he did not understand.

because i think that he bought the bike from a finance company after the original owner defaulted / burst the original finance agreement. The OP probably got the bike from an auction.

So he got it cheaper.

I hope this post is clear enough for BBB to understand

oh yeah, almost forgot ...

Yeah, clear as mud. So, the guy takes over payments on a financed bike without knowing the interest rate?!? Then whinges about it on a public forum? Som nam na indeed!

Edited December 11, 2011 by BigBikeBKK

[roban]

I think the OPdid NOT sign a contract he did not understand.

because i think that he bought the bike from a finance company after the original owner defaulted / burst the original finance agreement. The OP probably got the bike from an auction.

So he got it cheaper.

I see, he understood...

Yeah, clear as mud. So, the guy takes over payments on a financed bike without knowing the interest rate?!? Then whinges about it on a public forum? Som nam na indeed!

Sorry, I don't understand "whinges" ?

But you do not want to understand me, or?

One more time, only for you.

I bought that bike from an auction. CASH! Understand? And got the financing docs from the previous owner. You understand? I did not took over any finance payments, nor signed something, I did not anderstood. OMG

In Germany, we say "geplatzte Finanzierung", which means, translated by babelfish and Google: "Burst financing". Maybe not the 100% suitable translation (blame google or babelfish)..., but with a little bit flexibility....

Edited December 11, 2011 by roban

[Beardog]

The quickest way to get out of the bad loan is to pony up the amount needed + the extra tag on for processing & tell the finance company to put it where the sun don't shine. That way you only lose a small fraction of a bad loan. No down or next to zero on a vehicle is a pretty bad idea.In 3 years the bike is worth 20,000 baht less. Better to buy a 11,000 baht beat up old rat than to pay exorbitant fees & possibly lose the bike like the last hoser. Much better option if you bought this program if you are low on funds. Next time read the fine print before you dig into a strong-arm loan.

[nikster]

BTW I think really bad interest rates are quite common in Thailand... so not too surprised about the original terms.

This is even worse second hand... you get a 4 year old Honda Wave 100 for 26,000 baht, financed pretty much like the above so you end up paying 50,000 for a 4 year old wave.... the 500 down is why people do this (that and maybe they're just not very good at math...)

OP - I had no idea what burst financing is either... "I got this bike at an auction and got to see the previous owner's finance terms" is about a bazillion times clearer

[moe666]

Thanks for explaining everything, I thought you where a sucker too. How is the bike

[roban]

Thanks for explaining everything, I thought you where a sucker too. How is the bike

:jap:

The Bike is ok,

~12 months old, 9000 Km, Fuel injection, Mag wheels.

For the price I paid, I would call it a bargain.

But 83.340 Bt.....