Financing a motorcycle

[MatteoBassini]

Hi, I want to know all the info of financing a motorcycle, specifically a CB300F or CB500F

Yes, I tried searching around, the (English) info around was for foreigners only, and the information for Thai citizens is only available in Thai language. And I have sort of a unique problem.

Firstly, some basic information.

I'm 18 years old.

I have Thai citizenship

I'm a student

I've been riding a Yamaha Nouvo for 2 years.

I checked out the Honda dealers and asked them about financing, they told me I need to be 20 years old. Is this enforced by law?

Then I also need the basic stuff like ID, house registration and... a pay slip? I'm a student, I do not have a job, my parent gives me a monthly allowance. So I do not have a pay slip.

So, I'm confused. Here's the hypothesis:

1. If I get the motorcycle now, they told me I need a guarantor who is 20 years old and the bike will be in their name (a big no no for me), and my dad (the only person I trust) is a foreigner.

2. If I wait till I'm 20, I'd still be a student with no pay slip to show, so what do I do then? I get 18,000 a month and i have absolutely no problems paying 4,000 a month for a motorbike. If I get a full time job at some restaurant just for 1 month and receive a pay slip, will that work? Or do they need a pay slip every month?

Thank you

[AllanB]

You realise that the dealers make virtually all their money on the financing?

Try to find a way to pay cash, which may mean saving, selling your old bike and do that all the time as you go through life.......

Life rule 1 "Never Borrow Money."

Banks are Bastards....always have been (post Quaker period) and they always will be.

Buying stuff for cash is more satisfying, a good habit and will save you thousands.

...Lecture over.

[Crowleys]

Interest rates for the small bikes are ridiculous. save the least enough for cb650 down payment if you are going to finance it.

[Just Curious]

For example: Was wandering around a shopping centre yesterday where Hondas were on display with 0% deposit. On the 78,000 Baht PCX (+ all the add ons to get it on the road) the quoted rate was 3,342 Baht a month over 3 years. That made the bike over 120,000 Baht.

Cash is king!

[MatteoBassini]

It would take me 3 years to save up 160,000 baht (motorcycle + gear).

[Crowleys]

It would take me 3 years to save up 160,000 baht (motorcycle + gear).

45000b down for cb650 whereas cb300 is somewhere between 20000-30000b down. interest for 650 is 4.5% and for the 300 it's maybe 30% or more.

[DLang]

There are many private dealers that have massive collections of nearly new big bikes that they offer on finance.

Their facebook pages have all the details and finance options on each bike.

Ranging from a CB300 to Ducati Panegales.

They are far easier to finance from and have the requirements listed.

If people are interested, PM me.

[Shurup]

Tell your dad that you need a lump sum and tell him you'd take a 4 or 5 k deductible from your allowance over the next 3 years.

[Colabamumbai]

You realise that the dealers make virtually all their money on the financing?

Try to find a way to pay cash, which may mean saving, selling your old bike and do that all the time as you go through life.......

Life rule 1 "Never Borrow Money."

Banks are Bastards....always have been (post Quaker period) and they always will be.

Buying stuff for cash is more satisfying, a good habit and will save you thousands.

...Lecture over.

Perfect and correct answer.....

[Colabamumbai]

Thais finance everything with the smallest down payment they can get away with.

Friend of mine works in Honda/finance in Kalasin, small town. She calls hundreds of customers a day who are in default of monthly payments, the last thing they want to do is reposes the bike, which may have moved many kilometers away.

[connda]

You're only 18 years old? Let me give you some advice young man:

First - learn to defer self-gratification, which means develop self-discipline;

Second- save your money, in Thailand you can still make a couple of percent on your deposits;

Third - Pay cash;

Fourth - Be asset rich and debt poor - The most debt you should carry is 1 credit card that you pay off completely before the due date.

Do that, and your be richer than 80% of your fellow Thai citizens.

[connda]

It would take me 3 years to save up 160,000 baht (motorcycle + gear).

So you'll be 22 and completely debt free. Keep your current bike running like a top. Like I said before-learn self-discipline.

During the three years you're saving - learn how to invest. You're a student? Major in Finance.

By the time you're 30, you might be able to afford to pay cash for your BMW.

Edited September 30, 2015 by connda

[cocopops]

You're only 18 years old? Let me give you some advice young man:

First - learn to defer self-gratification, which means develop self-discipline;

Second- save your money, in Thailand you can still make a couple of percent on your deposits;

Third - Pay cash;

Fourth - Be asset rich and debt poor - The most debt you should carry is 1 credit card that you pay off completely before the due date.

Do that, and your be richer than 80% of your fellow Thai citizens.

Never pay interest on something that depreciates...

[LukKrueng]

Great advises all around. However - no one actually answered and of the questions of the OP....

The OP is 18, looking for a 300 - 500 cc bike with only 2 years experience on a small bike and some of you guys suggest him to by an even bigger bike?? Would you give the same advice to your own child???

I don't have any advice re actually getting the loan under your name, but just some explanation about the loan..

"I checked out the Honda dealers and asked them about financing, they told me I need to be 20 years old. Is this enforced by law?"

Makes no difference if it is enforced by law or not - if that's the lander's policy that's what counts.

Need of ID and house registration - no need of explanation, right? and if you are Thai, you should have both anyway.

As for salary slip - when you ask for a loan, the lander wants to make sure you can actually pay it back. a 1 month slip from a restaurant probably won't do it as they would like to see some history of regular payments coming your way, stability at work etc'.

A guarantor is someone who guarantee that you'll pay the loan, and agrees to pay for you in case you fail to pay. The bike is never on the guarantor's name. It is actually registered to the finance company till the day you complete the payments, and then you get it transferred to your name.

Although I agree that paying cash is best in most cases, I know that sometimes the only way to get something is by asking for credit

So what can you do? Well, some folks here gave sound advises already, so just to sum it up:

1. Keep the bike you own now, or buy a new one that you can afford

2. Take the loan from your parents if they can afford it

3. Get your parents to take the loan for you, as they can probably show a proof of sufficient income to get the loan

[purrboat]

There are many private dealers that have massive collections of nearly new big bikes that they offer on finance.

Their facebook pages have all the details and finance options on each bike.

Ranging from a CB300 to Ducati Panegales.

They are far easier to finance from and have the requirements listed.

If people are interested, PM me.

i am a US citizen with no US credit. I have a two year work permit here and on paper I pay myself 50k a month. Where can I find a used Ducati? I thing Paningale may be a bit much for Chiang Mai but I would love to know the names and addresses where these private dealers are in Chiang Mai.

Thanks,

Chris

PS: i can afford a down payment for sure. I have some cash here and a Thai company. No ties to the US though.

[ktm jeff]

M B , There has been some very good advice here ( L K ) . The way i would do it , is to get your parent to loan you the money , or take out a loan for you in their name , and to keep the bike in their name till debt is paid . 4000 b per month = will pay for a CBR 300 in 3 years . A bank loan will be at a much cheaper interest rate than from a bike shop .

[jacko45k]

You may have to save up and wait a bit for the bike.

You are likely talking of 75-80,000 baht, as I saw a nearly new CB500F advertised for about that.

Getting into debt is a bad move when you are only a student, you already have a bike and I bet an expensive phone.

Getting a part time job is a good idea.

[recom273]

I think those bikes although fashionable at the moment are a bit dull, especially the 300.

My advice would be like others, don't finance, for the moment buy a cbr250 second hand - you will be bored with it in a year, but keep an eye out for a Er-6 for around 150k, which will keep you happy a bit longer. It's good to have 2 bikes.

I have a 650 and I tire of filling it with petrol then the servicing , sometimes it's too heavy and I enjoy the smaller bike around town.

Bikes are like an addiction, you always want to something faster and newer.

[snowgard]

Life rule 1 "Never Borrow Money."

Banks are Bastards....always have been (post Quaker period) and they always will be.

And how do you call the motorbike dealers who sale on credit?

There credit rates are almost double so high as the Banks.

[tajtom]

Your on drugs

Waste of money

save and buy a top 2nd hand one,,,,, Be smart

[farangmick]

No sympathy. Tell daddy to buy it for you. At 17 I paid £20 for a seven year old 100cc Yamaha. A year later, £80 for an old 250cc BSA. Still at school, but my own money from evening and weekend work. Don't even get me started about living in a shoe box in t' middle of t' road.

[connda]

No sympathy. Tell daddy to buy it for you. At 17 I paid £20 for a seven year old 100cc Yamaha. A year later, £80 for an old 250cc BSA. Still at school, but my own money from evening and weekend work. Don't even get me started about living in a shoe box in t' middle of t' road.

Nice to see someone else who is 'old school'. When I was in my late teens and 20s, I bought used and paid cash. I didn't carry any debt until I was about 35 and by the time I retired in my 50s and divorced again, I was debt free. I let the ex have the new car with the finance payments to boot.

Now I'm in my 60s. My car? Bought used, paid cash. Lol

[casualbiker]

You may have to save up and wait a bit for the bike.

You are likely talking of 75-80,000 baht, as I saw a nearly new CB500F advertised for about that.

Getting into debt is a bad move when you are only a student, you already have a bike and I bet an expensive phone.

Getting a part time job is a good idea.

A link to that cb500f please. Are you sure that wasn't a take over finance deal?

[balo]

Buy second hand! You can get a nice bike foir well under 100k !

[jacko45k]

You may have to save up and wait a bit for the bike.

You are likely talking of 75-80,000 baht, as I saw a nearly new CB500F advertised for about that.

Getting into debt is a bad move when you are only a student, you already have a bike and I bet an expensive phone.

Getting a part time job is a good idea.

A link to that cb500f please. Are you sure that wasn't a take over finance deal?

Opps, I just took a look, typo or brain fart on my part, it was 170,000 baht, sorry.

Another 2014 model was 149,000 baht.

I don't think I am permitted to post links to other forums here on Thaivisa.