Buying a Bike On Credit

[Johnniey]

I want to buy a small scooter for the wife as she's had the one now for years.

Any good deals out there - honda mio etc.

I see signs saying 2000 baht a month nothing down - how much would I be paying interest if I went that route?

Could I pay 20k down and get a bike for say 60 k and pay over 6 months?

Yes I know I should go to the showroom but just asking.

Cheers

[BBJ]

Many don't offer credit to foreigners, depends on the finance company and your working status. As for finance it is typically fixed as far as the monthly terms go but you can pay the finance off as quick as you like.

Can't help with the interest rate, depends on the shop and finance they offer.

[recom273]

It's been said time and time again in this forum .. Don't buy a bike or scooter on credit.

I found my wife a good second hand seller, he does recondition bodywork / HP reclaims. I keep out of it and let her make her own choice, she uses the bike for a while, then sells it back to him and changes up to a better one .. Currently she's on an 18 month old wave that cost her 25k.

Not trying to tell you what to do, just saying, explain the consequences of credit ( for sure she has friends that have ended up in trouble ) and let her make her own mind up on what she wants, it may not always be a brand new bike.

Edited October 7, 2015 by recom273

[Henryford]

Bikes bought on credit charge 2% PER MONTH interest, crazy. Never buy a bike on credit pay cash.

[eisfeld]

Finance is never a good deal. Especially if you are on a low budget which you are by definition of using finance...

Save the money for 6 months and buy with cash. Pocket the 5-10k you would have paid in interest yourself and make her a nice present.

[iBike]

Recently bought with 30% of cost on credit.

Could'a paid up in cash but fancied keeping the other 100'000k in my sprocket. Paying 3'700 (3.7% for the mathematically disinclined) baht in interest over a year isn't an issue, it's the cost of half a decent night out somewhere on a Friday.

If you pay a 30%+ deposit and you'll get a low rate at the dealership, they usually use Krunsri Auto or K-Bank Loans, something like this.

Some of the forum dummies don;t understand that people also use credit services for money management....... Not becasue they can't afford to buy outright.

Edited October 7, 2015 by iBike

[eisfeld]

Recently bought with 30% of cost on credit.

Could'a paid up in cash but fancied keeping the other 100'000k in my sprocket. Paying 3'700 (3.7% for the mathematically disinclined) baht in interest over a year isn't an issue, it's the cost of half a decent night out somewhere on a Friday.

If you pay a 30%+ deposit and you'll get a low rate at the dealership, they usually use Krunsri Auto or K-Bank Loans, something like this.

Some of the forum dummies don't understand that people also use credit services for money management....... Not becasue they can't afford to buy outright.

What you said makes only sense if he has the cash but thinks he can get more out of investing the money somewhere than the interest costs.

But now you need to spend time and effort to secure the loan plus the investment.

And at 40k over half a year this hardly seems worthwhile. If you already are smart enough to know about these things and how to get an easy passive investment with say 10% or more ROI then I am sure you can spend your time even better to make much more...

In some cases it might make sense. I give you that. But I highly doubt this is the case here.

So maybe stop calling people dummies and think again about the numbers and the specific case at hand.

Johnniey does not seem experienced in these things. He doesn't know the interest rates. I am not blaming him, it's just what it is.

Of course he can get a loan if he can't pay cash to get the bike earlier and pay a few k THB for that. It's valid, each to their own.

But again, if you can't pay for a scooter in cash then one should try saving money where possible. It's hard to break out of that level.

[iBike]

Makes me chuckle.

To answer your questions johnnies;

Yes you can pay 20k and 60k on finance. You may need a min term of a year, not 6 months, however you can pay off early. You may also need a Thai counter signer for the finance documents.

You'd need to check interest rates, it's generally lower with larger deposit.

[eisfeld]

Makes me chuckle.

May I ask why?

[Johnniey]

Well it seems I am a newbie when it comes to motorbikes/credit.

Lived in Thailand for 30 years and never bough a motorbike on credit.

Never bought anything on credit apart from my house.

So it is 3.7% for a year? That seems fair enough.

I have so many expenses these days with one kid just gone to Uni(in the UK and having to pay as a foreign student 13k GBP but thats another story)

[puukao]

I bought a bike for 10,000 baht with great terms: no interest for first 23 hours, then 5 basis points of LIBOR every 6 days with .005% compounded minutely and late fees every 139 cycles.

currently i owe 9028742983472389407328493027489324732940732483924732 baht to 11 gangs

i cannot read fine print, gf wanted it now!!!!!

[TheRoadWarrior]

You may also need a Thai counter signer for the finance documents.

not sure about scooters, but when it comes to big bike finance in a foreign name need a work permit AND thai co-signer

[taninthai]

I bought a bike for 10,000 baht with great terms: no interest for first 23 hours, then 5 basis points of LIBOR every 6 days with .005% compounded minutely and late fees every 139 cycles.

currently i owe 9028742983472389407328493027489324732940732483924732 baht to 11 gangs

i cannot read fine print, gf wanted it now!!!!!

true love right there...

[iBike]

lol 11 gangs, comprised of your wife's family, friends and neighbours!

[Shurup]

Makes me chuckle.

This sort of reply shows you have nothing to say in reply to @eisfeld post. And his post is correct.

If youre buying anything you've got to pay, either now or later, but you will pay at least the full amount, and more if you're buying on credit. Unless you can invest that money at a better rate than the loan's interest, getting a loan doesn't make sense if you can pay cash. Having 100k sitting in your pocket is rather stupid if you're not going to invest it.

[iBike]

1. You wouldn't make a great financial advisor.

2. You you shouldn't give financial advise without background info on the person/client.

How do you know If gambling on investments is best for me or best for the original poster?

How do you know I if I do/do not need money securely in my bank account for other reasons?

Investments, saving and credit are all something you should consider financially. 101 stuff.

Khop Khan kap

[Shurup]

"IF" was the key word. If you can pay cash... meaning if you have money available and don't need them for some security or other reasons.

Back to your example. You have 100k sitting in your pocket and it's going to cost you 3700 over a year of bike loan. Question: Are you going to turn that money over and make more than 3700 out of it in one year or just going to enjoy having that bulge in your pans pocket?

[iBike]

I'll be spending it on my flights to China, donate a little to charity and spend the rest on cigars and whisky......

[Johnniey]

"IF" was the key word. If you can pay cash... meaning if you have money available and don't need them for some security or other reasons.

Back to your example. You have 100k sitting in your pocket and it's going to cost you 3700 over a year of bike loan. Question: Are you going to turn that money over and make more than 3700 out of it in one year or just going to enjoy having that bulge in your pans pocket?

Actually I have for years kept a minimum of 100k in gold in a bank for emergencies. Since buying it at 4000 baht a baht, I've some nice profits over the years, especially about 3-7 years ago.

I think I'll leave my gold and by the bike on credit, unless I earn some money this month.

[Shurup]

"IF" was the key word. If you can pay cash... meaning if you have money available and don't need them for some security or other reasons.

Back to your example. You have 100k sitting in your pocket and it's going to cost you 3700 over a year of bike loan. Question: Are you going to turn that money over and make more than 3700 out of it in one year or just going to enjoy having that bulge in your pans pocket?

Actually I have for years kept a minimum of 100k in gold in a bank for emergencies. Since buying it at 4000 baht a baht, I've some nice profits over the years, especially about 3-7 years ago.

I think I'll leave my gold and by the bike on credit, unless I earn some money this month.

In this case buying on credit may be a smart choice.

[Shurup]

I'll be spending it on my flights to China, donate a little to charity and spend the rest on cigars and whisky......

Enough said....

[iBike]

Sorry Shurup, that was my way of ended the conversation into my finances. I have no plans to purchase any of those items.

I think I made my point previously in relatively simple form about money management.

Enjoy your weekend.

[eisfeld]

iBike your post was refuted by me and you brought not a single proper argument against that. I'm still open to hear an example of proper money management regarding this specific case.

Until then we just have to assume that you are wrong.

Johnniey: sending a child to university can be very expensive. Nobody can blame you for not having much cash to spare. So if your wife could wait 6 months to change to a new scooter, that might be a wise choice.

[iBike]

How can I be wrong when every persons financial situation is different?

I understand your opinion on the mater. We could argue all day about it however I can't be arsed to write a longer winded reply, examples etc.

[Johnniey]

There's always the choice of a second hand bike

or maybe I'll buy a new car and giver her my old one!

[Shurup]

@iBike you make it sound more complicated than it really is. Nobody asked for a financial planning but a simple question. And there's a simple answer - if you can afford paying cash then font finance. Read the OP again and stop your BS!

[iBike]

Makes me chuckle.

To answer your questions johnnies;

Yes you can pay 20k and 60k on finance. You may need a min term of a year, not 6 months, however you can pay off early. You may also need a Thai counter signer for the finance documents.

You'd need to check interest rates, it's generally lower with larger deposit.

When you say BS, I presume you mean being the only person to actually attempt to answer the posters questions?

As per say, giving your opinions on finance (which the other posters are quite entitled to do), followed by arguing with me because I propose a different point of view?

I agree maybe I shouldn't have said 'dummies' or 'makes me chuckle' so apologies to whoever is easily offended by my outrageous use of language.

PS Your simple answer is to a simple question that nobody ever asked ...... Unless the OP is a five year old, I'm sure he understands about credit/finance related risk (the type of people who invest in gold do).

[Shurup]

I have never heard of a fair interest when financing a small scooter. Based on that information I advised to pay cash rather than finance and that was what OP asked.

Even getting a car loan at a proper bank in thailand Will not give buyer a normal deal (by Western standarts). Normally paying off a loan here early will not save you any money.

So again don't complicate things, op isn't a 5 years old but he isn't consulting a financial advisor here.

[jpb1963]

this is hilarious - all this over 60k THB right?

glad I joined this forum I can drop in and get some advise on financial planning should help when I try to decide if I should buy a coffee machine or a cup of coffee

[jpb1963]

this is hilarious - all this over 60k THB right?

glad I joined this forum I can drop in and get some advise on financial planning should help when I try to decide if I should buy a coffee machine or a cup of coffee