Now she wants a scooter.....what finance?

[pxr5]

So she wants a scooter, brand new on finance, & thankfully  with her own money.

She's happy with the bike shop finance, but would the bank be a better bet?

Ive asked her to check it out, but i dont think she can be bothered.

thanks 

[taylor1975]

Bank loan ........whats her occupation? lol

 

[pxr5]

Factory! not bar girl...not LOL !

 

[dave01]

If the scooter is 50K, put 10K down, then about 2K per month. Cheaper than renting and she gets to own it at the end. Mrs Dave bought a little Scoopy a few months ago, using Dealer (Honda) Finance, and it isn't a bad deal.

IMO, for the amount of money saved (if any) with a bank loan, because of the hoops and paperwork etc, the dealer finance is a no brainer.  Simple and quick, and easy to pay back.

Mrs Dave bought her bike in the Jungle. And it is now here in Jomtien, and every month she just transfers 2K to the dealer and gets a receipt..  Simple.

[Scuba+]

Factory! not bar girl...not LOL !
 

Well, if you aren't getting it for free then you are her part time job

[misteregg]

All the bike dealerships in Pattaya have lots of bargirls getting bikes on finance every day. They’re used to it.
They will be able to get a deal no problem.
My Mrs, who was bargirl at the time, got a bike like this.

[pxr5]

She is in Bangkok, but I quess its the same there, thanks for the comments

[mryang]

Financing a sub <100K scooter is a HUGE financial mistake as the accumulated total interest is far and beyond 20% or more than the original price. I have bought bike twice and both times they suggested financing and on Mityon Honda, they wanted 80K for a 56K Honda. Of course I just laughed.

This practice of huge interest and some times in the extreme - Is working because 99.99% of Thai population doesn't know how to calculate interest and especially not quick.

SAVE UP. PAY CASH. LEAVE.

[pxr5]

Yeah sure, I was willing to buy her a very low mile/age used bike, but she would not listen to me & has gone ahead with the purchase.

Good used bike at no expense, or new at top dollar plus?

Thais sure like to waste money......

[taylor1975]

8 minutes ago, mryang said:

Financing a sub <100K scooter is a HUGE financial mistake as the accumulated total interest is far and beyond 20% or more than the original price. I have bought bike twice and both times they suggested financing and on Mityon Honda, they wanted 80K for a 56K Honda. Of course I just laughed.

This practice of huge interest and some times in the extreme - Is working because 99.99% of Thai population doesn't know how to calculate interest and especially not quick.

SAVE UP. PAY CASH. LEAVE.

If 56k grows to 80k over 6 years and 4 months, whats the (compound) interest rate to 4 decimal places. Lets see if you can do it 

[Petesie]

Just send her the money...you will in the long run and this will save you some. 

[pxr5]

Yeah she does ok from me, but I want her to feel the negative affects of any actions she takes.

Probably wasting my time but, it does rub me up the wrong way after having advised her to the contrary....  

[f308gt]

22 minutes ago, Petesie said:

Just send her the money...you will in the long run and this will save you some. 

They are the Olympic level logic destroyers, but as you say, the boyfriend pays for the mistake anyway so who's the winner. LOL

[Scuba+]

Yeah she does ok from me, but I want her to feel the negative affects of any actions she takes.
Probably wasting my time but, it does rub me up the wrong way after having advised her to the contrary....  

Maybe she knows you will pay for it anyway and if she's right it was a smart move

[pxr5]

Well she's in for a suprise, no increase in the bht flow rate....

 

[pxr5]

Maybe a bit of hand (mine)  to bottom  (hers) interfacing may help?

[questor]

Yeah she does ok from me, but I want her to feel the negative affects of any actions she takes.
Probably wasting my time but, it does rub me up the wrong way after having advised her to the contrary....  

New bike: 50K + interest.
Decent used bike: free.
Extra 'face' from owning new bike: priceless.

[wadman]

4 hours ago, mryang said:

Financing a sub <100K scooter is a HUGE financial mistake as the accumulated total interest is far and beyond 20% or more than the original price. I have bought bike twice and both times they suggested financing and on Mityon Honda, they wanted 80K for a 56K Honda. Of course I just laughed.

This practice of huge interest and some times in the extreme - Is working because 99.99% of Thai population doesn't know how to calculate interest and especially not quick.

SAVE UP. PAY CASH. LEAVE.

 

Depends on what the situation of the buyer is.  I know a Soi 6 girl who is financing a scooter to the tune of 3K payments a month.  Yeah, in the end she is overpaying to the tune of 35+ percent, but it's still a good decision by her.  Why?  Because her room is a fair distance away from Soi 6, 100 b per moto taxi ride, so that's 200 b per day, or about to 6K baht a month.  

Her transportation costs are cheaper if she finances the bike vs moto taxi, and after 3 years she owns the bike.  Yeah, it would be even cheaper if she had the money to buy the bike outright, but she doesn't. 

[mryang]

On 3/9/2018 at 12:18, taylor1975 said:

If 56k grows to 80k over 6 years and 4 months, whats the (compound) interest rate to 4 decimal places. Lets see if you can do it 

You are kicking yourself in the balls. If this is the offer from the bank - and sometimes banks refuse ending contracts in advance, even if you want - You are overpaying with 42,857%. 

To calculate interest in general, you just take the start amount x [whatever interest with whatever fraction you want] to the power of number of payments you need to do. We start with 56K x [interest]^76 (because 76 months is equal to 6y + 4 months) = 80K

We reduce 80/56 = 1,42857 and then 76th root to 1,42857 =>1.0047 =>0,47% interest every month for 76 months.

Although, I think there is a downpayment as well, which makes the interest a bit lower.

 

[mryang]

On 3/9/2018 at 16:50, wadman said:

 

Depends on what the situation of the buyer is.  I know a Soi 6 girl who is financing a scooter to the tune of 3K payments a month.  Yeah, in the end she is overpaying to the tune of 35+ percent, but it's still a good decision by her.  Why?  Because her room is a fair distance away from Soi 6, 100 b per moto taxi ride, so that's 200 b per day, or about to 6K baht a month.  

Her transportation costs are cheaper if she finances the bike vs moto taxi, and after 3 years she owns the bike.  Yeah, it would be even cheaper if she had the money to buy the bike outright, but she doesn't. 

I agree,

She could also buy a cheap bike for 10K, which she can pay first month. Then drive it for 8 months, sell it to next girl for 10K and then buy the new one cash. YES - This is not a popular choice - Thais love new bikes and autos for showing off, but the financially sound one.

 

[regyai]

Why dont you Sir Galahad it

 

Tell her of the better deal you can get

 

You buy the stupid 50K twist n go once she pays the dipper

 

&

 

Tell her its only 8k down and 2k a month

 

Give her a bank account # to pay to

[ChiFlyer]

On 3/9/2018 at 06:44, dave01 said:

If the scooter is 50K, put 10K down, then about 2K per month. Cheaper than renting and she gets to own it at the end. Mrs Dave bought a little Scoopy a few months ago, using Dealer (Honda) Finance, and it isn't a bad deal.

IMO, for the amount of money saved (if any) with a bank loan, because of the hoops and paperwork etc, the dealer finance is a no brainer.  Simple and quick, and easy to pay back.

Mrs Dave bought her bike in the jungle. And it is now here in Jomtien, and every month she just transfers 2K to the dealer and gets a receipt..  Simple.

similar story on my part.

[Micky2]

On 3/9/2018 at 06:10, pxr5 said:

So she wants a scooter, brand new on finance, & thankfully  with her own money.

She's happy with the bike shop finance, but would the bank be a better bet?

Ive asked her to check it out, but i dont think she can be bothered.

thanks 

Bank a better option..... maybe slightly, but probably not a lot in it, and likely more hassle, so is it with any saving in overall cost?

The shop will sort finance, insurance (required on a motorcycle on time payment), registration and all. It's relatively hassle free and the way most motorcycles are sold here I guess. Leave it be.

Alternatively, you might like to suggest she buy second hand, and finance the deal yourself.... she can pay you back..... I did that with my ex..... didn't actually get paid back, but at 17,000 baht I was not bothered and OK about cutting my losses.

I'd be disinclined to get one of those automatic transmission scoots second hand. They are relatively high maintenance. However the basic Honda Wave or Dream requires little more than an oil change every couple or three months and they go for years, and they use less fuel than the automatics.

My own motorcycle is an ex-rental that was six years old when I bought it for 15,000 baht 15 years ago. I had the engine overhauled about 4 years ago.... should be good for a few more years.

[taylor1975]

3 hours ago, mryang said:

You are kicking yourself in the balls. If this is the offer from the bank - and sometimes banks refuse ending contracts in advance, even if you want - You are overpaying with 42,857%. 

To calculate interest in general, you just take the start amount x [whatever interest with whatever fraction you want] to the power of number of payments you need to do. We start with 56K x [interest]^76 (because 76 months is equal to 6y + 4 months) = 80K

We reduce 80/56 = 1,42857 and then 76th root to 1,42857 =>1.0047 =>0,47% interest every month for 76 months.

Although, I think there is a downpayment as well, which makes the interest a bit lower.

 

5.7933% pa

monthly interest is hard to rationalise, but fair enough, you can do the sums 

[usexpat46]

On ‎3‎/‎9‎/‎2018 at 18:04, mryang said:

This practice of huge interest and some times in the extreme - Is working because 99.99% of Thai population doesn't know how to calculate interest and especially not quick.

 

Not only Thais, when I was in the Army guys would borrow $10 and pay back $20 or borrow $20 and pay back $40 2 weeks later on payday.  I asked them if they knew what interest rate they were paying and they replied 100%.  I told them that was correct if they paid back their loan in a year but they weren't in the ball bark on a 2 week loan