bikes, finance and interest.

[Curious_AJ]

hey, wasnt sure where to put this, but could anyone PLEASE PM me if they know anything about the interest that i would incur if i decided to get a scorpio for $3995 at a deposit of $400 and weekly payments of about $22 (these are the minimum available payments, i may decide to pay more)

thanks,
AJ

[Boob Johnson]

Usually allow for close to 50% so add another $2000 to it then divide that into "36 easy payments"


Yes they say it's such n such a percent but when you do the sums in true terms it's closer to 50%.




If the bike is a method of transport for work then buy it otherwise id say wait a while longer, $20 per week is $1040 per annum, it's not much to save a decent deposit. That will save a huge percentage of the interest as not only is it a lot smaller amount but you can pay it off even quicker at the same rate of the larger proposed loan

[dave_a]

screw going minimum payements and giving them your money, go max payements and get it out of the way,any money in your pocket is better rather than in theirs

[Steam]

.the interest that i would incur if...

Play around with this interest calculator AJ, it's real useful.
http://www.asksasha.com/loan-interest-calculator.html

Using 18% as the interest-rate, I get....
Weekly payments $22.
Total Interest: $ 2019.74
Pay-off Time: 5.3 Years

But that's the worse case scenario, that's crazy long. Play around with the calculator above, putting in different figures.

[Tank]

hey, wasnt sure where to put this, but could anyone PLEASE PM me if they know anything about the interest that i would incur if i decided to get a scorpio for $3995 at a deposit of $400 and weekly payments of about $22 (these are the minimum available payments, i may decide to pay more)

thanks,
AJ

You need to tell us over what period the loan is so that we can calculate the total amount payable - allowing us to establish the interest.

C

[bobsmith]

For a loan that small, see your bank. If you have a tertiary or graduate account or similar you can usually get much better interest rate than on other finances. For example I have a loan with national bank for 11.75% interest rate which is much better than say 18% or even more.

[Steam]

You need to tell us over what period the loan is so that we can calculate the total amount payable - allowing us to establish the interest.

The calculator link does that for ya.

[marioc]

What the hell? no offence but surely you can work out such equations.
No wonder finance companies get away with murder.

[ManDownUnder]

Depends on a couple of things, but Boob got the rule of thumb

Also - be aware you are required to know exactly what the interest payments will be by law, before you sign anything. (Credit Contracts Act). So you should be able to go through a number of scenarios with the person concered if they really want to make the sale.

[FROSTY:Me]

No offence to the above posters but I do this for a living.
What you are being charged is
1) a booking fee -this varies from $100-$400 depending on the company
2)PPSR fee-basicly the cost of loading a security on the vehicle. this is free---9.20
3) interest on the loan.This can vary from 11% up to 28%
This is dependant on a number of factors. Who you use--bank through to Loan shark
The normal first teir interest rate at the moment is 14%
I agree that a bank loan is usually the best bet but beware hidden costs and beware the floating interest rate.
Extras--Payment protection insurance--thats if ya get crook or have an accident and can't pay
Gap Insurance--actually a good idea. Basicly it pays the difference between what the insurance company pays you out for your bike and what you owe on it-can be thousands.
Warranty--on new bikes its "free"

My normal rule of thumb for someone is --For every thousand you borrow count on $10 a week over 36 months

[The Pastor]

No offence to the above posters but I do this for a living.
What you are being charged is
1) a booking fee -this varies from $100-$400 depending on the company
2)PPSR fee-basicly the cost of loading a security on the vehicle. this is free---9.20
3) interest on the loan.This can vary from 11% up to 28%
This is dependant on a number of factors. Who you use--bank through to Loan shark
The normal first teir interest rate at the moment is 14%
I agree that a bank loan is usually the best bet but beware hidden costs and beware the floating interest rate.
Extras--Payment protection insurance--thats if ya get crook or have an accident and can't pay
Gap Insurance--actually a good idea. Basicly it pays the difference between what the insurance company pays you out for your bike and what you owe on it-can be thousands.
Warranty--on new bikes its "free"

My normal rule of thumb for someone is --For every thousand you borrow count on $10 a week over 36 months

Can you explain gap insurance in a little bit more detail? I've never heard of it before.

[FROSTY:Me]

OK__ Say you buy a RF900 on finance (random choice of make model)
You pay $12999 for it and 90% finance. (10% deposit)
Then a month later Suzuki do a run out on these bikes at $9999.00
Your bike has instantly devalued both by the reduced value by suzuki and by simply being used
Insurance co therefore market values your bike at (figure dragged from space)
$8000.00
Ok heres where gap works.
You have a big ol accident --bikes buggered
Insurance pays out the full market value of $8000 less your exess.
BUT you still owe about $10000 on the bike. Gap insurance covers the shortfall. so GAP pays the $2000 you still owe.

[mynameis]

Don't be silly.

Paying only $400 as deposit to buy a bike at $4000 with the rest on finance/loan.

The other thing you have to consider is the value of the bike after the end of the loan term, in comparison to what you would have spent by then.

Most likely you would have spent more than $5500 and the value of the bike would prbably be around $1000 in 3 years. BIG LOSS!

Save yourself all this hassle and save every penny you can till you have $4000 and then buy the bike.

Now don't say I don't earn much have to study, blah blah blah. Move your ass and work hard to have fun with the toys you want in life.

60-80 hours per week in total of work and study should be piss easy at your age and commitment level..i.e. no kids to look after, no partner to look after, no mortgage,...but just yourself.

Don't be like the rest of the country running on debt.

[mynameis]

OK__ Say you buy a RF900 on finance (random choice of make model)
You pay $12999 for it and 90% finance. (10% deposit)
Then a month later Suzuki do a run out on these bikes at $9999.00
Your bike has instantly devalued both by the reduced value by suzuki and by simply being used
Insurance co therefore market values your bike at (figure dragged from space)
$8000.00
Ok heres where gap works.
You have a big ol accident --bikes buggered
Insurance pays out the full market value of $8000 less your exess.
BUT you still owe about $10000 on the bike. Gap insurance covers the shortfall. so GAP pays the $2000 you still owe.

FROSTY would gap insurance seriously be that effective after you add the premium that you would have to pay for it then the access plus your normal insurance premium and access ??

I know it does depend on how much you borrow and how much you pay..but still do you really think it's effective for sums of less than $10,000?

[kiwifruit]

OK__ Say you buy a RF900 on finance (random choice of make model)
You pay $12999 for it and 90% finance. (10% deposit)
Then a month later Suzuki do a run out on these bikes at $9999.00

Not that Suzuki would do such a thing