New motorcycle registration

I knew this before I signed on the dotted line, a 78,000php Scooter will work out around 150,000php once paid back in full over a 3 year period. I asked regards paying extra payments and explained that I wanted to establish a Credit Rating for my Wife, and thought this was the ideal way to do it assuming of course after a year I would make double payments thereby knocking the monthly interest rate down and paying it off in a shorter period of time. I also asked if there was a penalty for paying extra payments and was assured I could pay double triple it was up to me, but since then many have told me the same thing, I will be penalised if I pay out the loan earlier than specified and that there are no Credit Ratings here, "Live and Learn"...

Several of the 'Family Members' here have bought from RUSI and not a single one has paid a single payment on their loan and handed their Bikes back after several months of a FREE Ride... Like WTF? IF you tried that BS in Oz the Finance Company would nail you to a Cross and sue you for any outstanding monies owed!
And they wonder WHY I balked at giving them a 'loan' to buy a new Bike... LOL

 

I`m not an accountant but this looks like 61% interest more or less.
Here people don`t really care about the interest rate they only care if they can afford the payments. Well at least the ones that plan to keep the bike.
A young fellow that worked for me was going to buy a RUSI and their interest rate was 38% which I thought was obscene.
I don`t know if my bank manger is an idiot or do they think I`m a bit dull. I went into the bank to have money transferred to a car dealer for a car I bought. The manager told me I should really take out a loan (at 20% per anum) to by the car. Their explanation was A) I will preserve my capital and B) I will earn interest on my capital. So we pulled out a piece of paper and ran the numbers.....all they could say was `but sir you will lose your capital``.
A year later I was sitting at the managers desk again buying another car. The manager started the Sir you should take out a loan, after a moment they looked at me and said ``we`ve had this discussion before haven`t we``.
It`s more fun...you know..

 

Neither am I, I thought it was 100% lol

I took out my first loan to buy a Car when I was 19 years old and the Interest reduced each and every month lowering the repayment amount but I stuck to it and paid it off ahead of time, but 20 years later Finance Companies were all about screwing the Customer! The last loan I took out when I had my Bike accident to consolidate all my loans into one was total BS! Queensland Teachers Credit Union had a FLAT 16% Interest rate (that ended up rising to 28% by the end of the loan) which increased the monthly repayments, which I did not realise, so for the most of the loan I paid the 'set amount assuming no rise due to a flat 16% rate' which in effect added a couple of years to the original loan! Then I found out the double payments I had made for many years in an attempt to pay the loan off quicker were not deducted, they were set aside in a non-interest bearing account so that when I had enough to pay out the loan, they then took that money and paid my loan out. So I could not pay the loan out early without penalty, extra payments were not deducted, I was not notified that "Flat 16%" really meant a VARIABLE % rate, then after I paid the penalty and paid the loan out early I was black listed with a bad rating because I had not made higher payments when the interest rate climbed! I do not think Donald Trumps own Lawyer could make head nor tail of the fine print planted in today's Finance Agreements!

 

To the Philippines with all it's antiquity

 

I purchased a brand new vehicle in 2014 and the car was just paid off. BPI Loan that I arranged with the bank. P150,000 down payment. Price for vehicle including 1 year full insurance and 3 years LTO was P750.000 Loan amount P600,000 Monthly payment P19,200 x 36 months = P691,200. Total interest for 36 months was P91,200. Interest per year average was P30,400. Interest rate per year 5,067 %, add-on rate for 3 years 15,2%. I felt that the bank gave me a very attractive loan, and I am a happy camper. Been very busy the last 3 years, and we have only driven the car 6,200 kilometer. That car will last a long time. There are good deals out there if you just do it the right way and speak and negotiate with the right managers. When you buy a car, never go for the dealer financing...it is a RIP OFF! In my particular case the dealer asked for monthly payments of P22,800. That is a difference of P3,600 per month, which over 3 years totals P129.600. What a RIP OFF! It is better to be safe than sorry..... select a car and than negotiate a loan DIRECT with the bank..... You will feel much better that way!

 

Can you get a rebate at buying a car or bike spot cash? In Europe is is quite common to get a rebate in a such case.

 

I agree totally. I will only add that you really must deal "DIRECT" with the bank. The interest rates can be hire if you go to your banks online site and apply through their main office. So sayeth my bank manager who made me sign a form that I wished to deal directly with him and withdraw my application from head office.