How to sell a bike that is still on Hire Purchase?

[hit.man]

Hi guys, tried to do some search on the above-mentioned topic but cannot find what I want, thus the new thread. Hope those who have the answer/experience, can help.

 

Situation:

I have a bike that is currently under hire-purchase and I wish to sell it, so that I can get another bike. I can do it in 2 ways:

1. Push back to bike shop and lose some money.

2. Sell privately and get back some money.

 

I prefer the 2nd method if the procedure is not too complicated.

 

My perception on how it is to be done is as follow:

1. I proposed to sell the bike at $XXXX

2. Buyer agrees to buy at $XXXX

3. Buyer find loan from another bike shop or hitachi credit.

4. Buyer get cash from bike shop or hitachi credit.

5. Buyer pass me the cash.

6. I use the cash to settle the hire purchase contract with my bike shop.

7. Both me and the buyer go to LTA to transfer name

8. Bike sold. Bike belongs to new owner.

 

Is that how it works? If not, can anyone please advice me on the right procedures?

 

Thank you~!

[WildCard]

Hi guys, tried to do some search on the above-mentioned topic but cannot find what I want, thus the new thread. Hope those who have the answer/experience, can help.

 

Situation:

I have a bike that is currently under hire-purchase and I wish to sell it, so that I can get another bike. I can do it in 2 ways:

1. Push back to bike shop and lose some money.

2. Sell privately and get back some money.

 

I prefer the 2nd method if the procedure is not too complicated.

 

My perception on how it is to be done is as follow:

1. I proposed to sell the bike at $XXXX

2. Buyer agrees to buy at $XXXX

3. Buyer find loan from another bike shop or hitachi credit.

4. Buyer get cash from bike shop or hitachi credit.

5. Buyer pass me the cash.

6. I use the cash to settle the hire purchase contract with my bike shop.

7. Both me and the buyer go to LTA to transfer name

8. Bike sold. Bike belongs to new owner.

 

Is that how it works? If not, can anyone please advice me on the right procedures?

 

Thank you~!

 

That might work, provided the buyer has a lot of trust in you and vice-versa.

Also, will hitachi credit or bike shop loan the buyer $XXXX amount exactly? Usually they will loan an amount about 10% lesser.

Alternative is, check if the shop allows transfer COI, meaning carry on the installment but transfer ownership. It worked out for my case.

But I understand not many shops will allow this.

 

Last option is, if you can get a buyer to agree to a reloan, that will settle it all.

[hit.man]

That might work, provided the buyer has a lot of trust in you and vice-versa.

Also, will hitachi credit or bike shop loan the buyer $XXXX amount exactly? Usually they will loan an amount about 10% lesser.

Alternative is, check if the shop allows transfer COI, meaning carry on the installment but transfer ownership. It worked out for my case.

But I understand not many shops will allow this.

 

Last option is, if you can get a buyer to agree to a reloan, that will settle it all.

 

Hi,

When you say "agree to a reloan", does it mean that the buyer will get a reloan from my current bike shop and take over my bike from there?

 

And yes, I don't think my bike shop allow transfer COI, if I remember correctly. I got my bike from Mah Pte Ltd.

[mi5trooper]

for your info.

 

some shop allow transfer ownership name and coi. they will charge a admin fee (est $150) and a service fee (est $30-50). they will request for 1-3 month of installment to be pay first then continue with your usual installment. (for eg if u own 18 month installment. after the paper work, they will want the new buyer to pay then 1-3 month of installment first. then continue the rest of the installment).

 

bike that is tie to hire-purchase can only buy insurance from that shop (usually). there is late payment fine for the installment. and they have to buy 2nd or 1st party insurance (usually).

[hit.man]

for your info.

 

some shop allow transfer ownership name and coi. they will charge a admin fee (est $150) and a service fee (est $30-50). they will request for 1-3 month of installment to be pay first then continue with your usual installment. (for eg if u own 18 month installment. after the paper work, they will want the new buyer to pay then 1-3 month of installment first. then continue the rest of the installment).

 

bike that is tie to hire-purchase can only buy insurance from that shop (usually). there is late payment fine for the installment. and they have to buy 2nd or 1st party insurance (usually).

 

 

Thanx for the info.

[dinesh]

hey dude sori 4 usin ur thread.... coz i got a question related 2 hire purchase... hope u dont mind.... my bike is still under hire purchase n after paying 4 8 months... i hav decided 2 do a full settlement.... but then my bike shop is tellin me tat i got 2 pay 300 bucks extra.... coz its in the agreementship..... it says [ early settlement: the hirer may, by notice in writing to the owner, prepay in full the net balance under the agreement. such notice shall not less than the period set out in the schedule. The hirer shall pay to the owner the processing fee set out in the schedule.] so do i hav 2 pay the xtra 300 or not??? kinda confused... tanx

[prego08220]

hey dude sori 4 usin ur thread.... coz i got a question related 2 hire purchase... hope u dont mind.... my bike is still under hire purchase n after paying 4 8 months... i hav decided 2 do a full settlement.... but then my bike shop is tellin me tat i got 2 pay 300 bucks extra.... coz its in the agreementship..... it says [ early settlement: the hirer may, by notice in writing to the owner, prepay in full the net balance under the agreement. such notice shall not less than the period set out in the schedule. The hirer shall pay to the owner the processing fee set out in the schedule.] so do i hav 2 pay the xtra 300 or not??? kinda confused... tanx

 

Yes.. u muz pay 300buck for early settlement.. CONFIRM.. Only some shop practice that.. Where else some shop dun.. If ur shop say muz pay dan no choice..

[dinesh]

Yes.. u muz pay 300buck for early settlement.. CONFIRM.. Only some shop practice that.. Where else some shop dun.. If ur shop say muz pay dan no choice..

 

hey tanx man.... ur help is very much appreciated.... damn gotta waste 300 bucks.... t.c dude...

[hit.man]

Yup if the early settlement fee is already stated in the hire purchase agreement, then definitely have to pay... mine's $500....

[LordDevil]

early settlement still need to pay extra. then rather slowly pay mth by mth.

[WildCard]

Hi,

When you say "agree to a reloan", does it mean that the buyer will get a reloan from my current bike shop and take over my bike from there?

 

And yes, I don't think my bike shop allow transfer COI, if I remember correctly. I got my bike from Mah Pte Ltd.

 

Yes, reloan from the same shop.

BUT, its gonna coz the buyer more. Coz he's gonna pay more interest on top of the interest that you loaned for.

So not many buyer will agree unless he really hard up for your bike.

[dinesh]

Yup if the early settlement fee is already stated in the hire purchase agreement, then definitely have to pay... mine's $500....

 

 

wow urs 500.... sumtimes i think this bikeshops r askin 4 too much.... if 100 or 200.... well its not so bad.... 300 - 500 very demanding... but well we dont hav a choice.... :cry: ......

[hit.man]

wow urs 500.... sumtimes i think this bikeshops r askin 4 too much.... if 100 or 200.... well its not so bad.... 300 - 500 very demanding... but well we dont hav a choice.... :cry: ......

 

I am gonna buy another bike from the same bike shop. hopefully they will waive the $500.... haha....

[BlackDawn]

I got a rebate from my bikeshop when I did an early full settlement on my bike

[bikeyroo]

I prefer the 2nd method if the procedure is not too complicated.

 

My perception on how it is to be done is as follow:

1. I proposed to sell the bike at $XXXX

2. Buyer agrees to buy at $XXXX

3. Buyer find loan from another bike shop or hitachi credit.

4. Buyer get cash from bike shop or hitachi credit.

5. Buyer pass me the cash.

6. I use the cash to settle the hire purchase contract with my bike shop.

7. Both me and the buyer go to LTA to transfer name

8. Bike sold. Bike belongs to new owner.

 

Is that how it works? If not, can anyone please advice me on the right procedures?

 

Some errors here. If a buyer gets a loan from another bike shop or hitachi, they will NOT give the buyer cash to hand over to you. In this case just let the buyer loan shop/hitachi have all the details i.e.where you get the loan from, bike model, no......etc. The buyer loan shop/hitachi can then contact your loan shop and do all the processing.

 

BTW this thingy early redemption payment of loan really sucks to the core. By paying in full earlier, the loan shop should be happier cos they can collect back their principal and interest early and then roll the money again. So this penalty payment should not be in the loan agreement unless you pay back the loan without the interest for the remaining period. Maybe we should check up with MAS regarding loan laws!

 

Anyway, bro, what bike are you riding? Are you aiming for the R1?

[bikeyroo]

I got a rebate from my bikeshop when I did an early full settlement on my bike

 

This should be the way bikeshops work! BTW which bikeshop is this? Must get bike from them next time....let honest bikeshop earn more!

[BlackDawn]

This should be the way bikeshops work! BTW which bikeshop is this? Must get bike from them next time....let honest bikeshop earn more!

 

ASPhoon

[three]

I don't think hitachi credit or any bike shop will give seller CASH and let the seller settle with finance company then change ownership.

 

Hitachi credit or bike shop will need the original logcard or wants to transfer ownership to THEM first before giving cash to owner. They will be the "owner" of the bike and only then the buyer can refinance with them. Thats how it work I think.

 

I bought my bike from a seller here who have paid fully for it. Did a reloan from a bike shop. Shop took his log card and gave him a cheque for the bike.

[deryiu]

so before buying bike do yr maths.if really no budget buy cheaper machine try to pay full cash.

just imagine u still own installment with interest included and u going to do full repayment,the shop still ask u to top up money.

Damm bloodsuckers.

[bikeyroo]

ASPhoon

 

Well, we can always buy/loan from honest bikeshop like the above!

[mitosis]

I dont understand the rationale behind an :early settlement: fee. I mean if the interest was calculated based on remaining amount on loan yearly, then the fee would be justified, for the loss in potential earnings from interest from your remaining loan.

 

But dont the bike shops here just calculate at 5% PA for 5 years then slap the whole amount on to your loan divided by 60months.

 

No matter at which point you settle early, they have already settled their interest earnings right from the get go, so why should they still charge a fee?

[LordDevil]

ASPhoon

i deal with them b4. they are gd. do ins over there also gd. get quotes from many ins coy and get the cheapest one.

 

I dont understand the rationale behind an :early settlement: fee. I mean if the interest was calculated based on remaining amount on loan yearly, then the fee would be justified, for the loss in potential earnings from interest from your remaining loan.

 

But dont the bike shops here just calculate at 5% PA for 5 years then slap the whole amount on to your loan divided by 60months.

 

No matter at which point you settle early, they have already settled their interest earnings right from the get go, so why should they still charge a fee?

it is simple. they wan to earn more.

[dinesh]

I am gonna buy another bike from the same bike shop. hopefully they will waive the $500.... haha....

 

well bro wat i can tell u is tat make a correct decision.... the 500 bucks man u could hav done lots of things..... hahaha

[dinesh]

so before buying bike do yr maths.if really no budget buy cheaper machine try to pay full cash.

just imagine u still own installment with interest included and u going to do full repayment,the shop still ask u to top up money.

Damm bloodsuckers.

 

ya bro..... u hav a point..... but i like ur sentence "Damm Bloodsuckers" lol