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State Trooper

The illogic of Filipino credit terms

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Barryrio

The first bike I ever bought here was a Honda XRM back in 2005. I wanted to pay cash but had to wait while the sales staff got permission from the manager for a cash deal!!! I later became friends with the guy and he explained that in time payment the final amount paid could amount to almost TWICE the cash price, hence their reluctance to accept it. Coming from the UK, where sizeable discounts can be had for cash purchases, this came as a hell of a shock and the first step of a steep learning curve!

Edited by Barryrio

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streak03

I was talking to a friend and his wife down at the resort a while back and the conversation turned to credit cards.  She asked me what kind of credit cards I had, and I told her they were cards from US banks and mentioned that the lowest interest rate I have on a card is 12% APR on a Barclay Card.  She laughed and said  I was paying too much in interest and said her lowest was 3.5%..turns out, that 3.5% is monthly lol..she didn't have a clue

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Kreole

It is beyond me why anyone who is capable of paying cash for a motorcycle should even consider paying installments at outrageous interest.  I paid cash for my mc back in 2012.  While conversing with the dealer, he said he prefers installments because he makes such high interest rates.  So, how does that work out?  My neighbors, who never take care of their possessions, bought a new mc on installments and over a period of 8 months did absolutely no maintenance and basically trashed it forcing the dealer to repossess an almost worthless mc.  I wonder how often this happens, and how can a dealership justify this?

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SkyMan
1 hour ago, Kreole said:

forcing the dealer to repossess an almost worthless mc.

They don't cost that much to repair to the point where they seem like a decent bike.  Remember that when you go to purchase a used bike.

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SkyMan
2 hours ago, streak03 said:

She laughed and said  I was paying too much in interest and said her lowest was 3.5%..turns out, that 3.5% is monthly lol..she didn't have a clue

I looked at the terms on local cards and no way I would touch one.  Fantastically outrageous interest which starts accruing the day of the purchase and as far as I know they all have an annual fee.  And they make you pay for a replacement card.  No way.  I pay off my US cards each  month so zero interest.  

I also looked into using NFCU to buy a scooter and before I got into it I realized the amount financed would be so small as to not bother with the paperwork.  

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