Buying A Motorbike

[colmx]

Hi All
Bf wants to buy a motorbike (or is that wants ME to buy HIM a motorbike!)

We are together nearly 4 years now and he has spent the last 2 months in Ireland with me.... so i don't have (many) worries about him ripping me off!

He reckons he can buy one under some sort of leasing/credit deal... Whereby he would put down a deposit 5-14,000B and then pay 2000B per month over X number of months until the bike is his...

I know some of his friends have done this sort of deal in the past
Anyone have any experience of this sort of thing?

What kind of credit does one end up paying over the term of the lease?
Is it possible to get theft insurance on the bike to cover our asses?

What kind of lifetime does the average (uncrashed) motorbike have?
I read elsewhere that its only 2000B per month to rent a bike... Is he better off to rent perpetually?

Thanks in advance for any advice!
(posting also over on Thaivisa)

I asked a Thai guy I know who is on his 4th motorbike about the cost of financing v. buying with cash. He told me a finance deal required 12,000 down and about 2 years of 2,000 monthly payments. The cost to buy outright was about 48,000. Basically they are paying about 18% annual interest to finance.

Interesting -- I'm going through this very same dilemma right now, as I would like to have a motorbike so that the BF and I can do the shopping, have dinners at the far end of Jomtien, and attend drinks parties on the wrong side of Sukhumvit.

I've looked at the 'Christian values' motorbike rental, which seems very attractive at 2500 baht per month. Upon closer investigation, I learned that only a few bikes are available at that lower price, and the lazy cunt working there couldn't even get off of her fat arse to show us the alternatives (I would have been happy to pay more for a nicer bike).

As I-Nam has pointed out, the interest rates are effectively around 18-20%, which does not seem to make a lot of sense, and it occurs to me that a new bike would be more attractive to thieves.

As such I've started looking for a second hand bike, as I've been told I can find a nice one for 20,000 to 40,000 baht, and will report here if I find a particular dealership that is useful and honest. Of course if anyone reading this thread can make suggestions, all the better!

Any place of business that advertises "Christian Values" causes me to immediately flee in the opposite direction.

[Boxer]

Yes loads of deals on new bikes around town some from only 900 baht a month repay on Figures quoted correctly above 35-48000 new prices. Consider also the good deals on second hand bikes all over town. For 15-20000 baht a near new bike can be had but you have to get over the 'Oh its second hand thingy with Thai people first'.
With new bikes you can buy Theft Insurance only from manufaturers at about 2000 baht for two years and you get 80% back if stolen year one 60% year two. After that no can do but remember to get it when you buy as later cannot do. I did this when i bought 5 years ago and the bike is as new today. Tell Thai boys they have to wash it and take it for services on time hahah!
Another Insurance worth having is the Third Party Risk Insurance at about 2000 baht per year. It gives peace of mind and protects up to 1 or 2 million baht against third party claims against driver and has Bail Bond included, so you dont get nights in Police Cells, but only very little alcholol in system remember.
http://upload4.postimage.org/1370859/jokerweb.jpg (http://upload4.postimage.org/1370859/photo_hosting.html)

Consider also the good deals on second hand bikes all over town. For 15-20000 baht a near new bike can be had but you have to get over the 'Oh its second hand thingy with Thai people first'.



Lease/buy is a not a viable option, IMHO, because of the high interest rate which can work out in some cases at over 20%. The only realistic option is to buy second hand, unless you can afford to pay outright for a new bike for the b/f.

My b/f (or me to be exact!) bought a second hand bike privately for 18500 Baht off a woman who lived in the same apartment complex as him. (The "lady's" farang b/f had bought her a new bike). The one my b/f bought was about 6 months old and looked basically new. He had said that he did not want second-hand but was very happy with the condition of this bike (look and condition as well as newness of the model seem to be the important factors).

The lesson here is that there are good deals to be had if you (or your b/f) can be bothered to shop around. The larger dealerships in the Sukhumvit/3rd Road area which sell second hand bikes quite often offer a load of old rubbish at inflated prices (especially if they see a farang in tow).

I agree that Third Party Risk Insurance is worth having - to my mind essential, and is cheap at the price.

[colmx]

Thanks Guys!
I think a 2nd hand is out of the question... you know Thais and their attitude to 2nd hand items!

He Spent the afternoon shopping around...

Best deal he could get was:
5K up front
3K per month for 18 months
59K total

On a 43K motorbike!

I'm no actuary - but that looks like an interest rate of approx 24% PA...

What a complete ripoff!

Has anyone else experienced credit rates this high?

Looks like we'll be going down the cash route...

[Boxer]

Interest is high, but would you loan on a bike that is so transportable can be stripped down and sold in an hour and is used in most of the accidents in Thailand, on top of which the purchaser might be light on assets and colateral. Not that this is your boy of course. Get him to have a near new one save the cash tell him that is all you can afford, end of story take it or no have! You could buy two for 59000 baht. Bet he takes it!