PHV Bank Loan Help for my Dad!

[dnumde]

Hi all.

I intend to purchase a car for my Dad to drive for Grab.

 

I will pay the 30% downpayment.

 

The thing is I was initially quoted 2.4% interest rate.

But upon hearing that my Dad is using it for Grab, the sales person increase the interest rate to 3.4% on the basis that PHV car loan will have higher interest rate even though Im only taking 70% loan.

 

I called LTA to clarify and they say they there is no such regulation.

I called the bank and the CSO tells me that as long as I register the vehicle under my Dads name (you can do that now for PHV) and not under a business entity, then the interest rate will not change.

 

The thing is I told the agent about this but she is adamant that she is right and says that I am flouting the law if my Dad attempt to drive PHV under the usual car loan. She is even willing to give up my sales.

 

So... who is right?!

[t0y0ta]

Hi all.

I intend to purchase a car for my Dad to drive for Grab.

 

I will pay the 30% downpayment.

 

The thing is I was initially quoted 2.4% interest rate.

But upon hearing that my Dad is using it for Grab, the sales person increase the interest rate to 3.4% on the basis that PHV car loan will have higher interest rate even though Im only taking 70% loan.

 

I called LTA to clarify and they say they there is no such regulation.

I called the bank and the CSO tells me that as long as I register the vehicle under my Dads name (you can do that now for PHV) and not under a business entity, then the interest rate will not change.

 

The thing is I told the agent about this but she is adamant that she is right and says that I am flouting the law if my Dad attempt to drive PHV under the usual car loan. She is even willing to give up my sales.

 

So... who is right?!

 

Just go to another agent lah.... what's stopping you

[Optramagnum]

Just walk away. The sale person needs you more than you need her.

[Lala81]

just buy another car lor.

u seemed to have checked it already.

Edited June 9, 2018 by Lala81

[Jamesc]

No need to pay higher.

 

No such rule.

 

Get her name card.

 

Get a copy of the contract with 3%

 

Post on the internet.

 

She is screwing you.

 

Screw her back.

 

She got no integrity.

 

[Wildfaye29]

Buy in private name. Register as private car P10. Get normal loan rates. Buy normal private insurance on NTUC.

 

After car collected. Call NTUC insurance and request top up premium to change to commercial Ins. NTUC is the best.

 

Login to LTA an convert to Z10.

Go to vicom paste phv sticker.

 

Update the converted z10 car to grab.

[Jamesc]

There is an alternative to buying new.

 

Just rent a PHV.

 

If your dad have not driven a PHV before.

 

He may not know if suit him or not.

 

He may not know if the income is enough or not.

 

If never tried before can rent to see if it suits him first

 

and see if the daily takings is worth it or not.

 

 

The reason for this is I heard on the radio when Uber gave up

 

the very attractive promotional discounts was also reduced. With less

 

discounts fewer people take PHV now and the income of the driver

 

went down a lot.  

 

[Selanking]

If it's PI, just walk away like other bros mentioned:

If it's AD, can talk to the manager.

[Darevil]

To TS, 

 

Firstly the sales person is being honest, why she don't want to make a sale ? 

 

Think about it, it doesn't benefit her. 

 

If you insist on going 2.4% interest rate, go for it, tell her to apply 2.4% and forget it. 

 

 

 

But the thing is if after registration and you are unable to convert to PHV, then you don't blame the salesperson or anyone. 

(your dad won't get to drive Grab as your initial intention, good game to you)

 

 

I think this is quite a good discussion, maybe TS can try and update us here ? 

[Vratenza]

Disagree that it doesn't benefit her.

 

70% loan with interest jump from 2.4% to 3.4%, how much more commission will she earn from the differential?

 

 

To TS, 

 

Firstly the sales person is being honest, why she don't want to make a sale ? 

 

Think about it, it doesn't benefit her. 

 

If you insist on going 2.4% interest rate, go for it, tell her to apply 2.4% and forget it. 

 

 

 

But the thing is if after registration and you are unable to convert to PHV, then you don't blame the salesperson or anyone. 

(your dad won't get to drive Grab as your initial intention, good game to you)

 

 

I think this is quite a good discussion, maybe TS can try and update us here ? 

 

Yeah, good advice.

 

Why buy a brand new car to be abused by PHV customers taking into account the high loan and interest rate of a hire purchase.

 

It's not as if our cars have unlimited lifespan like overseas, we can only "borrow" to use for 10yrs.

 

There is an alternative to buying new.

 

Just rent a PHV.

 

If your dad have not driven a PHV before.

 

He may not know if suit him or not.

 

He may not know if the income is enough or not.

 

If never tried before can rent to see if it suits him first

 

and see if the daily takings is worth it or not.

 

 

The reason for this is I heard on the radio when Uber gave up

 

the very attractive promotional discounts was also reduced. With less

 

discounts fewer people take PHV now and the income of the driver

 

went down a lot.  

 

[Jamesc]

Btw the most important question.

 

Your dad passed his PHV vocational licence

 

already right?

 

I heard people say very hard to pass as it test

 

your memory and not your driving.

 

Good to know when a PHV crosses a chevron

 

he know how much is the fine and how many

 

demerits points he will be getting. 

 

[Darevil]

Disagree that it doesn't benefit her.

 

70% loan with interest jump from 2.4% to 3.4%, how much more commission will she earn from the differential?

 

 

 

 

But TS said "she is even willing to give up the sale"

[dnumde]

Thanks all for the advice.

 

I feel that the agent is honest because she is willing to give up the sales if I insist on the 2.4% interest rate.

 

But I am asking because I feel that she may be misinform. Because I called up Grab as well and they themselves is unsure of the circumstances, what more an agent.

In any case, I called up the AD and spoke to another agent who gave me the same reply.

 

So Im assuming either the top management is misinform and hence the whole AD.

Or the bank is indeed setting such a term.

The polarising outcome can have dire consequences.

 

In any case, a LTA officer just called me back and confirm that there is NO NEED to take a loan with the higher interest rate because of the new regulation where PHV can be the direct owner of the vehicle. I am requesting an email reply from them just to cover myself.

 

Ive also inform the Sales Agent but she have once again refuted what I say and say that it is per the Bank's terms. Which again put me in a spot.

 

As for bros who advice me to get my Dad to drive a rental car first or buy 2nd hand, thanks alot for the kind advice.

He have been driving for a few years now and Ive been helping to finance his car but having to change the car every year is time consuming and some of them break down every now and then which convert to income loss.

 

Especially thanks to @Wildfaye29 for the clear direction. :)

[Mkl22]

Thanks all for the advice.

 

I feel that the agent is honest because she is willing to give up the sales if I insist on the 2.4% interest rate.

 

But I am asking because I feel that she may be misinform. Because I called up Grab as well and they themselves is unsure of the circumstances, what more an agent.

In any case, I called up the AD and spoke to another agent who gave me the same reply.

 

So Im assuming either the top management is misinform and hence the whole AD.

Or the bank is indeed setting such a term.

The polarising outcome can have dire consequences.

 

In any case, a LTA officer just called me back and confirm that there is NO NEED to take a loan with the higher interest rate because of the new regulation where PHV can be the direct owner of the vehicle. I am requesting an email reply from them just to cover myself.

 

Ive also inform the Sales Agent but she have once again refuted what I say and say that it is per the Bank's terms. Which again put me in a spot.

 

As for bros who advice me to get my Dad to drive a rental car first or buy 2nd hand, thanks alot for the kind advice.

He have been driving for a few years now and Ive been helping to finance his car but having to change the car every year is time consuming and some of them break down every now and then which convert to income loss.

 

Especially thanks to @Wildfaye29 for the clear direction. :)

Please share which AD trying to pull a fast one.

[Shibadog]

bank can set higher standard than LTA (which is likely the case here)

 

if u take own loan from outside at lower i/r, then u hv to calculate if the "penalty" fm the car seller is worth the interest savings.

 

or as mentioned earlier, book as normal car then do the conversion, assuming it doesn't constitute a breach of loan t&c.

[Davidklt]

Yes. Grab is renting out brand new cars. Why not take it ?

 

Also, you wont suffer the heavy depreciation associated with a PHV car.

There is an alternative to buying new.

 

Just rent a PHV.

 

If your dad have not driven a PHV before.

 

He may not know if suit him or not.

 

He may not know if the income is enough or not.

 

If never tried before can rent to see if it suits him first

 

and see if the daily takings is worth it or not.

 

 

The reason for this is I heard on the radio when Uber gave up

 

the very attractive promotional discounts was also reduced. With less

 

discounts fewer people take PHV now and the income of the driver

 

went down a lot.  

 

[Wildfaye29]

No worries @dnumde

 

I know because I bought a used car in personal name after LTA eased the business registration rule.

 

No reason why need to be lock into higher interest just because its a PHV.

 

I using the car to do a few grab trips in the evening only. Enuff as pocket money for myself.

[Lanevomax]

Thanks all for the advice.

 

I feel that the agent is honest because she is willing to give up the sales if I insist on the 2.4% interest rate.

 

But I am asking because I feel that she may be misinform. Because I called up Grab as well and they themselves is unsure of the circumstances, what more an agent.

In any case, I called up the AD and spoke to another agent who gave me the same reply.

 

So Im assuming either the top management is misinform and hence the whole AD.

Or the bank is indeed setting such a term.

The polarising outcome can have dire consequences.

 

In any case, a LTA officer just called me back and confirm that there is NO NEED to take a loan with the higher interest rate because of the new regulation where PHV can be the direct owner of the vehicle. I am requesting an email reply from them just to cover myself.

 

Ive also inform the Sales Agent but she have once again refuted what I say and say that it is per the Bank's terms. Which again put me in a spot.

 

As for bros who advice me to get my Dad to drive a rental car first or buy 2nd hand, thanks alot for the kind advice.

He have been driving for a few years now and Ive been helping to finance his car but having to change the car every year is time consuming and some of them break down every now and then which convert to income loss.

 

Especially thanks to @Wildfaye29 for the clear direction. :)

 

if use for personal usage, buy from A.D if you have 30% down payment... it won't go wrong. P.I have a lot of term and conditions if you get the wrong one.

 

strongly suggest , rent from grab or whichever company as usage is very high , maintenance of the car is also at a higher risk , etc one day driving , engine or gearbox faulty after warranty mileage. 2-3k repair cost , need how many days to recover the cost by driving grab.