Has anyone encountered gst on additional car loan?

[Hoshi8]

Hi all,

 

If you have taken a car loan from a bank which is higher than the 50% that you are allowed to, you have to pay gst for the additional loan you take? I heard it's the industry standard and it's the bank that charges this surcharge. Anyone else encounter this before? Thanks!

[flashbang]

Hi all,

 

If you have taken a car loan from a bank which is higher than the 50% that you are allowed to, you have to pay gst for the additional loan you take? I heard it's the industry standard and it's the bank that charges this surcharge. Anyone else encounter this before? Thanks!

What??? First time hearing of this.

[Hoshi8]

What??? First time hearing of this.

That's what my car dealer tells me. He said that it's the industry practice. By the way my dealer is a PI.

 

For example you buy a 100k car with Omv over 20k.

Max loan 50k. Dealer went to inflate the price to 120k n max loan becomes 60k. You need to pay 7% gst on the additional 10k.

[Sci10213]

That's what my car dealer tells me. He said that it's the industry practice. By the way my dealer is a PI.

 

For example you buy a 100k car with Omv over 20k.

Max loan 50k. Dealer went to inflate the price to 120k n max loan becomes 60k. You need to pay 7% gst on the additional 10k.

 

GST is imposed by bank or by the dealer?

 

Could be the dealer is GST registered & charging you, not the bank...

[Doppel]

I think it is bollocks. Good luck.

[Icetee168]

that's the problem of buying cars from PI or used car dealers. They have many hidden chargers like football monies (comm)...if I were you I wouldn't wanna take up the deal caused you are already paying interest for the inflated amount. It is like paying admn fee for taking up loan and the fact that these dealers get a comm too upon loan disbursement...2 cents  

[1fast1]

In the first place, how is anyone allowed to take more of a loan than they are allowed to?

[1fast1]

That's what my car dealer tells me. He said that it's the industry practice. By the way my dealer is a PI.

 

For example you buy a 100k car with Omv over 20k.

Max loan 50k. Dealer went to inflate the price to 120k n max loan becomes 60k. You need to pay 7% gst on the additional 10k.

 

I'm sorry, I still don't understand the system.

 

I assume in this scenario you have less than 50k "ready cash" for the DP? Because the buyer can't make a 50k DP on a 100k car.

 

But when the car price is inflated to 120k, isn't the DP amount also inflated to 60k?

 

Or are the dealers making false declarations - i.e. declaring one value to the gahmen/bank and selling the car below that? Just curious.

Edited April 1, 2016 by Turboflat4

[Hoshi8]

GST is imposed by bank or by the dealer?

 

Could be the dealer is GST registered & charging you, not the bank...

Claims that its the bank that charges this.

[Hoshi8]

that's the problem of buying cars from PI or used car dealers. They have many hidden chargers like football monies (comm)...if I were you I wouldn't wanna take up the deal caused you are already paying interest for the inflated amount. It is like paying admn fee for taking up loan and the fact that these dealers get a comm too upon loan disbursement...2 cents

Yes buying from PI is generally full of problems as there are no strict rules to regulate them.

I'm sorry, I still don't understand the system.

 

I assume in this scenario you have less than 50k "ready cash" for the DP? Because the buyer can't make a 50k DP on a 100k car.

 

But when the car price is inflated to 120k, isn't the DP amount also inflated to 60k?

 

Or are the dealers making false declarations - i.e. declaring one value to the gahmen/bank and selling the car below that? Just curious.

Can take in trade in car at higher value to offset the difference. Something like overtrade?

[Watwheels]

That's what my car dealer tells me. He said that it's the industry practice. By the way my dealer is a PI.

 

For example you buy a 100k car with Omv over 20k.

Max loan 50k. Dealer went to inflate the price to 120k n max loan becomes 60k. You need to pay 7% gst on the additional 10k.

 

I believe this is called overtrade. It's in the car buying industry for a long time. Inflating the car's price so that buyer can overcome the 50% deposit but downside is pay a lot more interest.

 

Paying 7% gst for additional 10K? What is that? Take loan means interest rate. 7% gst is for the loanshark's service is it? LoL...

[valian]

That's what my car dealer tells me. He said that it's the industry practice. By the way my dealer is a PI.

 

For example you buy a 100k car with Omv over 20k.

Max loan 50k. Dealer went to inflate the price to 120k n max loan becomes 60k. You need to pay 7% gst on the additional 10k.

 

I think by selling you $120K on paper, the GST amount liable also goes up to $8400 instead of $7000. GST is ultimately payable to govt, thus they just wanna get back what they can?

Edited April 1, 2016 by valian

[Hoshi8]

I think by doing selling you $120K on paper, the GST amount liable also goes up to $8400 instead of $7000. GST is ultimately payable to govt, thus they just wanna get back what they can?

Just want to find out if it's normal for such a charge.

[1fast1]

Yes buying from PI is generally full of problems as there are no strict rules to regulate them.

Can take in trade in car at higher value to offset the difference. Something like overtrade?

 

I see, thanks. So it only works if you are also selling a car to them (trade-in)?

[Galantspeedz]

i rem a forumer, he declare himself as car dealer, mentioned need to pay GST for the additional loan because the dealer themselves over declare so as to "help" the buyer get loan for the car

[BenTong]

That's what my car dealer tells me. He said that it's the industry practice. By the way my dealer is a PI.

 

For example you buy a 100k car with Omv over 20k.

Max loan 50k. Dealer went to inflate the price to 120k n max loan becomes 60k. You need to pay 7% gst on the additional 10k.

Apa then? Dealer is obliged to charge wud. It will be on $120k Edited April 1, 2016 by BenTong

[Hoshi8]

i rem a forumer, he declare himself as car dealer, mentioned need to pay GST for the additional loan because the dealer themselves over declare so as to "help" the buyer get loan for the car

So I guess it's normal then

Apa then? Dealer is obliged to charge wud. It will be on $120k

Thanks for the info. I will just pay the dealer.

[Kusje]

2 scammers identified.

Edited April 1, 2016 by Kusje