PHV Bank Loan Help for my Dad!

[Jamesc]

 

Next time we need some cut and paste standard replies.

 

 

My agent told me the contract says this. Is she telling the truth?

 

Standard reply: Just ask to see the contact and see if she is telling the truth.

What if she asks y I want to see her contact instead of the contract?

 

 

Should I buy the BMW 5 series or the Merc E class.

 

Standard reply: Just test drive both and don't buy the one you don't like.

 

What if: the car I don't like, my wife and MIL likes and the car I like, my wife and MIL hates? I paying for car but I also want happy ending.

 

 

 

I tested both and don't know which one I like less.

 

Standard reply: Just flip a coin.

 

What if: the coin lands on the edge?

 

 

 

 

 

Buy both lah 

 

[lausai88]

google and found this, not sure jun boh:

https://timelyenterprise.com.sg/convert-car-z10-private-hire-grab-uber/

 

 

learn something today 

Edited June 9, 2018 by lausai88

[Davidklt]

But the so called risk should be at the insurer side rather than the banks.

 

This has nothing to do with liquidity or your ability to service the loan.

LTA knows nothing about loan, infact LTA knows s**t. Banks are the one controlling, cars meant for private hire carries more risk in general, hence they wanna tag on higher interest rates. PHV can be owned under personal name now but it has nothing to do with loan. P10 loans are meant for domestic leisure use and Z/R class are of a different class, in bank's context, these cars will garner higher mileage, risk of higher wear and tear, owner may not have the money to repair or maintain the car in the end cars repo chances higher.

 

Some banks approval advise will indicate clearly, "NO RENTAL/PRIVATE HIRE CAR" in this instance, if the banks find out, like i said, they can declare the loan voided and full sum be paid immediately to them.

 

Never try this stunt, i do know of ppl who does it, you answer to your own actions.

 

 

p/s: banks do have a set of interest rates for PHV and/or Rental cars, not so much company name or personal name.

 

[Ake109]

But the so called risk should be at the insurer side rather than the banks.

 

This has nothing to do with liquidity or your ability to service the loan.

 

Might be because the bank will not be able to recoup as much in case of repossession of car due to PHV use.

 

Also, got chance earn more, bank will suck every last drop of blood. Standard banking practice.

[Kb27]

Insurance has a say on how the car is being used, personal or commercial, different rates applies.

 

Now banks has it's own interest regarding loans, personal or commercial use, different rates applies.

 

It seems to be the case, that banks also want a say.

But to TS, obviously, assuming your dad must have a PDVL licence already. Otherwise, he can't drive for Grab come 1 July 2018

[flashbang]

Business is business, banks are free to declare they charge higher interest rates for PHV. They need to cover their higher risk as PHVs have been increasingly involved in accidents. If the kopitiam charge you $2 for kopi, either find another kopitiam or change to teh. Now you are demanding the kopitiam to change their price to $1.

[D_orai]

I remember Grab telling me that if I wish to convert my personal car to PHV, I will have to refinance my hire purchase loan so that ownership can be transferred from the bank to me to be registered as commercial vehicle. 

[Darevil]

Exactly what cmcex said. 

[Metalslug2]

buying a brand new car for private hire in these days is a bad idea. 

 

your dad needs to be on the road pretty long to make a profit.

 

the income from the driving these days are really much lower. have you drove for Grab before? the incentives are so hard to hit nowadays

[Yewheng]

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 ?

Previously need to register company and take the loan under the company name. Now no need. So the agent actually did not keep herself updated on this.

I remember Grab telling me that if I wish to convert my personal car to PHV, I will have to refinance my hire purchase loan so that ownership can be transferred from the bank to me to be registered as commercial vehicle.

This is previously.. Now no need already.. Just convert to z10 and change to commerical insurance can already.

[Leo72]

Previously need to register company and take the loan under the company name. Now no need. So the agent actually did not keep herself updated on this.

 

This is previously.. Now no need already.. Just convert to z10 and change to commerical insurance can already.

It depends on the type of financing your car is on, car loan or hire-purchase. If Hire purchase, need the bank to approve as they're the owner of the vehicle as stated in the hire-purchase agreement.

[Lsm_83]

Just to contribute to my story.

 

 

My car was financed by Maybank. I called up them and check with them whether can i convert my car (private owned) to Z10 (Private Hire). They staff told me it is not possible and told me to either full settle or refinance the car loan with third party finance company.

I told them as per Lta system, we can anytime convert to Z10 thru one motoring website without any issue. The bank staff told me, if you converted your car to Z10, the system will will notify the bank and the bank will do what the necessary but they did not specify what they would do.

 

I called up few finance company and the interest to refinance the loan is 3.5% to 4.28 %. But some company will need to get the car transfer to them or transfer to your own company which incur transfer count +1 which might affect your resales price in the future. Hence I just full settle the loan and waiting for my car insurance to expire before i convert to PHV.

 

 

Edited June 11, 2018 by Lsm_83

[Kurty]

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.

 

sorry to ask,  is this the most accurate info with regards to convert a car to PHV?

[Darevil]

sorry to ask,  is this the most accurate info with regards to convert a car to PHV?

 

No. 

 

refer to Lsm_83 contribution. 

[Atrecord]

If this question concerns car loans, why not check with MAS on the policy?

[Leo72]

Just to contribute to my story.

 

 

My car was financed by Maybank. I called up them and check with them whether can i convert my car (private owned) to Z10 (Private Hire). They staff told me it is not possible and told me to either full settle or refinance the car loan with third party finance company.

 

I told them as per Lta system, we can anytime convert to Z10 thru one motoring website without any issue. The bank staff told me, if you converted your car to Z10, the system will will notify the bank and the bank will do what the necessary but they did not specify what they would do.

 

I called up few finance company and the interest to refinance the loan is 3.5% to 4.28 %. But some company will need to get the car transfer to them or transfer to your own company which incur transfer count +1 which might affect your resales price in the future. Hence I just full settle the loan and waiting for my car insurance to expire before i convert to PHV.

Hope that those who've the intention to convert their cars to PHV read your post before taking action. Else if they convert without checking, they'll be in big surprise. Mine is under Maybank Hire Purchase which the Hire Purchase agreement stated that the under hire purchase act, the bank is the owner of my car. So unless the car is under car loan (not hire purchase), agreement by the owner is a must (under hire purchase act, owner is the bank you took the hire purchase loan from).

If this question concerns car loans, why not check with MAS on the policy?

First question the car owner need to ask is whether he took out car loan or hire purchase loan. If hire purchase loan, the owner of the car is the Bank. You ask MAS, MAS will also ask you whether you take car loan or hire purchase loan.

Edited June 11, 2018 by Leo72

[Atrecord]

Hope that those who've the intention to convert their cars to PHV read your post before taking action. Else if they convert without checking, they'll be in big surprise. Mine is under Maybank Hire Purchase which the Hire Purchase agreement stated that the under hire purchase act, the bank is the owner of my car. So unless the car is under car loan (not hire purchase), agreement by the owner is a must (under hire purchase act, owner is the bank you took the hire purchase loan from).

First question the car owner need to ask is whether he took out car loan or hire purchase loan. If hire purchase loan, the owner of the car is the Bank. You ask MAS, MAS will also ask you whether you take car loan or hire purchase loan.

 

Wah... so many crucial things to note.

 

I'm noob on car loan or HP loan, what's the difference?

i have the impression that as long as it concerns agreement that concerns $$, MAS will have a say? They don't?

[Darevil]

Wah... so many crucial things to note.

 

I'm noob on car loan or HP loan, what's the difference?

i have the impression that as long as it concerns agreement that concerns $$, MAS will have a say? They don't?

 

 

MAS is just a regulator, They don't give out loans, they only tell you (the banks) "oi you all cannot charge above 5% ah, if not i come find you lim kopi"

 

Bank is different, You want loan ? can. all the T&C come out liao. As long they don't breach MAS regulations.