Hoshi8 1st Gear March 31, 2016 Share March 31, 2016 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! ↡ Advertisement Link to post Share on other sites More sharing options...
flashbang Turbocharged March 31, 2016 Share March 31, 2016 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. Link to post Share on other sites More sharing options...
Hoshi8 1st Gear April 1, 2016 Author Share April 1, 2016 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. Link to post Share on other sites More sharing options...
Sci10213 3rd Gear April 1, 2016 Share April 1, 2016 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... Link to post Share on other sites More sharing options...
Doppel Turbocharged April 1, 2016 Share April 1, 2016 I think it is bollocks. Good luck. Link to post Share on other sites More sharing options...
Icetee168 3rd Gear April 1, 2016 Share April 1, 2016 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 Link to post Share on other sites More sharing options...
1fast1 Supersonic April 1, 2016 Share April 1, 2016 In the first place, how is anyone allowed to take more of a loan than they are allowed to? Link to post Share on other sites More sharing options...
1fast1 Supersonic April 1, 2016 Share April 1, 2016 (edited) 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 Link to post Share on other sites More sharing options...
Hoshi8 1st Gear April 1, 2016 Author Share April 1, 2016 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. Link to post Share on other sites More sharing options...
Hoshi8 1st Gear April 1, 2016 Author Share April 1, 2016 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 centsYes 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? Link to post Share on other sites More sharing options...
Watwheels Supersonic April 1, 2016 Share April 1, 2016 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... Link to post Share on other sites More sharing options...
valian 3rd Gear April 1, 2016 Share April 1, 2016 (edited) 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 2 Link to post Share on other sites More sharing options...
Hoshi8 1st Gear April 1, 2016 Author Share April 1, 2016 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. Link to post Share on other sites More sharing options...
1fast1 Supersonic April 1, 2016 Share April 1, 2016 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)? Link to post Share on other sites More sharing options...
Galantspeedz Turbocharged April 1, 2016 Share April 1, 2016 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 Link to post Share on other sites More sharing options...
BenTong Turbocharged April 1, 2016 Share April 1, 2016 (edited) 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 Link to post Share on other sites More sharing options...
Hoshi8 1st Gear April 1, 2016 Author Share April 1, 2016 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 carSo I guess it's normal thenApa then? Dealer is obliged to charge wud. It will be on $120kThanks for the info. I will just pay the dealer. Link to post Share on other sites More sharing options...
Kusje Supersonic April 1, 2016 Share April 1, 2016 (edited) 2 scammers identified. Edited April 1, 2016 by Kusje ↡ Advertisement Link to post Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In NowRelated Discussions
Related Discussions
Green fingers anyone?
Green fingers anyone?
Anyone into HK cantonese song (80s~end 90)
Anyone into HK cantonese song (80s~end 90)
Anyone got car left 3-4 months want to get rid of?
Anyone got car left 3-4 months want to get rid of?
Give aways
Give aways
Anyone into laopok Mercs?
Anyone into laopok Mercs?
Planning to buy a COE renewed car, can take full loan?
Planning to buy a COE renewed car, can take full loan?
Anyone drove from SG to Bangkok before? Any advice?
Anyone drove from SG to Bangkok before? Any advice?
Anyone here follows "The Walking Dead"?
Anyone here follows "The Walking Dead"?