By MoneyBees
A motorcycle loan worked out: the monthly instalment, total interest and EIR from a flat rate, the latest Cat D COE, the bike's ARF and taxes, and why MAS car loan limits do not apply.
No. MAS's limits of 70% or 60% of the price and a 7-year tenure apply to cars. MAS states that they do not apply to the financing of motorcycles and commercial vehicles.
Not in law. MAS said in 2023 that no minimum downpayment is required by legislation, but each lender may ask for one as part of its own credit checks.
Most motorcycle loans are quoted at a flat rate. Interest is the loan times the flat rate times the years, and the monthly instalment is the loan plus that interest, divided by the number of months.
A flat rate charges interest on the full loan for the whole tenure, even as you pay it down. MoneySense notes that the EIR on a flat-rate loan is higher than the advertised rate, often close to double.
Your lender decides, since MAS's 7-year cap does not apply to motorcycles. A Cat D COE lasts 10 years, so a loan longer than that would outlast the right to ride the bike.
Motorcycles bid in Category D. The latest premium is shown on this page from LTA's results on data.gov.sg; the COE prices page has the full history.
A S$350 registration fee, ARF of 15% on the first S$5,000 of OMV, 50% on the next S$5,000 and 100% above S$10,000, and excise duty of 12% of OMV. Motorcycles get no PARF rebate.
Yes. Motorcycles have no statutory lifespan, so you can renew the COE for 10 years at the prevailing quota premium, or 5 years at half of it, with no limit on renewals.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).