Kah Motor Overtrade Prices

[Carmour]

Can anyone enlighten me on the overtrade prices that Kah Motor is offering?

 

Honda Price List

 

 

Honda City 1.5-litre i-VTEC AT YOM 2009

$82,900 (List Price Incl. COE)

$72,900 (Price After Overtrade)

 

Why so big difference?

So if I buy the City Auto, is $72.9K or $82.9K?

[Mzrmazda3]

Think this Overtrade applies only to those whom have a car to trade in

 

I might be wrong though

[Watwheels]

Think this Overtrade applies only to those whom have a car to trade in

 

I might be wrong though

Yes, you are right.

 

Example taken from this Link

 

Let me first explain the Overtrade practice by dealers. It is introduced when the MAS regulation for a motor loan limit of up to 70% of the car price was in effect. A typical scenario was that the motorist wanted to trade in his old ride for a new one but the value of his old ride was not sufficient to match the downpayment.

 

Example:

Value of old ride = $10,000 (market value - outstanding loan balance)

Price of new ride = $70,000

Required downpayment = 30% x $70,000 = $21,000

Maximum loan amount = 70% x $70,000 = $49,000

Shortfall = $21,000 - $10,000 = $11,000

 

Overtrade amount = OT

In order to meet maximum 70% loan amount, 30% x (70,000 + OT) = 10,000 + OT

Solving the equation, OT = 15,715

Inflated price of new ride = $85,715

New downpayment = 30% x $85,715 = $25,715

Maximum loan amount = 70% x $85,715 = $60,000

 

Thus, the trade-in value for the old ride was increased to $25,715. The difference was that the buyer had to sign up a new motor loan of $60,000 instead of $49,000; no additional cash outlay was required.

 

Since now can take 100% loan with little or no down payment, you can delete where it's not needed.

Edited November 3, 2010 by Watwheels

[Carmour]

First of all, the 70% loan limit by MAS has already been lifted. Think the guideline now is 90%.

 

Secondly, going by what has been said, the overtrade amount is used to offset the shortfall of the current car the buyer has. If that is the case, he needs a larger loan amount on the new car. The new car price should thus be "inflated".

 

In Kah Motor's case, the price is "lower" for the "price after overtrade". That's why I dont understand. When I call Kah Motor, the girl over the line keeps on saying "$72,900 repeatedly". I think there's a catch to it, but I'm not prepared to make a trip to the showroom just to find out.

[Mzrmazda3]

Gam Siah Bro

[Forte3737]

First of all, the 70% loan limit by MAS has already been lifted. Think the guideline now is 90%.

 

Secondly, going by what has been said, the overtrade amount is used to offset the shortfall of the current car the buyer has. If that is the case, he needs a larger loan amount on the new car. The new car price should thus be "inflated".

 

In Kah Motor's case, the price is "lower" for the "price after overtrade". That's why I dont understand. When I call Kah Motor, the girl over the line keeps on saying "$72,900 repeatedly". I think there's a catch to it, but I'm not prepared to make a trip to the showroom just to find out.

 

then you are not a geniune buyer.

[Watwheels]

First of all, the 70% loan limit by MAS has already been lifted. Think the guideline now is 90%.

 

Secondly, going by what has been said, the overtrade amount is used to offset the shortfall of the current car the buyer has. If that is the case, he needs a larger loan amount on the new car. The new car price should thus be "inflated".

 

In Kah Motor's case, the price is "lower" for the "price after overtrade". That's why I dont understand. When I call Kah Motor, the girl over the line keeps on saying "$72,900 repeatedly". I think there's a catch to it, but I'm not prepared to make a trip to the showroom just to find out.

The link I provided is a little outdated. But it's just an example to show you.

 

Since they offer 10k overtrade for this model, 72.9k + overtrade(10k) = 82.9k (Listed Price)

 

I dunno what "catch" you are talking about.

[Naruto13]

The link I provided is a little outdated. But it's just an example to show you.

 

Since they offer 10k overtrade for this model, 72.9k + overtrade(10k) = 82.9k (Listed Price)

 

I dunno what "catch" you are talking about.

 

base on the example. its just a method to solve. either way seems like u must pay the 82.9k of car value i suppose.

 

in layman term from what i see, the overtrade amt is a way to gain visitors/potential to buy. but end of the day the price is on par to the listed price of 82.9k in this example.

[Watwheels]

base on the example. its just a method to solve. either way seems like u must pay the 82.9k of car value i suppose.

 

in layman term from what i see, the overtrade amt is a way to gain visitors/potential to buy. but end of the day the price is on par to the listed price of 82.9k in this example.

Sadly, yes.

[Little_prince]

overtrade is not a good thing

 

you're just taking additional loan to cover the top up penalty amount on your exisiting loan

 

it's rather foolish to argue otherwise

[Watwheels]

overtrade is not a good thing

 

you're just taking additional loan to cover the top up penalty amount on your exisiting loan

 

it's rather foolish to argue otherwise

If it's good you will see ppl rushing to buy Honda.

[Chrispie]

dont go the overtrade way.. u are digging a hole for urself...

 

i was stupid enuff to take a 10yr 85% loan for my previous car and i paid dearly for that mistake.

[Dafansu]

dont go the overtrade way.. u are digging a hole for urself...

 

i was stupid enuff to take a 10yr 85% loan for my previous car and i paid dearly for that mistake.

 

why paid dearly?

[Ben5266]

Can anyone enlighten me on the overtrade prices that Kah Motor is offering?

 

Honda Price List

 

 

Honda City 1.5-litre i-VTEC AT YOM 2009

$82,900 (List Price Incl. COE)

$72,900 (Price After Overtrade)

 

Why so big difference?

So if I buy the City Auto, is $72.9K or $82.9K?

If you are buying with trade-in, you can buy at $82.9k. They will give your $10k above your trade-in car.

If you are buying without trade-in, you will buy at $72.9k. Then, all your finances will be based on $72.9k as selling price.

BTW, OMV for City is $18+k. With $33k COE, total basic cost is $74k. Kah is loosing money for every City they sells.

[Naruto13]

If you are buying with trade-in, you can buy at $82.9k. They will give your $10k above your trade-in car.

If you are buying without trade-in, you will buy at $72.9k. Then, all your finances will be based on $72.9k as selling price.

BTW, OMV for City is $18+k. With $33k COE, total basic cost is $74k. Kah is loosing money for every City they sells.

they clearly stated 72.9k after overtrade.

aka u take up that system then u can buy at 72.9k.

 

am i wrong to conclude that?

are you read wrong?

[Ben5266]

they clearly stated 72.9k after overtrade.

aka u take up that system then u can buy at 72.9k.

 

am i wrong to conclude that?

are you read wrong?

Give them a call la.

They will tell you, if no trade-in, overtrade becomes discount. Got it?

 

[Sktan10]

If 'A' wants to change new car,but he got to top-up 10k to clear his current loan.

Either he clear his 10k with cash or he can use this over-trade.

This 10k add into his present new car will add up 72k+10k=82k.

Is this simple?

[Dafansu]

If 'A' wants to change new car,but he got to top-up 10k to clear his current loan.

Either he clear his 10k with cash or he can use this over-trade.

This 10k add into his present new car will add up 72k+10k=82k.

Is this simple?

 

in short overtrade is for people who die die want to change car but no money to change

Edited November 3, 2010 by Dafansu