I am confused......he has millions of pesos on the road......but he did not last long??? So he couldn't sell enough bikes or people defaulted on their loans and he couldn't repo the bikes or what?
- Thread starter cobraboy
- Start date
Birth of a Moto
I've heard GM described as.... "not a car company that has pensions, but a pension company that makes cars." Kinda true.
"South",the people kept the bikes,but didn't pay him for the bikes,hence,his bikes are on the road,and thus his "Millions".
How Dominican!
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How Dominican!
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Thanks for the clarification. I have wondered how the business model making one's money by financing the bikes could work in the DR.
In USA, there are repo men and the legal system sort of works; I assume it still is risky hence the high interest rates for bad credit.
But here, in the DR, anyone know HOW it works for the Dominicans that use this business model? They must have a way to enforce their loan contracts or repo the bikes......or what?
It's the same "business model" as found anywhere. A guarantor can be required as well. It's a lucrative business. The manager of Pancho Motors is paid well and is given a new car every few years.
So why did the guy go broke when he didn't get paid for the bikes he financed? Was he just stupid?
"Originally Posted by Criss Colon"
"South",the people kept the bikes,but didn't pay him for the bikes,hence,his bikes are on the road,and thus his "Millions".
How Dominican! CCCCCCCCCCCC"
"On The Goooud Ship "La La Land",Where "Chipper" is "Skipper",and "PEE EYE TWO" is First Mate",and "Pichardo" is the Booking Agent!
Here is how it works in the REAL DR!
It you are stupid enough to loan money,or give credit to a Dominican,it then becomes YOUR RESPONSIBILITY to Collect!
Don't think that the person with your money,or merchandise will come looking for you to pay their debT!
Never Happen!
The enigma is: You don't give "credit",no one will ever be able to actually SAVE UP to purchase ANYTHING! Not part of the Dominican mind set!
Soooooooo,you give credit,fewer people pay you back than actually pay up,you go out of business!
Anybody ever seen a empty place of business here?????
Why do the banks charge userious interset rates???????????????????????????
Because their collection rate is so small!
This is not "Kansas" but some people's minds are still there!
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Here is how it works in the REAL DR!
It you are stupid enough to loan money,or give credit to a Dominican,it then becomes YOUR RESPONSIBILITY to Collect!
Don't think that the person with your money,or merchandise will come looking for you to pay their debT!
Never Happen!
The enigma is: You don't give "credit",no one will ever be able to actually SAVE UP to purchase ANYTHING! Not part of the Dominican mind set!
Soooooooo,you give credit,fewer people pay you back than actually pay up,you go out of business!
Anybody ever seen a empty place of business here?????
Why do the banks charge userious interset rates???????????????????????????
Because their collection rate is so small!
This is not "Kansas" but some people's minds are still there!
CCCCCCCCCCCCCCCCCCCCCCC
There are many lucrative businesses here in the DR. The thing is some posters here don't have a clue, or maybe they at one point had it and forget, as it may be in CC's case.
For example, Pancho Motores in Moca moves a lot of bikes because in the campo, bikes rule. They also have contracts and require work references or guarantors. Also, no doubt they have an agreement with the local police to confiscate bikes if payments are not made. In fact one of Ramon's friends is a detective(he is my friend too) and no doubt helps out. I expect the threat of spending a night in jail is enough deterrent for most. It is not w/o it's risks, Ramon has had at least one attempted robbery where he was chased in his car.
Also, my father in law runs a micro loan business in the campo and he carries no gun and is in fact a small and pleasant guy but does require a contract.
Chip, the moto financiers have muscle to collect their $$$. On occasionsThere are many lucrative businesses here in the DR. The thing is some posters here don't have a clue, or maybe they at one point had it and forget, as it may be in CC's case.
For example, Pancho Motores in Moca moves a lot of bikes because in the campo, bikes rule. They also have contracts and require work references or guarantors. Also, no doubt they have an agreement with the local police to confiscate bikes if payments are not made. In fact one of Ramon's friends is a detective(he is my friend too) and no doubt helps out. I expect the threat of spending a night in jail is enough deterrent for most. It is not w/o it's risks, Ramon has had at least one attempted robbery where he was chased in his car.
Also, my father in law runs a micro loan business in the campo and he carries no gun and is in fact a small and pleasant guy but does require a contract.
cheeky they may have to use....extra force. This includes Pancho Motors.Borrowers know this and act accordingly.
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Chip, the moto financiers have muscle to collect their $$$. On occasions
Borrowers know this and act accordingly.
I expect you saw the part where Ramon's friend is a police detective? A guarantor is typically required if someone doesn't have a regular job. Like a said, when the guarantor, who is generally a close family friend, is threatened with spending a night in jail the bike usually shows up.
Few use detectives to find the delinquent debtors. They know where they are, and their friends know where they are.
There are professional "collectors" in the DR. Just check an ATM near a free zone on payday...
My point was merely to explain to those interested that there is a system set up here for debt collection.
Also, no doubt many of the "professional collectors" are off duty policemen. They also work off duty as watchmen or at bars or other security related jobs as they are cheap and have their own gun.