Cannot install RVM . Permission denied in /usr/local/rvm

Based on my previous thread : RVM installed by Ruby not working? where i had installed RVM using the root user, I then had to entirely remove the RVM install and now i am installing as a user.

So i did :

1. Create a new user by doing : useradd newuser
2. Follow the instructions on the RVM website and execute the command : bash http://rvm.beginrescueend.com/releases/rvm-install-head )

Now, i get the error : mkdir: cannot create directory `/usr/local/rvm': Permission denied

The new user i created does not have access to this directory. I manually tried creating the folder but the same error. Please help.

EDIT : The original problem occured because i did not restart the terminal and it was still using the old settings.

Now, I got a new problem : After installing RVM, i cannot run it and it gives me an error : rvm command not found.

Here is the output of my ~/.bash_profile

# .bash_profile

# Get the aliases and functions
if [ -f ~/.bashrc ]; then
        . ~/.bashrc
fi

# User specific environment and startup programs

PATH=$PATH:$HOME/bin

export PATH
[[ -s "$HOME/.rvm/scripts/rvm" ]] && source "$HOME/.rvm/scripts/rvm"  # This loads RVM into a shell session.

And here is output from ~/.bashrc file

# .bashrc

# Source global definitions
if [ -f /etc/bashrc ]; then
        . /etc/bashrc
fi

# User specific aliases and functions
[[ -s "$HOME/.rvm/scripts/rvm" ]] && source "$HOME/.rvm/scripts/rvm"  # This loads RVM into a shell session.