Advice Needed - Personal Loans to fund Next Bike purchase.

[Danus24]

Hey Hubbers,

 

Considering taking the plunge and taking out a loan to fund my next purchase. 2011 Spez S-Works HT - Plus minus - R30K

 

Any words of wisdom or recommendations?

[Guest]

Who do you bank with?

 

(I assume you have already consider saving up enough cash and chose to opt for a loan instead, so I'm not going to advice you against it. I assume you are also an adult and can make your decisions on how to spend your money, and what sort of debt you are willing to make - so my advice will be based you your question, not my own suggestions)

[rouxtjie]

Eish my man...paying interest on something that depreciates faster than you can say 1-2-3...Do the smart thing..save, wait for a bonus or flip burgers at steers at night.

 

Cash is king

[Wayne Potgieter]

If i cant afford it cash, i cant afford it.

 

I am 31 years old and its taken me 6 years to get my stupid a$$ out of debt.

 

I cant begin to tell you how much more relaxed i am.

 

Thats my personal opinion.

 

What are the details of the loan you are considering?

 

What is the term and repayment? How much is that bike ACTUALLY going to cost..R50K, R60k by the time you are paid up?

 

You realise you wont be able to upgrade or buy another until the loan is paid off.

[madvics]

Eish my man...paying interest on something that depreciates faster than you can say 1-2-3...Do the smart thing..save, wait for a bonus or flip burgers at steers at night.

 

Cash is king

+1

[SyncSA]

Hey Hubbers,

 

Considering taking the plunge and taking out a loan to fund my next purchase. 2011 Spez S-Works HT - Plus minus - R30K

 

Any words of wisdom or recommendations?

 

Cash is king, but if you feel the need to get the bike NOW and go the loan route:

 

- Ensure you take the loan out with a reputable institution

- Interest rate is key

- shop around for rates, at times your bank can provide better rates than others for obvious reasons

- At times even CC rates are cheaper than personal loans

- If you bank with Standard bank, they offer a revolving credit plan which is generally at much lower rates than fixed loan options

- Pay more than you should be paying to ensure that you pay less interest over the period. Try and cut the term in half

 

Best is to save - take the instalments you would be paying on your personal loan and save it, with extra. Much better in the long run.

[Slowbee]

You have to be mad to finance anything you use for entertainment.

 

Rather save for it, or do without.

[jcza]

Eish my man...paying interest on something that depreciates faster than you can say 1-2-3...Do the smart thing..save, wait for a bonus or flip burgers at steers at night.

 

Cash is king

 

Agreed - but if you really can't wait save half and pay the balance off over 3 months.

[ibruegge]

If you want to finance something with a loan / bond - make sure it is an asset that appreciates, not something that is worth nothing in 5 years while you might still be paying for it.

[GrumpyOldGuy]

I have always maintained debt is NOT bad, as long as its manageable. Few people dont have debt of some sort, be it a mortgage an HP agreement, an overdraft or a personal loan, there is nothing wrong with it, and its purely a personal decision how you spend your income, if its affordable to you and you understand the implications and you approach it in a mature attitude of understanding and obligation, I dont see any issue.

[Danus24]

I bank with FNB. I'm a Recruitment Consultant so cash flow fluctuates enormously. So thinking taken it over along period of time and paying it off as soon as possible probably within the first 6 months.

[El Dodgius Bastardo]

DON'T DO IT. Debt is not worth being a touch faster over however many k's. Spend the time you think of the new bike on your current bike (until such time as you can afford it).

[El Dodgius Bastardo]

So take my advice above, save for 6 months and you can even haggle on the price

[Wayne Potgieter]

cash flow fluctuates enormously.

 

For what my opinion is worth and based on that one statement i would rather save up.

[patches]

It's not worth it.

 

...I'm not talking about the financing part,... I'm talking about the S-Works part. If it was a personal loan to own a Morewood, Intense, or Devinci... then sign away! But S-works... that's like selling your soul to have a BMW 3 series

[shaper]

Unless you have the cash and can afford it, don't do it.

 

You think you will be able topay it off easily, but can guarantee getting out of debt always takes hell of a lot longer than you anticipate and before you know it, you would have paid for the bike many times over!!... then it becomes a really expensive bike!