Advice Needed - Personal Loans to fund Next Bike purchase.

[Mellow]

If at all possible don't. If you can pay it off in 12 months then it is not too bad option. Just make sure it is what you want and the satisfaction will trump the repayment.

 

It is not an investment - but we all know that.

[capeofstorms]

Sell your car

[Bianchi]

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?

 

As above..... your bike is very very very far from an asset. It's a depreciation black hole.

If you take out a loan for R31k you'll probably end up paying R40k for it and by that time it's worth 15k.... so you're losing 25k in just over a year.

 

I do all my bicycle purchases with cash, paying it off is never a good idea.

[El Dodgius Bastardo]

So the decision is anonymous...no-one helped you make it!

[IndianRoadie]

buy a cheap bike and save for the next six months !that is what i am doing cause i so badly want a Carbon Bike !

 

Financial consultants will tell you the same thing ... DO NOT FINANCE YOUR TOYS !

[Rollin]

Not recommended. A bike depreciates faster than the rand during a miners strike. You will land up paying factors more for the bike than it is wotth when you are finally free of debt. I agree with the other guys, if you don't have the cash don't do it. Rather open another bank account and do some forced savings then by for cash.

 

In the meantime, build yourself a single speed. Cheap to run, better street cred, and just as quick as an s-works over most terrain. Proved that at W2W last weekend.

[Blindspot]

Do you really need a R30K bike to enjoy cycling? I don't think the pros can outweigh the cons of taking a loan just to ride a bike that you want.

[DR ◣◢]

Don't do it.

 

It's tempting to do it now but when you sit every month paying off a bike that has lost it's value faster than a oke's sister in Springs you start to wonder WTF you were thinking.

 

If you can't do without the bike and you absolutely have to finance see if you can't access additional funds in your bond. Less interest by far and easier to pay back quickly.

 

I learned the hard way when I decided to work for myself. Debt ran up and I'm still paying back the debt.

[hayleyearth]

DONT DO IT!

 

like it has been said: not for something that depreciated this quickly.

Also, you insurance payments will be higher too...to cover the loan.

 

Not a good idea man.

[El Dodgius Bastardo]

Can we stop all this single speed stuffs, it's starting to resonate with the voices in my head

[IndianRoadie]

Can we stop all this single speed stuffs, it's starting to resonate with the voices in my head

but deserves

[Akon]

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.

If you realistically can pay it off over 6 months, why not save for 5 months and then pay cash?

[SyncSA]

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.

 

This changes things a bit - you need to save rather. Then again you are staff, so your rates should be extremely low.

 

You need to go an calculate how much the interest charges, admin fees etc will be if you could pay that off in 6 months.

 

Is it going to be worth paying R33k for a R30k bike? Instead of saving and paying less when it get to that stage.

 

EDIT - Read you were staff, sorry, so ignore the low rates comment.

Edited November 8, 2012 by SyncSA

[Slowbee]

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.

 

there is a certain maturity in there that most south african do not have (cough cough), hence it is better to pay cash for the enjoyment items.

[SyncSA]

DONT DO IT!

 

like it has been said: not for something that depreciated this quickly.

Also, you insurance payments will be higher too...to cover the loan.

 

Not a good idea man.

 

Insurance wont include the loan like it would with HP purchases.

Edited November 8, 2012 by SyncSA

[MTBer wannabee]

I wouldn't. But then again i have short arms and long pockets. Cash is king