Advice Needed - Personal Loans to fund Next Bike purchase.

[kandui]

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?

30k for a Hard Tail bike that is already 2 years old, and you want to finance it? Sounds like the wrong decision to me.

Not knowing what size bike you need,but there is a beautiful Carbon Niner HT for sale in the Hub Classifieds for 19,5k. From Cyclelab in Cape Town. XTR , the works.

I'm no financial adviser, but that's a saving of 10,5k right there.

[Danus24]

The more you reveal, the worse it gets. Are you actually able to save anything?

 

I have 10% rainy day account which I put 10% of month income into for the past 5 years or so. But I will never touch that. Its not in our financial planning.

[SyncSA]

I have a separate Medical Aid plan for wife and daughter. Which is top of the range. I only took out medical aid for myself after a torn ligament operation set me back R35k which I paid off a few years ago. Since then I have done nothing on the medical aid. Just wasting away. Thinking I just need a emergency hospital plan and some of the usual benefits. I do have a set basic salary but that covers everything comfortably but excludes toys.

 

Haven't told the old lady. Thats why I'm asking for advice. Checking out my options. Would like to cover all bases before jumping into the proverbial deepend.

 

There is nothing wrong with having just a hospital plan, if you are able to cover your day-to-day medical costs like doctor visits, x-rays when you fall on an MTB route(or not) out of your cash flow it should be ok. But as long as you can do this without resorting to CC's.

 

If you are young, healthy and have no kids, then I don't see a problem with having just a hospital plan. Just make the decision for the right reason and not just for the MTB you want to get. At the moment it sounds like al the "scheme'ing" is around the MTB, which is the wrong motivator.

[shaper]

As the Recruitment industry quietens down around Nov / Dec and picks up Jan / Feb. I wanted to pay it off from commission in the first 6 months.

 

If I was you, would be more worried about having a job in 6 months than dreaming of the pot of gold at the end of a rainbow to buy a bike you cannot afford!!

 

The recession is by far from being over and without direction and leadership (especially as they will be in fighting over their pot of gold under the guise of a new leadership election). Your job in recruitment is more vunerable than most as no one will be employing as the recession bites further. As you have rightly said you are on a basic salary (peanuts) and live off commisssion, if there is no commisssion, you are not paying off anything anytime soon!!

 

Go for it, regret it when you have to sell this ideal pride and joy at a pittance to pay to survive and you will still have loan to finance.

 

Weigh up the risk v reward !! The reward a nice new bike, the risk should things turn for the worse, which often they do, far out weigh the reward !!

[Grebel]

Next time you buy pants, make sure they have a Nomex lining as it seems that money burns a hole in your pockets! (Regardless of whether you have it or not)

 

Lots of the same advice from different people but it seems as though the majority agree. Cash is king, don't finance toys, and the list goes on. I would take their advice, but that's just me.

 

If you already have a bike, stash your cash and buy a second hand model. Much better value for your money. If you don't have a bike, maybe a good idea to lower your standards and get something affordable without having to use insurance money to pay for toys..... until you can afford the big ticket item.

 

Not worth incurring debt IMO.

[Mr Winter]

You sound like a chauvinist with little respect for your family

 

Yeah only paying 90% of the household items is disgusting, how can you live with yourself!!!

[SyncSA]

I have 10% rainy day account which I put 10% of month income into for the past 5 years or so. But I will never touch that. Its not in our financial planning.

 

Don't you think it would be better taking the funds out of this than taking out finance which will cost you extra?

 

It is more difficult to spend your savings, than it is to create debt. Same as when you have R100 in your wallet, you spend more wisely than you would using your debit/credit card as you physically see the money "poof" gone.

[Eddy Gordo]

You sound like a chauvinist with little respect for your family Sorry that you think like that, but it is not like that at all. I will do anything for them!!!!! if somthing is needed I will make a plan to get it even if it means I cant buy myself anything or if I need to sell my toys

Everyone is different. Ours is all one pot. We have separate bank accounts but I don't think of it as my money or her money. We are a team a partnership and it is our money same as if there are issues they are our issues.

 

That is part and parcel of being married in my opinion but as i said at the start everyone is different I agree, everyone is diff, I dont take money from my wife, but I will buy her anything and everything, and hence why I can buy myself anything as well, it is just, I dont have to justify my lets say 10k bike with a 10k diamond

I understand what you saying but the OP said " freed about about R2600 out of our monthly cash flow " which would mean that they working together. If he had said " freed about about R2600 out of my monthly cash flow " then I think it would be more like your situation. Yes Exactly, and I understand how he feels as well. He wants it now. So he doesnt want to wait, but he can afford to pay it off.

[Eddy Gordo]

Yeah only paying 90% of the household items is disgusting, how can you live with yourself!!!

 

Ja I know, man, I have lots of sleepless nights about this, but the wife wants to contribute, even though I give her a wad of cash every month, she puts some into a policy, and pays extra on the bond , what should I do???

[Wayne Potgieter]

Sixty posts telling you it's a bad idea.

 

You are still trying to justify why it's a good one.

 

Seems you actually want approval...not advice.

 

That's me out of here.

[Shebeen]

I have 10% rainy day account which I put 10% of month income into for the past 5 years or so. But I will never touch that. Its not in our financial planning.

This is clearly all burry's fault.

 

so you have a nest egg which is accumulating at ~8-12%, but want to take out a R30k loan which is going to have an interest rate of 15-20%(dunno what personal loans are at, but if it's for a bicycle i figure it will be in line with credit cards).

 

interestingly there's a banner add below for a personal loan, GO FOR IT!

 

and then there's always these clowns, I think they've put a lot of thought into ripping bike customers off.

https://community.bikehub.co.za/topic/116782-karoo-bicycle-finance-wtf/

[shaper]

Sixty posts telling you it's a bad idea.

 

You are still trying to justify why it's a good one.

 

Seems you actually want approval...not advice.

 

That's me out of here.

 

Couldn't agree more, think the OP has already made his mind up and no matter what the voice of reason is!!

[Cyclewizz]

Ja I know, man, I have lots of sleepless nights about this, but the wife wants to contribute, even though I give her a wad of cash every month, she puts some into a policy, and pays extra on the bond , what should I do???

 

You should also give me a wad of cash (ok a EFT will be more realistic) each month so that I can sleep better

[Captain Fastbastard Mayhem]

30k for a Hard Tail bike that is already 2 years old, and you want to finance it? Sounds like the wrong decision to me.

Not knowing what size bike you need,but there is a beautiful Carbon Niner HT for sale in the Hub Classifieds for 19,5k. From Cyclelab in Cape Town. XTR , the works.

I'm no financial adviser, but that's a saving of 10,5k right there.

 

 

And it's a better bike, nogal

[Captain Fastbastard Mayhem]

This is clearly all burry's fault.

 

so you have a nest egg which is accumulating at ~8-12%, but want to take out a R30k loan which is going to have an interest rate of 15-20%(dunno what personal loans are at, but if it's for a bicycle i figure it will be in line with credit cards).

 

interestingly there's a banner add below for a personal loan, GO FOR IT!

 

and then there's always these clowns, I think they've put a lot of thought into ripping bike customers off.

http://www.thehubsa....le-finance-wtf/

 

If the "rainy day account" is a call deposit, or money market, revise that down to 4% max...

[Wayne Potgieter]

This is clearly all burry's fault.

 

so you have a nest egg which is accumulating at ~8-12%, but want to take out a R30k loan which is going to have an interest rate of 15-20%(dunno what personal loans are at, but if it's for a bicycle i figure it will be in line with credit cards).

 

interestingly there's a banner add below for a personal loan, GO FOR IT!

 

and then there's always these clowns, I think they've put a lot of thought into ripping bike customers off.

https://community.bikehub.co.za/topic/116782-karoo-bicycle-finance-wtf/

what account gives you 8-12%? Seriously, I wanna park some corporate cash...that's good interest.