Advice Needed - Personal Loans to fund Next Bike purchase.

[Danus24]

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 !!

 

The Recession has hit some companies very hard but not all companies. We have consultants who have worked through the recession and are still making very decent tom. They made it in the toughest time and are still making it now. Not buying the "recession is far from over" crap. We had placments of over R200k for a single placement. You can make it, It just depends on how hard your willing to work to make it happen.

 

But thanks for your oppinion.

[Danus24]

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.

 

I was just getting advice and looking at the various options. Thats all. Thanks anyway.

[Danus24]

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

 

No its not. 10% of my monthly income goes into an account. Simple as that. It doesn't ever get touched. I got access to all of it at anytime. Haven't touched it in roughly 4 years and won't. This strictly for end of the world life shattering circumstances.

[El Dodgius Bastardo]

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

 

Is this a case of your attitude being bigger than your legs?

[Kranswurm]

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

 

I get a 12.5% return on fixed sum RA investments paid annually in advance

[Captain Fastbastard Mayhem]

I get a 12.5% return on fixed sum RA investments paid annually in advance

 

that's alright. Low risk investment.

[Wayne Potgieter]

 

I get a 12.5% return on fixed sum RA investments paid annually in advance

oh. Was hoping it was a cash account not ra.

[Captain Fastbastard Mayhem]

No its not. 10% of my monthly income goes into an account. Simple as that. It doesn't ever get touched. I got access to all of it at anytime. Haven't touched it in roughly 4 years and won't. This strictly for end of the world life shattering circumstances.

 

cool. Unit trust based then. It just sounded as if you were saying it was an actual ACCOUNT, rather than an investment. IE: something you open at a bank, rather than an investment house.

[Captain Fastbastard Mayhem]

oh. Was hoping it was a cash account not ra.

 

ROFL. Yeah, you don't want to park corporate cash in an RA.

[eddy]

 

 

I was just getting advice and looking at the various options. Thats all. Thanks anyway.

 

For your wife and child's sake I assume you already own your house and have paid off your bond.

 

Buying a toy out of very tight cashflow when you have not guaranteed a roof over their head elevates you from D Anus 24 to D P0ephol 24/7.

 

Either way, i suspect you have already committed yourself to buying the bike and are looking for an endorsement.

[Danus24]

cool. Unit trust based then. It just sounded as if you were saying it was an actual ACCOUNT, rather than an investment. IE: something you open at a bank, rather than an investment house.

 

It is an actual account. Not investing at all. Just following some old family advice.

[Wayne Potgieter]

 

 

Either way, i suspect you have already committed yourself to buying the bike and are looking for an endorsement.

you think?

[sometime]

Let's look at some real world numbers here:

 

You should finance something over the period of time you expect to keep it for. So let's say 24 months is realistic for a 2011 bike.

 

R30 000 financed over 24 months at an assumed interest rate of 17.1% (market rate from Capitec Bank) will cost you R1 463.85 p.m.

 

You get to ride the bike you want now and it costs you R35 132 in total over 24 months.

 

If you instead saved the R1 463.85 p.m. and invested that into a savings account at 4.5% it would take you 20 months to save the R30 000. So you would save paying the last 4 months off at R1 463 pm. giving a total saving of R5 855. Put differently to get to ride the bike you want NOW instead of saving for the next 20 months will cost you R292.77 p.m. (R5 855/20) Whether that's worth it only you can answer but for me R292 is dinner for two once a month.

 

So let's see dinner for two once a month or get to ride the bike I want now? For me the bike wins every time.

 

All this assumes you manage your cashflow and debt responsibly.

[Danus24]

I haven't committed myself to anything and am not looking for any endorsement. Not saying I'm going to take the loan. Just looking for advice thats all. Finances are under control. Have a house over our head and at 28 still paying off my first home and our 2 cars. Thats comfortably accounted for as well as food on the table and everything else that goes along with raising my 14 month old daughter. But my wifes clothing accounts and the credit card are next on the hit list which is why I sold my bike and a carbon frame. Just a thought though.

 

Thanks for everyones input. I will not be taking out the personal loan to buy the Sworks.

 

Any one got a better idea on a cheaper but decent hardtail 29er?

[Captain Fastbastard Mayhem]

 

Any one got a better idea on a cheaper but decent hardtail 29er?

That niner that was posted here earlier...

[eddy]

 

 

Either way, i suspect you have already committed yourself to buying the bike and are looking for an endorsement.

 

you think?

 

See how elegantly I left myself lots of wiggle room in the phrasing of my statement. I did not say he has bought it, or even agreed to buy it. The use of the word "committed" in the context could imply that he has contracted, or even just made up his mind....... ;-)

 

I used to write doping denials for Lance but am now unemployed.....