Lay-byes for bicycles?

[Skylark]

different strokes

 

End result is exactly the same though??

But one option requires vastly less effort and paperwork...

 

You should run the country, I see you have it all sorted in life your champ! I need some advice on my neighbours dogs, sure you can help there too!

 

I'm always ready to help!!

But I honestly don't think you need to be a rocket scientist to see that lay-bye and saved lump sum gets you the identical outcome...

Edited January 3, 2013 by Skylark

[Joeboy69]

Saving for a year at your bank earns interest (or defers interest if you use your bond I save etc). So going the laybuy route should only be considered if the LBS gives you the bike at the prevailing price, e.g, you "save" on price increases. This is however at the risk of a more suitable bike being available when you make the actual purchase later.

 

Each to his/her own though, as long as you get the bike !

[Lexx]

There's a couple of cheap bikes that you can buy in and around Cape Town if you can find the "Coloured" okes that's selling them. The bikes are:

 

Felt F85 road bike – white - size 56

Merida Big Ninety Nine 29’er full suspension – white with blue and black - Large 19"

Merida Scultura 904 Juliet women’s specific carbon road bicycle - small/medium - white with black purple. ( copied from previous posts )

 

[Jody.]

Nobody answered the mans question, just commenting ***

[DonatelloOnPinarello]

2 hours ago, Jody. said:

Nobody answered the mans question, just commenting ***

Yeah, but it’s 8 years later, and now bikes cost R200k, and bike finance 23% interest has become the norm… so what’s the point? 

[ChrisF]

3 hours ago, Jody. said:

Nobody answered the mans question, just commenting ***

Are you wanting to do a laybye purchase ?  The playing field has changed in the last 8 years, and a LOT more in the last two years !!

 

 

There is a very real worldwide shortage of bikes !!

 

 

Doubt any shop will want to sit on bits of money and idle stock for months .... NOT while it has now become so easy to get financing on a bike.  

[Steady Spin]

6 hours ago, Jody. said:

Nobody answered the mans question, just commenting ***

Over 8 years later 

Did you lay-bye that post?

Edited July 31, 2021 by Steady Spin

[gerriemtb]

14 hours ago, Jody. said:

Nobody answered the mans question, just commenting ***

 

[MajG]

14 hours ago, DonatelloOnPinarello said:

Yeah, but it’s 8 years later, and now bikes cost R200k, and bike finance 23% interest has become the norm… so what’s the point? 

Soon some bike shops will allow you to trade your car in for a bike

[ChrisF]

6 minutes ago, MajG said:

Soon some bike shops will allow you to trade your car in for a bike

Pretty sure they will ...

 

https://www.bmwmotorcycles.com › ...
Web results
Genuine BMW Bicycles | BMW Motorrad

 

EDIT ... cant seem to copy the link to their bicycles on the phone ....

 

They have a long history of sweetening the deal on a car with a motorcycle at or even below cost price ....

Edited July 31, 2021 by ChrisF

[DonatelloOnPinarello]

4 minutes ago, MajG said:

Soon some bike shops will allow you to trade your car in for a bike

Seems plausible…. Nothing will surprise me these days.

Thing is, the type of person buying a 100k plus bicycle, surely has to have some kind of financial savvy to have gotten themselves into a position to be able to do so, whether financed or bought cash. 
 

So surely they realise that a R200k automotive purchase, which unless your credit score is worse than your local municipalities, you would be getting an interest rate of 13% or less, and if you pay it off over three years, you would still have an asset worth around R150k. 
 

But financing a 200k bike, your going to be lucky if you get interest under 17% even with a stellar record. Three years later, you will be lucky to get R80k for it.

The likes of Wesbank et al getting behind this, and that the NCR even allows this is beyond comprehension. Giving credit to someone willingly accepting this type of agreement should be considered reckless. 
 

Never-mind the fact that the wholesale acceptance of “financing” over the last decade has had a direct influence in the absolute runaway prices of bikes and other recreational equipment. Not just hear, it’s a world wide issue. Without the backing of the banks, the industry wouldn’t even dream of actually trying to sell 10k USD bikes outside of the realm of the pro racing teams. 

[MajG]

1 hour ago, DonatelloOnPinarello said:

Seems plausible…. Nothing will surprise me these days.

Thing is, the type of person buying a 100k plus bicycle, surely has to have some kind of financial savvy to have gotten themselves into a position to be able to do so, whether financed or bought cash. 
 

So surely they realise that a R200k automotive purchase, which unless your credit score is worse than your local municipalities, you would be getting an interest rate of 13% or less, and if you pay it off over three years, you would still have an asset worth around R150k. 
 

But financing a 200k bike, your going to be lucky if you get interest under 17% even with a stellar record. Three years later, you will be lucky to get R80k for it.

The likes of Wesbank et al getting behind this, and that the NCR even allows this is beyond comprehension. Giving credit to someone willingly accepting this type of agreement should be considered reckless. 
 

Never-mind the fact that the wholesale acceptance of “financing” over the last decade has had a direct influence in the absolute runaway prices of bikes and other recreational equipment. Not just hear, it’s a world wide issue. Without the backing of the banks, the industry wouldn’t even dream of actually trying to sell 10k USD bikes outside of the realm of the pro racing teams. 

I do wonder how financially well off one needs to be to logically pay over R100k-R240k for a bike, then some still need to add interest on that.

I personally would want a 2 fully paid up properties, 3rd investment property and sound savings/investment that is paying off that bike, oh trust me tho I'd love to have a levo sworks sl or Santa Cruz ebike in my possession right now????

To each their own on how they spend their cash/credit ????????

 

The banking industry just found new segment to capitalize on the situation

Jealousy makes me nasty lol

[DonatelloOnPinarello]

On 7/31/2021 at 9:27 PM, MajG said:

I do wonder how financially well off one needs to be to logically pay over R100k-R240k for a bike, then some still need to add interest on that.

I personally would want a 2 fully paid up properties, 3rd investment property and sound savings/investment that is paying off that bike, oh trust me tho I'd love to have a levo sworks sl or Santa Cruz ebike in my possession right now????

To each their own on how they spend their cash/credit ????????

 

The banking industry just found new segment to capitalize on the situation

Jealousy makes me nasty lol

I’m with you on what I would want in the bank before I buy a R150k bike, and even then I would think twice. But, the reality is, the current pricing of bikes simply would not be feasible and possible without financing becoming universally accepted, and it’s has, world wide. to ignore the absolute decimation of the rand over the last decade and a half, let’s just consider this using US MSRP prices. 
 

I will use 2006 as the reference point, because that’s about the same time that stock standard factory bikes became the norm in the pro peloton. The arms race in bike design had reached the point where the standard frames were good enough, and everyone had moved to carbon that was easy enough to mass produce at the exact same quality that you need for the pros. 

In 2006, a Madone 5.2, in exactly the same trim ridden in the world tour, cost $3260. Using official USD inflation, the same bike should cost $4390. But, in the list price today for top end world tour bike, the Domane SLR 7 will set you back a cool $8800. Almost exactly double what the purely inflation based price would be. Sure, tech has advanced, but so has production efficiency, and the overall size of the market. Adjusting for inflation, manufacturing these bikes is now cheaper than it was in 2006. It’s easier to sell them now.

It simply wouldn’t be feasible to sell bikes at that price if people could not finance them. Pricing is always based on what people are willing to pay. Without finance, very few would be willing to pay that. Let’s not even begin to mention the e-bike editions going at $12500…..

they didn’t just take advantage of a new industry to fleece, they enabled the industry to drive pricing into the red, while slowly convincing people the pricing is justifiable.