Bike Life finance, are they legit?

[Goblin]

No discount ?, seems a bit of a rip off. If you want to borrow, borrow cash ,then negotiate a discount with the bikeshop. There are plenty of micro-lenders out there. Not that im advocating getting into debt for a toy, but if you are borrowing money, what right has anyone to tell you how to spend it. Looks like the rules are there to force you to take more.

[N0madADV]

We are not for everyone is if you want to:

1. Go to a discount retailer

2. Go to a micro lender

 

1+2 = End up with a discount from a discount bike shop and a 21%+++ interest rate and pay more overall.

 

We offer competitive interest rates from world class bikes shops and if you are like the lawyers, accountants, doctors, IT professionals, Marketing professionals which we have as customers then we are for you.

 

So knock yourself out and shop around but take your calculator. Trust me you will end up back with us as the best overall deal on the market!

[SimpleDom]

I'm all about doing whatever you can comfortably afford in order to get the bike you'll truly be happy with. If you're able to drop the money up front, good for you. Some can't, but are able to responsibly cover a monthly amount. For this, they pay some interest. If everyone in the transaction feels fairly treated, I don't see any problem. All credit requires people to think for themselves. Something that seems to be a forgotten skill...

[PURE]

To the guys who are looking to finance their bikes there is a couple of other things that you need to consider other than interest rate.

• New loans\credit facilities come with a initiation fee, the NCA allows the fee to be a maximum of 10% of the value of the loan to a maximum of R1000 ex vat so R1140
  
• Credit providers are allowed to charge a maximum monthly fee of R50 + vat = R57 on a loan\credit facilities
  
• Credit providers can make it mandatory for you to have credit life on your loan, they just can't force you to take theirs. This generally ranges around R4 per R1000 borrowed each month, with some places like furniture retailers pushing it over R10
  
• The term of loan - you don't want to be financing a bike for 5 years.
  

When deciding who's and what credit to use, weigh up the total cost (all fees + interest + insurance) to make a informed decision,

 

If you already have another line of credit (credit card,RCP, overdraft access bond), it may be cheaper to use that even thou it has a higher interest rate, because there won't be additional fees or credit life insurance requirements. If you use a existing credit facility up your repayment amount by roughly by what the loan pmt would be or put it on 24 month budget to ensure you pay it off in a reasonable amount of time.

 

Credit card's with repayment's set to 2.5%/ 5% percentage of out standing balances are designed to have repayment periods as long as bonds.

Edited February 2, 2014 by PURE

[Shebeen]

it makes no sense to pay more when you dont have too.

Nail on the head.

[FrankG]

it makes no sense to pay more when you dont have too.

 

Does that apply to houses and cars as well?

[Shebeen]

 

 

Does that apply to houses and cars as well?

Houses can appreciate over time, so then it's an investment decision.

 

Car grudge purchase.but plenty put too much emphasis on their image when buying a car.

 

Bikes... Don't buy what you can't afford

[norm333]

Some good points made here

[PhilipV]

Aaaai. There are people on this thread who will be in unnecessary debt for the rest of their lives. They won't see it as unnecessary though. They will see it as the only way to ride their dream bike. As if they absolutely have to ride their dream bike. Generally the instant satisfaction mindset that our culture has become so absorbed in has fueled our credit bubble.

 

And obviously the bike shops will partner with the finance guys, it will help the shop to move units to customers who previously would not have brought a bike, or would have spent less on the bike.

[FrankG]

I ride a cheap roadbike and don't plan to finance a bike. However, I feel there are a lot of people who cast judgement on those who cannot afford to drop R20k on a bike but whose passion is riding.

 

Car grudge purchase.but plenty put too much emphasis on their image when buying a car.

 

So you are saying it would be better for someone to buy a piece of cr@p for R5k, because then they are debt-free? It would be better to finance a more expensive car and thereby save on maintenance and repair costs. The interest is worth it for the peace of mind of knowing it is unlikely you/your wife or girlfriend/kids aren't going to breakdown at midnight on a deserted road.

 

Same with a bike. Buy a second hand piece of cr@p for a few thousand, but then spend money constantly repairing components from hard riding for which the bike was never intended. If someone enjoys riding, rides alot, can afford monthly repayments, the interest on the bike is the premium for enjoying something they would otherwise have to wait possibly a few years to do. If someone has budgeted properly and sensibly, I see nothing wrong with financing a bike.

 

The OP's post was if Bike Life Finance are legit - however all he has primarily received is financial advice. How about we stop casting judgement without knowing someone's situation?

Edited February 4, 2014 by discostu

[Shebeen]

I ride a cheap roadbike and don't plan to finance a bike. However, I feel there are a lot of people who cast judgement on those who cannot afford to drop R20k on a bike but whose passion is riding.

 

 

 

So you are saying it would be better for someone to buy a piece of cr@p for R5k, because then they are debt-free? It would be better to finance a more expensive car and thereby save on maintenance and repair costs. The interest is worth it for the peace of mind of knowing it is unlikely you/your wife or girlfriend/kids aren't going to breakdown at midnight on a deserted road.

 

Same with a bike. Buy a second hand piece of cr@p for a few thousand, but then spend money constantly repairing components from hard riding for which the bike was never intended. If someone enjoys riding, rides alot, can afford monthly repayments, the interest on the bike is the premium for enjoying something they couldn't ordinarily do.

 

The OP's post was if Bike Life Finance are legit - however all he has primarily received is financial advice. How about we stop casting judgement without knowing someone's situation?

fyi the op was asking about a Santa Cruz tallboy at R65k. I put the dots together, but not a wild assumption.

 

And Ja, people spend way too much money on their cars. And cars are f%*£ing expensive in this country.

[GhostSixFour]

My advice to the OP - don't do it.

Originally you asked about the best bike for R30k

https://community.bikehub.co.za/topic/130978-best-xc-duel-sus-bike-for-around-r30000/?do=findComment&comment=2060651

 

Now suddenly you want to push to R65k?

https://community.bikehub.co.za/topic/135751-2014-santa-cruz-tallboy-carbon-worth-the-money/?do=findComment&comment=2198973

 

So either you saved up the R30k in the months since the original post and decided to loan additional, or you've gone bonkers and decided that since you're taking out a loan you're going all out.

 

If you have saved the monthly loan amount - going by the previous post of the cannondale for R60k - then you'll be paying R2k per month, so having saved that since September you'll have R10k now which can buy you a lot of bike in the classifieds.

[hayleyearth]

I think it is time I leave The Hub, because we are seeing more and more that people are taking loans for bikes. WTH!?

It is truely heart braking for me!

 

My 1st thought is........how much other dept doesnt this person already have to want/have to do this.

Then the 1000s of other thoughts follow.....have you really cut on all other luxuaries till you have enough to buy cash?

 

Is it really necessary to have the latest bike/gadgets? For what? To show off to friends?

SO you find it easier to pay R500pm to the bank than save R350pm (same value in the end).

 

Oh man, I just want to go sleep now again.

[hayleyearth]

My advice to the OP - don't do it.

Originally you asked about the best bike for R30k

http://www.thehubsa....0/#entry2060651

 

Now suddenly you want to push to R65k?

http://www.thehubsa....y/#entry2198973

 

So either you saved up the R30k in the months since the original post and decided to loan additional, or you've gone bonkers and decided that since you're taking out a loan you're going all out.

 

If you have saved the monthly loan amount - going by the previous post of the cannondale for R60k - then you'll be paying R2k per month, so having saved that since September you'll have R10k now which can buy you a lot of bike in the classifieds.

 

AWESOME observation!

[rouxtjie]

To the OP...they look legit so go for it I say.

[Vetseun]

I think it is time I leave The Hub, because we are seeing more and more that people are taking loans for bikes. WTH!?

It is truely heart braking for me!

 

My 1st thought is........how much other dept doesnt this person already have to want/have to do this.

Then the 1000s of other thoughts follow.....have you really cut on all other luxuaries till you have enough to buy cash?

 

Is it really necessary to have the latest bike/gadgets? For what? To show off to friends?

SO you find it easier to pay R500pm to the bank than save R350pm (same value in the end).

 

Oh man, I just want to go sleep now again.

When you go to the computer store, you go to the software DEPT to buy a spell check program. If you pay with your credit card, you are making debt.To get to the store you drive with your car. To stop at the mall you use your car brakes. Otherwise you may bump your car and something will break.