Bike Life finance, are they legit?

[Scott2luvit]

wish I knew about this, Both my bikes were on overdraft, heck all the parts and races as well and now after a couple of years lekker spending and riding bikes I sit with cash flow issues..... but then again, if it wasn't for the overdraft I would probably still be sitting in front of my TV instead of enjoying my new drug

Edited February 4, 2014 by Mr.E

[hayleyearth]

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.

 

[pierre-]

.

Edited January 13, 2015 by pierre-

[Shebeen]

I have my bike from them and happy to say so.

the choice was to use the credit card or use bike for life. credit card is financed but by another name "credit card"

the choice was simple bike for life.

the interest on the credit card was far higher.

 

the paperwork took less time than it took the bike shop to put the bike together.

 

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

care to share what your interest rate is? any additional monthly or initial costs?

 

I was in a bike shop the other day and a guy was buying a 60k Cannondale Evo through this crowd. He was going to pay 2k a month for three years. So interest rate was around10%. The bike shop was going to have to give them 10% but they were happy enough as it was a bike they wouldn't have sold anyway. Also the bike shop was not allowed to give discount under the rules of the scheme. Customer had to pay full RRP. I think it sounds like a really good deal to me and will definitely consider for future purchases whether I can afford cash or not.Where else can you get such cheap credit? Use your cash for something else.

AFAIK,

R60k loan over 36 months with R2k payments is 13% interest (finance whizzes can correct me here - =RATE(36,-2000,60000,0,1,10%)*12

 

if there's monthly fee of R57 and initiation fee of R1000 then it climbs to 16.3%

=RATE(36,-2057,59000,0,1,10%)*12

[andydude]

AFAIK, the bike is not held as security against the loan as it is with car finance or a home loan. I guess they realise that the bike depreciates so fast that it isn't really worth repossessing it to cover the loan anyway. From their Ts&Cs it looks like you basically are taking out a personal loan, nothing else. So don't expect to see repos, but do expect to see guys trying to sell bikes to cover debt. Depreciation means they'll possibly get 50% of the bike value back, and still be responsible for the rest of a 100% loan. No bike + chunk of debt = ***.

 

 

 

Are you guys registered credit providers in terms of the NCA?

 

Good question. I checked for a few variations on the http://www.ncr.org.za/register_of_registrants/cp.php website, but couldn't find anything. I also couldn't find anything on their http://www.bikelife.co.za/ website. I'm sure it's law that you have to state your number quite clearly and upfront?

 

And I'm sure he'll give us the number when he reads this. Hopefully.

[Devlin Fogg]

Hey guys. Thanks so much for all the questions and views on financing bikes and our Bike Life Finance option. You guys all ask valid questions.

Firstly, we dont and dont want to hold the bike as surety, this much is correct.

With regards to the NCA, we are bound by their laws and have formally registered. There is a LONG lead time till you actually get your number from them, and can advertise this. There is actually allowance made for this in the law which allows you a certain number of deals and a deal value, after which you need to apply. Fortunately for us, that point came very quickly and we are eagerly awaiting our number. You are welcome to read Chapter 3 paragraph 40 to 42 of the act. (I'm not joking)

Bottom line, we are registered with and governed by the NCA and abide by its laws.

I hope that clears things up.

Keep the questions coming, we love to hear from you.

Feel free to contact me directly on devlin@bikelife.co.za if you need to know anything else.

[Skubarra]

the choice was to use the credit card or use bike for life. credit card is financed but by another name "credit card"

the choice was simple bike for life.

the interest on the credit card was far higher.

 

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

 

no, actually you also had a choice to save for your toy first, you only took the "slightly less-worse option" than buying it on your credit card

[Shebeen]

I'm just skeptical of ALL unsecured lending, everything from wonga to Joshua Doore to even the big banks who really should know better.

 

There is a legal way to lend money, but giving credit to people who "shouldn't" receive it is unethical. The debt trap is a well known phenomenon, and our NCA does try to eradicate it(not enough imho). Huge grey area here, and not pointing fingers at this outfit in anyway until we have more facts.

 

this is not the first time this sort of thing has cropped up, trail went quiet on these guys...anyone with them?

https://community.bikehub.co.za/topic/116782-karoo-bicycle-finance-wtf/page__st__64

they are still around. http://www.karoofinance.co.za/

[Steven Knoetze (sk27)]

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.

 

I think there a lot of people who don't have the discipline to save.

Easy to spend what you have put away when you see something whereas with a loan repayment you know what you are in for and just pay.

 

Not everybody has the will power to put money away and forget about it.

[Skubarra]

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...

 

You start off with a decent argument and then go and you shoot your own argument down with your closing statement...

 

That's the problem isn't it, people not applying their minds when it comes to credit. That's why we have so many people wallowing in debt.

[Shebeen]

so anyone gone through with this??plenty of ads up and lots of views.

[PhilipV]

I chatted to mate at the local Specialized store. They have a 3rd party company offering finance for bikes at 22%interest. (not Bike-Life)

He says they do a couple of sales through them a month.

[pierre-]

.

Edited January 13, 2015 by pierre-

[andydude]

Eish. 22%. Loan sharks :thumbdown:

 

22% is still ok. Maximum allowed is about 30%, but then they add all the other fees!

[Jigghead]

I financed my first bike through RCS, over 6 months. It was offered as an option and I took it because I was not willing to wait six months to begin my love affair.

 

Don't judge peeps, I'm not a big fan of debt, nor do I appear to be a big fan of saving (read: waiting for goodies I've already decided to buy).

 

So, the interest was something I was prepared to pay in order to satisfy my requirement for instant gratification. Paid cash for the next ones so I suppose that's a little better, but each to his own, we're all grown ups (except when we're playing in the mud on our bikes ).

Edited February 19, 2014 by Jigghead

[jimmycool]

we're all grown ups (except when we're playing in the mud on our bikes ).

 

Or when we're slinging mud on thehub.