Vanzyl Posted June 29, 2014 Posted June 29, 2014 Why are we paying such high interest rates on our bikes here in South Africa with financing when other countries can provide much more affordable financing?
fanievb Posted June 29, 2014 Posted June 29, 2014 Don't make debt for toys that's whyThey are simply using the rates prescribed by the NCA
Captain Fastbastard Mayhem Posted June 29, 2014 Posted June 29, 2014 Also linked to our prime rare of lending, and is based on a personal loan. Which normally has inflated interest rates. Nothing new.
shaper Posted June 29, 2014 Posted June 29, 2014 Better to save until you can afford it for toys like bikes
DIPSLICK Posted June 29, 2014 Posted June 29, 2014 Buy last years, or previous years models, NEVER finance toys
burty Posted June 29, 2014 Posted June 29, 2014 I don't think its a bad thing, people finance boats, caravans motor bikes etc why not bicycles. If you pay within the first year its at 8% which is not that OTT but f you do 24 months then it does become OTT . I would do it if that dream bike came up
norm333 Posted June 29, 2014 Posted June 29, 2014 We all have our own ways If you need a bike then this can work if you can't wait Don't judge because others can't buy outright It is expensive but works for many
Johny Bravo Posted June 29, 2014 Posted June 29, 2014 All I can say is avoid bike life finance. They are skelms for sure. A mate of mine wanted to finance a bike, first of all, they charge you full price for the bike, you are not allowed discount. Even if the shop offers you 10 or 20 percent disocunt, they will not finance it unless it is full price. My mate could get a Specialized bike from dealer for 25 percent off, instead of 60k the bike was 45 grand. Huge bargain, so he thought of financing it. They will only finance the bike at full price, and chuck on a 2 grand service plan, which is useless, a service only costs R350. Interest rate is waaay above prime. Just not worth it.
Vanzyl Posted June 29, 2014 Author Posted June 29, 2014 We offer 6 months 0% finance on bikes £275 and up We offer 12 months 0% finance on bikes £275 and up We offer 18 months 0% finance on bikes of £500 and up We offer 24 months 0% finance on bikes of £1000 and up We offer 36 months 0% finance on bikes of £2000 and up This is an example of a UK finance group, now I'm not moaning about financing, as mentioned by others it's your own choice to finance whatever you want regardless of what some here might believe!  But I do think finance for the first 12 months should be cheaper and then after that up to 5% or whatever! I used the uk model to buy my scott scale and it was brilliant.  Financing bikes is a great idea but the current finance plans are too expensive!!!
sometime Posted June 29, 2014 Posted June 29, 2014 Simple economics. These finance companies need to source funding themselves and the market/investors will not fund these guys at low rates. Add to that the fact that small ticket personal loans are expensive to administer add a suitable bad debt provision plus the fact that you want to make a profit, all means you will get rates you're seeing. If you can do it better and cheaper, go for it. If you don't like the rates then don't use them. If you want the bike now and can afford the monthly repayments but not the purchase price then go for it.
craig82 Posted June 29, 2014 Posted June 29, 2014 Why attack bike life finance specifically? Their prices are the best I have seen in our country,You are not comparing apples with apples.
Vanzyl Posted June 29, 2014 Author Posted June 29, 2014 Nobody is attacking anyone so just relax, I'm just asking a simple question. Their interest rates are high and there is not any real competition......if a cheaper finance scheme can work elsewhere then it could work here. I guarantee bicycle shops would earn way more if the financing was cheaper and that's simple economics "sometime"!!!
shaper Posted June 29, 2014 Posted June 29, 2014 Cheapest finance option, add to your bond if you have one if you have to have the bike and cannot wait until you have saved for it. Cheapest rate over a longer period, especially if you have a flexi bond where you can take money out.
DIPSLICK Posted June 29, 2014 Posted June 29, 2014 I don't know me personally, if I wanted a "new ride/upgrade" and I couldn't afford one this is how I would go about it,*start saving* TROL the classifieds, * ask around lots of mates always doing "upgrades" sitting with parts that are still 100% and you could slowly start building the bike you want piece by piece,* I know plenty of bike shops who help guys with a loose second hand part here and there* bikes generally have no resale so there are a few rich buggers out there who buy a nice machine use it once or twice and it dies hanging in the garage, so place a ad asking for help! "good hardly used bike cheap cheap please help" , type of adÂ
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