Josh0 Posted October 10, 2014 Posted October 10, 2014 Good Friday morning everyone I am thinking of applying for a personal loan to treat myself to my dream frame. I will only have to borrow R35 000 and I can pay it off in 18 months. I would like to ask you hubbers that has done this, where would I get the best deal? I can buy the frameset with my savings, but I think I'd rather pay a bit more and spread it out. Thanx in advance!
SimpleDom Posted October 10, 2014 Posted October 10, 2014 If it's only 18 months, put the money away for this time and then pay cash for it. To each their own though.....
flat29 Posted October 10, 2014 Posted October 10, 2014 I would save my money until I have enough to pay it cash. Don't take a loan for a toy. My 2 c If you take R35 000 + 18% for loan then it is R41 300
Guest DieBees Posted October 10, 2014 Posted October 10, 2014 Dont do it is my advice! With respect, if you cant buy it cash, you cant afford it. Rather open a seperate account and put the same amount in that account that you would have paid back on the loan and you will have the money in 12 months max. I dont have buckets of cash and do it this way.
Steven Knoetze (sk27) Posted October 10, 2014 Posted October 10, 2014 Bike life is your best bet.24 months has 12% interest and theu will finance a frameset.pay it off sooner and you'll get closer to 10% interest.Good luck.
Captain Fastbastard Mayhem Posted October 10, 2014 Posted October 10, 2014 As SK says, Bike life is probably your best bet. A personal loan from a bank will cost more in terms of interest, and you don't want to go for those short term lenders - they will fleece you on interest and generally charge far higher admin fees than the rest. If you can't splurge it now, and need to finance it (or want to finance it to lessen the blow that it makes to your current affordability) then go the way of Bike Life. Alternatively, if you have an access bond and have the available capital in there, use that facility as it will be lower interest than Bike Life can give you (as long as you go for the same approach and pay it off over the 18 month period) Yes, cash is king. But 35k is a lot to just drop on a frame, and IMO if you get a good interest rate, it's an option you can take. If the Bike Life option doesn't work out, though, and you don't have an access bond, rather buy it cash. The other finance options are hugely expensive.
Super Sywurm Posted October 10, 2014 Posted October 10, 2014 If you can't pay cash for a bike, don't buy it. I was tempted (and still are) to buy bikes on loan, but I keep telling myself that it's not worth making debt. I have a 'nice' bike and it can ride any race a new bike can ride.
Scott2luvit Posted October 10, 2014 Posted October 10, 2014 what is the real interest rate if you add up all the admin fees etc as well? I see even Bike Life has something like a 2 grand they add even before you start paying
Shebeen Posted October 10, 2014 Posted October 10, 2014 borrow money to pay for a dream.ha ha, sounds more like a nightmare! a R35k frameset new will instantly be worth ~R25k once you take delivery. and if you end up paying ~R41k by the time you own it it will be ~15k. are the memories worth ~26k. only you can decide on that.
Captain Fastbastard Mayhem Posted October 10, 2014 Posted October 10, 2014 borrow money to pay for a dream.ha ha, sounds more like a nightmare! a R35k frameset new will instantly be worth ~R25k once you take delivery. and if you end up paying ~R41k by the time you own it it will be ~15k. are the memories worth ~26k. only you can decide on that. Exactly the same concept when buying a car, bro. Over time I've come to realise that the old thing of only buying "toys" with cash is a bit of a short-sighted mantra. If you do it properly, with reasonable interest rates, there's no reason you shouldn't be allowed to finance things like that.
DR ◣◢ Posted October 10, 2014 Posted October 10, 2014 Dude, dip into your savings and pay yourself back with interest. That way you win all the way. Personal loans are *** and the interest rates are high. Not worth going into debt for luxuries.
Hairy Posted October 10, 2014 Posted October 10, 2014 If you take that repayment you would be making over 18months, put into an account with reasonable interest you will end up with more than the bike will cost you today. So essentially your expensive bike + the interest you would pay to a 3rd party and the interest you get from the bank = more money!
Escapee.. Posted October 10, 2014 Posted October 10, 2014 Ja dude rather save the money, then 18 months from now that frame will be very old and there will be new frame that will cost more so then you can just continue saving again and again and again
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