Bike finance

[KarlvN]

So I am no accountant, although my better half is studying to become one. My opinion is that I would rather ride the bike I paid cash for, or buy well looked after cash, than finance. Reading what has been said till now only proves that to finance a toy is not such a great idea. I am currently paying of my two vehicles, and I managed to buy my first house last year. On that note my father in law made us a loan which enabled us to pay cash for the house, so we do not have a mortgage, but I still have to pay him back, considerably less per month than the bank would have nailed me for. So now I am taking that little bit extra and dumping it into my cars to get them paid sooner. I should be done in a little over a year from now. After that, the total amount of money I am going to save will be chucked into my old age nesteggs. A portion will be held back to save up for my dream bike, which will still not be anywhere near R60k.

 

But until then I will ride that aluminium 29er hard tail till it cant no more.

[Rider3000]

Such an easy answer to the problem... i always say.. save and buy cash, if you cant then finance something you can pay off fast. Interest in the loooooong run bites you in the @s!

 

A little interest now (very short term) wont break your bank.

 

For the bike... use this formula - buy what makes you happy:

 

( happy + Budget )= The right deal! 

[popcorn_skollie]

So I am no accountant, although my better half is studying to become one. My opinion is that I would rather ride the bike I paid cash for, or buy well looked after cash, than finance. Reading what has been said till now only proves that to finance a toy is not such a great idea. I am currently paying of my two vehicles, and I managed to buy my first house last year. On that note my father in law made us a loan which enabled us to pay cash for the house, so we do not have a mortgage, but I still have to pay him back, considerably less per month than the bank would have nailed me for. So now I am taking that little bit extra and dumping it into my cars to get them paid sooner. I should be done in a little over a year from now. After that, the total amount of money I am going to save will be chucked into my old age nesteggs. A portion will be held back to save up for my dream bike, which will still not be anywhere near R60k.

 

But until then I will ride that aluminium 29er hard tail till it cant no more.

 

Jyt mos a lekker skoonpa

[MeridaHFS]

Quick question to the gurus on the hub, I bought a loft apartment 10yrs ago as an investment/rental income. Rent is currently equal to bond payment. Next year it will start "earning" me money. Also sold my primary residence 5 months ago and bought a new place in Durbanville. With the money I made on the old house I got the bond payment very close to the old one. I've recently bought my second fortuner because it costs next to nothing to keep on the road. Should I rather pay the tuna off as quick as possible or use the extra income to pay off the flat I initially bought as investment?

[DIPSLICK]

everyone is goint to come with interest rates, PERSONALLY i would pay the property as quick as possible, simply for me a car is 4 pieces of rubber costing you money, that property is an income, 

and no i am no guru

[Escapee..]

Armpies Calling Armpies

[Captain Fastbastard Mayhem]

Quick question to the gurus on the hub, I bought a loft apartment 10yrs ago as an investment/rental income. Rent is currently equal to bond payment. Next year it will start "earning" me money. Also sold my primary residence 5 months ago and bought a new place in Durbanville. With the money I made on the old house I got the bond payment very close to the old one. I've recently bought my second fortuner because it costs next to nothing to keep on the road. Should I rather pay the tuna off as quick as possible or use the extra income to pay off the flat I initially bought as investment?

Neither. 

 

Invest the cash direct with AG in a selection of funds. Revel in the fact that the extra income will continue to grow, with the property's value, and your bond value will be insignificant in 10 years time when compared with the funds that you've invested.

 

If you were forced to choose, pay off the bond. Because the car is a depreciating toy and should be financed for as long as you can. But don't. Invest the cash into an equity based investment, as it's a monthly contribution and you can benefit from something called Rand Cost Averaging - effectively letting your monthly contribution time the market for you.

[DIPSLICK]

el captain what company do you work for, and what is your speciality as a matter of interest

[Captain Fastbastard Mayhem]

el captain what company do you work for, and what is your speciality as a matter of interest

Rodney Stein Financial Services - we're an independent brokerage, running in the life assurance and investment space, while also looking after med aid if our clients want / need us to. 

 

We have commission codes (contracts) with all the major life assurance companies and investment houses, but we predominately place our life business through Discovery as we are HEAVILY into the whole Vitality thing (we host all the wellness days and pay for them too) but we are looking at doing the same thing for Multiply in the future. We are doing something slightly different to the norm when placing clients with Discovery though, which is also why we're so focused on Vitality. Using it as an investment instead of just life cover... 

 

On the investment side - we base the majority of our business through Allan Gray as there is quite simply no other platform that can touch it in terms of fees, unless you're a high-level tied Momentum agent who has access to their preferential rates (which also are only just in line with Allan Gray) but we focus heavily on wealth creation, and we're getting an ever increasing amount of business through transferring clients from expensive investments to cheaper ones (a lot of that involves cancelling life insurance company investments, even if there are fees involved - a lot of the time the fees on the cancelled investment are SO high that you can work off a 15% penalty in 5 years, and have 20% more capital within 10-15 than if you had stayed there)

 

Our focus is moving ever so slightly to investment specialization, and we're trying to educate our clients at the same time so that they understand the what / how / why / when etc. 

 

In a nutshell -- we try to help our clients on the road to financial independence. Effectively getting enough of a nestegg in place to replace their income on a permanent basis without digging into the capital. A lot of that involves understanding the different sources of income and how best to place it, and ensuring that they understand the importance of putting enough away and staying away from toxic debt...

[DIPSLICK]

ok

[Captain Fastbastard Mayhem]

ok

LOL. 

 

Okay. I try to make people rich. 

 

It involves a lot of analysis and spreadsheeting, and looking at numbers, scratching heads and pulling hair out when I ask for details from certain providers, and they actually play dumb to prevent you from getting the right information. 

 

I'll give you an example. I ask for a transactional statement. Should show every transaction on an investment for the past, say, 3 months - like you see on your bank statement, right? 

 

How many different times do you think I have to tell them that what they've sent me is not what I asked for? The record is now 3 weeks before they send me the proper thing. 

[EugeneS]

It's like buying a car with residual. May seem like a good idea at the time but you're bound to regret it later...

Or a balloon payment, even worse.

[GraemeS]

In the UK the trade association there, the Association of Cycle Traders, has negotiated for 0% interest deals through the banks for bike financing. They do this and a lot more for independent cycle shops. Maybe it is time we had or own trade association? I am not to sure however how something like this would be affected by our competition legislation?

[Captain Fastbastard Mayhem]

Or a balloon payment, even worse.

Only if done the wrong way. Done the right way (which I reckon only 1 in 10 balloon payment people do, if that) and it's one of the best ways to buy a car. 

[Captain Fastbastard Mayhem]

In the UK the trade association there, the Association of Cycle Traders, has negotiated for 0% interest deals through the banks for bike financing. They do this and a lot more for independent cycle shops. Maybe it is time we had or own trade association? I am not to sure however how something like this would be affected by our competition legislation?

it's also possible thanks to the UK's ridiculously low interest rates. When I was there in '03 - '07 it was already low. After the crash in 2008, it's hovering around the 0% rate. So it's possible there. Not here, where our prime rate is around the 9~10% range. 

[fabes]

Only if done the wrong way. Done the right way (which I reckon only 1 in 10 balloon payment people do, if that) and it's one of the best ways to buy a car. 

Explain. I am in the market for a car at the moment and thinking how to go about it