Bike finance

[Vetseun]

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

Im gonna buy a Raleigh with a 80% residual value. Financed over 60 months. After 60 months Ill flog it over the hub and finance another one

[Andrew Steer]

Im gonna buy a Raleigh with a 80% residual value. Financed over 60 months. After 60 months Ill flog it over the hub and finance another one

 

I wouldn't expect anything else from you 

[dirtypot]

El Cap - what's the benefit with going through someone like you, as opposed to just investing myself with AG?

 

I currently invest with them and I've had no issues and steady growth.  They even send me a very nice magazine with reports and things that I don't understand...

Surely going through you guys would mean less growth of the investment?  Or can you make the investment work even better to negate that?

[arabsandals]

I am not sure whether this is a rant or a rave. But one of the advertisements that pops up on the screen when I open thehubsa is for bike finance.

I can buy x bike for a nominal fee of R1.1k/month (or thereabouts)

Rant side:Now I am just wondering if a person SHOULD buy a bike and pay off R40/day on a bicycle. Should that person not be looking at lower level bikes? We all know how fast bikes loose their value. As soon as it is second hand, you will be lucky if you can get 60% of the original price.

On the Rave side: It is really nice to be riding the bike you really want. And you will probably ride it a lot more than a guy with lots of moola who bought it just to prove 'he is the man' 

Adblock?

[Captain Fastbastard Mayhem]

El Cap - what's the benefit with going through someone like you, as opposed to just investing myself with AG?

 

I currently invest with them and I've had no issues and steady growth.  They even send me a very nice magazine with reports and things that I don't understand...

Surely going through you guys would mean less growth of the investment?  Or can you make the investment work even better to negate that?

Because I'm awesome.

 

heh. No, really - serious time now. 

 

If you invest through me, you're looking at an additional charge of between 0.5 & 1% p/a over and above the normal Allan Gray charges of approx 0.1% p/a plus the underlying fund fees. 

 

So ya, you do lose out on the fees side, and if you're already investing in AG or a low cost investment such as Coronation / Investec / Marriott etc and are just looking at investing in a single fund, then you won't gain anything else by going through someone like me.

 

Where I add value is in the things over and above that. Telin gyou how much you should be saving, where you should be putting your cash, how you should be investing, the benefits of investing here vs there and in many cases I actually save my clients 2-3% p/a by moving them out of the Life Insurance company based investments into the cheaper investments like AG etc. 

 

I also have a relationship with a certain asset manager that offers the opportunity to achieve market-related returns with a significantly lower risk (volatility) than if you were investing in a single fund alone and left it alone to grow by itself (designed for us by a very very clever guy - we have sole use of it at the moment)

 

I also offer annual revisions / quarterly revisions and monitor the investments and whatever else you have with me on a daily basis, and have access to people far smarter than me to give me updates on the investment market as a whole, as well as any new products / tips / tricks that are coming up in the market.

 

I also know what a *** product looks like, and can tell you in no certain terms to stay away from it. 

 

It's a whole lot more than that though. LOTS of admin, LOTS of back-end analysis and telling people how much they can afford to draw from their investments or how much they need to be insured for and so on. A lot of the time I fix broken portfolios and just plain bad advice. 

 

Consider that on a R 500 p/m investment I would be charging 1% per year - that's R 0.41 in the first month, R 0.83 in the 2nd etc etc. After the first year I'm making a whopping R 12 per month, and I'm incentivized to make sure it performs properly. 

 

Also - I charge the fee to give advice and info on all aspects of financial planning. 

 

So ja - you will lose out by 0.5-1% p/a if you're already invested with AG and I take it over. But if I take it over you'll gain in lower volatility and a dedicated person with whom to discuss stuff like this with - and who is directly involved with making sure you make more money. Cos if you make more money, I make more money. Simple. 

 

Plus a bit more. 

 

 

PS: I'm also a lekker oke, mostly. 

[Captain Fastbastard Mayhem]

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

 

 

Okay - quite simply, you need to be able to afford the payment without a balloon for this to be a viable option. 

 

Say the normal payment is 4k per month and the payment with the balloon is 3k. Budget on the 4k, opt for the balloon payment, invest the difference and as long as the loan rate is lower than the return you're getting on your investment (easy as long as you don't invest in a money market or something similar) then you'll be able to pay off the balloon at the end of the 5 or 6 years (or even sooner) with some cash to spare.