Financing a ride

[Omlette]

but probably against a higher interest rate where as Bikelife will give you a very competitive & favorable interest rate.

Not sure on Bikelife, Wesbank was 13%. Its always best to shop around

[Bomberman]

I say; if you can afford it  then do it, saving up is not that easy sometimes. Waiting 10 months to buy will just make me loose interests. Unless you can find a cheap bike to keep you going until you save up.

[rudi-h]

I know this isn't what you asked, but i'm going to be that annoying guy saying it anyway... don't!

 

Once you get ahead of debt life becomes so much cheaper, simpler and less stressful.

 

I don't own a single credit card and don't even finance vehicles anymore.  It took 10 years of discipline, driving cheap cars, no TV, no WiFi, often commuting to work on my bike and even for a long stint washing and ironing my own clothes at laundromat on weekends, but I always stuck to the save first and buy later principle.

 

Not claiming to be a financial adviser, but it works for me and I'm very far from being some freak rich kid.  I tried my hand at starting my own business from the age of 28 to 30 which left me completely bankrupt 4 years ago with only a paid up bakkie (old isuzu), two bicycles, a bed and a few pieces of kitchen appliances.  Since then I've been working for a salary so the need and temptation to fall into debt was very close to home for a long time, but last year I managed to buy a new bike and car cash for the first time!

[dave303e]

I had this exact decision a few months back. My bike was aging and has done far to many km's, and it was finance a nice new fancy bike or just fix what you have and stay debt free. I put together a spreadsheet with the upgrades needed to make the bike like new again, and started squirrelling money away left right and center, 9 weeks later I have a new drivetrain, new wheels, new handlebars and seatpost on the way and all of them far better specced that what was on the bike before. Next purchase will be a frame and then it will pretty much be a new bike, with the exact compnonents I want.

[PeterF]

Remember to factor in the cost of insurance if you go this route.

[Veebee]

Remember to factor in the cost of insurance if you go this route.

 

you still have to insure your bike anyway... finance or cash, doesnt matter

[PeterF]

you still have to insure your bike anyway... finance or cash, doesnt matter

Actually if you buy cash you don't have to insure it, but if you finance it you do have to.

[Veebee]

Actually if you buy cash you don't have to insure it, but if you finance it you do have to.

 

we live in SA, so it will be very stupid not to insure it even if you buy cash.

[cdevil]

Unless you wan't to die poor, never finance depreciating assets.

[gtr1]

Example

R52 000.

Deposit would be R5200

Payment term would be 36 months min (from Wesbank if im not mistaken)

Interest rate 13%

Monthly installment R1 685.61

Total payment at the end of the term would be roughly R65 881.91[/size]

if you can afford the monthly payments comfortably, then why not.

Once you have done this calc you need to weigh that up against the potential future cost of the bike. Which is a bit of an unknown but take an educated guess the way prices go up.

[Off_da_brakes]

Personally, I would never finance a ride regardless of how the numbers work out. I’d rather save up (for a shorter period) and look for a decent second hand bike if I can’t afford to buy new for cash. Second hand gems do pop up every now and again – just browse through the classifieds. You may land up buying a bike that is a year or two old and you may have to replace a couple of wear and tear items. At least the bike is then yours and you have no further commitments on it and you’ve not paid an arm and leg (new price + finance charges) relative to your financial circumstances.

 

The question I ask is why I should buy a brand new ride as opposed to second hand (specifically in the context of having to finance a ride)? Plausible answers (not limited to):

1. The looks
2. Weight (or rather lack thereof)
3. New technology/design/standards
4. Latest geometry trends

I’d then ask myself whether any of the reasons above are worth paying new price plus financing charges for? For me, the answer would be no. I’d rather wait until second hand bikes that meet my requirements start hitting the market.

 

That’s my view. If you choose to finance, then awesome, congrats and enjoy your new ride.

[mudda]

Unless you wan't to die poor, never finance depreciating assets.

 

errrmmm all cars should have insurance - and they depreciate a lot - ask the ford kuga owners ... its like having a paid up car and then driving into a ferrari ... the insurance company will be coming for you

 

then you go and buy a 60k bike and have it stolen ... i think insurance is a good idea ... and hey - if you fall and break something - you get a replacement ...

[Off_da_brakes]

we live in SA, so it will be very stupid not to insure it even if you buy cash.

or self-insure

[Robbie Stewart]

Unless you wan't to die poor, never finance depreciating assets.

 

....so don't buy a car on HP? Got it, thanks.

[Jurgens Smit]

The best advice in this thread would be from the guys that say if you can afford it do it.

 

I financed my road and mtb through Bikelife and would do it again in a heartbeat. Unfortunately the remainder left of my salary vs lifestyle expenses is just not good enough to be able to save 60k - 100k and buy cash.

 

Just be sure to keep in mind that it will be an extra 2k (premium + insurance) that you won't have left to spend on yourself or your chick.

[eddy]

....so don't buy a car on HP? Got it, thanks.

Correct. It is a pleasure.