Financing a ride

[Veebee]

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

 

 

yes you save your entire life to buy that 350k car you want, by the time you get to that figure the car will be 700k... so just continue saving

[Eon du Plessis]

or self-insure

Insurance on higher end bikes is fantastic value for money.

I recently claimed for a hundred times my monthly premium, to replace some parts.

[Shebeen]

Bought my MTB on finance from Wesbank. It was a great deal (it was during Cyclelab's annual sale), just didn't have the full purchase price and didn't want to miss the deal.

 

Was a 36 month payment period, with a 10% deposit. As soon as I had the cash (from my annual bonus 10 months later) I settled the outstanding debt in full. Ended up paying (in total, and including finance charges) +/- 15 percent off the normal retail price for the bike. So worked out as a great deal for me.

 

Also, just remember that the interest rate doesn't take into account the upfront "facilitation fee" (or whatever they call it) - with Wesbank it was R1000, as well as the monthly "administration fee" of R57. Worked out that with my deal, I effectively paid about 20 percent interest (after taking into account these extra finance charges), albeit only for 10 months. So the 13.5 percent rate is actually a bit misleading.

 

Point is: do the maths. It ended up being cheaper for me to buy the bike on finance than it would have been if I had saved and waited until I had the cash. And I got my bike much earlier (10 months) than I would have.

 

I had always planned to settle the debt early and not to pay every installment for 36 months. That would have cost me (aside from the pain of having an installment every month for 3 years, with an "asset" that is rapidly depreciating in value).

The kicker here is that it enabled you to get the money now to buy a bike at discount price.

 

in the long run not a bad option, but I'm sure you're the exception to the norm.

[PhilipV]

yes you save your entire life to buy that 350k car you want, by the time you get to that figure the car will be 700k... so just continue saving

Well if you HAVE to buy that car that you desire, then you will probably have debt. But you could always buy a cheaper car.

It is when Wants, Needs and keeping up with the Jones become blurred that we end up making a lot of debt.

 

A mate of mine was moaning about the price of bakkies, they are around 600k now for the Wildtraks and Raiders. Then I pointed out to him that his wife doesn't need 4x4, and a 2.2

XL will be a lot less. He never considered it, because it isn't "good enough" but he couldn't tell me why the Wildtrak is better other than the looks.

 

Same with bikes, we want carbon frames and eagle drive trains to save weight, but most of us are a couple of kg overweight. Our consumer culture leads us to spend more than we really need.

[urbanroyal]

The Wesbank option looks good....there was another company that offered finance as well....but the bike had to be at full price and no early settlement. ...????????????

[rudi-h]

yes you save your entire life to buy that 350k car you want, by the time you get to that figure the car will be 700k... so just continue saving

 

that's why you invest the money that you save...  that way the R350k that you save now keeps growing at likely a higher rate than inflation, so by the time that car is worth R700k, you'll have R800k in the bank.

[porqui]

 

Just another option

 

I bought a 2011 model Giant Trance in 2012 just after the 2013 model had been released.

Paid 2/3s of the original floor price.

 

Often the frame is exactly the same - just components differ.

 

Yes I bought an "old" bike but I'm still smiling.

 

Just remember you can't pay up early on lease or hp (well you can) but no discount.

[Raemondo]

For the guys vehemently against financing bikes in SA...

 

Let's say you lived in the UK and could finance at 0%, would you do it then?

[Patchelicious]

For the guys vehemently against financing bikes in SA...

 

Let's say you lived in the UK and could finance at 0%, would you do it then?

Financing in the U.K. Is big business, one of our clients actually has a finger in that pie.

 

However, remember that in the U.K. Few bicycles are seen as recreational toys.

[Raemondo]

Financing in the U.K. Is big business, one of our clients actually has a finger in that pie.

 

However, remember that in the U.K. Few bicycles are seen as recreational toys.

Ok but would you do it? As then it's essentially just free cash flow without paying a premium

 

 

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[Kalahari Vegmot]

Ok but would you do it? As then it's essentially just free cash flow without paying a premium

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Nope. Still making debt there tjommie

[Patchelicious]

Ok but would you do it? As then it's essentially just free cash flow without paying a premium

 

 

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Personally, no I wouldn't. I would ride a cheaper bike until I have saved up for the one that I like.

 

So instead of buying a bike now on finance, then paying it off for 2 years, after which I want a new one and finance that one again.

 

I'll ather just ride the bike I have now, for the 2 years putting the equivalent monthly payment into a savings account and then buying my dream bike in 2 years.

 

Sorry OP, that was a bit off topic, just wanted to answer a question directed at me.

[Malpiet]

This! The more expensive the bike the more expensive the upkeep. Keeping XTR and Campy Super going smoothly costs an arm and a leg.

Jeez dont talk about Super Record, rear derailleur broke 5k later new one fitted. Replacing a worn out cluster, chain and chain rings so expensive easier to sell the groupo as is and take up running..lol

[pe3nguin]

For years, bro-science has been a thing of amusement.

Today, this thread, gave us...bro-finance.

[Cav']

I financed a bike back in 2011. (went the personal loan route at my bank and got a interest rate of 9.5%) 

Paid it back same as the other guy above, within a year.

 

Would I do it again...

 

No. (unless I lived in the UK)

[milky4130]

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

9% over 12months. the longer the finance term the higher the interest rate went up by.