Financing a ride

[Omlette]

You are trying to make an impulsive decision an Investment decision. But that is false economy.

 

Look at it this way.

 

You buy the R52 000 bike today and as calculated end up having a three year commitment to pay R65k.

 

As you wheel your bike out the shop it is worth only R40k but you still owe the R65.

 

A year later and you would be lucky to get R25k for it in a rushed sale. After 3 years you are riding a 3 year old, very expensive bicycle.

 

Or, you could save hard for 18 months and buy the same bike second hand but for cash.

 

It will cost around 60% less and you will riding the same bike.

correct ^^^

take a scott spark 920 rrp for 2016 52k, 2017 model 62k - 19.3% increase next 3 years at that increases your current 62k bike will become 105k, save hard if you want to be one of the first to own a 2020 model.

 

if you currently own a bike and don't owe anything on it, then the best is to save as much as you can and buy the model you want when it goes on special, cash. I prefer to buy from lbs as I get the warranty, 2nd hand you basically buying a "voetstoets".

[eddy]

This doesn't take into account the "value" of a warranty on a new bike . having a frame replaced in a year when the frame cracks has to be worth something ?

 

Valid point, but I have probably owned 25 bicycles in my life and have never needed to make a warrantee claim.

 

Paying a  premium in excess of 100% of the frame value for that security is a bit steep IMO.

[Patchelicious]

Valid point, but I have probably owned 25 bicycles in my life and have never needed to make a warrantee claim.

 

Paying a premium in excess of 100% of the frame value for that security is a bit steep IMO.

Besides, there are companies that offer "warranties" as VAPs these days.... Edited February 7, 2017 by Patchelicious

[Milosh]

Agree on warranty and the 18 months  without  a bike ;-) 

 

or worse a cheapo that puts you off cycling and sends you elsewhere ! 

 

The deprecation is however a significant factor that kills the idea 

[Jaco-fiets]

Back to OP.

 

What are the current finance options on the table for you?

 

Also, are there special terms? Eg: A finance company might insist that you use their insurance arm, which might give you unfavorable terms....

At this stage I am only doing this exercise to see what are the costs involved in going this route. I am very happy with both my mtb and road bike. Replacement value of my current mtb is about 80K. I'm just itching to have the new 2017 Si that's all

 

Want to see which institutions the guys recommend. It seems like Wesbank and Bikelife would be the 2 options at this stage.

Edited February 7, 2017 by Jaco-fiets

[Bergbok]

I find this fascinating( but have not done it) 

 

Compare the above to the scenario of saving that amount for three years and than  bike you have being saving for has gone up to R75k and you cant afford it and not having had use of bike for 3 years 

 

You are essentially taking a put / call type option on the bike,  betting against fiance cost vs bike inflation and  Rand / $

 

or just gambling ;-)

 

You are essentially taking a put / call type option on the bike,  betting against fiance cost vs bike inflation and  Rand / $

 

This, I thought about trying to explain this but thought it would be too complicated.

[Patchelicious]

At this stage I am only doing this exercise to see what are the costs involved in going this route. I am very happy with both my mtb and road bike. Replacement value of my current mtb is about 80K. I'm just itching to have the new 2017 Si that's all

 

Want to see which institutions the guys recommend. It seems like Wesbank and Bikelife would be the 2 options at this stage.

Would be good to see the T&C from each one. I was getting the sense from this thread that Wesbank has more support here?

[Magnetic]

Buying things to impress people you dont know or like with money you dont have.

 

O the ego always needs to be served.

 

Goodenough vs perfect.

 

Credit drives up the prices - as it creates an artificial market.

 

If people bought what they could afford, the top end bikes woulndt be as expensive. - this is a global phenomenon . Cheap credit drives up prices.

 

Stop being a dave and be a Stu

[Kalahari Vegmot]

*

Edited February 7, 2017 by Kalahari Vegmot

[Captain Fastbastard Mayhem]

Buying things to impress people you dont know or like with money you dont have.

 

O the ego always needs to be served.

 

Goodenough vs perfect.

 

Credit drives up the prices - as it creates an artificial market.

 

If people bought what they could afford, the top end bikes woulndt be as expensive. - this is a global phenomenon . Cheap credit drives up prices.

 

Stop being a dave and be a Stu

Top end bikes have been around $7000 to $8000 for the past 20 years. Only thing that's changed is the exchange rate.

[Magnetic]

http://www.competitivecyclist.com/pinarello-f8-limited-edition-featured-road-bike-2015?skidn=PIN001Z-NAK-S46CM&ti=OlBpbmFyZWxsbzoxOjEyOg==

 

 

 

$15k.... not only exchange rate... reducing it to that is an over simplified view.

[GLuvsMtb]

Buying things to impress people you dont know or like with money you dont have.

 

O the ego always needs to be served.

 

Goodenough vs perfect.

 

Credit drives up the prices - as it creates an artificial market.

 

If people bought what they could afford, the top end bikes woulndt be as expensive. - this is a global phenomenon . Cheap credit drives up prices.

 

Stop being a dave and be a Stu

So I take it that your car is paid up?

The rule for me is not to finance an item beyond its life expectancy - residual value at the end of its life expectancy. I.e. Don't buy a bike over 5 years if you expect it to last only 2 years and at 2 years the residual value is less than 60% of the original value.

[BigDL]

Interesting- we are moving next month and I am selling one of our cars - payment is only £170 per month, but when I add fuel, parking, licencing, servicing, insurance and cleaning, it comes out at around £490 per month. Where our new house is, the kids can catch the school bus and I can cycle to work.

 

My intention was to justify the purchase of a new road bike to replace my 20 year old bike, on a zero percent finance deal, by using the savings that we would make on the car. However, after reading this thread, I think that I shall rather use the money to pay off the balance of the debt that we have from emigrating here and perhaps save a portion towards a new bike. Sucks to make mature choices sometimes [emoji23]

[NotSoBigBen]

You guys know how to suck the fun right out of wanting to buy or ride a decent bike ????

[HBO]

If you do have a nice bike, why want to upgrade? Each has his own opinion, which is fair and I guess if you can comfortably afford the monthly payment, then why not?

 

Personally I would rather save that amount you're willing to spend on a new bike on a decent investment towards retirement. For me it's much more important to still ride the Argus in 20 - 30 years time (hell even longer) with a 30 year old bike, than to have a new bike every 3 - 5 years but then at retirement can't afford to go down for CT for the Argus.

 

I absolutely love it to see all these ou omies en tannies on their 1980 steel models having fun around the peninsula.  

[GLuvsMtb]

If you do have a nice bike, why want to upgrade? Each has his own opinion, which is fair and I guess if you can comfortably afford the monthly payment, then why not?

 

Personally I would rather save that amount you're willing to spend on a new bike on a decent investment towards retirement. For me it's much more important to still ride the Argus in 20 - 30 years time (hell even longer) with a 30 year old bike, than to have a new bike every 3 - 5 years but then at retirement can't afford to go down for CT for the Argus.

 

I absolutely love it to see all these ou omies en tannies on their 1980 steel models having fun around the peninsula.  

It reminds me about a guy sitting in a bar and smoking. His friend asked him "How much do you smoke a day?", he ansered "20 a day, for the last 40 years). The friend then told him "You know you could have bought a Ferrari with all that money spent on cigarettes over the last 40 years!". The guy slowly turns to his friend and asks: "So where is your Ferrari?"