Bikelife finance

[Escapee..]

I see you called me. I am actually pro-finance and if you search through the other threads you'll see that my view is that if you finance an item over a period (car, bike, boat, etc) make sure you finance for shorter than the item's life expectancy and if you chose a residual, that it is less than the expected value of the item upon expiry of the contract. If this is too higher grade for you I can always try to use smaller words. And before you take a swipe at someone, get your facts straight.

Off to ride now, you all have a lovely morning.

 

 

Sent from my iPhone using Tapatalk Pro

 

Smaller words please

[Odinson]

Smaller words please

 

Like really small. Microscopic. No, sub-atomic. Wait, no. Trumpian.

[daniemare]

Not if you consider the increase in bike prices.

 

In 2015 a 2015 Spaz Camber Comp Carbon cost +- R42,000

 

I did a rough sum and this is what I came up with.

 

 

Financed over 24 months @ (let’s say) 15.25%

Deposit @ 10%

Deposit:                                             R 4,200

Amount to Finance:                        R37,800

Monthly instalment:                       R1,837.29

Admin Fee: +-                                    R60

Total monthly PMT:                        R1897.29

Total PMT over 24 months:         R45,534.92

Plus Deposit:                                      R4,200     

Total cost of Bike:                            R49,734.92

 

2017 Spaz Camber Comp Carbon – R56,500

 

If you started to save R1900 per month in 2015 @ 8% interest on a money market account you would not have been able to buy the 2017 Camber.

 

Maybe it would not have been so utter foolish to finance the bike?

 

Ah, the impact of inflation on our buying habits. So, from the above I assume that you are happy with the specs of a 2015 Camber.

 

So what if you saved the R1900 per months for 24 months you have R45600 (ignore interest). Yes you can't buy a 2017 Camber, but what does a 2015 used, or 2016 old stock model cost?

 

Look, saving plus delayed gratification, vs instant joy will be a debate that will rage on forever, and only your 65 year old future self can answer which is better.

[Captain Fastbastard Mayhem]

Ah, the impact of inflation on our buying habits. So, from the above I assume that you are happy with the specs of a 2015 Camber.

 

So what if you saved the R1900 per months for 24 months you have R45600 (ignore interest). Yes you can't buy a 2017 Camber, but what does a 2015 used, or 2016 old stock model cost?

 

Look, saving plus delayed gratification, vs instant joy will be a debate that will rage on forever, and only your 65 year old future self can answer which is better.

it costs the following:

 

Not riding that bike for 2 years

Having to buy a 2nd hand bike without a warranty that's had 2 years' use and most probably needs upgrade / replacement parts

 

Plus, the specs of a 2015 camber were good when he bought it. 

 

It all comes down to the interest rate, and whether you're able to realistically afford the repayments whilst keeping your income above your expenditure. If you're already at your limit ito expenses, or scrounging to keep paying your RA / Life assurance etc then you shouldn't do it, and saving (if you can) would be the better option. 

[Patchelicious]

Told you this would happen.

[Captain Fastbastard Mayhem]

Told you this would happen.

I think a lot of people approach it without considering that in some cases finance is an acceptable funding method, and aren't able to consider something that challenges their particular opinion. It's a problem. 

 

I just picture Jeremy Clarkson...

 

[Escapee..]

Okay I am going to finance a bike

 

If its *** I am going to blame you okes

[Captain Fastbastard Mayhem]

Okay I am going to finance a bike

 

If its *** I am going to blame you okes

HAHAHAHA! 

[Odinson]

it costs the following:

 

Not riding that bike for 2 years

Having to buy a 2nd hand bike without a warranty that's had 2 years' use and most probably needs upgrade / replacement parts

 

Plus, the specs of a 2015 camber were good when he bought it. 

 

It all comes down to the interest rate, and whether you're able to realistically afford the repayments whilst keeping your income above your expenditure. If you're already at your limit ito expenses, or scrounging to keep paying your RA / Life assurance etc then you shouldn't do it, and saving (if you can) would be the better option. 

 

Myles, I've lost my wife, kids, dog, budgie and three toes to gangrene due to your advice on financing a bike through BikeLife. Clearly, it was the wrong advice.

 

I've reported you to the Ombudsman. I'll see you in court. Please ensure that all further correspondence is sent to my legal representative, Adv. Es Capee.

[Escapee..]

Myles, I've lost my wife, kids, dog, budgie and three toes to gangrene due to your advice on financing a bike through BikeLife. Clearly, it was the wrong advice.

 

I've reported you to the Ombudsman. I'll see you in court. Please ensure that all further correspondence is sent to my legal representative, Adv. Es Capee.

 

http://replygif.net/i/858.gif

[Jakkals.]

not anywhere close to a Friday

[Escapee..]

not anywhere close to a Friday

http://replygif.net/i/432.gif

[CJ Van]

Ah, the impact of inflation on our buying habits. So, from the above I assume that you are happy with the specs of a 2015 Camber.

 

So what if you saved the R1900 per months for 24 months you have R45600 (ignore interest). Yes you can't buy a 2017 Camber, but what does a 2015 used, or 2016 old stock model cost?

 

Look, saving plus delayed gratification, vs instant joy will be a debate that will rage on forever, and only your 65 year old future self can answer which is better.

 

I did not finance my current bike.  I was considering buying a Camber this year and my girlfriend bought a 2015 Camber at the end of 2015, that’s why I used the Camber as an example.  At that moment, she did not have the cash to pay for the bike but she was able to afford the monthly instalments without compromising on any other necessary expenses.

Yes, the 2015 Camber does not have a build in lunch box and only has 110mm of travel compared to the 120mm of the 2017 Camber.  But it is still plenty of bike for her and she will run out of skill way before she runs out of bike for quite some time.

Would she have been the same rider she is now if she had to wait 2 years before so could buy the bike?  I don’t think so….

Was it worth it?  For sure!   She would not have had the confidence she has on the Camber if she was still on the 26” hardtail and we would not have enjoyed riding together like we do now.

[andydude]

Like I said, some good points from all sides.

 

Buying something on credit is just borrowing from future you. Yes, there is risk, but it goes both ways.

 

So if present you can buy a bike and ride for two years with all the positives that it brings, how can future you not be happy?

 

But remember to do a little calculation to see whether you can afford the repayment and other costs like insurance and that you don't put your family in peril.

 

It's the last straw that breaks the camel's back [emoji247]

[RocknRolla]

not anywhere close to a Friday

 

 

This is the bikehub, and it's friday when we say it is.

[DIPSLICK]

Like I said, some good points from all sides.

Buying something on credit is just borrowing from future you. Yes, there is risk, but it goes both ways.

So if present you can buy a bike and ride for two years with all the positives that it brings, how can future you not be happy?

But remember to do a little calculation to see whether you can afford the repayment and other costs like insurance and that you don't put your family in peril.

It's the last straw that breaks the camel's back [emoji247]

Insurance the small amount most have not put into their fancy Nancy equations ,

Surprised you missed it on the first breakdown of costs involved Andy, must be the age catching up to you