Patchelicious Posted May 23, 2017 Posted May 23, 2017 I wonder how many actually note BikeLife's interest on the insured items when financing through them..... interest wouldn't be a factor when you're insuring, as you're settling the outstanding capital amount. Not the future interest you will pay on it. None of this would be applicable if the asset was not attached to the finance, which in these cases it wasn't.
Shebeen Posted May 23, 2017 Posted May 23, 2017 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 4,200Amount to Finance: R37,800Monthly instalment: R1,837.29Admin Fee: +- R60Total monthly PMT: R1897.29Total PMT over 24 months: R45,534.92Plus 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?Ja, but, well no fine.. I get your point, but you got some big assumptions there, like are the '17 and '15 models the same?and what does a new '15 model that has been sitting in the store for 2 years now cost in 2017 - go to obike.co.za and offer them 80% retail Hi BSG. A friend alerted me to your post. Unfortunately I cant assist you as I am no longer involved in the finance business. The only email address that is operational is accounts@bikelife.co.za. The company doing the management of the book is Debt-In. You can call their Dbn office. I hope you come right. Just for clarity, Bike Life and Bike Life Finance are separate companies, where one does the media and the other does finance. I hope this helps. Cheers. Devlininteresting......
WR 1.0 Posted May 23, 2017 Posted May 23, 2017 interest wouldn't be a factor when you're insuring, as you're settling the outstanding capital amount. Not the future interest you will pay on it. Not that kind of Interest, as BikeLife is supplying the finance, the assets belongs to them till the loan is paid up. Similar to car financing where the insurance pays the bank (credit grantor) first - if there are still amounts outstanding.
WR 1.0 Posted May 23, 2017 Posted May 23, 2017 None of this would be applicable if the asset was not attached to the finance, which in these cases it wasn't. ok then. my bad!
Tony datoy Posted May 23, 2017 Posted May 23, 2017 Investec for one. Interest rate on their credit cards is Prime.ABSA Private Bank, preferential rates
Tony datoy Posted May 23, 2017 Posted May 23, 2017 Only negative about credit is the risk should something go wrong. E.g. you lose your job, large medical expense, etc. That's why a reserve fund of a few months salary is always a good idea. Not just with credit, but with life.Agreeably so; I have a fixed deposit equal to 3 months salary for this.I use my fixed deposit to negotiate preferential interest rates.
Ecko_1 Posted May 23, 2017 Posted May 23, 2017 ABSA Private Bank, preferential ratesInvestec doesn't offer a credit card ASAIK. Just a hefty overdraft facility at prime. I've got an Investec account. I haven't lifted my R50k overdraft limit from when I opened the account and was earning R12k a month 8 or so years ago Sent from my SM-G900F using Tapatalk
Jehosefat Posted May 23, 2017 Posted May 23, 2017 Investec doesn't offer a credit card ASAIK. Just a hefty overdraft facility at prime. I've got an Investec account. I haven't lifted my R50k overdraft limit from when I opened the account and was earning R12k a month 8 or so years ago Sent from my SM-G900F using Tapatalk Yeah, its a strange one because it's like an overdraft on a cheque account but it also has the "up to 55 days interest free" feature of credit cards. Call it what you will.
Thor Buttox Posted May 23, 2017 Posted May 23, 2017 This thread makes me totally confused. First the calcs were wrong. Then the comparison was done comparing what would be a one-year used second-hand '16 model to a new' 17 model which is just silly, as the price of an equivalent second hand year old model would have fallen like a brick. And actually, unless you paid it off over less than 2 years, you would actually need to contemplate comparing it to a discounted future value of a two-year old model, that you could have bought if you had saved for two years. But yes, the value of the current ability to ride the bike should be considered as an opportunity cost.
Captain Fastbastard Mayhem Posted May 23, 2017 Posted May 23, 2017 This thread makes me totally confused. First the calcs were wrong. Then the comparison was done comparing what would be a one-year used second-hand '16 model to a new' 17 model which is just silly, as the price of an equivalent second hand year old model would have fallen like a brick. And actually, unless you paid it off over less than 2 years, you would actually need to contemplate comparing it to a discounted future value of a two-year old model, that you could have bought if you had saved for two years. But yes, the value of the current ability to ride the bike should be considered as an opportunity cost.Except that both the saving amount and future cost are future values. So you either have to save x at y% P/a to afford z, or do a PV calculation for the savings as well. It can get needlessly complicated if you think about it too much and wonder if you should incorporate the going rate of unicorn poop as a contributing factor as well as donkey gonads and your mom's discounted Friday night first customer rate.
Thor Buttox Posted May 23, 2017 Posted May 23, 2017 Except that both the saving amount and future cost are future values. So you either have to save x at y% P/a to afford z, or do a PV calculation for the savings as well. It can get needlessly complicated if you think about it too much and wonder if you should incorporate the going rate of unicorn poop as a contributing factor as well as donkey gonads and your mom's discounted Friday night first customer rate.Yes, I agree. But the main point of comparing it to a new bike with the associated costs doesn't hold. Anyway, I haven't been involved til now so will just leave it at that and Hooe everyone rides their bike with a smile and a lack of credit risk.
Jehosefat Posted May 23, 2017 Posted May 23, 2017 your mom's discounted Friday night first customer rate. Wait, are you telling me you get to go first and get a discount for it? Sign me up
hayleyearth Posted May 23, 2017 Posted May 23, 2017 So credit maxed... No more savings but want to take on more credit This is my big problem with credit...it will always have you on the back foot!So when you buy that bike this year on credit you will pay it off over 2 years (or what ever.in my mind personally I can not believe people do this for so long...mind blowing! anyway), then in 2 years time you want an upgrade, lets face it, the type of person that buys a bike on credit likes a 'flashy' / above what they can afford life style, hence when as soon as what they have is 'old' compared to what their friends or the market has they want something new - so here goes the next purchase on credit, because you just finished paying the 1st one off and never had extra to save and the one you going to sell is worth peanuts (maybe the deposit) on the new one....I saw this in my own family growing up and between my siblings now too. I thank the man upstairs everyday that I don't have the 'need it now'
DIPSLICK Posted May 23, 2017 Posted May 23, 2017 ABSA Private Bank, preferential ratesAbsa private bank client,,,should you be financing toys!!!!,,,dips runs to the door
hayleyearth Posted May 23, 2017 Posted May 23, 2017 Tony, the big thing about credit is whether you can manage it. And it seams you can, so kudos [emoji106] Only negative about credit is the risk should something go wrong. E.g. you lose your job, large medical expense, etc. That's why a reserve fund of a few months salary is always a good idea. Not just with credit, but with life. One question, if I may, where in the world do you only pay 11% on a credit card? Agreeably so; I have a fixed deposit equal to 3 months salary for this.I use my fixed deposit to negotiate preferential interest rates. So often I hear "how can companies pay salaries in late (a day or so), because now I have to pay penalties on debit orders that needed to go off but there was no cash in my account" ............ My only thought is....did your dad not also teach you to at least have 2 - 3 months salary in your account for those 'what if' times.....
DIPSLICK Posted May 23, 2017 Posted May 23, 2017 So often I hear "how can companies pay salaries in late (a day or so), because now I have to pay penalties on debit orders that needed to go off but there was no cash in my account" ............ My only thought is....did your dad not also teach you to at least have 2 - 3 months salary in your account for those 'what if' times.....Sadly most run month to month on,woolwoths,truworths,Edgar's and and and then the credit cards from bank A,B,C and what follows in my opinion is the biggest sharks credit rescue The debt to income ratio in SA is actually criminal
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