Finance

[Shebeen]

Our cars are 7 years old and 9 years old, zero debt payments on them.

 

My home repayment amount due is R8800, the actual debit order going off is R10800. Most months I pay an additional R2000 to R5000 in and somehow we still make it out with my salary and my wife's freelancing income. The house will be paid off within 7 years of buying it.

 

Working on my master plan to be debt free by forty-three (tried to do it by 33,but that is a week away, so unlikely to realise...)

debt is not a 4 letter word. Ok it is, but it's not like THAT four letter word.

If you have cash to put into the bond, I do hope you're also doing a tax free savings account first. money for jam and will appreciate way more than chipping away at the homeloan early.

 

 

Remember these guys are debt free, it shouldn't be the ultimate goal.

http://www.cape-town.photos/userImages/58/5098-58be60c0-large.jpg

 

 

 

 

2875 per month is fine regardless of the extra you will pay in the long run - that is as long as you have secure income and you can afford that within your monthly budget.  Not everyone can afford the new bike of their dreams cash  - it's not ideal to finance a bike but if you budget nicely it beats waiting 3 years to get a new bike of your dreams.  

That said, 40k buys you a really nice secondhand bike in just over a year if you put that money aside

I don't know if one should be taking any financial advice from a certified weight weenie. They know their lbs way more than their £ (sorry, imperial joke)

[Kranswurm]

My car payment is 2400 a month. 

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[Allrounder]

Our cars are 7 years old and 9 years old, zero debt payments on them.

 

My home repayment amount due is R8800, the actual debit order going off is R10800. Most months I pay an additional R2000 to R5000 in and somehow we still make it out with my salary and my wife's freelancing income. The house will be paid off within 7 years of buying it.

 

Working on my master plan to be debt free by forty-three (tried to do it by 33,but that is a week away, so unlikely to realise...)

Well done!! it is something to be proud of.

 

motorbike is paid and one of the cars. We also have no clothing accounts. Only debit orders is Sanlam, santam, cellphones car and house. 

[rudi-h]

Because often the prices go up faster than the interest you would have paid... And you can control the interest with quicker payments too if you are very disciplined.

 

don't want to be a smart-ass... but short term credit interest is typically 15%+... price increases on goods are closer to inflation which is typically ~6%

 

Unless you can foresee or predict a sudden change in exchange rate (as when Nene was axed in the Zuma days), you'll always be better off to not have expensive short-term debt.

Edited December 14, 2018 by rudi-h

[Trek man]

I speak for myself as I will naver make a loan to buy a bicycle. And I would rather save up some money and buy a bicycle.

[Stretch]

Put 1000 a month away and buy the bike in 12 months.

[SYM]

I think sort out ur finances even before getting urself in any sort of debt. If you can't afford it, then u have to do without it

[Kenty]

Cycle Lab running this special at the moment

 

Scott Spark RC900 Pro with XTR 1 x 12 drivetrain

 

R2858.74 per month over 36 months (R9000 deposit)

 

I am sure they will sell quite a few?

Hehe...for R2858.74...I can sell you a BRAND NEW Picanto...DAMN!!..

 

Ok ok ..granted the Picanto would be over 72 months...

Edited December 19, 2018 by Kenty

[GLuvsMtb]

Hehe...for R2858.74...I can sell you a BRAND NEW Picanto...DAMN!!..

 

Ok ok ..granted the Picanto would be over 72 months...

I’d be much more inclined to buy the bike over 3 years opposed to the car over 7 years. Chances are zero that I would still drive the car in 4 years from now, never mind 7 with the kms I do. And then there is most likely a residual to deal with too. My current mtb was bought in 2013 and I have no reason to replace it, so it would be safe to assume that I will use the bike for way longer than 3 years. I’ve learned the hard way never to finance anything beyond its expected life. Edited December 19, 2018 by GLuvsMtb

[Dicky DQ]

I’d be much more inclined to buy the bike over 3 years opposed to the car over 7 years. Chances are zero that I would still drive the car in 4 years from now, never mind 7 with the kms I do. 

I am the opposite, with the km I do I am effectively renting a car so I do it with as long a term as possible reducing the repayment as much as possible and leaving a RV that should be covered by the resale price of the car. I got it wrong once, but in general it works for me.

 

I do 6 years with RV of about 30% then I try to get rid of the cars at about 200 to 250k km or 4 to 5 years. Seems to balance out then. After about 150k km the depreciation seems to flatten out. 

Edited December 20, 2018 by TDFN

[BuffsVintageBikes]

I know a lot of people frown upon the purchasing of a bicycle on finance but I know many riders that put more kilos on their bicycle in a year than they do on their car or motorcycle. Their bicycle also keeps them a lot healthier and might even save them money on fuel if they commute so why not buy it on credit?

The only down side is the depreciation value of the bicycle. It's probably higher than a motorized vehicle... but is it really? I wonder if anyone has bothered doing a study on this to test the theory?

 

Considering a motorcar and motorcycle drop between 30-40% of their residual value the minute they leave the showroom floor then maybe a bicycle isn't quite as bad as we think it is. I'm inclined to think it'll be very similar to the resale value of motorcycles as long as you re-sell the bicycle within 4-5 year period.