Any hubbers can assist or advise on financing a new bike?

[blinx]

Hi guys.

Any members on the hub can point me in the right direction with regards to financing a bike.

Thanks

[Grogs]

Rather save up. Interest rates and financing charges on financing a bike are crazy stupid.

 

Take whatever you would like to spend on a monthly instalment and put it into your bond for 6 months. Then take the savings on your bond repayments and what you put into the bond and buy a bike. That will probably be a year of instalments on a financed bike.

 

Been there and done that, and I would rather have ridden my Raleigh RC6000 for a year longer than be put through the pain of a 24% interest rate + R1200 initiation fee + monthly account fee + monthly life insurance premiums on the debt. You end up paying double for your bike.

[Wayne Potgieter]

Dont finance the bike.

 

Costs are too high, they depreciate too rapidly and at the end of the day, it's a luxury item, not a need. Rather ride something a little less flash for a while while you save and buy something second hand - great deals to be had. You can still get on the saddle of your dream bike, just be a little more patient and frugal. 

 

Sorry to be the bearer of bad news, but its the smartest financial move.

[IceCreamMan]

A bike is an investment in yourself and your health. (If cycled regularly). Can’t put a price on that.

 

By all means finance but understand it’s a very expensive option an generally you can’t negotiate a discount. But if it gets you out there then go for it

[Thomo]

I remember enquiring (just out of interest) about financing a bike +-10years ago and the answer was quite simply "no, we don't finance bikes".

Now it's common practice with most LBSs offering it as part of the "value added service" it seems via many of the well known financial institutions.

It opens up possibilities which could otherwise not have been considered but know that it comes at a cost.

[Dappere]

Hi guys.

Any members on the hub can point me in the right direction with regards to financing a bike.

Thanks

I agree with all the above statements. Rather save and buy than finance. Given there can be a a lot of reasons you want to finance a bike that we don’t know.

 

Seems most bike shops make use of https://www.yonda.co.za, I would checkout their site. They also have a loan calculator you can play around with.

 

You can settle the loan amount with Yonda earlier, without paying a penalty. I have a mate who did this. Didn’t have the disposable income at the time to buy the bike, bought the bike through financing it, paid off the loan amount 3 months later.

[M L]

A bike is an investment in yourself and your health. (If cycled regularly). Can’t put a price on that.

 

By all means finance but understand it’s a very expensive option an generally you can’t negotiate a discount. But if it gets you out there then go for it

of course you can put a price on it.

 

As mentioned, 2nd hand market or using your bond are better options than turning to Wesbank or the likes.

[StevieG]

I recently financed my bike through Yonda. Paid a huge deposit, and the balance in finance. Hoping to pay it off much sooner, and without penalties that's a nice option. Yes, financing it probably wasn't the best option, but happy with the purchase and have the bike I want, now, not 2 years from now. Delayed gratification isn't my thing ????

[Maniax]

If you cant buy new, buy second hand cash. make sure the frame is good and in excellent condition and as you ride and save up, upgrade the components.

thats how I built and bought all my bikes.

[Wayne pudding Mol]

Geez the moralising and financial advice thrown around when someone asks a question on how to finance a bike!

 

The OP is an adult and I am certain he is aware saving to buy would be less costly but it doesn't get him on a bike now.  But he has the means to pay off a bike.

 

I could point out the same to the vast majority who finance a car or even a house and say you are wasting money paying huge costs of finance.  But we have all had to do this

 

If you aren't liquid but have reliable income that allows you to finance a bike go for it - it's a healthy choice and there are far worse ways to burn money than on bike finance.

 

I agree it's not ideal but not everyone has bike money lying around and sometimes financing is the way to go.

[IceCreamMan]

of course you can put a price on it.

 

As mentioned, 2nd hand market or using your bond are better options than turning to Wesbank or the likes.

 

So how much is your health worth then?

[Patchelicious]

So how much is your health worth then?

You should start selling essential oils.

[IceCreamMan]

You should start selling essential oils.

 

Or bicycle finance, its more lucrative. 

[Patchelicious]

Hi guys.

Any members on the hub can point me in the right direction with regards to financing a bike.

Thanks

As most have said buying second hand is a great option.

 

But to answer your question, there are few options out there. Most are ok.

Make sure that you just check the T&C. You don’t want to lose the bike if you miss a payment. Also make sure there are reduced penalties if you pay off earlier. Many of the bicycle finance houses derive their margin from product rebates rather than interest or penalties, so they might be more flexible on that.

 

Most importantly what bike are you going to get. New bike days are ????????

[The Ouzo]

As most have said buying second hand is a great option.

 

But to answer your question, there are few options out there. Most are ok.

Make sure that you just check the T&C. You don’t want to lose the bike if you miss a payment. Also make sure there are reduced penalties if you pay off earlier. Many of the bicycle finance houses derive their margin from product rebates rather than interest or penalties, so they might be more flexible on that.

 

Most importantly what bike are you going to get. New bike days are

I stand under correction, but as far as I know FSPs are not allowed to charge a penalty for early settlement provided the contract has run for a certain period of time (normally 6 months)

[IceCreamMan]

I stand under correction, but as far as I know FSPs are not allowed to charge a penalty for early settlement provided the contract has run for a certain period of time (normally 6 months)

 

Thats correct according to my knowledge.. The "penalty" has long since been abolished. But there is a monthly fee now applicable to loans of this nature which iirc was 50 plus VAT.