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

[Wayne Potgieter]

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.

technically speaking he asked for advice on the right direction for financing a bike. Not “can you recommend a bike finance company”.

 

So in my opinion, the right direction is to self finance a second hand bike while saving for your dream bike. No moralising. Just answering the question.

[Mongoose!]

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.

 

 

 

from their website 

HOW DOES IT WORK?

 

• New or Used (no older than 3 years) bikes with a minimum value of R20 000 and a maximum of R150 000 (After deposit). (Can include some accessories as below)

• For new bikes you may ONLY add the following accessories:

  • Pedals

  • Handlebars

  • Helmet

  • Bottle Cage

• Rates start from 11,5% and are fixed.

• Finance available over 12 to 48 months.

• 10% deposit is applicable on new bikes.

• Finance available to private individuals and companies.

​

More questions? CLICK HERE for the steps to getting finance.

See our FAQ's HERE

[Wayne pudding Mol]

technically speaking he asked for advice on the right direction for financing a bike. Not “can you recommend a bike finance company”.

 

So in my opinion, the right direction is to self finance a second hand bike while saving for your dream bike. No moralising. Just answering the question.

I definitely didn't read that as please give a advice on whether bike financing is the right option for me from a perch of being able to pay for a bike by saving for a few months or pulling out a wad of cash 

 

I interpretted the OP's question as how to finance a bike - not should I finance a bike

 

But of course I could be wrong, apparently all the time if you ask my wife

[eddy]

I definitely didn't read that as please give a advice on whether bike financing is the right option for me from a perch of being able to pay for a bike by saving for a few months or pulling out a wad of cash 

 

I interpretted the OP's question as how to finance a bike - not should I finance a bike

 

But of course I could be wrong, apparently all the time if you ask my wife

 

technically speaking he asked for advice on the right direction for financing a bike. Not “can you recommend a bike finance company”.

 

So in my opinion, the right direction is to self finance a second hand bike while saving for your dream bike. No moralising. Just answering the question.

 

 

I definitely agree with Wayne...

[Wayne Potgieter]

I definitely agree with Wayne...

ha ha ha. This is pure gold.

[Wayne Potgieter]

I definitely didn't read that as please give a advice on whether bike financing is the right option for me from a perch of being able to pay for a bike by saving for a few months or pulling out a wad of cash

 

I interpretted the OP's question as how to finance a bike - not should I finance a bike

 

But of course I could be wrong, apparently all the time if you ask my wife

our wives must know each other.

[BigDL]

Hi guys.

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

Thanks

Oh dear - prepare for lots of advice that you didn’t ask for

[Grogs]

At the risk of “moralising” - just look at the Rands and cents.

 

If I get a Wesbank loan to pay for a 30k bike over 2 years, I’ll get an interest rate of 24.5%. Initiation fee of R1200. So my principal debt is R31200. Monthly repayments on that are around R1700 (don’t have my HP12C handy, but sounds about right). That’s what they’ll quote you. But they’ll add to that a monthly management fee of about R70, as well as group life insurance of about R110. That pushes the repayment up to around R1900.

 

Sure, you can make extra repayments that will reduce the capital (and therefore interest) and the term of the loan. But just remember that even if you do, the monthly fixed fees (the management fee and group life insurance) will not be reduced. And that’s how they nail you by way of an early penalty. So if I get the bike now with finance, and pay it off within 3 months for example, my finance charges (interest, initiation fees, monthly admin fees and GL insurance) will probably effectively be the same as paying an annualised 60% interest rate on the debt for those three months.

 

I also hate the feeling of being shafted by large financial institutions.

 

Again, I’d rather buy something cheap and nasty and save by upgrading components every couple of months. Before you know it, you’ll probably have upgraded every single component on your bike. You’ll appreciate every upgrade, and really make your bike your own by choosing every bit and piece that goes into it, and save a crap load of money. A lot more fun than having a new flash bike one day and then being a slave to a financial institution for the next two years.

[The Ouzo]

our wives must know each other.

Same WhatsApp group. My wife is On there too

[Darko]

If you want to finance a bicycle (or anything for that matter), it's the same as taking out a loan. 

 

My advice would be to apply for the finance, see what rate they give you and over how much. Then apply for a loan or a credit card or an overdraft and see which one of them has the lowest cost of borrowing the money. 

[Kranswurm]

technically speaking he asked for advice on the right direction for financing a bike. Not “can you recommend a bike finance company”.

 

So in my opinion, the right direction is to self finance a second hand bike while saving for your dream bike. No moralising. Just answering the question.

Ag give it a break.He did not ask on advice on how to save for a bike.

[Wayne pudding Mol]

At the risk of “moralising” - just look at the Rands and cents.

 

If I get a Wesbank loan to pay for a 30k bike over 2 years, I’ll get an interest rate of 24.5%. Initiation fee of R1200. So my principal debt is R31200. Monthly repayments on that are around R1700 (don’t have my HP12C handy, but sounds about right). That’s what they’ll quote you. But they’ll add to that a monthly management fee of about R70, as well as group life insurance of about R110. That pushes the repayment up to around R1900.

 

Sure, you can make extra repayments that will reduce the capital (and therefore interest) and the term of the loan. But just remember that even if you do, the monthly fixed fees (the management fee and group life insurance) will not be reduced. And that’s how they nail you by way of an early penalty. So if I get the bike now with finance, and pay it off within 3 months for example, my finance charges (interest, initiation fees, monthly admin fees and GL insurance) will probably effectively be the same as paying an annualised 60% interest rate on the debt for those three months.

 

I also hate the feeling of being shafted by large financial institutions.

 

Again, I’d rather buy something cheap and nasty and save by upgrading components every couple of months. Before you know it, you’ll probably have upgraded every single component on your bike. You’ll appreciate every upgrade, and really make your bike your own by choosing every bit and piece that goes into it, and save a crap load of money. A lot more fun than having a new flash bike one day and then being a slave to a financial institution for the next two years.

So can I assume you walked till you saved enough for a bike which you ride till you saved enough for a car and said bike was parked in your tent in which you camped until you saved enough to buy a house - all this whilst never using a credit card ?

This in my opinion would be the right way to save on interest but just not that practical unless you have nice parents who don’t mind you camping in their garden for 10 years

Also it takes a special partner to live in a tent at her/his/non gender specific in-laws

Edited April 27, 2021 by Wayne pudding Mol

[RobertWhitehead]

This

[marko35s]

So can I assume you walked till you saved enough for a bike which you ride till you saved enough for a car and said bike was parked in your tent in which you camped until you saved enough to buy a house - all this whilst never using a credit card ?

This in my opinion would be the right way to save on interest but just not that practical unless you have nice parents who don’t mind you camping in their garden for 10 years

Also it takes a special partner to live in a tent at her/his/non gender specific in-laws

How can you seriously compare financing a house with financing a bike?

One is a need the other is a want and they shouldn't be conflated.

[Jewbacca]

How can you seriously compare financing a house with financing a bike?

One is a need the other is a want and they shouldn't be conflated.

Yes and no. I NEED my bicycle. I also need a house but I don't need to own one.

 

Also, financing a bike is hardly a sin. 

 

If you have steady income but can only 'save' R1000 a month, it will take 40 months to buy a 'decent' bike. But if you get it financed you can then pay off R1000 a month, have a bike and take 50 months to pay it off.

 

Which, in my books, is better than having no bike for 4 years.

[Steady Spin]

Life is short enough.

 

Finance the bike. Enjoy the bike. Make sure you insure the bike because nothing sucks more than paying off something you don’t own.

 

Enough good advice here on how to finance. Ignore the “cash only” crowd.