Bike boom - is it over?

[Headshot]

Or more accurately, have people finally started running out of cash to spend on overpriced luxury items like bikes. Obviously there are the "always wealthy no matter what" crowd who will buy top end everything and new car sales are apparently growing in SA while declining elsewhere. The reason I ask is I have heard that stock is not moving and suppliers have extended payment deadlines to assist retailers who can't sell the stuff... 

[_David_]

People are struggling the cost of living Is through the roof.

[ChrisF]

33 minutes ago, _David_ said:

People are struggling the cost of living Is through the roof.

 

Newspaper spoke about this earlier in the week.  The reality of the delayed payments during lockdown is setting in.  Minimal salary increases ..... I am seeing inflation way higher than the reported figures .... Know a few young people struggling with the increases in bond rates ....

 

Apparently more than 1 in 3 in SA spends more than 30% of their salary to debt ...

 

Many of us have lived through this in the early and again in the late 90's.  But if the interest rates keeps climbing, as predicted, a lot of people are in for a world of hurting.

[Help.Me.]

I thought it was expensive to fill my Toyota with R 1280 per tank now its R 1780 , R 500 more , and it must come from some where...........

[madmarc]

Ye i really feel for the younger generation trying to get into the system - Buying a house - starting a family

I remember as a youngster buying my first house when the interest rate was 23% 

We had to priorities paying debt

1st - Bond

2nd - Water and electric

3rd - Baby food and products.

Then the bucket was empty

Most nights we had to eat at the in-laws or my parents as we had no food in the cupboard.

My only asset of value that i owned was a Yamaha XS 1.1 - i used to go on breakfast runs which amounted to pushing it out the garage and washing polishing it and then pushing it back in every Sunday.

What saved us - We created no debt, other than the bond and had no credit cards or overdrafts and store accounts.  I only opened my first WW account and got a credit card after the age of 35 and still to this day settle the full amount every month.

The lessons I learnt were passed onto both my kids who both live debt free today.

[mecheng89]

31 minutes ago, Help.Me. said:

I thought it was expensive to fill my Toyota with R 1280 per tank now its R 1780 , R 500 more , and it must come from some where...........

At least you're not those attention seeking Land Bruiser drivers that cough up double that. 

Edited July 20, 2022 by mecheng89

[Ispeed_V]

With everything on the rise, it is becoming more and more difficult for households to save for rainy days. I put away part of monthly income into savings but am now having to reduce that amount to just cover living expenses. With the July increase in municipal rates, it is just going to get worse.

Its that old saying were the rich get rich and the working class feel the pinch.

[Help.Me.]

14 minutes ago, mecheng89 said:

At you're not those attention seeking Land Bruiser drivers that cough up double that. 

No sir its a extended cab Toyota bakkie (automatic)...........

[New world disorder]

I'm in the industry,people don't even want e bikes anymore ,it's getting scary .

[Mtree]

23 minutes ago, mecheng89 said:

At least you're not those attention seeking Land Bruiser drivers that cough up double that. 

Double, that all?

[Steady Spin]

Definitely feeling it. No more putting money in the bike fund. The increase in bond costs sucked that up. 

Nothing better break on my bike. 

Super lucky to have moved jobs just now which puts a little bit more food on the table and allowed me to buy a car that is on average 2l/100km lighter on fuel..

But, long gone are the snacks and comfort food from Woolies. Checkers and Food Lovers all the way. Even then our basket per week increased from R800 to R1200 a month over the past 2 years. I saw a 2l of milk hit R42,99 at Woolies this week (yes I know but those bags of Fantasy Galore though...)

Things are going to punch hard coming soon. 

[Headshot]

36 minutes ago, madmarc said:

Ye i really feel for the younger generation trying to get into the system - Buying a house - starting a family

I remember as a youngster buying my first house when the interest rate was 23% 

We had to priorities paying debt

1st - Bond

2nd - Water and electric

3rd - Baby food and products.

Then the bucket was empty

Most nights we had to eat at the in-laws or my parents as we had no food in the cupboard.

My only asset of value that i owned was a Yamaha XS 1.1 - i used to go on breakfast runs which amounted to pushing it out the garage and washing polishing it and then pushing it back in every Sunday.

What saved us - We created no debt, other than the bond and had no credit cards or overdrafts and store accounts.  I only opened my first WW account and got a credit card after the age of 35 and still to this day settle the full amount every month.

The lessons I learnt were passed onto both my kids who both live debt free today.

A very wise example and one which I did not follow for various reasons, some of it out of my hands. To be debt free - what a pleasure that would be.

[The Ouzo]

45 minutes ago, madmarc said:

Ye i really feel for the younger generation trying to get into the system - Buying a house - starting a family

I remember as a youngster buying my first house when the interest rate was 23% 

We had to priorities paying debt

1st - Bond

2nd - Water and electric

3rd - Baby food and products.

Then the bucket was empty

Most nights we had to eat at the in-laws or my parents as we had no food in the cupboard.

My only asset of value that i owned was a Yamaha XS 1.1 - i used to go on breakfast runs which amounted to pushing it out the garage and washing polishing it and then pushing it back in every Sunday.

What saved us - We created no debt, other than the bond and had no credit cards or overdrafts and store accounts.  I only opened my first WW account and got a credit card after the age of 35 and still to this day settle the full amount every month.

The lessons I learnt were passed onto both my kids who both live debt free today.

I only had the house and the car, credit card was merrily for convenience and settled in full every month.

 

then I got un employed. 

The downward spiral is vicious. even more so when you cant get back into earning what you did before, but instead just grab any job you can find.

[Steady Spin]

Just now, ouzo said:

I only had the house and the car, credit card was merrily for convenience and settled in full every month.

 

then I got un employed. 

The downward spiral is vicious. even more so when you cant get back into earning what you did before, but instead just grab any job you can find.

Been there. 

Self employed quickly became unemployed and R60k in debt spiraled out of control for the next 10 years and ended up at R300k between loans and credit card debt even though I found a job within 6 months of unemployment.

I settled one credit card with the next and paid a loan back with the second credit card. Salary was just not enough to cover everything. 

Clawed ******* hard to get out of that mess. As it stands now I only have a bond and vehicle finance. Credit card has a limit of R10k in case something happens and it never gets used. 

Unless I absolutely have no choice, I will never make debt again... touch wood.  

[ChrisF]

1 hour ago, Help.Me. said:

I thought it was expensive to fill my Toyota with R 1280 per tank now its R 1780 , R 500 more , and it must come from some where...........

 

12 months ago I paid R685 to fill my car.  Now R 1115 !!  Almost same volume of fuel

[bleedToWin]

Not the roller coaster I was expecting when clicking on this thread... 😱