Yonda/Wesbank alternatives?

[RatX]

Short version - finance alternatives to Yonda?

Long version - I'm looking to purchase a new bicycle (Trek hardtail eMTB), for commuting, errands and leisure.  I've owned an ebike before and hardly ever used my car when I had it, but had to let it go due to a temporary cash flow constraint.  I have pursued finance options through Yonda/Wesbank.  Yonda's response times are great and Pam who seems to run the show is very helpful and efficient.

However, when you calculate the total cost of their offer (deposit + charges + x number of monthly repayments - 36 in my case), you end up about 33% over the purchase price.  Obviously finance comes with costs, but this to me seems excessive.  I tried approaching Wesbank directly as well via their online leisure banking form, but after a long and frustrating runaround reminiscent of dealing with Absa or Telkom, they referred me back to Yonda.

I've got the option of putting it on my credit card, but I like to keep that clear for emergencies.  Anybody know of any good alternatives?  I'm giving "Renewed Group" a try, but it's too early to say and I'm hoping they're not just a front to Wesbank's poor offering.

UPDATE - after shopping around and doing my homework + getting a better understanding of interest on finance, Yonda's offering is competitive and certainly better than the few others out there.  Also thus far excellent service.  Pulled the trigger with them on a Trek Powerfly 4 on Friday afternoon and collected Saturday morning.

Edited January 29, 2023 by RatX
Added update

[RRIBike]

You can maybe try a Revolving Credit Loan, sometimes it gives a lower interest than the finance option

[dave303e]

if you go to bike addict's page they have a list of different bicycle finance companies they use as well as calculators etc.

[RatX]

Thanks @RRIBike and @dave303e.  I'll look into the revolving credit option, I know a friend uses that to help out when he's looking to buy something.  Interesting pointer to bike addict's site, I see they reference:

Yonda - yonda.co.za - so far actually seeming to be the best of a bad bunch...  Update: ended up going with them and not sorry, just do your maths and know what you're getting into.
Rola - rola.co.za - looks promising, will give them a try.  Update: they also use Wesbank on the back end, so not likely to be much different from Yonda but not as smooth a process
Renewed Group / Finmarque / Renewed Gear? / formerly I-ME Gear? - renewedgroup.com - not quite clear if these are all the same, multiple names and online application process aren't confidence inspiring but let's see where it goes.  Update: they confirmed my application is underway, let's see what the numbers look like.  Update 2: got a call back, and got approved, but their process seems a little laborious
Bicycle Finance SA / Wozipo Capital - bicyclefinancesa.co.za - non-starter - their online calculator reports total costs over the term to be 61% over the purchase price...

So this thread is useful to others in future, I'll update on my findings with Renewed and Rola.
 

Edited January 29, 2023 by RatX
Added updates

[Chadvdw67]

When I bought my bike, Yonda was by FAR the cheapest, like WWWAAAYYY cheaper than anyone else

[Jehosefat]

3 hours ago, RatX said:

However, when you calculate the total cost of their offer (deposit + charges + x number of monthly repayments - 36 in my case), you end up about 33% over the purchase price.  Obviously finance comes with costs, but this to me seems excessive.  I tried approaching Wesbank directly as well via their online leisure banking form, but after a long and frustrating runaround reminiscent of dealing with Absa or Telkom, they referred me back to Yonda.

Currently the prime lending rate is 10.75% so the 33% costs over 3 years is probably about as good as it's going to get.

[ajnkzn]

4 hours ago, RatX said:

Short version - Yonda expensive, finance alternatives?

Long version - I'm looking to purchase a new bicycle (Trek hardtail eMTB), for commuting, errands and leisure.  I've owned an ebike before and hardly ever used my car when I had it, but had to let it go due to a temporary cash flow constraint.  I have pursued finance options through Yonda/Wesbank.  Yonda's response times are great and Pam who seems to run the show is very helpful and efficient.

However, when you calculate the total cost of their offer (deposit + charges + x number of monthly repayments - 36 in my case), you end up about 33% over the purchase price.  Obviously finance comes with costs, but this to me seems excessive.  I tried approaching Wesbank directly as well via their online leisure banking form, but after a long and frustrating runaround reminiscent of dealing with Absa or Telkom, they referred me back to Yonda.

I've got the option of putting it on my credit card, but I like to keep that clear for emergencies.  Anybody know of any good alternatives?  I'm giving "Renewed Group" a try, but it's too early to say and I'm hoping they're not just a front to Wesbank's poor offering.

I hate to be that guy but here goes. 
 

Trek’s cheapest eMTB is R 50k on special and I assume would be the one you’re looking at if it’s mostly for commuting. 
 

On The Hub classifieds are the following that you wouldn’t need to finance (maybe) but regardless will allow you to put your hard earned cash into savings or investments etc. 

 

https://bikehub.co.za/classifieds/item/hardtail-e-bikes/612910/avalanche-medium-mte-e-bike-2022
 

https://bikehub.co.za/classifieds/item/hardtail-e-bikes/609906/silverback-s-electro-trail
 

How we have been convinced that we should spend so much money that we need to finance a primarily leisure activity is one of the big mysteries to me. 
 

If you can spend R 50 k cash and not blink, fine, but otherwise save harder and make do with less flashy stuff that will still do a great job - just honest opinion and meant to help. 

[ajnkzn]

(And I’m not immune to the “more” when it comes to bikes - just look at my listings online 🤣) 

 

These articles were a really good heads up and made me look at what one actually needs vs what you are told you should have.

 

https://www.outsideonline.com/culture/active-families/embrace-your-inner-dirtbag/

 

https://www.outsideonline.com/culture/essays-culture/money-problems-outdoor-dirtbag-culture/

Edited January 27, 2023 by ajnkzn

[RatX]

18 minutes ago, ajnkzn said:

(And I’m not immune to the “more” when it comes to bikes - just look at my listings online 🤣) 

 

These articles were a really good heads up and made me look at what one actually needs vs what you are told you should have.

 

https://www.outsideonline.com/culture/active-families/embrace-your-inner-dirtbag/

 

https://www.outsideonline.com/culture/essays-culture/money-problems-outdoor-dirtbag-culture/

Really useful and interesting articles, thanks for sharing.

[RatX]

31 minutes ago, ajnkzn said:

I hate to be that guy but here goes. 
 

Trek’s cheapest eMTB is R 50k on special and I assume would be the one you’re looking at if it’s mostly for commuting. 
 

On The Hub classifieds are the following that you wouldn’t need to finance (maybe) but regardless will allow you to put your hard earned cash into savings or investments etc. 

 

https://bikehub.co.za/classifieds/item/hardtail-e-bikes/612910/avalanche-medium-mte-e-bike-2022
 

https://bikehub.co.za/classifieds/item/hardtail-e-bikes/609906/silverback-s-electro-trail
 

How we have been convinced that we should spend so much money that we need to finance a primarily leisure activity is one of the big mysteries to me. 
 

If you can spend R 50 k cash and not blink, fine, but otherwise save harder and make do with less flashy stuff that will still do a great job - just honest opinion and meant to help. 

I appreciate the input and I have indeed gone back and forth on this one many times - I hear exactly where you're coming from.  I have been watching the used market, and did miss out on one which was exactly what I was looking for and a great bargain, but it sold whilst I was getting the money together.  I'm also on a campaign to cut costs elsewhere, in order to hopefully put more into savings instead of burning through every cent earned every month.  Going new does get you the benefit of guarantee and dealer support, which I learnt is important on such bikes.

With regards to this particular purchase (it is indeed exactly the R50k Trek), I've looked at it from a number of angles and am leaning towards getting it, but it is hard to tell how much of that is the practical vs the excitement of a new shiny + the perceived pressure of missing out on a special.

If it's of interest, I'm looking at it from these perspectives: I do want to use it every day for commuting - an ebike makes that easy and fun (esp here in the windy Cape).  I've kitted out my current bike to make it better for commuting (slicks, better grips, comfy saddle), which increased my commuting usage, but it's still a bit of a struggle and after two days in a row I'm pap.  Daily bike commuting + running errands by bike will save fuel and vehicle depreciation costs + get me additional exercise/outdoor time which I need.  I'd like something with a decent groupset, my previous ebike and current hardtail have Deore or better and it's very hard to find a vaguely affordable ebike that is decently equipped in this respect and the smooth + efficient operation does really make a difference to your enjoyment of the product.  My last ebike I also bought on special and I was able to sell it for what I got it for, as I kept it in good nick, although that was also very much right time and place luck.  Lastly, I still miss my last one - I did indeed use it almost every day.

So yah, motivation is split 50% savings from less vehicle use, 50% more exercise, 50% the fun factor and 75% new shiny.

[ajnkzn]

Good luck with the decision and agree that the savings on fuel etc are not to be ignored

[RatX]

1 hour ago, Jehosefat said:

Currently the prime lending rate is 10.75% so the 33% costs over 3 years is probably about as good as it's going to get.

This is a good insight - I suck at maths, even more so any of the financial variety - that does make sense.  What put me off is they don't give a clear view as to the total cost to you, especially in terms of deposit excluded from summary of spend (I don't know if this is standard practice).  But to get an actual view of what it's going to cost you you've got to work it out manually.

[RatX]

Ended up pulling the trigger with Yonda and Friday afternoon and collected my shiny Trek Powerfly 4 Saturday morning.  Excellent service from Yonda and Gear Change in Mowbray, both recommended.  Just know what you're getting into if you go the finance route (mainly that there is no apparent benefit to early settlement).  Bike is fantastic, I'll maybe do a write-up once I've got some more k's on.

[Chadvdw67]

6 hours ago, RatX said:

Ended up pulling the trigger with Yonda and Friday afternoon and collected my shiny Trek Powerfly 4 Saturday morning.  Excellent service from Yonda and Gear Change in Mowbray, both recommended.  Just know what you're getting into if you go the finance route (mainly that there is no apparent benefit to early settlement).  Bike is fantastic, I'll maybe do a write-up once I've got some more k's on.

You save a big chunk on the interest if you settle early....

Edited January 29, 2023 by Chadvdw67

[RatX]

15 hours ago, Chadvdw67 said:

You save a big chunk on the interest if you settle early....

OK thanks for the input, I'll check - that's good news.  When I quickly read through the contract I thought I saw a statement to the contrary, but I was in a hurry.

[The Ouzo]

41 minutes ago, RatX said:

OK thanks for the input, I'll check - that's good news.  When I quickly read through the contract I thought I saw a statement to the contrary, but I was in a hurry.

check the contract, with car finance there is no penalty for early settlement as long as a minimum of 6 payments have gone through.

Interest on car finance is calculated daily, so settling early saves you.

Also if you have a big chunk of cash, but not enough to settle, you can put it into the loan, as long as atleast 1 payment has gone off you can ask them to re-capitalise your loan thereby reducing your monthly installments.