Finance

[wadeym]

Hi guys

I have been toying with the idea of buying a new bike. The problem is that chunck of cash that i dont have lying around. So financing is my only option. But the companies that do over finance are just out of my league. I am not looking for a R30000 bike. So does anyone know where of a company that will offer finance of like a R12000 bike?

[karma]

Rather look at using your bond (if you have one) or credit card.

 

R12 000 is not a lot of bicycle, but I could suggest taking whatever cash you have and finding a bike within your budget. 

By the time you've settled this dept, the bike would have required at least a chain, cassette, gear cable, tyre changes. 

 

Not the ideal answer, but hope it gives some guidance. 

[Butterbean]

I've put about half of my bikes on the credit card and while that may seem silly to most of the finance guys here, I've always paid it off quicker and maybe had to take a small interest hit but it was way smaller than the price increases on the same bike the next year...

 

So, if you can afford the repayments and will be disciplined to waiting for those upgrades and rather putting the money into the balance, then no harm..

[keithbe]

As above or you can apply for a personal loan from a reputable credit provider.

[Sidersky]

If I'm not mistaken Wesbank will provide terms on bikes over R10k.

[AHHA Events]

Buy secondhand..

[DCJ]

I recently went to talk to them (Westbank) a few months ago, because I wanted to borrow 18k towards a bike, they pretty much said it wasn't worth their while (granted I wanted to pay it off over a year). I think they guy said that they normally go in for something over 30k, otherwise it costs them more to initiate the loan than they make out of it. But that might be over a short term Maybe over a longer period they would be happy. 

At any rate, I would go talk to them, does no harm.

Getting back to the original question, depending on the interest rate on your credit card if you have one, that might be the cheaper option than a personal loan. In my case it was 15% vs 22%.

If I'm not mistaken Wesbank will provide terms on bikes over R10k.

Edited June 2, 2018 by DCJ

[Vetplant]

Honest sanity should prevail. People get themselves into troubles with the "wants" in life, not the "needs".

 

Don't buy a "want" with money you can don't have.

 

Save up, sell some old components on the hub and put that money away!

 

Try something like this:save up some cash from your salary over 3 months, try to get to half the price of your bicycle. Best tip is to move the money out of your bank account as soon as your salary comes in, trust me, it works because the money you don't have is money you won't spend on "wants" like a fancy dinner or that thing on Takealot or Onedayonly.

 

The three months will be pass quickly and you will be the same person, with or without your new bike. But you won't sit with a financial commitment that will eat away at your earnings.

 

At 32 I still owe about 55% on our home loan and both our cars are paid off with my wife only working half day and our daughter in pre-school, child number 2 on her way at the end of the year. We are happy with our financial position but it took work and self control.

[Kalahari Vegmot]

Don't see the big deal on just saving the money you would be paying off and then buying the bike cash.

[Butterbean]

Don't see the big deal on just saving the money you would be paying off and then buying the bike cash.

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.

[Geronimo]

Keep in mind that not ALL cyclists or those that want to start have huge incomes. Yes, our sport is expensive, but an R12 000 bike to the OP or anyone who doesn't have a load of cash available, is the same as an R30 000 or R130 000 bike to one of us.

I agree that it's not ideal to finance it but if that's the only way to afford it, then do it.

[Patchelicious]

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.

Unless you buy second hand then the opposite is true.

[Coolspin]

Hi guys

I have been toying with the idea of buying a new bike. The problem is that chunck of cash that i dont have lying around. So financing is my only option. But the companies that do over finance are just out of my league. I am not looking for a R30000 bike. So does anyone know where of a company that will offer finance of like a R12000 bike?

What bike do you have currently, must be pretty decent to have done a couple of IM.

[Jaco Steyn]

Hi guys

I have been toying with the idea of buying a new bike. The problem is that chunck of cash that i dont have lying around. So financing is my only option. But the companies that do over finance are just out of my league. I am not looking for a R30000 bike. So does anyone know where of a company that will offer finance of like a R12000 bike?

Did you have a look at Cycle Lab's financing option through WesBank? http://cyclelab.com/cycle-lab-finance-by-wesbank/

[Eugene]

Rather take out a personal loan or request an overdraft. Depending on your income, I doubt any banks will have a problem with offering you R12000

[David Marshall]

Buy secondhand..

Agreed.  I have never bought a new out of the box bike and I have had 9 road bikes over the last ten years.  I keep two at a time.  Most spent R10 000.

 

The value from new drops roughly as follows ;

First year 40%, thereafter around 10% of the balance per year for about 4 years and then flat lines out till scrap.

 

I have bought expensive new racing wheels though.  These with the older frames and components keep me on par with the big spenders.