Financing a bike

[wysper]

Just looking at ways of financing my upcoming bike purchase.
Will be a new bike - first time ever for me :sunny:

Colour me surprised but so far this is the order of cheapest to most expensive finance rates.

Cheapest - Freestyle Credit Card - National Bank
Finance through the dealer
Personal Loan - From Bank

I can't put it on a mortgage - don't have one.

I am stunned :gob:

Does anyone know of cheaper ways? The credit card is 15% up to the persoanal loan from the bank at 16.25%

Not much in it really but still, I am open to ideas. I suppose you could charge it up on one credit card and then do the "swap to another credit card for a cheaper rate deal" that comes along occassionally.

wysper

[skelstar]

I went to someone like Paciic Retail Fin and the finance cost as much as the bike (about29%). I said 'thats a bit ridiculous' and they said 'youre a good cust. how about 19%?'. Much better. Paying off a bike aint a great idea though ;).

Pays to ask eh?

[Hellraiser]

Go to a dealer that can do it through MTF.

[bobsmith]

have any close family members on graduate account???

I put mine with personal loan from bank on my g/f's graduate account - 10.55% interest with $150 set up, at the same time paid off our credit card with it too. ended up saving us money.

[SARGE]

try MTF if you have good credit.. otherwise, give Jeremy at Global credit a ring on 098343835.. h can do 2nd tier finance if you need it ..

[McJim]

Be careful with the interest rates - check the APR is the same.

I borrowed some money for my bike -
I was quoted 15% by a finance company - repayments would be $50 per week over 3 years
I was quoted 16% from a bank and it was $52 per week over 2 years.

Go figure.

Differences between compound interest etc. Ask about the term and the repayments NOT the interest.

[The Pastor]

Be careful with the interest rates - check the APR is the same.

I borrowed some money for my bike -
I was quoted 15% by a finance company - repayments would be $50 per week over 3 years
I was quoted 16% from a bank and it was $52 per week over 2 years.

Go figure.

Differences between compound interest etc. Ask about the term and the repayments NOT the interest.


Very wise advice.

The other option is go and buy 5 packs of the 92 tabletes of nurophen a and make about 10g of P then sell it and buy it new.... (google if you dont know how its pretty easy)

[skelstar]

I went to my bank first and they wouldnt loan me money cause I didnt have a car to secure it, and they dont know what bikes are worth. Either that or Dover gets finance at my bank and he uses GSXRs to secure his loan.

[Devil]

MTF are sneaky fuckers who'll charge you if you try and pay off early. Plus they have multiple account setup and maintenance fees. I wouldn't considering touching them again. Ever.
They're a middle-man finance company just taking a cut.
Go to the source. GE, Pacific retail, anyone but MTF.

[wysper]

Thanks everyone.
Some good advice
I will go and do the check the repaymenst thing

I have good credit.

Is MTF motor trade finance?

I think I have had a bike through them before.

Could try to sell the wife of course :nono:

[The Pastor]

Thanks everyone.
Could try to sell the wife of course :nono:


Rent her, you'll get more money:nya:

[McJim]

Very wise advice.

The other option is go and buy 5 packs of the 92 tabletes of nurophen a and make about 10g of P then sell it and buy it new.... (google if you dont know how its pretty easy)
My advice may have been wise but Renegade Master's on the money when it comes to profitability.

Respect.

[shafty]

Wysper, yes, MTF is Motor Trade Finance. Search for another Posting on finance - a very good one from someone on "the inside" - its a major article and bears out what I know from selling finance a few years ago. On a car yard or bike shop, the Dealers have 2 sales to make - first the Bike, then the Finance - they make $$ from each. If you can secure "pre approved" finance from someone, yoiu go in as a cash buyer, plus can also buy privately. I know you want new, but consider the $2-$3000 you can save on a bike with 1 or 2000 km's on it.

Also, there will inevitably be set up fees. They are sometimes called "Establishment Fees" "Admin fees" - you name it, they'll be there, and often more than one. Ask what they are for, and embarrass them! They are simply a way of making money and hiding the interest rate. Offer to pay cash for the fees if you can - this'll save heaps, cos you also pay interest ON THE FEES! If they are ethical in doing the deal with you, they must take the time to explain the difference between an interest rate and a finance rate. THey aren't always keen to spend time on this for fear of losing a sale. The finance rate is always higher than the interest rate - cos it includes the fees and add ons. The easiest way to check the actual cost of the finance is to ask how many instalments of how many $$. Do the multilplication (eg 36 payments of $416.66 = $15000) - then sleep on it!!

Withe the value of a (new) bike diving the moment its out the door, while you are paying way more than the cash (advertised )price, you may decide it may smarter to buy near new/privately, or wait a bit longer. Hope this helps.

Finally....................what bike do you want to buy????

[GR81]

i have previously used http://www.primefinance.co.nz/ and http://www.mtf.co.nz/

[Drum]

I dont mean to be a wowser, but borrowing big dollars on a depreciating asset is possibly the worst thing you can do with your money. If you tried to sell the bike in 1-2 years time you could actually end up owing more than its worth.

Still, new bikes are real purdeee. And it is your money to do with what you like, after all.

[McJim]

If he's buying a 250 then it doesn't depreciate (much to the fury of the buying market...i.e. me)

15 year old 250 cc bike "that'll be 5 Grand
10 year old 250 cc bike "that'll be 5 Grand
5 year old 250 cc bike "That'll be 5 Grand
2 year old 250 bike "That'll be 5 Grand plus 240 orc coz it's just off the boat from good ol' Nippon"
Brand New GN 250 - $3,300

Wish we could drive 400cc bikes - not coz their faster but you stand a fair chance of paying a fair price!:nya:

[crazybigal]

try GE, if you have good credit and something to secure the loan with you can get 13% if you haggle with them.
I had a car loan with AA 12.45% it got sold onto GE for some reason.
Give the bike dealer a shot, you may be lucky! car dealers get like $500 for signing you up so its prob the same with bikes. you just have to twist some arms!
or what about using a credit card? some are down to 7% and there is no setup fees and all that crap! you may have to put it on another higher intrset card first, then swap the lot over to a low intrest one. westpac and anz are doing them.




Thanks everyone.
Some good advice
I will go and do the check the repaymenst thing

I have good credit.

Is MTF motor trade finance?

I think I have had a bike through them before.

Could try to sell the wife of course :nono:

[crazybigal]

250 bikes are the only vehicle asset that dosnt depreciate!
dealers asking 5 grand for 20 year old bikes still!
fzr's zxr's rgv all those aging heaps!
and then there is the bigest pile of crap the new gsx250!
people paid 6k for them and are selling them 2 years later for near on what they paid for it!
250cc bike = free motoring!


I dont mean to be a wowser, but borrowing big dollars on a depreciating asset is possibly the worst thing you can do with your money. If you tried to sell the bike in 1-2 years time you could actually end up owing more than its worth.

Still, new bikes are real purdeee. And it is your money to do with what you like, after all.

[wysper]

Withe the value of a (new) bike diving the moment its out the door, while you are paying way more than the cash (advertised )price, you may decide it may smarter to buy near new/privately, or wait a bit longer. Hope this helps.

Finally....................what bike do you want to buy????


more great tips.. thanks shafty.

I know the price will drop.
I know that I can get almost the same thing a few thousand k's old for a few thousand dollars less.
BUT I am pretty sure I am only going to buy new once, and it might as well be now.

I am looking at an XTX660.

I know it is a financially bad descision - but my history it to keep a bike for over 5 years before even thinking of selling, so in that respect I reckon I would get my moneys worth.

But I will definately investigate finance rates as opposed to interest rates.


I WANNA NEW BIKE :crybaby:

[Slingshot]

As already mentioned, it's not so much about the interest rate...but the way it's calculated.

If you're comparing companies, ask for the weekly payment over a set term for a set amount...then you can compare apples with apples. Or ask them to provide the total cost of finance.

You mentioned the credit card through NBNZ, have a look at the other banks...eg. ANZ, they've just released a Low Rate card at 12.9%.

Also, if you've got a mortgage, you may be able to get a top-up...my advice here is when you're paying it back set up auto payments to pay back an amount similar to what you'd pay per week through a finance company, that way you will have paid the bike off in a couple of years rather than the life of your mortgage.

[Timber020]

Dont finance if you can avoid it, you end up paying so much more for a bike thats worth so much less. Buy a bike you can afford and save for the bike that you want. Financing something like this can put you back years financially.

[Ghost Lemur]

I'm going with the bank option.

Was just saving to pay cash, but my perfect bike sprung up and I couldn't refuse. Obviously bank is always a better option than loan company/sharks.

If you've got to pay interest you might as well build a reputation where it matters. Banks have the real financial ability (home loans, etc), so might as well build the good relationship with them.

[wysper]

Hey Ghost

I hope your signature wasnt the formula used to calculate your loan repayments!

[Turtle]

more great tips.. thanks shafty.

I know the price will drop.
I know that I can get almost the same thing a few thousand k's old for a few thousand dollars less.
BUT I am pretty sure I am only going to buy new once, and it might as well be now.

I am looking at an XTX660.

I know it is a financially bad descision - but my history it to keep a bike for over 5 years before even thinking of selling, so in that respect I reckon I would get my moneys worth.

But I will definately investigate finance rates as opposed to interest rates.


I WANNA NEW BIKE :crybaby:
I run a bike shop near by & we use MTF who are pretty flexible and have reasonable rates.PM me if you like and I may can give you some figures or answer some questions for you....good luck

[Ruralman]

Dont finance if you can avoid it, you end up paying so much more for a bike thats worth so much less. Buy a bike you can afford and save for the bike that you want. Financing something like this can put you back years financially.

I agree. If you haven't yet got a morgage there's probably a lot of things you will want to save up for (eg house deposits) in the next few years. There is a very wise saying that goes - buy the cheapest vehicle your ego will allow you to drive, that fits the purpose you need/want it for.
A cheaper second hand bike will actually give you the same buzz if you choose carefully, and you'll ride in the knowledge that the "investment" in the bike is guilt free because its not holding you back from getting on with life and building appreciating assets.

[The_Dover]

fuck that.

you only live once and if you're gonna die it may as well be at 250km/h on a shiney new gixxer thou.

even if a new bike costs you 5 large over 4 years, isn't the pleasure you get in that time worth it?

or would you rather scrimp and save for 4 years and then go but a bike as a cash purchase? and with little or no incentive to get full cover if you then go and throw the fucker down the road you are gonna be crying like a blues fan come play off time.

if you have a steady income and a fairly predictable and planned future then do the numbers and follow your hard on.

[Coyote]

In my totally unexpert opinion, go to a bank. Ghost Lemur is dead right, also finance companies can go belly up and you'll find your bike is being sold at Turners EDIT: OAB pointed out this to be bullshit, fair enough. Western Bay Finance is the perfect example, you've seen their adverts and they seem like a good option, but they were millions of dollars in debt and went under. Although, I have a question: Can you get your finance deal with one company moved to another if the one you were with happened to go bunkrupt?

My parents have said if I can save up for a hefty deposit, they can put the rest of the bike onto their mortgage and I'll pay them back. Makes the bigger goals a bit more realistic (like a VTR1000 SP1)

[cowpoos]

fuck that.

you only live once and if you're gonna die it may as well be at 250km/h on a shiney new gixxer thou.

even if a new bike costs you 5 large over 4 years, isn't the pleasure you get in that time worth it?

or would you rather scrimp and save for 4 years and then go but a bike as a cash purchase? and with little or no incentive to get full cover if you then go and throw the fucker down the road you are gonna be crying like a blues fan come play off time.

if you have a steady income and a fairly predictable and planned future then do the numbers and follow your hard on.
thats right.......but your still a ghey fat cunt.......and where the fuck is my tui,packet of smokes and bottle of deoderent?

[mikey]

just do it.
fuk the free world.
vote george bush.

[Ruralman]

fuck that.

you only live once and if you're gonna die it may as well be at 250km/h on a shiney new gixxer thou.

even if a new bike costs you 5 large over 4 years, isn't the pleasure you get in that time worth it?

or would you rather scrimp and save for 4 years and then go but a bike as a cash purchase? and with little or no incentive to get full cover if you then go and throw the fucker down the road you are gonna be crying like a blues fan come play off time.

if you have a steady income and a fairly predictable and planned future then do the numbers and follow your hard on.

Not suggesting he doesn't buy something now - if he wanted a gixer thou (which he doesn't) then rather than buy a new one why not start with a bloody good second hand one and let some other mug take the big 1st years depreciation??

[imdying]

Although, I have a question: Can you get your finance deal with one company moved to another if the one you were with happened to go bunkrupt?Of course, creditors are only interested in getting their money, they'd rather have that than a bike they have to sell.

[The_Dover]

if he doesn't want a gixxer thou then he's a poof and should get a second hand scooter.

and as for a second hand gixxer thou, how second hand do you want it?

[imdying]

New is great, there's something about a shiny new bike no other bugger has ridden.

[Ghost Lemur]

Hey Ghost

I hope your signature wasnt the formula used to calculate your loan repayments!

Hehe

Nah, it's the matmatical equation that represents Murphy's Law. Where U=urgency, C=complexity, I=importance, S=skill, A=aggravation and F=frequency

[onearmedbandit]

In my totally unexpert opinion, go to a bank. Ghost Lemur is dead right, also finance companies can go belly up and you'll find your bike is being sold at Turners.

It doesn't matter if a finance company goes belly up, if you make your payments. Investors still want their money back, and your payments will stay the same. If however you don't make your payments, that's when you'll find your vehicle being repossesed. If it's non-recourse finance, the finance company will come get your vehicle and sell it. If it's recourse finance, the selling agent guaranteed your loan, they have to pay the finance company and get your vehicle off you themselves. And then your one of the reasons the finance companies go under in the first place. But that's their fault for giving away millions of dollars of other peoples money to people that first tier finance companies wouldn't. Go figure.

[geoffc]

Just looking at ways of financing my upcoming bike purchase.
..........

I am stunned :gob:

Does anyone know of cheaper ways? I am open to ideas.

wysper

Hi
I was looking at that issue 18 months back and discovered the PSIS.(Public Service Investment Society). Any one can join them and they are encouraging new members. At the time they were lending at a special rate of 9%. Stone the crows ! Final outcome, I bought the bike the next day and have been smiling ever since.

[wysper]

Hi
At the time they were lending at a special rate of 9%. Stone the crows ! Final outcome, I bought the bike the next day and have been smiling ever since.

now that is the outcome I am looking for too... might just have to give them a call

cherrs:drinkup: