Cheapest place to borrow money? [Archive]

Winter

1st April 2009, 16:35

Str8 Jacket

1st April 2009, 16:44

If you really want to get a loan then you shold "shop around". Look at a few websites, ring a few different companies and talk to people. My thoughts would be that you would probably get the best deal with the bank that you already have your savings with. You could negotiate a cash price with the shop and then loan from the bank at quite possibly a better rate than from the shop... Good luck!

yungatart

1st April 2009, 16:48

I wouldn't be borrowing at all, especially in these uncertain times.
If you haven't got the cash, maybe you just can't afford it.....

Madness

1st April 2009, 16:51

Buying brand new bike = large depreciation.
Borrowing money for said bike = increased actual cost.

Solution = buy 2nd hand & pay cash.

I am yet to live by this, my own advice, but have recently turned over a new leaf.:msn-wink:

Pussy

1st April 2009, 16:54

I see Yamaha have a deal at the moment of 4.99%... on the 2008 R1 and 2009 R6 I had a look at the other day, anyway

The Stranger

1st April 2009, 16:58

I should imagine they make more from the deal if you finance it as they very likely get a kickback from the finance company if they write the deal. I have had dealers offer better deals (on purchase price) when buying with finance than with cash.
Some of the rates with the likes of YMF are (were) pretty reasonable - Yamaha like to sell bikes.

nodrog

1st April 2009, 17:12

take your 12k to sky city, you could double it with one spin of the roulette wheel.

Str8 Jacket

1st April 2009, 17:16

take your 12k to sky city, you could double it with one spin of the roulette wheel.

Would you like a gun with that sir? :D

mattian

1st April 2009, 17:28

Some people would rather you gave up biking and became an accountant!!!!
There is nothing wrong with borrowing money for something you love. As long as you are relatively certain that your job is safe and can afford the repayments. You've saved most of it already and that places you in a good position to borrow the rest.

Creeping Death

1st April 2009, 17:38

I'm keen on a new bike.. Excecpt the $17,995 + ORC tag on it!

What exactly were you looking at buying?Surely you could get a fairly recent 2nd hand model for around the 12k mark?

But I guess if new is what you want then go for the loan I say!

Good luck! :cool:

Grumpy Gnomb

1st April 2009, 18:47

Just make sure if you borrow the money you still have to pay it back plus interest no matter what happens (that of course does not apply if you are a finance company who take peoples money but dont pay it back if they go tits up)

davebullet

1st April 2009, 21:03

MAke sure you can get insurance at a reasonable cost too first. Some insurers don't like or load premiums on bikes with other interested parties as it presents a further risk / complication.

If lending, I'd prefer a bank loan or mortgage top up.

Have you pawned off any old stuff you no longer need just to get you a little bit closer?

YellowDog

1st April 2009, 21:13

Hey Winter, spill the beans! What are you looking at buying.

There's some really bad advice on here. There are some great deals on new bikes making them far better value than 1-3 year old second hand ones. Plus they don't leak oil after a few months because you know who has run it in.

Once in a lifetime opportunity. Go for it!

LBD

1st April 2009, 21:20

Its better to borrow cash from somewhere like ....
Thoughts please!

Tried family....

Tink

1st April 2009, 21:48

I'm keen on a new bike.. Excecpt the $17,995 + ORC tag on it!

I have about 12,000 sitting my savings account.. I wish to go and borrow $8k.. So i can buy my new bike, and a new hot water cylinder at the same time! Woo high pressure hot water!

Its better to borrow cash from somewhere like a bank, and go in to bike shop with cash right? Rather than financing the bike from the shop?

Thoughts please!

Ok your the only one knowing your income/outgoing... so you make the final call to buy the dream bike.. or not... but my advice is stay away from finance companies... stick to banks...and barter like hell... give them your insurance, and talk to a lending manager, not just jo blogs... BARTER I SAY.

Flick it on the mortgage if you have one... lower interest rates...

YA ONLY LIVE ONCE... ENJOY.. HOT WATER.. AND NEW BIKE!!!!!:2thumbsup

Lias

1st April 2009, 22:04

Major banks, followed by Credit Unions etc are generally the cheapest for loans, but have the tightest credit criteria.

Given you have 12k in a savings account, I'd go see a loan person at the bank where you have the account and talk to them. Assuming your employed and saved the 12k the hard way, you should have a good enough track record with them to get a loan no problems.

jimichelle

1st April 2009, 22:04

dont flick it on your mortage its only 8k some banks have low intrest rates on their credit cards sometimes better than a bank loan after you have added their application fee as someone has suggested ring around at least buying new you dont have to worry someones going to buy it before you while you do your homework oh and enjoy the bike

Grumpy Gnomb

2nd April 2009, 11:41

Agree not to put on morgage as thats means you are paying interest on the bike over the life of the morgage instead of 2 to 3 years

Headbanger

2nd April 2009, 12:02

I generally find parents offer the cheapest loans.

Granted it can take a lot of work getting the loan approved, But the payments are a breeze....

Burtha

2nd April 2009, 12:22

Flick it on the mortgage if you have one... lower interest rates...

YA ONLY LIVE ONCE... ENJOY.. HOT WATER.. AND NEW BIKE!!!!!:2thumbsup

What she said ^^^

EXCEPT: when you are taking out a loan against a mortgage, it isnt for the full duration of your current mortgage, the duration is separate as it is a separate loan. Quite a handy setup really.

Thats pretty much what we do, but the current debate at the moment is whether the increase in interest rates are a bit of a blip or a genuine rise.
Am hoping its only a blip as am wanting to do the same myself next month for pretty much the same reason.

Keep warm & have fun!
:yes:

Tink

2nd April 2009, 12:43

Thats pretty much what we do, but the current debate at the moment is whether the increase in interest rates are a bit of a blip or a genuine rise.
Am hoping its only a blip as am wanting to do the same myself next month for pretty much the same reason.

:yes:

I heard this morning banks had put their long term interest rates up, I also heard the the reserve bank thinks this is presumptuous, does the banks know something the reserve bank do not know... !!!:nono:

Tink

2nd April 2009, 12:46

Oh and to point out.... Banks are negotiable on fees and interest rates... they want YOUR business... YOUR the one paying them... I think we let them rule us far to much... back to under the mattress banking I say.... :done:

Burtha

2nd April 2009, 12:55

I heard this morning banks had put their long term interest rates up, I also heard the the reserve bank thinks this is presumptuous, does the banks know something the reserve bank do not know... !!!:nono:

No, not necessarily. Banks will always be ready to raise their interest rates at times like this to help boost money flow through their doors. For buyers, its a good thing that the reserve bank hasn't, and the reserve bank is usually the one to watch whether or not banks think they are in the know or not.

bucket boy

2nd April 2009, 13:46

I generally find parents offer the cheapest loans.

Granted it can take a lot of work getting the loan approved, But the payments are a breeze....

I like this idea do they want another son

blackdog

2nd April 2009, 14:04

How bout this, the best finance deal i think i have ever seen. Keep the money for the cylinder out of what you have saved, use the rest as the deposit on a new yamaha, and yamaha motor finance currently are financing new bikes at 4.99%! Bet the banks won't match that.......I feel an R1 coming on.......

HenryDorsetCase

2nd April 2009, 14:10

I'm keen on a new bike.. Excecpt the $17,995 + ORC tag on it!

I have about 12,000 sitting my savings account.. I wish to go and borrow $8k.. So i can buy my new bike, and a new hot water cylinder at the same time! Woo high pressure hot water!

Its better to borrow cash from somewhere like a bank, and go in to bike shop with cash right? Rather than financing the bike from the shop?

Thoughts please!

if you're buying an HWC it infers you are responsible for maintenance on a property which infers ownership potentially with a bank mortgage.

talk to your mortgagee about a "home improvement" top up loan. tell them you are not prepared to pay any application or other fees. They should be al over you like a rash. Even the best finance co. deal will almost certainly be worse than a bank deal just in the "up front" costs aspect of it. (application fee, documentation fee, security check fee, fee for this, fee for that: all capitalised)

HenryDorsetCase

2nd April 2009, 14:11

I heard this morning banks had put their long term interest rates up, I also heard the the reserve bank thinks this is presumptuous, does the banks know something the reserve bank do not know... !!!:nono:

banks are the biggest pack of arseholes in the world. only organisation to make money when the economy is good or when it is in the shitter.

HenryDorsetCase

2nd April 2009, 14:14

Agree not to put on morgage as thats means you are paying interest on the bike over the life of the morgage instead of 2 to 3 years

not if its a separate loan with a separate term.

dont confuse the security for the loan (the mortgage registered on your title) with the loan itself: its a common mistake but still a mistake. So you can have as many different loans as you can convince your bank manager to lend you, but you only have one "mortgage" which is on your title.

Headbanger

2nd April 2009, 14:18

I like this idea do they want another son

I get the impression they aren't real impressed with the three they already have.

Maybe they are right, Maybe 34 is too old to be hitting them up for beer money....

Tink

2nd April 2009, 14:19

not if its a separate loan with a separate term.

dont confuse the security for the loan (the mortgage registered on your title) with the loan itself: its a common mistake but still a mistake. So you can have as many different loans as you can convince your bank manager to lend you, but you only have one "mortgage" which is on your title.

I used to work in a bank and myself held a mtge for 20 years.. ;) thanks for clarifying what I was thinking but not putting in type.:niceone:

Nasty

2nd April 2009, 14:35

not if its a separate loan with a separate term.

dont confuse the security for the loan (the mortgage registered on your title) with the loan itself: its a common mistake but still a mistake. So you can have as many different loans as you can convince your bank manager to lend you, but you only have one "mortgage" which is on your title.

I thought you could have multiple mortgages on the title .. since I have two that would make sense to me. Actually have three mortgages and two properties ... so not sure how that fits .. but it works out ok.

blackdog

2nd April 2009, 14:57

Also, dont expect to get a 'better' deal at a bike shop with cash. They make money from the finance too remember. The margin in the bike is the same regardless of how you pay for it.

HenryDorsetCase

2nd April 2009, 14:59

I thought you could have multiple mortgages on the title .. since I have two that would make sense to me. Actually have three mortgages and two properties ... so not sure how that fits .. but it works out ok.

you certainly can have more than one mortgage on a title. very common in commercial financing, and in situations where people are highly geared.

each mortgage may secure multiple loans, and the key there is the priority amount claimed by each mortgagee. Oh the hilarity.

the worst Ive seen was one where there were three registered mortgages and two caveats protecting unregistered mortgages. That was on the title of a client of ours as it happens. Took us for over twenty grand in work we'd done, lost everything.

Forest

2nd April 2009, 16:59

I don't want to sound like your mum, but the purchase price is just the start on a new vehicle.

Can you afford all the extra costs as well?

McJim

2nd April 2009, 17:13

Winter

2nd April 2009, 20:01

What exactly were you looking at buying?Surely you could get a fairly recent 2nd hand model for around the 12k mark?

But I guess if new is what you want then go for the loan I say!

Good luck! :cool:

Daytona 675.. In Black.

Hey Winter, spill the beans! What are you looking at buying.

There's some really bad advice on here. There are some great deals on new bikes making them far better value than 1-3 year old second hand ones. Plus they don't leak oil after a few months because you know who has run it in.

Once in a lifetime opportunity. Go for it!
Yeah.. Thats alot of my thinking.. I can afford it now whilst I'm earning reasonable $

If you are paying for a new water cylinder then surely you must own the house therefore have a mortgage?

Speak to the bank and get a loan secured on the house for peanuts interest.
Thats the nicest option eh? Not so simple tho.. Joint Mortgage... Which means if i top up the home loan then the other name on my mortgage ends up paying more.. Gets too messy.

I don't want to sound like your mum, but the purchase price is just the start on a new vehicle.

Can you afford all the extra costs as well? Really? Like what? Services at... 600/1200k? Gas? Everything else should last a bit longer shouldn't it?

Plus I'll be saving fuckloads on gas again :)

McJim

2nd April 2009, 20:07

Thats the nicest option eh? Not so simple tho.. Joint Mortgage... Which means if i top up the home loan then the other name on my mortgage ends up paying more.. Gets too messy.

Tell the other mortgagee to stop smoking wacky baccy then. The loan is seperate but is secured on your share of the property so they shouldn't have to make any extra payments. It's not actually part of the mortgage merely a loan secured on an appreciating asset which is the most attractive loan from a lenders perspective.

Speak to your bank salesperson ...I mean bank manager and see what is available if you have not already done so.

Winter

2nd April 2009, 20:18

Tell the other mortgagee to stop smoking wacky baccy then. The loan is seperate but is secured on your share of the property so they shouldn't have to make any extra payments. It's not actually part of the mortgage merely a loan secured on an appreciating asset which is the most attractive loan from a lenders perspective.

Speak to your bank salesperson ...I mean bank manager and see what is available if you have not already done so.

Cheers McJim! will talk to them and see what they say!