Buy outright or finance?

[st00ji]

Hi everyone.
I was wondering how many people buy their bikes outright and how many get finance or a loan or whatever?
I want to get a new bike (new to me, not necessarily brand new) and I wanted people opinions of whether it's worth it to get finance or should I just save up until I can buy it outright?

I can see advantages and disadvantages to both so just want peoples opinions at this stage.

Cheers.

in general i agree with the people in this thread.

i myself also avoid paying interest on anything as much as possible. learned my lesson in my younger days, the usual car ticked up for 10k, paid 70 billion for it, was worth 5k by the time i actually owned it.

however, to some this cost might be worth paying in return for getting the bike of your dreams years before you would be able to normally by saving for it.

my theory however remains if you cant afford to pay for it out-right, you probably cant afford to own it.

[JafaSaffer]

I paid 60% cash and financed the rest over 24 months. My bike was $43k which was a bit much to pay cash all at once for me.

But if you can save up and buy cash.

[mossy1200]

Alot of people believe the world will end in Dec this year.

Those people are best to borrow alot over a long period. Interest rate is not important as you wouldnt need make any repayments as the world will be over before the repo man arrived.

[Brett]

I have always paid cash for my bikes. However, there is one situation where I would finance it - if it were a business vehicle/asset - (hard to pull off with bikes, legitimately anyway) - as this would allow one to claim finance costs as a tax deductible expense as well as depreciation etc.

[BMWST?]

find out what the repayments will be.Can you afford it? Do it.If you listened to popular opinion you wouldnt be on a bike.
If you can afford it,and realise you will prolly pay twice what the bike is worth but want it now do it.Just shop around for the finance.If you do the sums and dont like what you see then dont do it.

[Brett]

I have always paid cash for my bikes. However, there is one situation where I would finance it - if it were a business vehicle/asset - (hard to pull off with bikes, legitimately anyway) - as this would allow one to claim finance costs as a tax deductible expense as well as depreciation etc.

Edit - Oh and Yamaha finance for 2 years at 5.xx% is pretty good as far as financing goes. That is on par with the floating mortgage rate (secured against the property). Normally you could expect at least 11% interest on finance for a vehicle.

[JimO]

i say fuck it if you want it buy it, as long as you can afford the payments

[98tls]

In hindsight re my previous post thing is you only live once and none of us have any control over the length of time we do so if its something you really want do whatever it takes to have it i guess.Enjoy what ever you decide.

[ac3_snow]

my theory however remains if you cant afford to pay for it out-right, you probably cant afford to own it.

Never, never borrow money to pay for a depreciating asset.


Never.

Yea I would agree with these guys on this one. Have financed a car before, nothing major only about $3k, but fuck it sucked. I absolutely hate paying the interest (unless its a deductible expense as mentioned) and no matter how short the loan is, it still takes ages to pay it off. While you may be ok now to make the repayments now, there is no guarantee you will be in the same position in a year or two.

[Ocean1]

Someone's already said, if you borrow to buy you end up paying twice the price.
And that's conservative.

And then, of course it's only worth half as much when you come to sell it...



But here's the thing: you never value something you've bought with someone else's money quite as much as you value something you've sweated for a bit.

[bogan]

You obviously don't have money to burn, so the more important question is, why do you want a bike that costs so much that you need to finance it? There's not much the newer ones can do that the older ones can't.

[BMWST?]

i didnt realise motorcyclists were such wowsers,buy the thing just have a decent deposit!

[GDOBSSOR]

Hi everyone.
I was wondering how many people buy their bikes outright and how many get finance or a loan or whatever?
I want to get a new bike (new to me, not necessarily brand new) and I wanted people opinions of whether it's worth it to get finance or should I just save up until I can buy it outright?

I can see advantages and disadvantages to both so just want peoples opinions at this stage.

Cheers.

Buy outright. You do not need a motorbike to survive, it is not worth getting into debt over and racking up interest. That said, if you have most of it saved and you just need a bit more and you're a student, then by all means put it on your loan as you won't have to pay interest. That's what I may end up doing if I can't find cheap quality gear.
That said again, if your motorbike is your only form of transport and you rely on it to function, and you can't afford a car, put it on finance, but don't get stung by the sharks. My ex partner was going to buy a GSX250 on hire purchase... stupid. What stopped him was that his car broke down and he had to borrow money to fix his car, sell it and buy a new one he could rely on. I would have done the same thing in his shoes, as he needed that car to work and earn money. However, he was very careful about who he borrowed from. Difference? He needed his car to function. He didn't need the bike.

[FuriousD]

I'm sure your smart enough to work out how much it will be with finance. If your ok with paying that much and feel stable in your employment then why the hell not???

[Hoon]

I bought an $18,000 car on finance which ended up costing me $26000. Ten years later I traded it in for $500.

I also bought a bike and borrowed $5000 to cover part of it. I smashed out the loan in under a year but once the novelty of a new bike wore off it sucked paying crippling repayments for a toy especially during the winter when I couldn't use it.

If you do get a loan make sure you factor in full insurance premiums into your budget as well. Nothing worse than spending 4 years paying off a bike you wrote off and no longer have after 3 weeks of buying it.