Vehicle finance?

[Osbornezo]

Hi all,

I know vehicle finance isn't the best but its really the only way i would get a bike. If i were to buy a bike that costs 5k i would end up paying like 7k including interest, maybe 5k if the bike is 3.5k. Who has bought a bike on finance and can help out with advice? Who does the best deals? Is there other ways around it? Any advice is welcome.

Thanks in advance

[Hitcher]

If you can't afford it, don't buy it. Seriously.

[Woodman]

+1 to Hitcher. Save up till u have the cash.

[BMWST?]

you have the information right there.It is a very expensive way to buy a bike,but when i was younger and more foolish than i am now i had a series of 5 or six bikes that were all bought on HP,some through the bank,some though a finance company that i organised and a couple through the shops finance company.Dont forget that while you are paying the bike is actually decreasing in value too(and you have to keep it in tyres and petrol and rego and warrant and insurance.The latter is compulsory when you have a bike on finance

[Osbornezo]

I know that is the best way. Debt Sucks, but to get the cash i would be looking at over a year which i hate the thought of

[Mushu]

I know that is the best way. Debt Sucks, but to get the cash i would be looking at over a year which i hate the thought of

That's a fair point, but the other side would be to say if you save for a year you'll own it, if you get it on finance you'll pay more and won't own it for 3 years (or possibly 5)

Sent from my XT535 using Tapatalk 2

[Osbornezo]

That's a fair point, but the other side would be to say if you save for a year you'll own it, if you get it on finance you'll pay more and won't own it for 3 years (or possibly 5)

Sent from my XT535 using Tapatalk 2

Fair point, i would aim to have paid it off within 2 though (roughly 70 per week). I know some dealers allow you to pay it off to them with little or no interest but that seems to be mainly car dealers

[xXGIBBOXx]

Me im shit at saving , hp works for me . X amount to pay the bike x amount in bank acc for rego, tyres , oil ect . Yeah i lose money but i build a credit rating . Its a lose win , so when i go for the big loan for a house i have a record of payment with the bank . It up to you and i plan on keeping this for a few years well past the end of the loan . Just plan a head can you afford that each week after rent, power , gas, running costs and pocket money for your self ? Do the maths first , if you get behind they own you and your left paying for a bike you dont have anymore

[Jantar]

My accounant advised me to always keep one thing on HP, but only for a fraction of its true value. There are two reasons for this:
1. It maintains a credit record if you ever need to remortgage your property or buy additional property.
2. To explain to the the taxman why you are offsetting so much interset off your tax. You can't afford to write down your mortgage any faster because you have HP payments to meet.

As a result I keep a small part of one bike on HP all the time. The other 3 bikes i paid cash for.

[Berries]

Don't do it.

The week I started my first ever full time permanent job I walked in and bought a brand new KMX125 with finance arranged through the bike shop. After passing my test I traded it for a new GPZ500 from the same place with the same kind of deal. At some point I got rid of the bike because I couldn't afford the insurance and the monthly payments as well as my monthly entertainment bill so sold it at a massive loss and ended up with an ex race GPX750. After seven years I left that job - I mistakenly believed that the redundancy package would pay off my debt but I pissed it up the wall instead. Spent a year doing that before coming over to NZ. It was two years after arriving here before I finished paying off the debt that started with that first bike. Two years where I couldn't afford a bike here, couldn't afford fuck all really the way the exchange rate shat itself the day I got off the plane. Hate to think what it cost me in the end.

Yes, catching the bus with the poor people and the mentals sucks big time. But a year or two of hardship while you save up is better than a year or two of hardship paying for shit you no longer own or have trashed and couldn't afford insurance.

I am not one for offering advice on KB but really, unless it is part of some tax cheat or you really know what you are doing don't fucking touch it.

[ducatilover]

I'm no fan of HP, I had one bike on it and it was cheap per week, but I ended up paying a fair bit more than the bike was worth.

Everything I own now has been cash (two bikes, one car, all cheap and probably shit to anyone but myself), it takes me a lot longer than my mates to buy or build something but I think I appreciate it more.

[st00ji]

you'll value it more if you have actually saved the money up for it too. if you had 5k and wanted a 6 or 7k bike i could maybe see stretching just for the awesome factor. but a whole anything on finance is just asking for pain. insert similar sad stories of misspent youth as above

[JimO]

it must take a long time to save up for a house, as far as im concerned if you want it and can afford the repayments buy it

[Monkfish]

Finance is never a good option.

But, if you need to get a loan, get it from the bank not a finance company. I (like you) couldn't wait and got my bike with a top up loan from the bank. Interest is waaaayyy better than a finance company. only problem you have is convincing the bank manager.

- no worries if your good on your knees, and have a pretty mouth.

[Edbear]

I told my a young guy to buy what he could afford, save the equivalent of the repayments until he had enough cash to upgrade, repeat until he was paying cash for a really nice car.

Worked out it would take five years and he could be buying a near new car of his choice. 20 years later after ignoring my advice he has an older car on tic.