Vehicle finance?

[cynna]

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

you only live once.....

[st00ji]

yes, you do only live once. which is why you dont want to spend your one life watching your hard earned pay disappear into a blackhole of interest and depreciation

[cynna]

well you cant take it with you when you die. saved up got my first bike when i was 15 and from then borrowed money from my parents and sister and paid them back with interest. when i finished uni bnz was giving away $20000 overdrafts so got a decent bike then. brought a house then used a revolving credit account for next few bikes. split up and paid ex out of house so had to get a bigger mortgage so got a bit extra to buy another toy. still got a revolving credit account for my next bike..... and interest rate is just over 4% so no big deal. suppose its a differnt story with a 17% loan

my way off looking at is im going to die, got no kids to leave my money to, paying less in mortage then most people i know pay in rent. got all they toys i want. sure i have lost money in interest and depreciation but rather do what i want now then be a 60 year old with 100g in the bank

[HenryDorsetCase]

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

I have of course done this. But I was younger and didnt have any choice. And i am familiar with the aching need to own something that you really can't afford. Some tips: Avoid loan sharks (anyone who advertises on telly for example). READ THE GODDAMN FINE PRINT. Work out exactly what you are going to pay. I would suggest your "borrow $5k capital and will repay $7k" is very light indeed. How these contracts work is that All the interest and all the charges (a PPSR charge, a documentation charge, an application fee, a charge for printing the document, a charge for walking in their door are front end loaded. Say thats a grand (and it could be, because these guys are absolute scumbag bottom feeder financiers of last resort) So you are paying interest on $6k, not $5k.

And the interest rate is not low. In an era of historically low rates (I can borrow money secured at 5% FFS) the rate they will charge you is something like $14% or whatever. Thats front end loaded too by the way: that makes a difference 18 months into a two year contract and you have had a pay rise and you think: Wow, Ima pay this bad boy off right away. You will end up paying nearly all of the last six payments anyway because they are principal which you still owe. Which you agreed to in that fine print you didnt read.

Dont you dare miss a payment or be late: they will ding you another few fees: $50 dishonour fee, and a $50 documentation fee for sending you the letter . That is added to the loan balance and it flicks the whole thing into penalty interest. If you think the friendly rate of 14% or whatever is bad enough, be prepared for AT LEAST an extra 5% but more likely 10% on the unfriendly rate. Plus bad credit report, potential repo, all that shit (particularly if it goes on and on and on).

Bottom line: Dont do it.

Explore some other options. Maybe you can get a low interest (Westpac?) credit card at 12% and use that. It is still expensive money because the interest rolls monthly but if you borrow $5k, thats all you're paying interest on. Of the credit contracts I have looked at lately, MTF seemed to be OK.

Hit up your Mum and Dad, assuming they own their own home and have some equity in it. Either get them to borrow the money, then lend it to you, and you pay them back, or you borrow it and they guarantee it. If you do go down that track I have some advice for your olds also (apart from the standard "Are you insane? NEVER do that for your bloody kids"). Basically that boils down to limitation of their liability as much as possible. that will involve negotiation with the bank. The other issue for them is if you turn out to be a scumbag and rip them off then its usually pretty difficult for them (emotionally not legally) to try and enforce their security. Or they might be like my dear old Mum when I asked her who said "Sure, for a car. Never for a motorbike".

But also think about this. You dont own the bike you're riding, you're committing a chunk of coin each week to it. DO YOU HAVE ENOUGH MONEY LEFT OVER FOR THE OTHER SHIT YOU HAVE TO DO? Not rent or food or whatever, you can sleep under a bridge. But you have to keep the bike on the road and road legal, you have to buy tyres for it and put petrol in it and since it is financed you have to have full insurance cover on it. (That will be hard to get BTW if you live under a bridge). Plus it costs ten bucks a week for Nick's Myth payments aka registration.

Bottom line: save your pennies. Buy cheap stuff till you can afford better. Wheel and deal a bit or fix stuff and on-sell. But easy credit is for suckers. If you get sucked in, at least try and get a reasonable deal.

[Flip]

Don't do it.

Credit ratings and finance companies are a sham.

I have one rule. Don't buy any depreciable asset with a loan. You will buy a $5k bike, end up paying $7k and end up with a $3k asset. All you end up doing is smoking $4k for nothing.

Save your money and pay cash, then you will save that $2k in interest that can go towards the next and better bike. Do this a few more times and you will will have saved the cash price of a new Harley.

[JimO]

Don't do it. I went through a painful 4 year phase of ticking up bikes. Not getting insurance on them. Two got written off. Took me 7 years in total to pay it all off.

finance wasnt your problem being a dumb cunt not getting insurance was

[davereid]

How can the bank know if your behind or not without having this information? They certainly can't 100% trust what you tell them and it takes quite a while before thigns go to a collection agency. Being a lender at the bank that I work for I can tell you that nothing has really changed yet. Yes I have seen in the news that places like Telecom are going to start sharing information about your account conduct. The bank I work for was included in the list that wil be using this. But as yet nothing has changed, personall if you arent paying your bills on time or at all somewhere like Telecom I think that bank that is considering lending you money has every right to know that. Things like account conduct are a very heavy weight on an application for credit especially when it comes to things like home loans.

If you really believe its confidential then you should have another look. Your credit account can be provided to a wide range of companies without your authority, and bloody near anyone with your authority.

And you will find that virtually everything you sign from your flats lease to the DVD rental form give those people the right to access your personal data as they wish.

Secondly, I don't need credit. So I don't gain anything from having my personal data shared. It would be OK if people were able to choose. But you can't.

Thirdly this crock-of-shit "if you don't have something to hide etc" is a snoops dream. I don't have anything to hide.

But nor should I be compelled to have every aspect of my life made available to anyone who wants to snoop.

Send me a scan of your driver licence if you like. I'm curious about you. Id just like to know your income, expenditure, loan exposure, what you watch on the tv and download on the internet. Can't imagine why you would object unless you are hiding something.

[speeding_ant]

finance wasnt your problem being a dumb cunt not getting insurance was

True - though having no money to spend on WOF/REG will lead to the same conclusion...

[pyroguy55]

If you really believe its confidential then you should have another look. Your credit account can be provided to a wide range of companies without your authority, and bloody near anyone with your authority.

And you will find that virtually everything you sign from your flats lease to the DVD rental form give those people the right to access your personal data as they wish.

Secondly, I don't need credit. So I don't gain anything from having my personal data shared. It would be OK if people were able to choose. But you can't.

Thirdly this crock-of-shit "if you don't have something to hide etc" is a snoops dream. I don't have anything to hide.

But nor should I be compelled to have every aspect of my life made available to anyone who wants to snoop.

Send me a scan of your driver licence if you like. I'm curious about you. Id just like to know your income, expenditure, loan exposure, what you watch on the tv and download on the internet. Can't imagine why you would object unless you are hiding something.

Your data cannot be accessed without due reason. If someone has a look for the sake of having a look they are breaking privacy laws. If I go and look at a customers information at the bank without having a reason for it I could lose my job.

I think the key line in your arguement was "and bloody near anyone with your authority. " WITH YOUR AUTHORITY.

Its your responsibility to know what your signing. As a side note I can't access any information other than a credit check and information that is provided to me by the customer and I do home lending!! I think you are blowing it out of proportion a tad.

But in relation to the main point of this thread, finance can help people out but, coming from someone who sells it - Know the fees, shop around, Save the money if you can before looking at finance.

[Edbear]

I have of course done this. But I was younger and didnt have any choice. And i am familiar with the aching need to own something that you really can't afford. Some tips: Avoid loan sharks (anyone who advertises on telly for example). READ THE GODDAMN FINE PRINT. Work out exactly what you are going to pay. I would suggest your "borrow $5k capital and will repay $7k" is very light indeed. How these contracts work is that All the interest and all the charges (a PPSR charge, a documentation charge, an application fee, a charge for printing the document, a charge for walking in their door are front end loaded. Say thats a grand (and it could be, because these guys are absolute scumbag bottom feeder financiers of last resort) So you are paying interest on $6k, not $5k.

And the interest rate is not low. In an era of historically low rates (I can borrow money secured at 5% FFS) the rate they will charge you is something like $14% or whatever. Thats front end loaded too by the way: that makes a difference 18 months into a two year contract and you have had a pay rise and you think: Wow, Ima pay this bad boy off right away. You will end up paying nearly all of the last six payments anyway because they are principal which you still owe. Which you agreed to in that fine print you didnt read.

Dont you dare miss a payment or be late: they will ding you another few fees: $50 dishonour fee, and a $50 documentation fee for sending you the letter . That is added to the loan balance and it flicks the whole thing into penalty interest. If you think the friendly rate of 14% or whatever is bad enough, be prepared for AT LEAST an extra 5% but more likely 10% on the unfriendly rate. Plus bad credit report, potential repo, all that shit (particularly if it goes on and on and on).

Bottom line: Dont do it.

Explore some other options. Maybe you can get a low interest (Westpac?) credit card at 12% and use that. It is still expensive money because the interest rolls monthly but if you borrow $5k, thats all you're paying interest on. Of the credit contracts I have looked at lately, MTF seemed to be OK.

Hit up your Mum and Dad, assuming they own their own home and have some equity in it. Either get them to borrow the money, then lend it to you, and you pay them back, or you borrow it and they guarantee it. If you do go down that track I have some advice for your olds also (apart from the standard "Are you insane? NEVER do that for your bloody kids"). Basically that boils down to limitation of their liability as much as possible. that will involve negotiation with the bank. The other issue for them is if you turn out to be a scumbag and rip them off then its usually pretty difficult for them (emotionally not legally) to try and enforce their security. Or they might be like my dear old Mum when I asked her who said "Sure, for a car. Never for a motorbike".

But also think about this. You dont own the bike you're riding, you're committing a chunk of coin each week to it. DO YOU HAVE ENOUGH MONEY LEFT OVER FOR THE OTHER SHIT YOU HAVE TO DO? Not rent or food or whatever, you can sleep under a bridge. But you have to keep the bike on the road and road legal, you have to buy tyres for it and put petrol in it and since it is financed you have to have full insurance cover on it. (That will be hard to get BTW if you live under a bridge). Plus it costs ten bucks a week for Nick's Myth payments aka registration.

Bottom line: save your pennies. Buy cheap stuff till you can afford better. Wheel and deal a bit or fix stuff and on-sell. But easy credit is for suckers. If you get sucked in, at least try and get a reasonable deal.

Don't do it.

Credit ratings and finance companies are a sham.

I have one rule. Don't buy any depreciable asset with a loan. You will buy a $5k bike, end up paying $7k and end up with a $3k asset. All you end up doing is smoking $4k for nothing.

Save your money and pay cash, then you will save that $2k in interest that can go towards the next and better bike. Do this a few more times and you will will have saved the cash price of a new Harley.

Wot they sed!

[HenryDorsetCase]

If you really believe its confidential then you should have another look. Your credit account can be provided to a wide range of companies without your authority, and bloody near anyone with your authority.

And you will find that virtually everything you sign from your flats lease to the DVD rental form give those people the right to access your personal data as they wish.

Secondly, I don't need credit. So I don't gain anything from having my personal data shared. It would be OK if people were able to choose. But you can't.

Thirdly this crock-of-shit "if you don't have something to hide etc" is a snoops dream. I don't have anything to hide.

But nor should I be compelled to have every aspect of my life made available to anyone who wants to snoop.

Send me a scan of your driver licence if you like. I'm curious about you. Id just like to know your income, expenditure, loan exposure, what you watch on the tv and download on the internet. Can't imagine why you would object unless you are hiding something.

relevant.

You should do this


http://www.stuff.co.nz/business/mone...ncial-identity

[Banditbandit]

And to balance that, paid 24k for a new bike, just over two years later, got 8k in trade in value. Fuck buying a new bike again.

1 Never ever never ever trade in a bike .. the shop will put it on their floor at more than they paid you for it ... you can sell it for the same price they can .. so why give the money? ... the last trade in I made was in the mid 1980s when I got $600 for a trade in and the shop put it on their floor at $1600 .. I've never traded in since ..


2. That's a massive drop in value in two years .. I suspect that is unusual .. (but not sure) I did buy a new bike - and two years later I could have sold it for the same money (or maybe more) than I paid for it ...

Why was there such a masisve drop??? (or did the shop just rip you off .. I know .. I'd feel pissed off too ..but just asking the question .. what did they put it on the shop floor for?) .

[Gremlin]

1 Never ever never ever trade in a bike ..

Why was there such a masisve drop??? (or did the shop just rip you off .. I know .. I'd feel pissed off too ..but just asking the question .. what did they put it on the shop floor for?) .

Of course bike shops will put a markup on it, it's how they make a profit (and pay overheads), and I'm OK with that. Selling to me is a pain in the arse. You have to be around for buyers to view. Most are tyre kickers wanting a spin, or thieves lining up a later visit. Sure, there are the legit ones, but when I make up my mind I want a new shiny thing, then I want the old shiny thing gone ASAP, so I can enjoy the new shiny thing (can't own both at the same time either). Easier from my point of view to let the shop take the risk of finding a new buyer while I start enjoying my new bike.

Re depreciation... could have been the slight mileage increase from 6km on the clock to 63,000km. I just rode it when I wanted... The dealer had to double check I was right, and it wasn't 6300km. I think they listed it around 11-12k, but they also spent some time touching up scratches from a low side, removing some of the bits etc.

By the time they sold it a few months later (I met the new owner who was loving it), I'd probably put 10k on the new bike. Worth it to me.

[shafty]

Haven't you seen the ad's on TV? - it even uses a scooter as an example ~
" if you save up, you earn interest, not pay it"

[davereid]

Your data cannot be accessed without due reason. If someone has a look for the sake of having a look they are breaking privacy laws. If I go and look at a customers information at the bank without having a reason for it I could lose my job.I think the key line in your arguement was "and bloody near anyone with your authority. " WITH YOUR AUTHORITY.Its your responsibility to know what your signing. As a side note I can't access any information other than a credit check and information that is provided to me by the customer and I do home lending!! I think you are blowing it out of proportion a tad.But in relation to the main point of this thread, finance can help people out but, coming from someone who sells it - Know the fees, shop around, Save the money if you can before looking at finance.

I asked you to publish a copy of your Driver Licence. You haven't done it. Why not ?

Maybe its because you want some control over who has access to your personal information and for what purpose. We use a word called Privacy to describe that idea.

You think its OK for Telecom, my bank, my power company to disclose that information without my consent, or with consent gained on a "take it or leave it" basis, for a purpose which solely relates to improving their business.

I don't.

Its called PRIVACY.

If I meet all my obligations for payment to a company, I think the financial relationship I have with that company should remain PRIVATE unless I freely choose for it to be disclosed.

I may say, "go for it, it will make it really easy for a finance company to asses my creditworthyness and sell me credit to the hilt"

Or I may say, "no thanks, I don't need to be evaluated for the credit I will never ask for"

Sadly, the financial machine has designed a system that will ensure it knows exactly how much credit any individual can cope with, even if that individual would prefer privacy. I can currently avoid it. But eventually I will be part of it.

But I will still get banned from parties for punching people who tell me "if I have nothing to hide I should drop my pants". As it were.