Ever had a "luxury loan"?

[Boob Johnson]

Who here has had finance in the past or still has it on non essential items? ie: a vehicle (over and above basic transport), TV's, stereo's etc etc. Pretty much anything that isn't growing in value.


Be interesting to hear peoples stories good or bad.


I can speak from experience with loans from both sides, I was once a fool who put consumable items/depreciating assets on "tick" & I have been the man on the other end handing the customer a pen (a mix of investment loans & luxury loans).


If you absolutely HAVE to get finance that's a different story but too many people go into these things with their eyes almost completely shut, if you do that then you have no one to blame other than yourself for loosing substantial amounts of money, as did I, years ago.


As mentioned in the another thread you can go about a purchase in a much more savvy way & with no real extra effort, just working smarter, not harder.
I haven't had a "luxury loan" in years & I won't ever do it again. I save the cash, in the time it takes to save ill educate myself on what IS a good deal on the item I want & then once the funds are in place ill start hunting for a bargin. The trick to it is this..........there are 3 levels of pricing for any item....

1) It's premium price
2) Fair market value &
3) A bloody steal

Study the market, see what things are selling for, you will see a pattern emerge as to what is its top, medium & low end sales price is then you know exactly what you are getting into.



I have made money on the previous two bikes ive owned & will make money or at least break even on my current bike when its sold & will also at minimum break even on my current car & don't get me started on general house hold items lol, ive got a hundred stories on bargins ive picked up from everything to computers, TV's, washing machines, dryers etc etc.


If anyone ever wants any advice on loans, don't ask me, you already know my answer



Ask yourself do I REALLY need this?

Do I really need this NOW?

How much is this REALLY costing me from start to finish?

Is it worth it?








Final thoughts...


"We buy things we don't really need with money we don't really have to impress people we don't really like"

[vindy500]

but i waaaaaaaaaaaant it now!

[Devil]

I've spent plenty on your so called luxury loans, but it still hasn't stopped me from finding the best deal first on the item, and then on the finance (interest free options). Bottom line is if I want something, i'll get it, but i'm never going into it blind and have budgeted for any payments.

Never run into any problems, always got what I want and will continue to do so.

[vifferman]

Home theatre system, using an interest-free period. Trouble was, it was with GE, so it was a stupid idea. I blame the accountant/wife: we went window-shopping for a pair of speakers, and came home with a receiver, five speakers and a subwoofer.

Bike - traded in the FahrtSturm, put half the balance on the Visa, and the rest on an MTF loan. Was actually a good idea, as the only interest we paid amounted to about $30 total. I blame the accountant/wife: we went window-shopping for a helmet for her, and came home with a short-term debt, and a $12k bike. And a $400 helmet.

Vacation in Urp - I blame the accountant/wife: we went window-shopping for a holiday, and came home with a $15k hole in the funds, which is still growing. Will probably top $20k easily. I could buy a nice new bike for that sorta money...

[icekiwi]

 I blame the accountant/wife: we went window-shopping for a helmet for her, and came home with a short-term debt, and a $12k bike. And a $400 helmet

Can I borrow your wife to come shopping with me.....lol

[munster]

Yes, but only ever when I've got things at a good price and interest free and we've always paid it off within the interest free period.

[ozrobo]

my bike is a essential but make and model isnt its a missus hater

[Swoop]

I blame the accountant/wife:

I blame the accountant/wife:

Vacation in Urp - I blame the accountant/wife:

I see a recurring theme here...
Hopefully the Vifferbabe never meets this "accountant" person.

[Mikkel]

No. But I do have an overdraft on my credit card - and yes, sometimes I use it in anger.

[The Lone Rider]

I don't have any debt, but a mortgage.

I have thought about adding a harley onto my mortgage, or any number of schemes that require borrowing some money.. but in the end I just don't want to pay more later for what I should have the fortitude to save for now.

[vifferman]

I see a recurring theme here...
Hopefully the Vifferbabe never meets this "accountant" person.

Well... I'm sorta stuck, as I have to sleep with her. She also earns twice as much as me, and probably works six times as hard.
Shame we've ended up so many times with the "Mechanic's Car Syndrome" infesting our bank accounts. Wouldn't happen if I was in charge of the money...

[mstriumph]

money is a commodity like any other

if i want a vehicle, now, for a short time, i'll rent it
if i want a place to stay, now, for a short time, i'll rent it
if i want money, now, for a short time, i'll rent it

if the rate and terms are equitable i see no problem

- money is no different from anything else, to treat it otherwise is to give it a mystique it doesn't deserve.

[mowgli]

money is a commodity like any other
...
- money is no different from anything else, to treat it otherwise is to give it a mystique it doesn't deserve.

Ooooo! Something to ponder for the afternoon. Very deep indeed. +1

[madbikeboy]

I owe a little money for my mortgage. Borrowing for anything else is a dumb idea. Work out what the real cost is - $10,000 plus 10% for three years = huge waste. If you had that money in the bank, it'd be earning almost as much interest, so more loss.

If you can't afford it out of your bank account, or if you can't afford to insure it, you can't afford it.

[Devil]

If you can't afford it out of your bank account, or if you can't afford to insure it, you can't afford it.

Thats all well and good for idiots who seem to have trouble with understanding money (fuck knows why, it's not rocket science), or for those that dont understand consequence.

Getting into trouble with it is your own fault, no-one elses.

Edit: Quoting for reference, not pointing at you.