To borrow or not to borrow?

[gatch]

Settled then, ringing the bank tomorrow..

do it,buy it,just dont KEEP financing things...Just shop around for the best rate I would even think about a slightly longer term to keep repayments easily manageable,or get a short term ,bite the bullet and know you will have to be careful for a year(say) but you need to have a bit of cash put aside for tyres (or whatever) if you go the tough route .

Even paying it off at 70 notes a week over 2 years would be less than 8k total...

[cs363]

Settled then, ringing the bank tomorrow..



Even paying it off at 70 notes a week over 2 years would be less than 8k total...

Good work, BMWST's advice is good too

Good luck with the new steed and the loan etc.

[Conquiztador]

I am having a serious moral conundrum.

Since around April of this year I have been bike-less and feel that a part of me has died, although some of my mates have been kind enough to let me ride their machines it is not enough.

I have been considering the option of getting a vehicle loan from kiwi bank 13.50% pa to purchase a 1990 nc30.

I know the older generation will tell me to save and pay cash which is of course the most sensible thing to do, but then this means it will be another whole year of pushbiking and watching cunts hoon past me at any given speed.

I am in a reasonably sound financial position where my wage can only increase, my only notable overheads are rent and my student loan.

Any thoughts ?

If you can afford the loan then go for it. If you are to save up before getting the bike there will be many more months lost that you won't be riding. (And I am one of the old buggars...)

There is also the side that by having had a loan and paid it off as per the agreement is good for you if you ever need to borrow money again.

[breakaway]

$8000 for a 90 NC30?

[Maki]

I am having a serious moral conundrum.

Since around April of this year I have been bike-less and feel that a part of me has died, although some of my mates have been kind enough to let me ride their machines it is not enough.

I have been considering the option of getting a vehicle loan from kiwi bank 13.50% pa to purchase a 1990 nc30.

I know the older generation will tell me to save and pay cash which is of course the most sensible thing to do, but then this means it will be another whole year of pushbiking and watching cunts hoon past me at any given speed.

I am in a reasonably sound financial position where my wage can only increase, my only notable overheads are rent and my student loan.

Any thoughts ?

DON'T do it. 13.5% interest is highway robbery. Either save for it and buy it later or buy something cheaper now. The third option is to mortgage your property, if you have one, for the amount you need. That way the interest will be a LOT less than 13.5%.

Pushbiking for a year is no bad thing. Good for your body and good for your bank account.

[imdying]

So there is going to be a drought period in between where you have nothing, while you get your savings sorted. So suck it up and begin today. In only a year or two you will be getting ahead.

Nearly... no matter how much money you save, you can't buy those 1 or 2 years back.

[vifferman]

It's all a matter of what it's worth to you. Looking at it dispassionately, ANY vehicle you buy - unless it's a classic at a bargain price - is a bad investment. If it's worth an extra 3K to you to have it now, rather than go a year or so without it, then do it.

If this was all about being sensible, Gatch would buy a cheap, crappy scroter. Obviously, this bike he wants is about passion, not buying a cheap commuter at a good price, nor is it about what's good financial practice. If it were, he wouldn't buy a bike, because whatever he pays for it, even if it doesn't get ridden, it'll be worth a bit less in a year's time, and he'll definitely lbe better off if the money was just moldering away in the bank.

[NinjaNanna]

Make sure whatever loan you go with allows you to pay it off early with no penalties.

If you can pay it off in 1yr get a 2yr loan, but still make the repayments based on one year, if your short 1 month then you can just make the minimum repayment. If you get a pay rise - redirect it straight to the loan.

Personally I wouldn't like to borrow for anymore than 2yrs on a 1990's bike.

Also if you do pay it off in 1 year - keep making the "repayments" for another year to use as a deposit on the next bike.

One other option to look at is a low interest rate credit card (the only downside is that the repayments maybe higher - but the trade off is 0 fees and probably lower interest). If you do go this route though make sure you cancel the card once you've paid for the bike so that you don't end up using it as a continuous line of credit, and never end up paying it back.

[Maki]

Didn't borrow a cent to buy my R6. My wife saved for years and years so she could give it to me.

[ukusa]

for loans, short term is the best term. Other than property, 2 years is the max I would ever pay anything off (1 is ideal). If you can afford say $100/week, thats $5200/year. Buy something for that, 12 months time look to upgrade, you may still get 4K for it, a good deposit on the next beast.
Nothing worse than still paying for something a 3 or 4 years down the track & it's since either a) crapped out & needs big bucks spent on it. b) you're sick of it & need a change, but still owe more on it than what it's worth. c) it's been nicked/crashed & you let your insurance lapse. d) you lost your job, or e) all of the above.

[EnzoYug]

The bike on first appearance is sound, although without a viewing I cannot confirm, in saying this I would not sign on for any borrowed amount unless I was certain the bike was tip top.

As far as saving vs finance goes, sorted.co.nz tells me that with 13.5% P.A on 6K (with some imaginary fees thrown in) at around $100 a week it will be 16 months and a total of around $7,200.

I can live with this.. What is the price on ones sanity.. Seriously I'm going bat shit crazy of the prospect of this summer with no wheels.



I've already got a project..

ASB is offering a best case 15% or 18% un-secured. Go for kiwibank rates. They sound awesome.

[gatch]

Ill be looking at paying it off over 18 months, and making occasional deposits outside of regular repayments..

You know what I found out today, kiwibank is open on saturdays.. Good cunts

[DarkLord]

I had a helluva time financing bikes via bank loans... first time round I was careless with my money and wrote off the bike in a crash. Getting a new one (which I needed as I had to get myself to work, had no other transport) and getting it up to speed (warrant, rego, chain & sprockets, tyres etc) cost me a fortune and I was in OD over a grand at one point. Earlier this year, I was unexpectedly made redundant from my job with over two grand to pay on the damn thing. Fortunately my parents were kind enough to give me an interest free loan which I would pay back when I could afford, once I got another job.

I got another job and I have now paid my parents back, and paid the bike off in full, and my savings are on the rise again. Never again will I take out a loan. I'm looking at an SV650 now as I have my full but this time I'm going to do it the old fashioned way - saving my pennies from now on (and trying to get a good offer on the Hyo).

I'd recommend paying for it in cash, dude. But it's your call in the end, of course.

[klyong82]

Lol, kb's own loan shark, are my thumbs listed as collateral ?
.

If you have a missus would make a good collateral

The bike on first appearance is sound, although without a viewing I cannot confirm, in saying this I would not sign on for any borrowed amount unless I was certain the bike was tip top.

As far as saving vs finance goes, sorted.co.nz tells me that with 13.5% P.A on 6K (with some imaginary fees thrown in) at around $100 a week it will be 16 months and a total of around $7,200.

I can live with this.. What is the price on ones sanity.. Seriously I'm going bat shit crazy of the prospect of this summer with no wheels.

I've already got a project..

Sounds pricey for a 1990 bike but that is the price for V4. I would prefer to use that amount to purchase a newer 600cc.

Dont forget if you take a loan you gonna have to buy full insurance for it too so make sure you budget that in too. Go www.kiwibike.co.nz

[crazyhorse]

I am having a serious moral conundrum.

Since around April of this year I have been bike-less and feel that a part of me has died, although some of my mates have been kind enough to let me ride their machines it is not enough.

I have been considering the option of getting a vehicle loan from kiwi bank 13.50% pa to purchase a 1990 nc30.

I know the older generation will tell me to save and pay cash which is of course the most sensible thing to do, but then this means it will be another whole year of pushbiking and watching cunts hoon past me at any given speed.

I am in a reasonably sound financial position where my wage can only increase, my only notable overheads are rent and my student loan.

Any thoughts ?

Get a horse