Vehicle finance?

[Dragon]

If your parents have a mortage see if they will loan you the money from it

3k at 5.7%pa is way better then 17.95% for an unsecured loan (bank with the bike being older then 10years)

Note to get the loan secured the bike can be no older then 10 years when youve finished paying it off

Depends on if your parents trust you however, the bank is happy to offer me 25k unsecured which I could afford but its not worth it at 17.95% and on something that drops in value day by day

In saying that next thing ill be buying is a house

[caspernz]

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

In all fairness, a house is an appreciating asset whereas any motorcycle is very much a depreciating asset...

Heck, if you have to borrow the money to buy a bike then how will you look after the R & M?

[Fergus]

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

Money has an intrinsic time value so there is no such thing as "interest free". Businesses are in it for profit, they don't pay interest on customers debt because they are generous, they simply include that interest in the sale price and claim "interest free" on the debt, a tactic that apparently works very well on the slow-witted

The only thing I've borrowed for is education, and the taxpayer picks up the interest on that (I might even emigrate when I graduate and let them pick up the whole bill )

In all fairness, a house is an appreciating asset whereas any motorcycle is very much a depreciating asset...

They are both subject to market forces.
You may want to google "housing bubble", Make sure you're sitting down, shit hit the fan in the last 6 years

[Gremlin]

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

a) as said, a house is an asset, a car/bike is definitely a liability, unless you're a courier/taxi driver etc.
b) you don't go to a finance company for a house loan

OP, like others, save first then buy. If you must do it via loan, get it from the bank. If they won't, take it as a sign. Finance companies exist because their customers are considered too risky by the bank. The finance companies deliberately create an attitude of "if you want it, buy it" because it benefits them.

[speeding_ant]

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.

I learned from my mistakes the hard way instead of taking solid advise from others. I'm now debt free and much wiser with money. Last two vehicles bought with cold hard cash, and have a sizable deposit towards a house. I could have been in this situation 3 years ago mind...

Finally being out of consumer debt is enlightening. Not getting into it in the first place on the other hand...

[Edbear]

a) as said, a house is an asset, a car/bike is definitely a liability, unless you're a courier/taxi driver etc.
b) you don't go to a finance company for a house loan

OP, like others, save first then buy. If you must do it via loan, get it from the bank. If they won't, take it as a sign. Finance companies exist because their customers are considered too risky by the bank. The finance companies deliberately create an attitude of "if you want it, buy it" because it benefits them.

Well said. The finance companies don't usually lose because they first take your bike off you, which by then will be worth less than you still owe, and send the debt collectors after you for the balance if you fail to pay. The banks can't be bothered with all the kerfuffle and would rather avoid that scenario in the first place.

The bike will devalue at about the rate of your payments, so unless you buy something rare and appreciating in value, you lose as if you want to trade it in you still owe about what it is worth retail.

[Tigadee]

What about trading in a bike for the next one (from a dealer)? Is that worth it? Technically that's using your old bike as a deposit towards the new one, right?

[kiwi cowboy]

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.

dad?????????.

[Banditbandit]

I'm not a fan of HP ... and when I've used it I've always paid it off as fast as I can - not just at the required repay rate.

But if it was the only option to get a bike now I would still use it ...

But have a look at some of the other options outlined above - there are soem cheaper ways if they can work for you .. (not suggesting you look at the saving option - I've never used that one myself .. )

[Banditbandit]

a) as said, a house is an asset, a car/bike is definitely a liability

Yeah ??? Have a look at the value of some of the classic bikes .... there's been a massive increase in value - thety are wrth more now than when they were brand new - definitely assets.

[Gremlin]

Yeah ??? Have a look at the value of some of the classic bikes .... there's been a massive increase in value - thety are wrth more now than when they were brand new - definitely assets.

Trend is happening in cars too, some crazy stuff. However, OP is saying 5-7k.

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.

[pyroguy55]

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.

I work for a bank and let me tell you, there is no such thing as a good credit rating.

On a credit check all we see is who has done a credit check on you and if you have had anything go to collections. If you get an HP then pay it off the only thing that shows is that sed agency did a credit check on you. If you have lots of credit checks it shows you have an appetite for short term debt, ie bad in the banks eyes.

[davereid]

I work for a bank and let me tell you, there is no such thing as a good credit rating.

On a credit check all we see is who has done a credit check on you and if you have had anything go to collections. If you get an HP then pay it off the only thing that shows is that sed agency did a credit check on you. If you have lots of credit checks it shows you have an appetite for short term debt, ie bad in the banks eyes.

As of April 1 that kind of changed.

From that date, some companies started sending a copy of every transaction they had with you, comprising your personal identity data, driver licence number, address etc, plus the value of the transaction, its date due and its date paid to Veda Baycorp etc.

Telecom were first off the rank, with Kiwibank right behind them. I understand most of the major banks are now "in" as well.

I am uncomfortable with this.

As long as I pay my phone and power bills, don't get behind on my credit card or mortgage, then my financial relationship with the companies I deal with should be confidential.

Right now, I can choose to do this, as I have simply stopped dealing with companies that are doing this data sharing. But eventually I expect that all companies will be bullied into line, and I won't have any choice.

[pyroguy55]

As of April 1 that kind of changed.

From that date, some companies started sending a copy of every transaction they had with you, comprising your personal identity data, driver licence number, address etc, plus the value of the transaction, its date due and its date paid to Veda Baycorp etc.

Telecom were first off the rank, with Kiwibank right behind them. I understand most of the major banks are now "in" as well.

I am uncomfortable with this.

As long as I pay my phone and power bills, don't get behind on my credit card or mortgage, then my financial relationship with the companies I deal with should be confidential.

Right now, I can choose to do this, as I have simply stopped dealing with companies that are doing this data sharing. But eventually I expect that all companies will be bullied into line, and I won't have any choice.

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.

[pyroguy55]

Furthermore, if you have nothing to hide then you shouldn't be worried about it. All information still has to be kept confidential and can only be used as part of an application.

It's sad to say that people who are honest and keep up to date on all their bills will have to go through the same process because not everyone cares enough to keep it all up to date.