bikes, finance and interest.

[Str8 Jacket]

Don't be silly.

Paying only $400 as deposit to buy a bike at $4000 with the rest on finance/loan.

The other thing you have to consider is the value of the bike after the end of the loan term, in comparison to what you would have spent by then.

Most likely you would have spend more than $5500 and the value of the bike would prbably be around $1000 in 3 years. BIG LOSS!

Save yourself all this hassle and save every penny you can till you have $4000 and then buy the bike.

Now don't say I don't earn much have to study, blah blah blah. Move your ass and work hard to hae fun with the toys you want in life.

60-80 hours should be piss easy at your age and commitment level..i.e. no kids to look after no partner to look after but just yourself.

Don't be like the rest of the country running on debt.

AJ, I agree with this post! I am stuck with over $10 000 worth of debt paying of my first bike that I wrote off ( I had insurance but got another bike with it) and the last bike that I owned. Even though I only loaned a small percentage for my last bike the cost of keeping it running was more than I paid for it and now I am bikeless and paying off 2 bikes I dont have and will be for another 3-4 years.
I learned a HUGE lesson and I am now saving the $$ so that I can pay cash for a new bike. You need to remember that you NEED to have extra $$ in your account to keep the bike maintained, tyres, chain, oil, sparkplugs etc as well as paying fo rego, warrant and insurance. If your paying off a loan and trying to keep the bike on the road you may end up broke...
Just my 2c.

[Edbear]

OK__ Say you buy a RF900 on finance (random choice of make model)
You pay $12999 for it and 90% finance. (10% deposit)
Then a month later Suzuki do a run out on these bikes at $9999.00
Your bike has instantly devalued both by the reduced value by suzuki and by simply being used
Insurance co therefore market values your bike at (figure dragged from space)
$8000.00
Ok heres where gap works.
You have a big ol accident --bikes buggered
Insurance pays out the full market value of $8000 less your exess.
BUT you still owe about $10000 on the bike. Gap insurance covers the shortfall. so GAP pays the $2000 you still owe.

Interesting that it is available, and probably an essential for low deposit finance. As a rule of thumb, barring accidents and market fluctuations you've pointed out - a vehicle will devalue in ideal conditions at about the rate of your payments, unless you have a particularly unique "in demand" vehicle.

So you never really have any equity in it and when selling it you'll be lucky to get what you owe on it. I think the AA years ago calculated the cheapest way to run a vehicle was to buy it new and never sell it.

[mynameis]

I agree AJ! I am stuck with over $10 000 worth of debt paying of my first bike that I wrote off ( I had insurance but got another bike with it) and the last bike that I owned. Even though I only loaned a small percentage for my last bike the cost of keeping it running was more than I paid for it and now I am bikeless and paying off 2 bikes I dont have and will be for another 3-4 years.
I learned a HUGE lesson and I am now saving the $$ so that I can pay cash for a new bike. You need to remember that you NEED to have extra $$ in your account to keep the bike maintained, tyres, chain, oil, sparkplugs etc as well as paying fo rego, warrant and insurance. If your paying off a loan and trying to keep the bike on the road you may end up broke...
Just my 2c.

You meant I agree mynameis not AJ !

[Str8 Jacket]

You meant I agree mynameis not AJ !

No I quoted your post and was agreeing with it....

[mynameis]

No I quoted your post and was agreeing with it....

You're still confused bless, morning shunshine it's 11.15 am

[Str8 Jacket]

You're still confused bless, morning shunshine it's 11 am

No, I quoted your post and wrote, "I agree AJ".... Meaning the post I quoted. I will go back and edit it.
AJ - I agree with mynameis.

[mynameis]

No, I quoted your post and wrote, "I agree AJ".... Meaning the post I quoted. I will go back and edit it.
AJ - I agree with mynameis.

Women these days are quite complicated maybe I am confused Hehe.

[FROSTY:Me]

FROSTY would gap insurance seriously be that effective after you add the premium that you would have to pay for it then the access plus your normal insurance premium and access ??

I know it does depend on how much you borrow and how much you pay..but still do you really think it's effective for sums of less than $10,000?

Access--you mean excess Im gessing. Yes you pay for GAP--nothing in life is free BUT Gap pays the difference between what the insurance co says its worth and what you owe. Its that simple
Sr8 jacket is a perfect example---with GAP she would owe nothing on her first written off bike instead of the balance of the loan

[Str8 Jacket]

Access--you mean excess Im gessing. Yes you pay for GAP--nothing in life is free BUT Gap pays the difference between what the insurance co says its worth and what you owe. Its that simple
Sr8 jacket is a perfect example---with GAP she would owe nothing on her first written off bike instead of the balance of the loan

With all due respect FROSTY. I didnt have the offer of GAP as I took out a cash loan. That last bike is the reason I am in the pooper, I should never have bought a bike without having the whole balance in cash.

[mynameis]

Access--you mean excess Im gessing. Yes you pay for GAP--nothing in life is free BUT Gap pays the difference between what the insurance co says its worth and what you owe. Its that simple
Sr8 jacket is a perfect example---with GAP she would owe nothing on her first written off bike instead of the balance of the loan

Yeap, sorry meant excess, thanks FROSTY bear Good example.

I guess it all depends on how much you borrow, how much you pay back and more importantly how much you owed on the bike and what value that was slapped on it by insurance company at the time shit hits the fan.

They seem to pull values out of thin air. Dooble de doo...

[FROSTY:Me]

With all due respect FROSTY. I didnt have the offer of GAP loan. Dont speak about things you know nothing of.

At what point did I suggest you DID? --read the post correctly
Im saying if you DID have gap the loan would have been paid. -Plain and simple

[FROSTY:Me]

Yeap, sorry meant excess, thanks FROSTY bear Good example.

I guess it all depends on how much you borrow, how much you pay back and more importantly how much you owed on the bike and what value that was slapped on it by insurance company at the time shit hits the fan.

They seem to pull values out of thin air. Dooble de doo...

Yea I agree and you're on a hiding to nothing argueing with them.
Unless you're a shitty pommy git that won't take no for an answer.

[Mikkel]

I'm just looking at those interest rates and thinking "fuck me, must be good to be a banker in NZ".

I have an overdraft limit of ~$6,000 on one my danish Visa account. I think I pay about 15% interest pro annum for what I overdraft. And they were happy to provide this overdraft limit while I was still a student.
And please bear in mind that the interest on overdraft would be significantly higher than interest on a loan. House loans have been down to about 5% pro annum for a while - dunno what they are right now.

Guess I should be a clever bastard and offer someone here in NZ finance using that...

[Str8 Jacket]

At what point did I suggest you DID? --read the post correctly
Im saying if you DID have gap the loan would have been paid. -Plain and simple

GAP does not cover you when you are sold a lemon and the peice of shit dies.

[mynameis]

Yea I agree and you're on a hiding to nothing argueing with them.
Unless you're a shitty pommy git that won't take no for an answer.

Lol so true it hurts been there before that's why I am with an insurance company that will pay out on agreed value instead of bullshit "market value".