personal loans for bikes

WRT_GPX · Post by **WRT_GPX** » Sat Sep 02, 2006 7:18 pm

im assuming most or some of you buy your bikes on credit/with loans, so this is what im asking, whats the typical loan you would get for a purchase of a new bike, eg, a 10-15 grand loan... what im looking for is insight into the typical interest rate and repayment style... ive never done it and im considering it when i get a full time job, or just a better job when im done wiht a year or 2 of uni and im earning 20 or 30 grand a year. so basically when im able to upgrade

bonester · Post by **bonester** » Sat Sep 02, 2006 7:27 pm

Dude if you are a tightarse like me:
The interest alone would buy you a new engine for your GPX.....
Loaning money on a DEPRECIATING asset sucks- you go backwards big time financially. My ZZR cost me $19000 three years ago- now it is worth $9-10 as a trade if I'm lucky, and it is immaculate with 26000km on it. Lucky for me I have been depreciating it through my business! (I paid cash for the bike but have lost more money on it than I am comfortable with.) Japanese bikes depreciate badly- maybe because they have a new model every couple of years or so. Harleys for example (don't do that to yourself!) don't depreciate nearly as badly due to demand AND the fact they change very little over the years.

Spud · Post by **Spud** » Sat Sep 02, 2006 9:20 pm

i got a personal loan for my first bike and a few other things. i was put on a unsecured loan which turned out to be 11.5%pa for a 10K loan, and still paying it off.

the only good thing about having a loan is that you dont owe money on the bike and can sell it without any troubles if need be, like upgrading

cheers,
mike

esie · Post by **esie** » Sat Sep 02, 2006 9:23 pm

Bonester has given great advice!

However, if you really need to get that bike and can only get it on credit, here are a few things to consider. Take your loan out through your bank/credit union/building society, rather than the finance company the bike shop offers to put it through. You will save money on application fees and interest paid; have a better interest rate; little or no exit fees; and a better chance of negotiating should the untoward happen and you have to cut your payments back for a bit. Your bank will allow you to pay the loan weekly, saving you interest; most finance companies will only let you pay monthly. Also, establishing a relationship with your bank now is advantageous for your future financial goals.

WRT_GPX · Post by **WRT_GPX** » Sat Sep 02, 2006 10:04 pm

yeah, im planning on looking first at my bank (commonwealth)... and i should still be living at home for some time then anyways, so i can pump most of my income into the repayments (aka like 1500 a month

).

And as for depreciation, im looking at some second hand bikes that are like you said, immaculate, and with less that 15 000km.

with a 15 grand loan too, id probably be looking at a decent bike (eg maybe a second hand honda deuville *sp?* or somthing more sports tourer from kwaka... for around 9 - 10 grand and with some nice power) plus a smaller bike or scooter for some commuter work (whatever is nice and economical, preferably manual though).

EDIT: and on the subject of repayments... if i am still living with the 'rents then, with a 30 000 income, id pump all but about 100 dollars into it, which calculated to be about 2200 dollars a month, not bad really, would erode most of the repayments pretty quick.

SenNey · Post by **SenNey** » Sat Sep 02, 2006 10:20 pm

If you can pay off $1500 a month, why not save for a few months?
Save and hold off as much as you can, banks will like it (have a steady savings history) therefore you borrow less, and you have less interest to repay.

I for one don't like loans or credit.

WRT_GPX · Post by **WRT_GPX** » Sat Sep 02, 2006 11:17 pm

im the same, but people keep telling me to loan and repay to get a better credit rating :S... meh it doesnt really bother me, i do like the idea of saving for a few months... but im one of those people that want somthing straight away

Saki · Post by **Saki** » Sat Sep 02, 2006 11:34 pm

i'm in the same boat mate, i too shall be looking within the next few weeks of taking out a loan. I shopped around and Westpac had a fixed 10.x% loan which has a $250 setup fee and no early repay penalty. so thats alright, not only was it the lowest interest rate, but also the only one that had no early fee.

I am inpatient thats y i want a loan. i have saved $4000 plus will be selling my existing bike so should have enough to put the $14,000 price tag!! but putting $200- $400 a week towards the repayments.

hope thats a bit more insightful!

ant · Post by **ant** » Sat Sep 02, 2006 11:35 pm

SenNey wrote:If you can pay off $1500 a month, why not save for a few months?
Save and hold off as much as you can, banks will like it (have a steady savings history) therefore you borrow less, and you have less interest to repay.

I for one don't like loans or credit.

And you also get a VERY discounted interest rate if you provide a BIG deposit.

hoffy · Post by **hoffy** » Sat Sep 02, 2006 11:48 pm

go for gold, its only money.

WRT_GPX · Post by **WRT_GPX** » Sun Sep 03, 2006 12:10 am

Saki wrote: blah blah stuff about early repayment fee and selling of bike

actually that was a big help... i didnt know of "early repayment fees" :S!! so thanks for that tip, also i can probably sell the GPX for a grand and a half

.... but i dont want to ! im such a car/bike whore...
my parents MADE me get rid of my 2 unregistered cars because we were starting to look like bogans O.O....

Felix · Post by **Felix** » Sun Sep 03, 2006 12:32 am

If you are at uni studying, then I would advise against getting any kind of loan at all. Stay debt free until you finish and get your first job. Then reward yourself if you want when you finish.

It isn't just the repayments that will get you, insurance is likely to be frightening...

I actually ended up buying my SV on credit card, as it is actually cheaper than the loans that are on offer. By the time you add application fees, monthly service charges, unsecured loan interest rates, and extra insurance premiums, personal loans are quite expensive.

There have been some absolutely awesome bikes go up for sale on this here site, often for really good prices. If I was in the market for something at the moment, that's where I'd be looking...

SocialSecurity · Post by **SocialSecurity** » Sun Sep 03, 2006 9:34 am

personal loans are for fools, just ask me

never ever again is all i can say.

im currently saving for a house, and if by the time im ready to buy i cant stand the sight of my battered 9R, i might try and get the homeloan to include a slightly less damaged K3-K4 gixthou with helibars

much better interest rates...

but if i had no intention of getting a house then i would simply wait till my savings account had enough to buy what i wanted, less what ever i get for my current bike as a trade in (err, salvage?)

Strika · Post by **Strika** » Sun Sep 03, 2006 9:43 am

SocialSecurity wrote:personal loans are for fools, just ask me

never ever again is all i can say.

im currently saving for a house, and if by the time im ready to buy i cant stand the sight of my battered 9R, i might try and get the homeloan to include a slightly less damaged K3-K4 gixthou with helibars much better interest rates...

but if i had no intention of getting a house then i would simply wait till my savings account had enough to buy what i wanted, less what ever i get for my current bike as a trade in (err, salvage?)

Borrowing 18K over 60 months might costs someone @ $8,000 in interest!
Borrowing 18K over 300 months (25 year home loan) might cost someone @ $50,000 in interest. Do the maths! It will shock you!

This is not financial advice, and should not be used as such. As such, no responsibility for any information contained within is accepted.

SocialSecurity · Post by **SocialSecurity** » Sun Sep 03, 2006 10:08 am

my plan is not to take 25 years to pay it off tho... hoping to get a house for about 250k and have it paid off in around 10 years

i just did some calcs and adding 10k to the homeloan would add about 4k to the total interest and about $29 a week extra in payments