GrtSaint72

I was wondering if people finance their high end bikes. I have my eye on a trek speed concept 9.8 or an orbea ordu gold, and dont have the 6-7k needed to purchase it. I can get a personal loan to cover the cost, but am curious if its common or not. I know buying with the cash is ideal. I just am wondering if people do finance their bikes?

dblackwood72

I would never finance a bike...

rmr1923

i'm sure some people do, and it's ultimately up to you if you want to go that route, but i'd never consider it myself. the only things i've ever financed were my education, house, and car.. everything else, if i don't have the money in the bank to cover the purchase, then i have no business buying it.

jrobe

What is the difference between the rich people and the poor people - the poor people pay interest and the rich people collect interest.

Prudent people finance an education and a business. They pay cash for their toys.

bassjones

Not a wise financial decision at all. I wouldn't even finance a car, let alone a bicycle. Does your LBS do layaway? Mine does and it let me get a great deal on my bike last year while taking 4 months to pay for it, interest free.

MegaTom

Common or not, it's a stupid idea.

GrtSaint72

The only things I've financed was my education and my wife and I's cars. I dont want to finance the bike, but if it is common for buying the high end bikes I was going to look into it. As far as I know my LBS doesn't offer a layaway plan. I guess I'll keep saving and hopefully one day I'll get my dream bike.

rmr1923

if your bank or credit union offers you a ridiculously low interest rate (i.e. damn near close to zero) then it wouldn't be an entirely horrible idea.. otherwise it's smart to just save up until you have enough to buy one. or even better yet, buy the various components as you get the cash and build it over time. then again i could see that leading to a last-minute credit card buying spree to get the final pieces to put it all together.

tomng1989

Why anyone would borrow money to buy a bike is beyond me. Yes, expensive bikes are nice, but they're a luxury discretionary item that's definitely not worth getting into debt over. And people wonder why the credit crunch in North America happened... this whole "buy now, pay later" mentality.

Biscayne05

Taking out a LOAN just to get a bike? Are you nuts?

I would sit down, talk infront of the mirror, and ask "Am I contributing to the financial meltdown of my country by buying this bike on a LOAN?"

Crazy. I can't understand on how people can even THINK of this.

StanSeven

If you want a particular bike, why not? Interest rates are low. Say you want a $10K and you plan on paying for it over a year. The interest might be $200-$300, which is much less than a health club. If it gets you out to ride hard and enjoy it, go for it.

Pinkbullet3

Well, it's no fun when you're riding the bike and the only thing you can think of is whether or not you'll be able to cover the next payment.

Ricanfred

That's a valid point...

bassjones

Some places do zero interest for 12 months... If that's what's being offered I "might" consider it, but only if I had the cash on hand earning interest and make sure you pay it off or else you'll be paying 22+% interest on the entire purchase including all the back interest for the previous 12 months. That's how they get people, BTW. Lots of people figure they can just pay it off in time and then don't and then they get screwed on the interest. Don't miss a payment or be late even one day, one time either... Same thing will happen.

StanSeven

Agreed. But someone shouldn't buy a bike in that condition. I meant you have part of the money now and expect to afford it over the next year or so through windfalls like tax refunds, commissions, bonuses, expense reminbursements, etc.

tomng1989

If the only difference between you wanting to ride/not ride at all is the bike itself, then one should really explore why they're into cycling. My former bosses who had oodles of money and took up cycling for the bling factor all quit it within a matter of months, but at least they had the cash to afford it.

ZippyThePinhead

Some Trek dealers permit financing of a bike if the price is above a certain amount. They offered me 0% interest for 12 months when I did this, which is not a bad deal. All I need to do is pay it off within 12 months and I get to use OPM (Other People's Money) cost-free.

thirdgenbird

this has been my moto as well. i also wont finance a car unless i have the ability to pay it off in under two years, new or used. motorcycles, bicycles, and other toys are only purchased if the money is in hand.

Propofol

...Because financing a luxury item when you can't afford it is always a bad idea?

What if you're out "riding hard" on your first ride and crash/total your newly financed $10k bike? You really want to be upside down on something like that? Now you're not riding and enjoying an expensive bike, AND you're paying for the privilege of doing so.

bassjones

That's the only way I'd consider it. Just watch the fine print and don't miss a payment, or even be late with a payment or it's going to be financially painful. Lots of people do, which is how and why they can make these sorts of offers...

kleinboogie

I pay cash for all my stuff these days. Couple decades of tough learning taught me that. I like the adage don't buy a bike you can't afford to replace. Maybe better to get a used one and pocket the money for after the crash. Or get some spare wheels. Just a thought. GL in whatever you decide.

pgjackson

I would NEVER finance anything that I couldn't get insurance on. Crash that $7,000 bike and you are SOL. Honestly, I wouldn't buy a $7000 bike even if I could afford it. Collosal waste of money and pure conspicuous consumption. I don't like expensive shoes or watches either.

pgjackson

That's great if you don't wreck it. Good luck getting another bike when you still owe $5000 to the LBS for the one you just financed and crashed.

Clipped_in

Ding ding ding!!!!! We have a winner. You should not only not buy a bike you cannot afford to pay for, you should not buy a bike you cannot afford to replace if necessary.

Propofol

Yeesh. More bad advice. Expected income and "windfalls" are never guaranteed. How do you know you won't lose your job over the next year? You also never know when other unexpected expenses come up - medical bills, family emergencies, emergency travel, etc.