duc_181

Anyone ever use it when buying a Cannondale?

I'm looking at getting my first road bike in a long time, but with 2 kids, my finances are about the same as when I was in college (except for the steady income). My wife is supportive of me shopping for a bike but I'd like to minimize the impact. I saw this:

https://www.cannondale.com/usa/eng/ge_financing

But I have no idea about the details. Assuming I have excellent credit, is GM financing anything like what they do for Treks (6 month 0% financing)?

Thanks for any info...

BeeSeeBee

It's likely the 6 mo/0% thing. While I was at Performance, that's what it was. I can't recall what the terms were after the 6 months, but they couldn't have been any worse than the company Performance had before (something like 27% after 6 months I believe). Cannondale being under Dorel would lead me to believe they'd be similar financing.

Camel

I have not financed when buying a bike.

Perhaps give a long hard thought to buying a used bike? I have bought all of mine used, and have saved several hundred percent over retail & learned a bit in the proccess.

kleinboogie

+1 on paying cash if you can wait. Get a cheap used one until you can save enough. Factor in the proceeds from selling the used one when you get the cash difference. If you don't ride much now borrow a bike or rent one.

For me cycling is a hobby and possible breakage, having it stolen and wear-and-tear would feel worse if I had to make payments for a year afterwards. GL

roadwarrior

You might check with whatever shop you choose...ask about any financing deals they have.

bengreen79

I used GE Money 12 months same as cash. It was pretty hassle free. They have a decent website and also send reminders via USPS to make your payment. They don't seem to "hope" you go longer than your promotional time so they can jack you with charges.

island rider

I'm sure your best source of info is just calling them, but please don't do this. Buying non-necessary items on credit in order to permit you to afford them is a bad idea. If you are being handed interest free money, and you already have the money, go for it, but if this is the only way you can afford a new bike, go used, or cheaper. Scrape together a few hundred dollars and then save your pennies. Every time you get some "mad money" spend it on an upgrade or save it towards something new.

Contrary to what you might think from reading some of the posts here, you can buy and ride a bike for many many miles and years without breaking the bank.

That said, you are a big boy and good luck. If you are looking at Cannondales, the 10-5 is alot of bike for the money.

topflightpro

I have financed the purchases of three bicycles. The first two were mountain bikes financed as a package - 0 percent for 6 months. The second, my road bicycle, was done at 0 percent for 18 months. In both cases, I had the cash on hand to pay for them, but opted to take the free money - 0 percent financing is free money.

If you do this, be sure to figure out how much you owe each month to pay off the bicycle in the alloted time. The minimum required payment won't get you anywhere near paying off the bicycle. And the interest acrues from the minute yoiu purchase. Within 6 months, it will be close to a quarter of the cost of the bicycle and will keep growing.

island rider

I have financed any number of things for the same reason. These days the abitrage is not as good given low returns on liquid cash, but a free 1-2% is still a free 1-2% if you can keep track of it and remember to pay it. I usually ended up forgetting about a payment and in order to avoid getting charged back all the interest would just pay the whole thing off with the cash on hand at that time.

philski

One thing to watch out for is if you do this they presumably run it like a new credit card. Both getting the card and cancelling it quickly will drop your credit score

duc_181

All - Thanks for the responses. I guess I'll look into the details on GM Financing with the LBS (I was just trying to avoid the sales pitch that comes with it). Maybe it's 6 months... maybe a year/0%. We'll see.

Regarding financing in general, I have the money but it's painful plucking $1200 or so from savings on what amounts to a luxury item. $200/month is much more palletable... so thanks for those that advised on that.

Regarding buying used, believe me - I'm looking into that. Craigslist is just starting to pick up around here in the northeast, so I'm watching it. But that being said, I haven't been test riding and I haven't been properly fit to a road bike and could use the help of an LBS. I'm fine wrenching on the bike, but the fit is what worries me. I've got drop bars on my Specialized Crossroads, but I know form the miles I have on that, it's just not quite "right". So having a shop set me up, swap out a stem, take some measurements... that sounds good to me. Also knowing the bike is new and warrantied vs a used bike is comforting.

Anyway - thanks again (keep it coming if you have a comment). Been lurking here for a while and appreciate the knowledge.

p.s. Hope to test ride a leftover Caad 9-5. Is that a good bike? (Kidding - like I said, I've been lurking). They want $1200 right now.

island rider

Lots here will say the 9-5 is a great bike. I have no idea. I just ordered a 10 FWIW, but I can tell you that 10-5s (2011 bike and components) can allegedly be had for $1200 in brooklyn (based solely on information posted here), and based on the price I got on the 10-4, I think you could get a 10-5 for $1200 on LI too.

duc_181

Thanks - I'm hoping the $1200 tag on the 9-5 is negotiable. Not sure how much, but if I'm financing and my payment goes from $200/month to $225 or $250/month for a 10-4 or 10-5, I might consider it... I wonder, getting close to spring, if an LBS is less likely to haggle. I would think that's the case.

wfrogge

Incorrect

island rider

I would think that as 2011 stock comes in they would be willing to push 2010 stock out the door, but you never can tell. Where are you in CT? If you ask around these boards I am sure you can find some retailers who might be more receptive to making deals than others. Never hurts to try.

duc_181

I'm in the Hartford area, so I've been over to Cycling Concepts in Rocky Hill based on a recommendation from a friend. The people seem pretty knowledgeable and friendly there... but I'm getting ahead of myself - still lining up finances and test rides. Hate to walk into a place and say "Hey, how much you willing to knock off your price?", without knowing what else they offer in terms of support/tune-ups, discounts on gear, etc.

island rider

Meh... sorta, kind, mostly correct. Getting the credit line/card can negatively impact credit if you are judged to have more available credit than desired by the reporting agencies, which is not always in line with those who make the decision to extend the loans. Cancelling a card can have a negative impact on your credit if you are reducing the available credit you have below the threshold that the reporting agencies would like you to have and keep for a period of time to build a "good credit history." If you have too much borrowing avaialability they don't like you, and if you have too little or have had it for too short a time, they don't like you. (I will confess that I have not looked into effect of having a card open for a short time frame, but I would tend to believe that (if that is what you are addressing) has little impact beyond the factors above, and so would agree with you there.)

Plus there is the fact that they just don't like activity other than paying balances... so... sorta, kinda, mostly ...

moralleper

Pay cash. The bike will handle better without the payment dragging behind! Debt has risk associated with it that most do not consider in our now society. The depreciation on bikes horrible and I would hate to be paying on something that is no where worth what I have left to pay on it. Maybe I am bias but I do not do the debt thing.

duc_181

I hear your... and if it's not free credit (0%) then I won't do it - I'll just wait a while until I can comfortably pay all at once. But if I can spread it out for free, all the better.

ADSR

If you've got the money handy and could pay the bike off fully if it came to that I don't see any reason why you shouldn't. If you're paying off a card with no interest, you should in theory end up with the bike you want, paid for less painfully over several months out of petty cash rather than savings, and have a higher credit score at the end. This sounds like a winner to me.

island rider

0%, .5%,. 1%, as long as it is less than you can otherwise get for your money without risk or substantial fee (think savings account, money market or CD), plus the cost of hassle, it's theoretically worth it. The real point is that you don't want to spend money you don't have to buy something you don't "need."

But that's easy for me to say... I have a bike.

dwellman

I wouldn't finance even at 0%. It's not worth the risk. You probably end up paying more anyway. Using cash is has strong correlation to get you a better deal on average (or people spend more when using credit).

I'd more likely pay MYSELF whatever a month for six months and pay cash at the end.

EDIT
Provided I have no other debt to speak of. A new bicycle isn't likely to help me get out of debt so I certainly wouldn't go into debt over one. Now, selling my car and buying a bike, that's another thing entirely or replacing short trips with a bike, maybe. But again: borrowing money to save money is just, well, to put it bluntly, dumb.

Also remember with GE Money you miss a payment/make a late payment or do not pay the entire balance off during the terms you will be charged something like 27-29% APR going back to your ORIGINAL balance.

topflightpro

This has been my issue.

And generally, these transactions count as a revolving debt on your credit report - it's sort of in between a credit card and a car loan. Actually taking one out and paying it off in the 0 percent time allotted can improve your credit score.

psalm

If you're looking at a $1200 bike, and you are willing to pay $200/month, consider layaway. Put $600 down, and make $200 payments and in 3 months you can ride it home. That would put you right around the middle of Spring time.

bikerjp

Don't bother with the GM financing. It's a rip off. Very high interest back to day one if you don't pay it off. If you know you will pay it off in 6 months then I guess it's okay. However, a better option is to sign up for a new credit card that gives you more 0% months and cash back. I got a discover card 9 mons 0% (I've seen 12 too) and $100 cash back after spending $700 and the bike cost more than that.