you shouldn't do it.
but if you are trying to rebuild or raise your credit rating, a loan or credit card charge (not a check card) can help you if you already have the money upfront to pay in full to boost your credit.

Some High-End bikes come with crash protection insurance. I have this on my Serotta Ottrott.

If you have money in a savings account it is just there as a nest egg/emergency fund. No one will ever make significant money by leaving their money in a bank. You need to invest/risk in something to make significant return. Open a business, invest in real estate in a down market, loan money at a high interest rate to an inventor the banks won't touch (that one is probably a worse idea than financing the bike).

In the end the decision is yours, we all have different circumstances and different tolerances for risk/reward ratio, you need to stay at the level you are comfortable with.

The only bike I've bought new was financed. My LBS had the 12 month no interest financing as mentioned earlier. Although I had the money to pay the bike in full, being a college student on a limited income, I didn't want todrop a large portion of my "savings" in a bike. Paid my bike off in 4 months, and in my opinion it wasn't a bad decision.

These 2 circumstances are what prevents your decision from being a bad one.

I don't think the interest rate is the key thing here. The key thing is whether someone who doesn't have $7K in cash should be borrowing to get into a $7K bike, regardless of interest. If you're young, have good secure income and expectation of growth in that income, and have a reasonably secure home situation then....maybe it's Okay. But I doubt it. Better to "scrape by" on a $3K bike.

That being said, people finance things like this all the time. It's usually not done explicitly through a loan for the bike, but through credit cards. And it's dangerous territory for one's finances.

- Mark

Never. When I say never, I mean the thought would not even cross my mind. I refused to finance, lease, or borrow for my bachelors degree, let alone a bike.

Bottom line: if I don't have the money to buy something, I don't buy it. The few notable exceptions being, in my opinion, higher education, a mortgage, and health expenses.

There is a reason companies offer incentives like this, and trust me, it's not to help you out. More often than not, they make far more money on a financing deal then on an all-cash sale.

But this is all reflective of my overall financial views. Like someone said earlier, the poor pay interest and rich collect it.

??? That is EXACTLy why we are in this housing crisis. All those people financed WAYYYYY too much house expecting a "windfall" in property values. Woops! That is called counting your chickens before they hatch.

I might do it for a really great deal if I had at least half the money in cash, could get 0% or very close, and was VERY certain I could get the rest of the money in less than 6mo. I would have to have the kind of discretionary income that I knew I could get the money very quickly. I say that, but probably wouldn't. If I was looking at a $7k bike and had $3k in cash to blow, I would probably just get a $3k bike. I get pretty excited looking at $1500 bikes. :lol:

If you can't afford it, don't buy it

Bad idea. Save your money and pay cash.

You know you could have just provided your opinion on the subject rather than saying my advice is bad. That kind of personal attacks is what drives many people away from this forum.

How about just stating your personal opinion in the future and not critique others?

This thread got off track a bit. The original question is do people finance bikes. The answer is yes.

Bad question to ask here because of the usual barrage of blah, blah blah. I'd say it is personal and if you feel it is ok then it's ok and it really doesn't matter what everyone thinks. I haven't done it, but I do know the only way I was able to afford my higher end bike was sell a few motorcycles and pay cash otherwise I would not have had the bike. I have taken out small loans over the years for things I couldn't afford at the time, but did it and never regretted any of my purchases and I have turned out just fine. The fun factor and memories greatly outweighed the sensible or financial return factors. People take out loans for all kinds of personal things like vacations, Christmas, home improvement and things that are a lot more silly than a bike. Your money, your credit, your decision and if you're comfortable with it go for it, but don't advertise it. ;)

I'd finance everything.. at 0%. Usually only applies to new accounts. Why give away all the whole amount when you can keep most of it for now?

On the other hand, paying more than the bike is worth because of interest is pretty dumb.

Edit: Also, on the things I finance, I could pay for in cash, but I don't. As someone said earlier the only exceptions to financing things you can't afford now should be things like mortgages, health expenses, and other things that are essentials... like a car that gets you to and from that place where you make money.

.... my 2 cents.

_I am saving up for my dream bike right now (Not very far along). I had the realization a few months back that if I ignored frames, components, wheels etc. that are on CL or at the LBS and just keep putting away the money, then by the time I have enough cash to jump on a new bike there will be new tech, better frames and nicer wheels when I have the money. At that point my bike will be a snapshot of the best tech I feel is awesome (right now can't honestly justify anything over 105 / rival anyway... likely to be that way even later), and I will have it built... exactly the way I want it with no debt or guilt or [____]... I think having to hand over the money makes you really question yourself on if you "Need" the bike enough to drop the paper. CC and debit cards make it too easy... even when you have the cash somewhere else.

Oh yeah, I don't finance. I paid cash and haggled my bike... LBS owner thought it was entertaining till I pulled out an envelope with $3k, then he was listening very closely (cc machines etc have hefty fees that can quickly cut into profit margins)... he particularly likes the cash.

Yes, people finance bikes. People buy bikes and bike stuff all the time on credit, using credit cards or financing through the bike shop.
I wouldn't do it though. What I would do if I wanted a high end bike and just didn't have the cash on hand to get it is put a deposit on said bike with whatever cash I had available, get to selling stuff I no longer have use for on ebay and in classified ads to get the cash and then walk into the lbs to pay off the bike.

I made the mistake of financing my last vehicle and frankly would never do it again.

How about not giving out bad advice that could screw someone over financially?

I don't care how you choose to rationalize it, what you recommended and the reasons you gave behind it were misinformed and should not be followed. That's not just my opinion either. Don't get all butt hurt just because someone called out your advice for what it was - poor advice.

And if you think someone pointing out that your advice was bad is a personal attack, you are a bit oversensitive. You have no idea what a personal attack really is.

Also, on those no interest offers, there are often "catches" (duh, of course there are). When I financed a laptop, I had to make payments every month or else I would trigger the interest, and if I failed to pay the full amount by the end of the promotional term, I would be charged interest on the original principal, not the remaining principal. Ain't that some chit?

Everything you said is your PERSONAL opinion. I'm only going to say you seem to be a very closed minded individual who sees your view as the only one people should listen to. It's a waste of my time to say anything more

I have financed several bicycle purchases.

BUT - and this is a big BUT - in all cases I had the cash on hand to make the purchase. I simply took advantage of the 0-percent financing opportunity. My money sat in investment accounts growing while I slowly paid off the bicycles. I have also used this approach to purchase computers and a couple of TVs.

Perhaps we could analyze this for a neutral perspective...? From one viewpoint Propofol feels that though experience of his own and the advice for highly educated financial advisers that are not sponsored, the advice you gave could cause an individual to enter into a financial agreement that would put him at a higher risk of personal debt overload. Perhaps he has a personal experience that was painful or extremely stressful and is upset that you would give that advice casually.

From StanSeven's perspective... there are accurate facts and less biased opinions on this forum... the 41... ... ... I got nothing else.

Also as posted above, it really is a personal decision and people use loans all the time to buy things like cars, vacations, etc. It's important to recognize the risks and the costs, which also has been stated.

I just did a calculation and the interest on a one year 6% loan for a $5,000 bike is $160. So the question is whether it's worth $160 to have a bike now as opposed to waiting as long as a year to save for it. If it gets you out to ride longer and/or faster, it's probably worth it. But if the debt makes you nervous, then it's probably not wise.

Actually, your posts in this thread were a waste of time from the beginning.

It's my PERSONAL opinion that your opinion on this subject is weak and anyone who listens to you would be taking a shortcut to financial ruin. And instead of defending yourself and making an attempt to justify your position you take the easy way out by complaining that you're being personally attacked and running away from the discussion. Yes, that's the way to convince people that you're right.

You want to take out loans to pay for luxury items you can't afford, go ahead - that's your right. However, you won't find a single financial planner who will say this is a good idea. The risk of hetting underwater on a loan that you didn't really need to take in the first place is too great. And it doesn't matter how low the interest rate is.

what you should do, go take out a personal loan. let's say $3k. take that cash to Vegas and go double or nothing. you're either getting a REALLY sweet bike... or hitching a ride back home. win-win if you ask me.