Financing Bikes Common or Not?
07-15-12 | 09:08 AM
#151
Riding like its 1990
Joined: Nov 2006
Posts: 3,785
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From: IE, SoCal
Last edited by thenomad; 07-15-12 at 09:12 AM.
07-15-12 | 09:13 AM
#152
Senior Member
Joined: Apr 2011
Posts: 15,278
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From: Alpharetta, GA
Bikes: Nashbar Road
In my experience that's often not true, because the deals are structured to make money on the financing. In the zero financing deals , the profit comes from the people not paying in time, and then being subject to huge interest from day 1. They lose on the minority that pay off timely, and win so much on the others, that it pays to give free financing to some.
So cash prices can actually be as high or higher than financed deals, if the model is set up to make money on the financing.
So cash prices can actually be as high or higher than financed deals, if the model is set up to make money on the financing.
07-15-12 | 12:47 PM
#153
unaangalia nini?
Joined: Jul 2005
Posts: 1,136
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From: Arlington MA
Bikes: Jamis Quest (Ultegra components,Mavic Ksyrium Elite wheels and Reynods Ouzo Pro Fork), Gary Fisher Tassajara
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?
Trust me, no one "needs" a 6-7 k bike, and if you have to finance it, that is a really bad idea. Biking is a want, I got my latest bike for $2700 (it was on sale from $3800), it is a luxury. I didn't "need" an expensive bike, I wanted one, and I had the cash for it (without neglecting other financial priorities)
There is no faster way to financial ruin than not differentiating needs and wants. Needs can be financed (need a house, need a car etc), wants shouldn't.
07-15-12 | 02:23 PM
#154
Delusional Laserbrain
Joined: Jul 2009
Posts: 405
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From: South Orange, NJ
Bikes: 2008 Specialized Tricross, 1993 Giant Iguana rebuild w/ singlespeed drive train
If you don't have the cash to buy a bike then you seriously shouldn't be financing it. I think unless you are already wealthy, or on the pro circuit with a real shot at winning some prize money, then you should not be thinking about super expensive bikes. They are a serious waste of money with little practical value over a much cheaper bike. The truth is that above a comp level bike you are spending ALOT more money on components and technology that will give you less of a return on investment.
Spending an extra grand to go from a heavy triple to a light compact double rival or 105 is one thing, but dropping another $4k on top of that to make the bike slightly lighter still is not a good investment.. especially if you have to finance it.
Spending an extra grand to go from a heavy triple to a light compact double rival or 105 is one thing, but dropping another $4k on top of that to make the bike slightly lighter still is not a good investment.. especially if you have to finance it.
07-15-12 | 03:11 PM
#155
Senior Member
Joined: May 2012
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From: Westchester County, NY
Bikes: Giant TCR SL3 and Trek 1.5
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?
07-15-12 | 03:43 PM
#156
Oh, my brake was on.
Joined: Dec 2011
Posts: 88
Likes: 0
From: Ohio
Bikes: 1996(?) Mongoose Omega, 2012 Gravity Pro20
I'd like an new pair of shoes I just saw, but I don't have an extra hundred bucks sitting around right now. Anyone want to float me a loan? If not, it's okay. The ones I have still work fine. I just thought it would be nice to have a new pair.
07-15-12 | 04:02 PM
#157
Senior Member
Joined: Jul 2010
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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. 
07-15-12 | 05:46 PM
#158
Delusional Laserbrain
Joined: Jul 2009
Posts: 405
Likes: 0
From: South Orange, NJ
Bikes: 2008 Specialized Tricross, 1993 Giant Iguana rebuild w/ singlespeed drive train
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. [IMG]https://www.bikeforums.net/showthread.php/794248-Financing-Bikes-Common-or-Not/images/smilies/wink.gif
Best response so far.
Best response so far.
No is claiming he doesn't have a right to do it. He was asking our opinion about it. And it is not necessarily a choice between a $7000 bike and no bike. You can still have a good time on a bike that costs $2,000 or less and you might never even know the difference. Bike culture has become more blingy than Hip Hop videos where everyone thinks they NEED pro level equipment for cruising down to Starbucks. But if you can't afford it and you don't need it then I can't see why in this economy you should burden yourself with that much debt.
07-15-12 | 05:55 PM
#159
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Bikes: 2013 orca
I paid cash for mine. Sold my old frame for 2k and threw in 5k of my own. My girlfriend on the other hand financed hers. She bought her first bike, Trek Lexa for 750 and used the Trek card and had it paid off fairly quickly. She upgraded to a Madone 5.2 with Ultegra and financed it as well...definitely for more than 750...she's got a year to pay it off with 0% financing. We have the cash to pay for it at anytime but figure its nice to keep the cash on hand just in case we have something else come up...kind of like our AC unit going out. It cost 4200 dollars and wouldve been a big bullet to bite if she had dumped all the cash on the bike. It really depends on your situation.
07-15-12 | 06:01 PM
#160
For those who didn't notice, this thread is 6 months old, the OP already bought the bike, and hasn't posted since February.
07-15-12 | 06:14 PM
#161
Senior Member
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Bikes: 2013 orca
07-16-12 | 06:14 PM
#163
pan y agua
Joined: Aug 2005
Posts: 31,812
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From: Jacksonville
Bikes: Willier Zero 7; Merlin Extralight; Calfee Dragonfly tandem, Calfee Adventure tandem; Cervelo P2; Motebecane Ti Fly 29er; Motebecanne Phantom Cross; Schwinn Paramount Track bike
So a person with cash would be better off financing and then paying it off in a month or two, or is there a penalty for early payment? Just an idle question. I don't think I've ever seen that, but it could be because I never consider financing anything so it wouldn't ever occur.
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07-16-12 | 06:23 PM
#164
Senior Member
Joined: May 2012
Posts: 259
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From: Sacramento, CA
Bikes: Tarmac Apex
I paid cash for mine. Sold my old frame for 2k and threw in 5k of my own. My girlfriend on the other hand financed hers. She bought her first bike, Trek Lexa for 750 and used the Trek card and had it paid off fairly quickly. She upgraded to a Madone 5.2 with Ultegra and financed it as well...definitely for more than 750...she's got a year to pay it off with 0% financing. We have the cash to pay for it at anytime but figure its nice to keep the cash on hand just in case we have something else come up...kind of like our AC unit going out. It cost 4200 dollars and wouldve been a big bullet to bite if she had dumped all the cash on the bike. It really depends on your situation.
This is the best explanation on why its ok to do it sometimes. I made a comment about this on another thread basically saying the same thing. However I got chewed out for it but you have more "street cred" on here than i do
07-16-12 | 06:31 PM
#165
Roadkill
Joined: Sep 2004
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From: East Tennessee
Bikes: 2002 Lightspeed Classic; 2010 Pedalforce RS
07-16-12 | 06:36 PM
#166
Peloton Shelter Dog
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From: Chester, NY
Bikes: 2017 Scott Foil, 2016 Scott Addict SL, 2018 Santa Cruz Blur CC MTB
On some deeper essential subliminal level, here on BF, it's always about me. This will be revealed to you in painful layers over many years.
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07-16-12 | 06:38 PM
#167
Peloton Shelter Dog
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From: Chester, NY
Bikes: 2017 Scott Foil, 2016 Scott Addict SL, 2018 Santa Cruz Blur CC MTB
Financing bikes. God help me it has come to that.
My first brand new car was a 1981 Honda Accord hatchback, stick, no air. $7300 out the door with tax. Holy crap, some of these high end bicycles cost double what that car cost now. That's nutty.
My first brand new car was a 1981 Honda Accord hatchback, stick, no air. $7300 out the door with tax. Holy crap, some of these high end bicycles cost double what that car cost now. That's nutty.
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07-16-12 | 06:43 PM
#168
well hello there
Joined: May 2005
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From: Point Loma, CA
Bikes: Bill Holland (Road-Ti), Fuji Roubaix Pro (back-up), Bike Friday (folder), Co-Motion (tandem) & Trek 750 (hybrid)
I'm pretty sure my custom titanium with Di2 and zipp wheels exceeds the value of my 95 Benz.
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07-17-12 | 06:58 AM
#169
Senior Member
Joined: May 2010
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From: Antioch, IL
Bikes: 2013 Synapse 4
like most things in life, it depends. if they are offering a 0% for X number of months/years, take it and pay it off before the promotional period is up. problem is that most people are not disciplined enough to do so, and the finance co's prey on them and accrue interest at alarming rates, often near 20%. my last bike I had 0% for 6 mos, I paid it off just before the time period was up even though I had cash in my acct the day I bought it. smart use of credit is the right thing to do most times, however, as I noted, most people aren't smart about it.
07-17-12 | 02:32 PM
#170
Administrator
Joined: Feb 2005
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From: Delaware shore
Bikes: Cervelo C5, Guru Photon, Waterford, Specialized CX
That's what I think when I cash my credit card rebates. I always pay them off on time so the rebates are like a gift. I know merchants sometime cringe when I use an AMEX because the cost to them is high. But my Feb Cosco AMX rebate pays off Christmas
07-18-12 | 03:20 PM
#171
Oh, my brake was on.
Joined: Dec 2011
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From: Ohio
Bikes: 1996(?) Mongoose Omega, 2012 Gravity Pro20
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