buying bikes on finance?

[Keen]

Hi,

I'm hoping to start a better job in the new year so (with a bit of luck) I should have some disposable income for a change. As such, I'm thinking about getting another bike. I love the hornet and I'd want to keep it for day to day use, but I'd like a more focused machine for weekends. Something full-on, that would be good for getting into track days and gives a different ride to a naked 600.

Even though I don't like the idea of it, I'm tempted to get something on finance. Is it a good idea? if you don't mind me asking, who here bought their bike on finance? what bike did you get, what did you put as deposit and what do you pay monthly? do your regret it, or do you think its a good way to go about bike ownership?

My alternative is to buy something much cheaper once I've had time to save, hopefully ready for next summer. Then I'd be looking at something like an RS250.

What would you do?
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"he who makes a beast of himself gets rid of the pain of being a man"- Dr. Johnson

[Bishbash]

I know Infinity are doing 0% fianance at the mo so you dont lose money by doing this. sometimes it is a 100 pound deposit, but I did hear a rumour that it was a sign and ride it away deal. i.e. no deposit and 0% finance. Check it out. Loads of shops loads of deals.

[Suzuki]

I'd personally prefer to get a loan, and buy the bike outright.

For a start, if you sell the bike you don't have them whinging about finance on the HPI. Secondly, if you don't manage to pay the bike off in the 0% finance period, you get stung heavily with the interest, whereas with a standard loan the interest is pretty low.

Obviously, the best thing to do is to save up your disposable cash until you have enough to buy the bike yourself.
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<Simple> no I'm shaven Jon
<Simple> it is a big enough hole.. I'll leave it now
Ride: 1999 Suzuki GSXR600 (yellow/black) IRC: Stats - Relationship Map

[KTM Gordo]

Please note: The following information does not constitute "advice", merely my opinion.

On finance:
1. If you fall behind on your repayments the 'bike can be reposessed by the finance company (although it's harder after you've repaid 50% of the amount owed as then it has to go to court.

2. You cannot sell the 'bike until the finance is repaid as you don't legally own the 'bike until then.

3. Check the APR figure rather than just the interest rate: The APR figure includes fees and charges for credit (if any).

On unsecured loans:
1. Interest rate might be higher (again check the APR carefully)

2. You own the 'bike as soon as you hand over the cheque

3. Your bank is likely to be more understanding if things go pear-shaped.

Whichever you choose, think carefully before accepting any repayment protection insurance. This can be expensive and ineffective. If you want it, again shop around - there's no reason to take it from the same provider as the loan, and they cannot refuse you the loan/finance because you didn't take the repayment insurance.

HTH
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Change is inevitable - except from a vending machine.

KTM 990 Adventure | KTM EXC 250 Racing | Land Rover Freelander SE Td4

[Keen]

ok thanks for the advice

I'm very sensible, don't have any other debts (apart from a little outstanding student loan, but that doesnt count) and generally wouldn't normally be the sort of person to buy stuff on finance (I don't even have a credit card on principle). If I did buy a bike like that, I'd have to be 100% sure that I could make the payments easily... but its good advice and alot of unforseen things can happen...

It sounds like a bank loan is a much better way to go, but even then I don't like the idea of it too much. Its just I was under the impression (could be wrong) that alot of people would buy their bikes like this, especially newish bikes (I mean who has 6k or so lying around in a lump sum?) and I was interested to see people's thoughts on it.
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"he who makes a beast of himself gets rid of the pain of being a man"- Dr. Johnson

[KTM Gordo]

[Pete.]

Also 5-year terms are poor for bikes because in 4 years the bike will be near to worthless compared to it's current cost to buy, you could end up owing money on a bike that is worth only a small fraction of what you still owe.
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a.k.a 'Geri'

132.9mph off and walked away. Gear is good, gear is good, gear is very very good