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Bank Loan or not?

Discussion in 'New Riders and Riding Tips' at netrider.net.au started by not_sane, Jun 20, 2005.

  1. Hi guys,
    I've been looking at bikes for about a month now, so i have an idea for what i want, what i like. I'll be getting my RE's in about a month, have had a couple of lessons and am looking at a CBR 250, have to check the year and K's again but for the moment its in good nick, has few scratches, and has been looked after, the girl wants 3000 for it so i have been considering getting a bank loan of about 4000. Since until Feb next year i'll only be earning 250 after tax a week.

    3000 for the bike, 1000 for gear and what ever i have left over from the gear i'll put together with the money i have for rego and anything that needs to be done, I would just like the opinion of someone else apart from my parents who want to kick me out if i get a bike. Is a bank loan a good idea (I am leaning towards it) and what company's in brisbane offer low rates and no fee's for paying it off early



    As for insurance i don't think i'd bother asking about full comp for someone who is 18 because i don't think its going to be under 1/2 the cost of the bike. So 3rd party it is for me.

    I'm going to have the bike checked out properly but that aside would you's have any other tips for me in this situation
     
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  2. What is RE? Is it a learners' permit?
     
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  3. Even if you are going third party your still gonna need about $600 to cover the cost of rego, insurance and CTP. For me i think it is gonna cost:
    rego=$90
    3rd party=$198
    CTP=$267

    As for the bank loan if you are not earning enough money then you are going to need a Guarantor for the loan (i.e. One of your parents has to sign the loan agreement aswell incase you can't make the repayments) so it doesn't look good on the loan front. If you go to a bank other than the one you bank with then you will definately need a guarantor.

    My 2c
     
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  4. Although it can be a slow and painful process, I would tend to save some money and build a basis from which to borrow more and to reduce the amount you need to borrow.
     
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  5. RE is like your P's in a car except on a bike you are restricted to a 250cc,

    Isn't CTP(compulsary third party) and third party the same thing?

    I have a car that they could put the loan against, i thought thats what they did in most cases?
     
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  6. I've been doing that for a while,

    been putting 150 away every week, but like lately and in the next 3 weeks i will have spent $500 on my car, birthday party, g/f birthday and then her formal, so if i could get a loan and put say 50 direct a week then every couple of weeks when i have and extra 500 put that in as well until next year when i'll be earning a lot more. it should be sweet
     
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  7. aah, that's good, you've already developed a saving habit.
    Paul Clitheroe would be proud.
     
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  8. Save money and dump the G/F, you can't take her on the bike anyway, and unless she is prepared to purchase her own riding gear your expenses will be increased........remember the line, if you love me, you would buy me my own helmet, gloves, jacket[/i], etc...

    save the car, you can trade that after you get of your restrictions and use the funds to buy bigger and better.

    After all what is going to give you the most pleasure, the G/F or the bike.....?
     
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  9. Some advice you can take if you wish...

    Don't buy the CBR250 for now. Based on what you are saying, you are cannot afford this bike at the moment. If you wan't to borrow $4k to finance a $3k bike and $1k of gear sounds like you don't have a significant deposit. A bank will NOT lend you this money directly. You will need a guarantor, basically your parents will need to borrow the money and are ultimately responsible for the debt.

    You will not be able to afford to comprehensively insure this bike. Premiums will be in the order of $1000 to $1500 for a 17yo on L's on that bike (maybe more..). You will have to settle for Third Party. If you borrow the full amount for the bike and bin it big time (it does happen), it is going to take you eons to save the $'s to repair it (remember that you are also paying off a loan at the same time).

    A $3k CBR is going to require some maintenance and a few $'s to get it up to scratch, you need to consider this. Chain, sprockets, tyres, brakes, engine noises... etc.

    You also need to think a bit longer term.. The CBR will be good while you are on restrictions but then what. You probably don't want to be paying off the CBR for 3 years. Borrow less, pay off quickly.

    Sorry if this is a bit negative but just wanting to point out the risks you face in borrowing $4k for a bike as a 17yo.

    The way to do it...put your purchase off 3-6 months (sounds like a long time I know), and save every cent you can in that time, look out for really good specials on gear and gradually build your kit up over that time. Older bikes can be expensive to maintain and run, choose wisely.

    Hope it goes well for you, good luck on the test.
     
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  10. CTP is also known as greenslip and as you stated is compulsory. It covers the medical expenses and damage caused if you are involved in an accident. i.e. if you hit a pedestrian it covers there medical expenses.

    Third party property however covers the OTHER persons CAR in the event you have an accident. It also covers your car in the event of an accident which is NOT your fault. i.e. if you have an accident with another motor vehicle it will cover the costs to repair the other persons car. CTP does not. Therefore if you don't have third party YOU have to pay for the repairs out of your own pocket.


    Think about it. You still get CTP Greenslip even if you have Comprehensive insurance don't you.
     
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  11. Nobby

    Haha thanks for the words of wisdom, the g/f won't be coming on the back of the bike... even if i wanted her too, I'm keeping the car, as far as i'm concerned at least for now the bike is a toy.

    Ashes
    Thanks heaps, very rare that someone will tell you straight up, i realise 'binning it' does happen and was prepared to take that risk, as for comprehensive insurance, i don't have it on my car either because its not worth it. if i've had my car for bout 3 years i could have bought the car again.

    as for thinkin to the future beginning of next year i get paid 3 times as much so i could pay the rest of loan off in 2 or 3 months.

    I think i will put it off, hopefully i get a bit of money for the my 18th,

    thanks but from what the instructor has been tellin my i shouldn't have any worries, i hope.

    Night Rider
    thanks for that, always good to know things like that, gonna go smack my mate over the head.
     
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  12. any other opinions???
     
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  13. Sell something...GF??

    I'm hanging out for a bike to.... selling of everything thats not nauiled down (and i don't need)

    always better to save no then buy lkater rather that have now...pay for next 3 years.

    your $4000 loan would end up costing you about $5000-$6000
     
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  14. Have to agree about how difficult you might find it getting a loan on only $250 a week, and the fact that the cost of owning a bike is always more than the cost of buying it. It would be a dead-set shame for you to be able to buy the bike, and then not be able to afford to ride it.
    This from NRMA's web site, I know it's about a car, but you can see that ownership of any vehicle is expensive.

    For instance, Australia's most popular car is the Holden Commodore, and – based on a three-year ownership term – a pretty standard Executive model will cost $8073 to own. This is less than a Mitsubishi Magna (at $8897) and a Ford Falcon ($9131). Even the cheapest of the bunch, the Hyundai Accent, has an annual cost of $5127.
     
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  15. haha why is everyone telling me to get rid of my g/f,

    i know it would be better to save, but i hate waiting, i go nuts, even tho i will wait and just go nuts anyway.. never had much to sell that i don't use, have a 1/8th petrol remote control car if anyone likes em..


    ......... :( :? :roll: :roll: :roll: waitin.....waitin...waitin...
     
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  16. personally, I avoid taking out loans for a few reasons:

    - they end up costing you far more then the loan amount, especially if you're paying it back slowly
    - if you're not earning much, you can run into trouble with other bills/bike maintenance etc
    - if you crash the bike, you still have to pay for it!


    but on the other hand, you're doing the right thing getting an older second hand bike to learn on, so as long as you plan your budget from now until the loan is repaid it could work.

    (btw you should be able to pick up a good set of gear for quite a bit less then a grand if you shop around for specials... I didnt do that but I wish I did)
     
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  17. Thanks Androo
    I could use this opinion a bit more then the other ones, I've semi decided not to get the loan, i have some drafting work coming up outside my work which i get $35 an hour cash for, so i think i'm gonna have a couple of months where i bust my nuti should get a little closer, I'm hoping i get about $500 for my birthday, so when i think about all these things it won't be as hard saving if i have more then 150 a week to pay for extras and save with.

    I'm only really sure of one motorbike place that i think sells gear and thats on new cleveland rd (brisbane) i have to ask my uncle about others, does anyone know of any good places?
     
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  18. Where are you getting lessons??? I'm assuming that they are road bike lessons conducted at a training facility somewhere??? How much do they cost you???

    Does anyone know of lessons like these in NSW where you don't need your L's to do them? i.e. you can get some experience and practice before getting your L's
     
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  19. I do have my L's dude, as far as i know i don't think they will take you unless you have your L's, they might run you around their little centre but i don't think they will take you out on the road, just get your L's 5 questions after you have your car license, and it is really hard not to get them right, they give you the answers on the Dep of Transport site on the net.

    edit:
    they are $50 an hour, includes all the gear you need for the lesson and a bike to use.
     
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  20. I agree with most of the comments here. As a 17 y/o earning $250 a week you can't afford a cbr-250. If you spend $3000 on a sportsbike you'll end up spending another $3000 over the next year just to keep it running.

    Save up $1000 and buy a 1970's / 80's shitbox and then throw it away if it breaks. Wait until you have a real income before you start thinking about serious purchases.
     
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