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bike purchase: finance or buy out-right???

Discussion in 'General Motorcycling Discussion' at netrider.net.au started by twainharte, May 12, 2006.

  1. looking at purchasing the FZ6-S.

    after mths of saving, i have the funds to purchase the bike outright. this was the intention: NO mess, NO fuss! the bank balance will be lighter but it would be one less thing to worry about debt-wise and perhaps the deal would be that much sweeter(for me, of course!).

    however, visiting a bike shop today they mentioned 'finance.' 2yr, 5yr, yadda yadda... :?: they get a commision on this stuff, right?

    5yrs would be outta the question! 2 yrs i could handle but what are the other alternatives: loan, credit union, lottery :LOL: ???

    can anybody enlighten me about the pros and cons. maybe add an experience: good/bad?

    edit: i hope the above has made some sense?

  2. To give a bank 10% (or more) of your money, or to give them nothing?
    Tough choice!
  3. I'd pay cash.
    It seems imprudent to establish a loan for what has a high probability of being a depreciating asset.
    Although I did here a tale of a late model Ducati that was ridden for 1200kms and sold for profit.
  4. Outright. No advantage in going finance, that I can see.
  5. Definitely cash if you have it. You can always start saving again after your purchase. Make sure you have enough to cover insurance and protective gear.

    Be aware, that the in-house finance rates in bike shops are definitely higher than a personal loan from a bank or credit union and you have to supply proof of insurance (which is a good idea).

    Good luck with your ride, whichever way you go.
  6. If the bike is for private personal use, I'd pay for it in cash. On the otherhand, if you use the motorcycle for work purposes you may be able to configure it into your salary package or through your business and finance may be an option then.
  7. cheers for the prompt response guys/gals.

    the bike will be for private use and i have funds to cover insurance(comprehensive) etc.

    yeah, it really is a no-brainer: cash it is.
  8. I brought my bike cash... No way I would give the banks more money than I need to. In my opinion they already take too much of it. Also yes, the bike dealer will also get a commision on a loan that they insitgate from the financial insutution that they deal with.

    Personally I cannot see an advantage paying interest on something that you already have the $$ for.

    Good choice. :)
  9. When I first read this I thought it must have been a trick question :?

    But yeah if you have the cash use it. :)