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Finance or Not to Finance

Discussion in 'New Riders and Riding Tips' started by Challiwell, Oct 26, 2008.

  1. Hey guys long time reader first time writer so i got my L's licence about a month ago and having to ride a mates bike around, my parents offord to finance me a new bike, but knowing that everyone drops and or comes off the bike at somestage im not sure wether i want to...... The other problem is that i wont be able to afford to buy a bike in the next year unless i take the offer.... Any Thoughts???

  2. Answer is really quite simple... if you want the bike now, gotta borrow from mum and dad... if you can wait, then save yourself.

    Personally i'd borrow about 5k and get a good second hand bike. Depreciation on new bikes is terrible.. unless you plan on keeping it forever, then its not so important.
  3. Yep. Borrow as little as you can seeing as you're only young. I'd suggest a second hand yet safe bike, some good gear and a couple of courses and good insurance. Maybe about $7k all up.
  4. Mate to be honest at 17 getting into debt for a motorcycle is probably not a good idea. I think your better off saving up for a year and then buying it outright. The wait will suck but it will put you in such a better position financially.

    When I was your age I worked right over the summer holidays, saved $3000. It was hard work but so much more rewarding riding the bike that you worked hard to get. I stopped counting a short while after I bought my bike but I'd spent about 8k all up on everything to get started. There are a lot of hidden costs you don't find until after you start riding.

    I think I was earning about $285 a week when I started riding and it really teaches you financial discipline if you can make small amounts of money go a long way.
  5. totally agree. i know its pretty tempting but do you really want to be owing your parents anything? lol.

    i saved for ages and paid cash for my first bike.
  6. If you have discipline and can afford the finance, then you should weigh up what the benefit is vs. the cost.

    Are they going to finance it on your behalf and you pay normal interest?

    Are they going to pay for it and you pay them back? (with interest?, without?)

    Can you afford the registration & insurance?

    Properly managed debt should not be a monster lurking in the closet. Only you understand your circumstances fully and what a bike will mean for you.
  7. Do a deal with the 'rents and pay them back over time.

    Don't get a new bike - you're young and comprehensive insurance will be high or impossible. Get something around the 3k mark with 1k for gear. If you break it you won't spend years paying it back.
  8. Borrow nothing, search day & night for the cheapest pos from the 60/70/80's, work on it, ride it, enjoy it.

    You will then appreciate a real bike much more when you inevitably upgrade.
  9. dude

    you can get good, reliable, registered bikes for under $1000 easy if you look around

    maybe some extra shifts at maccas will help you save..

    we all gotta start somewhere!
  10. Examples please?
  11. Advice:

    As your first bike you should buy second hand.
    The reason is 1) you are likely to drop it and cause damage (older and common bikes are cheaper to fix) 2) insurance will be lower 3) you avoid copping mass depreciation on the bike which could wipe 40% off the value of a new bike the day you take possession.

    These are important if you are borrowing money as if you can sell for near your purchace price, you can more readily exit your debt.
    Also it gives you greater money to spend on gear, courses and insurance.

    Also, do not buy a piece of sh*t as your first ride. You will curse riding and forever be mentally scared.
    Get a bike you can afford ($4-6k say) and make sure it gets a check over before you commit.

    Riding should be enjoyed, not endured :roll:
    So if your comitted to jumping into the world of road riding. Get a decent bike, gear and training and welcome to the game :wink:
  12. Not sure what you can find for $1000 but a lot people will advocate getting a POS as a first bike as you are likely to want to upgrade once you get your full licence.

    Either way I would consider at least saving for the first few months as it will give you a real idea of what you will be able to pay back to your parents every week and give you a bit of money to start with as well.

    Use those months to really research all your gear and find out what it will cost. Things like helmets you need to try on, your head shape may determine that you need to spend more than you wanted to. Same applies to other gear as well as the type of bike and likely insurance costs.

    One thing I've heard mentioned on this forum on a number of occasions is to buy your riding gear and get the bike with the change. I think that if you take your time and really research and search for top deals first, that change will be able to go that little bit further.

    The road and bikes will always be there so don't feel you need to rush out now.
  13. I wont recommend borrowing money from finance company.

    getting a few k from parents sounds reasonable. and your parents ill not offer to unless they know that you are a responsible kind of person. you should be happy that they even consent to you riding a bike!!

    There is a difference between getting a POS and a bike that look POS.
    4k is comfortable money for a bike and 3k will get you something good if you look hard enough. if you want something to putt around, and you are not so particular, you can get wheels for 2k.

    the trick is not to rush into it. Good deals come and go.
  14. I picked up my bike for 3k... 12 Months Rego and RWC. I then spent 1500 on gear, and im loving it.

    All up, on the road including L's course and a new battery (damn :( ) for under 5k.
  15. At 17 I highly doubt anyone has the discipline required to go into debt for what is really just a toy. Saving the cash will teach better lessons then running to the nearest line of credit (anyone say "global credit crisis").
  16. He IS borrowing from his parents.

    I bought mine on finance, with clear terms and conservative repayments. I am willing to pay the extra and it will help me to learn to manage repayments and banks when i go to get a larger loan or a mortgage.
  17. At the OP's age (re: under 24) most financiers want to palm a credit card off onto you hoping you'll run the card right up to the limit buying the car/bike/holiday/stereo/etc and other toys and then bleed thru the wallet into their grubby hands for years to come at some goldy inflated interest rate.

    Do a deal with the parents, save up the cash, flip extra burgers at macca's. What ever it takes. Just avoid the greedy financiers and their 17% plus interest shiny plastic wallet cleaners.
  18. my biggest hint is do up a budget.

    i got my average monthly income (underestimated), my average monthly spending (overestimated), and worked out how long it would take me to pay off $x for a bike, insurance premium and stamp duty, including interest, and loan setup fees, at a bunch of different monthly payments. i then petitioned my folks for a loan, even offering to pay interest to them. they eventually came to the agreement that they would give me an interest free loan, on the proviso that i went to do a GOOD advanced rider course. i am booked in for M&W on the 8th and 9th.

    so anyway, do a budget, work out if u can afford a loan. i worked out i could afford $500 monthly payments, and as it is, i am averaging better than that so far. if the folks have offered, then you are already one up, and i would say go for it, as long as you can afford it. the bonus of going through the folks is that if you do have a massive off and cant work, they are less likely to come after your knee caps like a bank will, which is the main reason people dont recommend going into finance for a bike first off.

    btw, +1 on used bike. look around and you will find some good ones.


    p.s. if you havent guessed already, both my folks are accountants, so what seems anal and over the top financially, is normal for them.
  19. Ditto the budget. When I was 16 and looking at getting a vehicle for myself I worked at a chemist a few afternoons a week after school. I saved everything I could and ended up with $1200. Then the looking started. Ok it started well before then but wasn't really serious due to not actually having cash...

    Check ebay if you want to get a rough idea of what people are paying for various bikes. I suggest you go along to a swap meet or two and all the dealers in your reach, check stuff out, find what your style is. At the swap meets you can really find some good stuff (take somone who knows their stuff mechanically). I found what would have been my first bike at one - a Honda CD250U with 20 odd thousand k on it for...$1200. (Un?)fortunately I ended up getting the old Valiant that was sitting unloved under a tree for a few hundred more and borrowing the extra cash from my parents.

    Anyway, now I've waited a while and have my learners again. I'd suggest you do what I did and buy your gear straight-up, before the bike if you can. This way you won't be tempted to ride without protective gear. Helmet, jacket, gloves at the absolute min. Pants and boots are also well worth the while. I got my stuff halfway through the year, as they were starting to get summer stock in. Saved me a bunch, I'd rcommend it.

    Remember, the world is your oyster right now. Try everything you can to find the best fit...you don't wanna end up with stuff you don't like and a loan to pay off. That'd really suck.

    Cheers - boingk
  20. ok thanks guys, yeah im borrowing the money off my parents, now im confused on what bike to buy, i like the suzuki across and i also like the CBR so i dunno, anybody recommend ether of these?