Looking at a new bike from Discount Cycles Direct with 0% Finance. Have spoken to them already and the deal is set up in principle - deposit plus monthly payments.
Is anyone else using 0% finance out there? Are there any implications I need to be aware of regarding ownership of the bike or warranty issues that occur before I've paid for the full amount?
its an unsecured loan at 0%, you could sell the bike the next day if you wanted to.
as far as the shop is concerned, you have paid, so no warranty issues. your only risk is not repaying it to the loan company which is entirely separate to the bike shop.
It's an unsecured loan funded by the shop. The bike is yours to do with as you please. Warranty is down to the place you get the bike from.
Other than being less likely to get discount, I can't see any downsides. I bought mine on 0% over three years. Made the payments whilst simultaneously saving up and when the savings account exceeded the remaining 0% balance, I rung them up and paid it off in full. Annoyingly, V12 leave your account open so I can in theory go into any participating outlet and buy a bike on a whim 🙁 Very dangerous!!!!
Must cost a hefty wack of margin to give 0% out, I bet these retailers are ripe for giving a discount.
I'm still paying for my Yeti, despite crashing and killing it. The insurance paid for the replacement Liteville so not too bad.
The main disadvantage is that the brand-new-A4 brigade will sneer at the use of finance and mention that they bought their house for CASH and everyone else is DOING IT WRONG.