I assume people buying at the high end of bike market (say £2k+) mostly use either a credit card or one of the 0% offers a lot of brands/big suppliers have. Given the ease of credit and the general accepting attitude that using it doesn't necessarily say that you're living beyond your means.
Tell me I'm wrong?
no
but ive bought 5 bikes new in 20 years of biking, a lot of my stuff is from ebay
No. I don't like to borrow money for anything other than the house and car. If I cant afford it I don't buy it. I do cycle to work every year which helps.
Nothing against finance but I will always try and avoid it.
you're wrong 😉
Not generally, but i did recently with the Parkwood as it was £31 a month.. i won't even notice that... But i'd have noticed £700 coming out... i could have spent it... but didn't see the point.
Yes, because I'm poor. I bought the last one in 2012, it was paid off a few years ago and I still love riding it today.
Some of us can afford the interest free repayments but don't have a few grand lying around to spend all in one go. Same reason I have a mortgage.
Tom KP
Don't see anything wrong with a bit of 0% finance. Even if I had the money to buy outright I'd still finance it and keep the money in my bank.
Have done in the past. Sometimes you can get some 0% deals and spread payment rather than have it all coming out in one go.
as long as it's affordable, there's no issue
I have never, ever bought anything on credit. Always been of the mind that if you can't afford it now, either save, or do without. I haven't suffered in any way because of this. Never understood why so many people are so willing to get into debt, and very often, for meaningless shit they don't need.
No. Credit is for essential stuff when you need it, not for toys.
I rarely buy a full build. The last three were debit card payments as I don't like buying on credit, or even % when I have the money and getting balls all interest.
If I don't have the money, I don't get the bike. Simples.
In the good old days I could steadily get a "new" bike by upgrading just bits at a time as there was just one wheel size, hub standard etc etc. No need to save up much or go into debt. I think next year, I'll bite the bullet and just get a complete bike, probably on credit.
ALways on credit. If its 0% I see no reason not to. Also good for your credit rating.
No noooooooooooo
Tried once, twice, three times to buy an AS-X on credit. Was refused each time.
The last time they thought to tell me that being refused actually damaged my score.
Goits.
yes, last few have been done that way, but always make sure one is payed off before buying another and always pay the zero card off within the zero % period.
lways been of the mind that if you can't afford it now, either save, or do without
I see interest free (or very low interest rate over short timeframe) as pretty much same as saving. The clear benefit is that you have it now rather than in 12 months and all is has cost is a few quid in interest.
Why do without stuff that you can afford (if you can afford the monthly amount you can afford it)
Nope. Hard cash.
Credit is for things like houses.
No, I was brought up to see that if I couldn't afford it then I needed to save up for it. But back then there wasn't the criminally easily available credit available: "Earning £400/wk and have payments of £500/wk? No problem sir, we are happy to give you more debt, sorry credit"
These days I'm fortunate that I can afford pretty much what I want. Unfortunately for the bike industry I don't want much as I've got a perfectly good bike thank you kindly.
Bought one bike off the shelf on credit, paid it off in 18 months. Was an enduro rig and a full sus.
Then my most recent bike i bought in bits and pieces with actual cash i had in my account. Took about 6 months and it was a lot cheaper than the off the shelf, but it was a hardtail and made up of some 2nd hand parts (forks, crankset).
Kinda - last bike I bought was on CTW scheme.
One before that was from Canyon, so I put it on a credit card, but paid it off at the end of the month.
Bit of everything, bought the last one on a low rate card, sold the bike I replaced it with a paid that off the balance - paying the rest in the usual manner. The previous 2 were frames and bits bought for cash, the one before was a 0% finance deal, the one before that was so long ago I can only remember it in black and white.
How and why you buy something it entirely up to you, although some people feel they need to save the rest of us from the errors of our ways, it's snobbery really.
There’s only one ‘rule’ I have for myself, if you’re going to buy something on finance, it should at least be with you as long as you’re paying for it. I wouldn’t let one sit on a CC for years after I’ve moved on, that would be a bit silly.
Yes, I have done in the past and will do again.
It doesn't mean I can't afford it. I have an offset mortgage and I have a large 'positive' balance in it; any left overs each month and also a monthly DD go into it, to reduce the capital I'm paying interest on. I could withdraw some of that and buy outright, but then i pay interest on it till it's rebuilt. Or, I could get someone else to lend me the same amount, pay it back over a year or two, save the interest and keep liquidity 'just in case'. The leftovers each month are a bit less as a result so i do lose a bit of interest in that way, but the numbers and benefits are still on my side.
I wouldn't use it as a means to buy things i can't afford.
(I also just bought a sex-trampoline on the same terms, although so far it's only being used as a bed 🙁 )
Key thing is affordability, which is separate to credit.
If someone is willing to lend me money with no interest to buy something, then I'll take it, providing I can afford to repay them the money according to their terms.
With bikes it makes sense for me. I'll usually buy a rolling chassis on 0% credit for £2.5-3k, stump up a third or half of that as deposit and pay the rest over two years - so about £70 a month or something usually. I buy the other bits outright and build it myself. Two years later, sell the bike (usually for around £1k or a bit more), use as deposit for new rolling chassis. This can also be a good way of avoiding large maintenance costs. Let the next person worry about that!
Key thing is affordability, which is separate to credit.
If someone is willing to lend me money with no interest to buy something, then I'll take it, providing I can afford to repay them the money according to their terms.
With bikes it makes sense for me. I'll usually buy a rolling chassis on 0% credit for £2.5-3k, stump up a third or half of that as deposit and pay the rest over two years - so about £70 a month or something usually. I buy the other bits outright and build it myself. Two years later, sell the bike (usually for around £1k or a bit more), use as deposit for new rolling chassis. This can also be a good way of avoiding large maintenance costs. Let the next person worry about that!
Seems quite evenly split atm, interesting that the "evil credit" thing is still quite popular. I'd be especially intrigued to hear the views of any folk who bought some 5 or 7 grand wundersled.
I don't think credit is "evil" just its inappropriate use. Gaming the system in the way that @ehrob and others mention is fine though I'd still ensure I had the funds somewhere to cover the payments should I get made redundant or whatever.
Maybe it's a generational thing both in the acceptance of credit and the desire to use it for what are very discretionary products. I don't think anyone has said a mortgage or a loan for a car is bad or evil.
Almost all of my fun is on credit, leaves ready cash in the pot for emergencies, and helps with your credit score.
My budget for messing about is only £60 a month, so saving for anything takes ages and I just fritter it away, credit is like begging for forgiveness rather than asking for permission. Just works better for me.
"Key thing is affordability, which is separate to credit."
If you don't have the cash to pay for something, you can't afford it, without someone lending you money. Which is fine, if you suddenly need a new boiler, or your bike gets nicked and you need it to get to work, but for things that aren't essential? Just stupid, in my opinion. Why not just save up until you can afford something, then buy it? That way, you have no debt, no stress, and no interest payments.
Why not just save up until you can afford something, then buy it?
What if you can afford it, what if you have the money for it and don't want/choose to spend it.
Byuing my Parkwood, the interest is £70 over the term, hell, i spend that in Costa some months LOL, let alone over 2 years payments.
Sometimes it's nicer to have the money coming out in dribs and drabs and keep the chunk in the bank just because.
Stress ? Why is there stress from money coming out ? I don't get stressed about buying a loaf, nor a jersey... why would it stress someone to have money coming out each month ? It comes out for Broadband, Council Tax, etc etc.... what's the difference ?
Credit is not bad. Bad credit is bad.
I've no objection to using credit if and when it suits. My last bike was bought second hand, the three before all new and a mix of cash and credit.
Most things I buy second hand. Things like bars, stems, etc. Are things that I constantly change trying to find the sweet spot. I'd be throwing money away if I bought new.
No. I haven't bought a bike for years anyway. More an ever shifting accumulation of old/2nd hand bits that make their way into being bikes. Occasionally something new and shiny makes it in too, but always paid for with money I have, not credit.
No. I do use cycle scheme every year for a splurge on kit as it's a good deal
I don't see any issue with buying a bike using credit - I'm doing this at the moment - 15% discount on RRP and 0% finance. I have the amount to buy outright saved, but I'd prefer to have that cash in my bank. If I have a problem at home (a repair of some sort) that will cost then I find this is normally best served with actual money.
Stress ? Why is there stress from money coming out ? I don't get stressed about buying a loaf, nor a jersey... why would it stress someone to have money coming out each month ? It comes out for Broadband, Council Tax, etc etc.... what's the difference ?
This
Q - is there a catch with a 0% payment plan?
It's like the Credit Crunch never happened... 🙄
"Byuing my Parkwood, the interest is £70 over the term, hell, i spend that in Costa some months LOL, let alone over 2 years payments."
Or, you could simply save the money, and give that £70 to a charity or other worthy cause, which, if everyone did so, would make society a better place. All you're actually doing, is making some very rich people, even richer. The same people who won't give a **** if you fall on hard times, and can't afford to pay your debts. They'll happily take your money and watch you go without basic necessities. Why give your money to such people?
"Sometimes it's nicer to have the money coming out in dribs and drabs and keep the chunk in the bank just because."
Just because what?
No I haven't, but I would consider it.
If I can't get what i'm after through a friend who owns a shop, and I can't get a discount on the item but I could get 0% I would do it & leave the money in the bank/ISA/wherever earning interest.
I used to be quite bad a buying stuff on credit (in my 20's) but since buying a house and having a wife who is great with money i have come to enjoy the delayed gratification of having a bike fund and saving into it each month, to get to the point where I can splurge!
The only issue I now have is I am getting to the point of not wanting to spend the money at all on bikes, because it is a fair chunk of cash in one go, and I like the security blanket of the savings! Eg there is a really nice SS on the classifieds, that I reckon would fit, and I have the money in savings to buy it..........but I have never ridden a SS rigid before and am not sure I am not just impulse buying and I would come to regret it later! Even my wife has given me the ok.....I am just fully procrastinating!
I think I may well be sticking with my 26" wheeled Five for a while!
Yep more than happy buying a bike on credit (so long as zero percent), because it normally work out about £50 quid a month and not only can I afford it, it stops me frittering the money on coffee at work (which I used to spend about £2.50 a day one and kicked the habit in order to self justify a bike).
Would never buy a car on credit or hire-purchase though as too much money per month and too much risk (I can fix bikes and don't care about scratches etc.
"Q - is there a catch with a 0% payment plan?"
Such schemes work on the premise that although most people will probably pay within the agreed time limit, there will always be a few who don't, who then end up having to pay steeply inflated interest terms, which help fund the interest fee schemes in the first place. Banks aren't lending people money to be nice, it's a business. The bank will gamble on the assumption that if 99% of folk are repaying properly, the 1% who don't, will generate the profit needed to make the scheme worthwhile. What caused the Credit Crunch, was far too much easy credit, and increasing numbers of people defaulting on their agreements, yet there wasn't actually any money anyway, as it never existed. Which ****ed things up for everyone.
Or, you could simply save the money, and give that £70 to a charity or other worthy cause, which, if everyone did so, would make society a better place. All you're actually doing, is making some very rich people, even richer. The same people who won't give a **** if you fall on hard times, and can't afford to pay your debts. They'll happily take your money and watch you go without basic necessities. Why give your money to such people?
I don't want to give it to charity
I did however give my Spearfish to my mate on an interest free payment scheme with no specific start or end point.... that's £800, surely giving your mate something is better than a random charity ?
Just because what?
Just because i may need it for something else.
I'm giving my money to someone providing a service... The same way i give it to BT, same as i give it to Thames Water or my mortgage company.
On-one have given me a bike... they've given me it and i've not paid them... Over the course of the next 2 years i'm paying them £70 for letting me do that... Bargain... i'm more than happy.
I've just bought my Whyte T130SX for cash.... Does this make me a better or worse person now ?
I have. Transferred it from a > 0% credit card to a a new 0% credit card.
I could have bought it with savings, and I'd never buy anything on a credit card, even at 0% if I didn't have enough money somewhere to cover it, if the need arose to pay it all off in one chunk.
It seems cheaper paying for something at e.g. £100 a month, than £2000 all at once.
"Just because i may need it for something else."
So, you don't actually have sufficient funds to protect from unforeseen events/circumstances. IE, you can't actually afford the bike AND have a sufficient security net if anything goes wrong. Great financial acumen. 😕
"surely giving your mate something is better than a random charity ?"
But you're not actually [i]giving[/i] him anything.
"I don't want to give it to charity"
Why not?
I will if it is 0%, prefer not to pay any interest if I can help it.
