Financing a new (motor) bike

I almost pulled the trigger on a new (to me) bike yesterday. I would need to find about £3800 after my trade in. I’ve just been idly thinking about the best way to finance it if I weaken later today and phone the bike shop. 1) I could scrape together the cash 2)Get a bank loan at about 4.5% 3)Use a 0% credit card (assuming I could get enough credit limit as a new customer or, 4) Use my existing credit card and pay the balance off with a 0% balance transfer credit cars (3% ish fee, again assuming a high enough credit limit would be forthcoming). I’d look to pay any finance off in 2 years, maybe 3.

Any thoughts from the STW finance experts?

Not many places will want to do a CC transaction that large – unlike a debit card one, they get charged a percentage fee on it.

Good point, hadn’t thought of that.

If you haven’t the cash, you can’t afford it.

And who buys a motorcycle in October? If you aren’t going to be using it everyday from now, wait until early Spring.

If it helps, I just got a Tesco 0% credit card (23 months at 0%) – it took ten minutes on the interweb and it was all done – £6300 of free credit for almost two years – will max it out in the next four weeks (we are doing a kitchen refit so buying loads for it) and have set up a DD to ensure it is paid off before the charges start being applied.

Not many places will want to do a CC transaction that large

Guess it won’t harm to ask…

If you haven’t the cash, you can’t afford it.

Do you have a mortgage?

What bike are you buying ?

Id start saving till next spring – the weather will be better and you can look harder for a cheaper bike.

The bike will cost more in the Spring.

Rachel

I bought a new bike on a CC without any charge. Ask the garage if they charge. Even if they do charge it might still work out cheaper than a personal loan if it’s a 0% on new purchases.

It might be worth considering selling your bike privately (you might get more for it) and negotiating a discount on the new bike without a trade-in.

“And who buys a motorcycle in October?”

sensible sam i guess – not many folk buying = dealers wanting rid of stock before winter = deals to be made.

But if you want to buy a bike when everyone else is trying to buy a bike and stocks get low and not much room for deals to be made due to demand – crack on.

If you haven’t the cash, you can’t afford it

Bollocks. Credit doesn’t automatically = bad. If someone can afford to save each month then they can likely afford credit payments as well, the difference being they get the goods straight away.
Yes as a society we are far too dependent on credit and many people have too much on credit so they can’t afford it but it comes down to the individual’s circumstances as to whether it’s right to use credit to purchase something or not. Sure there’s added risk your circumstances may change and you can’t keep up with finance payments but again that’s for the individual to assess (and what PPI is for if you really want to cover your bases).

I know it’s the ‘wrong’ time of year, but it is a good price.

It’s a Tiger 800 XCX, 4 months old, 1200 miles, £8,600. New price £10,200. They won’t come down at all on that.
I do have an odd ride through the winter, if there’s no salt on t’roads.
I’ll probably wait until Spring and try to sell mine privately, although they offered me a fair price and there are quite a few bits I can take off and sell on Ebay.

Bollocks. Credit doesn’t automatically = bad. If someone can afford to save each month then they can likely afford credit payments as well, the difference being they get the goods straight away.
Yes as a society we are far too dependent on credit and many people have too much on credit so they can’t afford it but it comes down to the individual’s circumstances as to whether it’s right to use credit to purchase something or not. Sure there’s added risk your circumstances may change and you can’t keep up with finance payments but again that’s for the individual to assess (and what PPI is for if you really want to cover your bases).

I’d agree for items such as houses, (basic) cars, suits (for work) etc; ie need. But if someone is buying something they just want, and they currently have the same item already, then no, they can’t afford it.

It’s a Tiger 800 XCX, 4 months old, 1200 miles, £8,600. New price £10,200. They won’t come down at all on that.

I bought one Triumph in June and another in January (different years) – the one I bought in January was a cracking deal 🙂

I said that I can afford it, but I was looking for comments regarding the relative merits of various types of credit as opposed to paying cash.

Ex Motor Cycle Salesman here. Now is a great time to buy as winter is just around the corner but do your homework and have a good look at what else is out there. An XCX at that price seems a good deal to me.
I’d ask if they will take a credit card even if I had the cash. Why give them £8600 of your money that can earn interest at 2.4% 2 yr fix if you can do it on a 0% card?

Defo want a Tiger? I think BMW have a 0% offer on the F800GS Adventure at the moment

Whats your old bike, how much and where are you?

(Oh and in answer to your question, Credit Card if they will take a CC payment, but as others have said set up DD to get it paid off before the 0% runs out.

And I might be persuaded to upgrade my F800GS Adventure T before too long…

Rachel

I’ve got a 2012 Bonneville T100. I would probably return it to stock to sell it, it’s got a SS full system, Burton seat, different bars, mirrors, a flyscreen etc etc. I’m in Cumbria.

Don’t want a BMW. I’ve had a Tiger 800 before and regret selling it. The new XCX has some nice toys – traction control, cruise control, engine modes, switchable ABS etc etc. Oh, and adjustable White Power suspension. Yum.

You can get a bank loan at 3.5% if you look.
send me an email if you want more info.

Quick update – the 2015 Tiger was sold before I could make my mind up. I’ve just ordered a brand new 800XCX in an excellent deal from my local (Carlisle) dealer. it’s coming next week. I’m going to finance the difference by paying with my credit card and then taking out a 0% balance transfer card. The cost will be 1% or thereabouts.
I’m also going to invest in a heated inner jacket …. otherwise it will take me all winter to run it in!

Wow, three posts for the moral high ground cavalry to arrive must be a record.

Very nice ride and don’t go nuts.

Not many places will want to do a CC transaction that large

Utter tripe. Between my wife and I we’ve bought maybe 6 or more motorbikes on CCs no problem at all. Buy on one with cash back or some other bonus like Tesco Clubcard points then when the offer runs out, transfer it to another 0% card. I did this with my current Honda, if I recall correctly I paid about £30 in fees to transfer and got 24 months interest free. I can’t imagine why you’d even entertain a loan.
I just rock up and hand the card over on the arranged pick up day. Bush bash bosh!h

EDIT.
Did the same with my iMac too. I had the money in the bank but why spend it when some fool will give you 18 months interest free AND insure it for three months into the bargain!