Finance

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16feb08, Nov 5, 2:27pm
I will be needing to borrow about 6 or 7 grand for a $8500 bike. Any recommendations for a finance company to try! Westpac wants 17.95%, which offends my wallet too much
countrypete, Nov 5, 2:28pm
Dealer finance is usually cheaper than that.
smac, Nov 5, 2:46pm
Mortgage even cheaper.
16feb08, Nov 5, 2:47pm
It is. Dealer quoted 14.99%, but I still thought that was a bit high. And I have heard that finance companies charge interest up front so it still costs more than a reducing loan from a bank. I dont really know, but what I do know is last time I got finance for a bike it was at 12% (this one is for my son)
mm12345, Nov 5, 2:50pm
If you're going to be at the mercy of usurers charging interest rates like that, then rethink the need for an $8500 bike.
bellky, Nov 5, 2:51pm
^ Exactly, buy one for 2500$ and save your pennies ;)
gjmman, Nov 5, 3:02pm
Short term the cheapest finance is to use credit card balance transfers. but you have to be disciplined have the credit limits and do it the right way.
freddie2711, Nov 5, 3:05pm
In some instances the dealers have the ability to set lower rates with the finance companies, this depends on your history and the relationship the vendor has with the finance company. Simplest thing is ask for a lower rate.
kazbanz, Nov 5, 3:10pm
An ahh ken remember wen milk was 4c a bottle and you got 3 wine gums for 1c.
-Seriously -around the 14% mark is what you will pay. UNLESS you try GE finance.
countrypete, Nov 5, 3:11pm
Dealers have a base rate they pay the finance company, and the retail rate they charge the customer is their call (except for one company).Therefore it's negotiable, but 14.99% is not a bad rate.It all comes down to risk.
countrypete, Nov 5, 3:12pm
I've had dealings with GE finance.They are very tough.
luxy, Nov 5, 3:56pm
why dont you work out how much the bike will cost you by the time you make the final payment
ryanm2, Nov 5, 4:02pm
a westpac low interest credit card is only 11.95%. Or do what another poster said, get the credit transfer deals at 4.99%. Thats what I did for our alu windows.
budgel, Nov 5, 4:20pm
Borrowing money for a depreciating asset is a mugs game.
gunhand, Nov 5, 4:51pm
If you want to borrow money then go for it. There are few broken records around saying don't but if you can afford it and yourself and family do not suffer then go for it.
Try MTF (motor trade finance) there pretty good.
And Im sure 95% of dealers sales are financed.
Imagine how many places would prob go out of business if no one ever financed anything.
Its your money and oddly enough you can pretty much do what you want with it.
You could be dead next week but never had anything nice as your waiting to pay cash for it.
I do however have a problem with those who over finance others knowing full well they will fail down the track.I mean 10k cars for $1 deposit!
Finance done properly and sensably should'nt be an issue.
Oh and what sort of bike! Just interested.
smac, Nov 5, 5:09pm
So is repeating catchy sayings you heard somewhere, without understanding the faces.
msigg, Nov 5, 5:40pm
go to the bank and get a personal loan
mugenb20b, Nov 5, 5:46pm
OK, seriously.WTF!
gunhand, Nov 5, 5:57pm
Well it seems he wants to put $1500 down on a $8500 bike and pay back about $7000 or so. should cost around $60 a week give or take for 3 years.
The problem is!His money his life, Im sure he works at job to pay for it.
16feb08, Nov 6, 12:15am
Cheers gunhand, seems you understand I didn't ask for a lecture on economics, just some advice on interest rates. Seems like the low interest balance transfer might be the way to go. The bike is an 08 GSX650F, I think it's on tm but he saw it in the shop. It will be his second bike - up from the 250 he's on now
16feb08, Nov 6, 12:20am
Agreed, it does seem like a lot of bike for the money. but I think I'd prefer it if he took a few smaller steps before he jumps up to the thou's ;)
bellky, Nov 6, 6:50am
Really. Which part of "Borrowing money for a depreciating asset is a mugs game" do you not agree with!
smac, Nov 6, 7:03am
All of it. Simply because it's the kind of statement that comes from somebody who thinks one piece of financial advice fits all. That's just plain bollocks. Not to mention dangerous if somebody follows it.

Let's say you need a vehicle. To get to work. To get the kids to school. Whatever.

After all the bills are paid you can put aside $50 a week toward the vehicle. So in two years you'll get yourself into a nice, hopefully reliable, $5k vehicle.In the meantime you beg, walk, borrow, whatever. Doesn't seem to matter to the kind of people who dole out that advice.

Alternatively you could borrow the money at 18% (as a worst case scenario). You'll pay $1150 in interest, and take 2 1/2 years roughly. But you have a car now, when you need it.

This is a a very rough EXAMPLE. It may or may not be relevant to the OP. That's the point.
nukhelenc, Nov 6, 7:35am
Garbage
Reported
Voted
Get a life
U keep stalking me u sad sack
16feb08, Nov 6, 7:45am
It was 4 years ago. Milk was $3.20 a bottle then.

14% is ok, all I was saying originally was I thought 18% was a bit steep. And as for GE hahaha last time I rung them it was 28% what a great deal the Indian on the other end of the line said. (At least I think that's what he said!)