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Not a question about the cost of new bikes, just about credit to buy one!
I have a bike fund I save into and once I have enough for a bike (and after a good couple of months if procrastination) I buy it, talking to a friend they said if you can get 0% finance it makes more sense to use credit as you get the bike sooner and you keep the money in your own account making interest!
I had never thought of it like that, does it make sense? If so do many people do that?
My method is somewhat limiting that it is unlikely I will ever get a 3k bike because by the time I had saved that amount they would no longer be in production, but I feel safer having my little savings account and not owing a finance company the money!
I usually do what you do and save up although my latest one I bought on 0% for the reason your mate mentioned. I still have the money in my account. Dead cautious financially, me.
Usually I buy/sell 2ndhand. If new it's not expensive; my new Neta V4 frame was 1,000euros. My mate spent 5k on a SC but I can understand his reasoning- it's probably his last MTB bike so why not?
Anyone who spends thousands on credit on something that scars and is obsolete very quickly needs to readjust their priorities. Spend your own money fine, but on credit/not your money? Road bikes don't apply as they can be kept pristine and last many many years.
By getting run over and payed out for my old bike. Other than that it's saving or selling old bits to buy new bits. I won't have credit for anything except the house and car and especially a not bike. If I can't afford it I don't buy it. Nothing against credit it's just not for me.
One bike was credit (30th birthday prezzie to myself) and the other was cash. It was credit or no bike for the first, not normally my choice of a way to get a bike but it was a once-only thing after a bad few years. The discount the bike shop gave me on the second bike more than outweighed any gains for keeping the cash in savings. Try to avoid credit now anyway as I got trapped in the never-never trap in my 20's, cash if I can now or at most 50% credit.
My latest is on 0% finance.
Asked them if there was a discount for paying cash, as there wasn't I financed it!
Bought all of them outright, but they're not exactly flash. Mostly second hand.
Thinking about it, I've only ever bought 1 complete bike brand new, my £300 road bike. My main bike was, technically, a birthday present 13 years ago and I've been swapping parts/frames ever since. The only original componet left is a headset spacer.
Latest purchase is going to be Cycle to Work though, because I can do that now.
I think if I were to buy one one credit, I'd like to have the money sat around anyway....which I suppose defeats the point.
I buy components. New frame, transfer old parts over, gradually replace worn parts. Repeat all over again, but across a period where I'd probably save the amount of money up to buy a bike outright. I seek out bargains too. Research the type of component I want, then seek out the cheapest viable option.
Cash
Cash
Cash (built from parts)
0% finance (cheapish roadie so only over 12 months)
C2W
On the last five.
Next one will probably be 0% credit card
Bike to work.
Overtime
Overtly generous people
My last 2 have been 0 percent. But i did have the money for both in the bank. As your mate says you're earning interest on that money, so the way I sell it to myself is that I'm actually earning money by buying a bike
Salary.
Spend wisely.
Oh, and the tithes I collect from the serfs helps, obviously.
I buy pretty much all my expensive purchases on credit. It's just a part of life for a lot of people and I don't see a problem if you are sensible.
Heck I have a large student loan hanging about and so getting a bit more seems ok.
Over quite a few years I've bought a bike or two, parts like forks, slr camera, and power tools for my work. Pay it off, no issue.
I've had my original Nukeproof mega since it came out (bought it second hand) and have just in the last two weeks bought a complete Vitus bike. The spec and money I got off were too good to pass up.
I'll enjoy it and it'll last me too.
0% on the frame over 24m with a £200 deposit. Shop chucked in a Hope bottom headset cup and Hope axle and adaptors for my ProII hub.
Rest of the bits swapped over from previous bike.
Could have got a Bird Aeris build for the price of the Spitfire frame, but they weren't out at the time and don't think they did 0%. Hey-ho.
Bought with a credit card, American Express where possible to claim more Avios miles, then paid off with savings from overtime.
Thankfully the firm I work for are struggling somewhat so are paying fairly healthy amounts of overtime to staff and have been for the past 18 months or so so it's fairly easy to get extra shifts to save up for bikes and other toys 😀
20% cash, the rest on the CC on the last one - sold my old bike off minus a few bits I wanted to swap and paid it the cash to the CC people - I still owe a grand, but if I needed to get rid in a hurry I should let struggle to get £1500 or more for it, it'll be clear by Xmas.
The last couple I paid cash for and swapped and upgraded bits along the way, more of a constant slow pace of change rather than new bikes per-se, but 650b killed that. I looked at 650b/26 frames like Rune's to bridge the gap, but they weren't what I wanted.
One piece at a time, triggers broom stylee 😛
Earn minimum wage and have bought £3.5k worth of bikes in the last year.
Reckless spending and staff discount are my tactics
Yeah, I run a trigger's broom approach too. Just bits, some new, a lot 2nd hand and occasionally a frame.
My collection has been 'grown'. I've brought as and when I've had the cash, started with basic builds and improved them over time, to be fair I have what I consider to be 3 serious bikes now all fairly high spec (without being silly I.e not XTR). A mix of 'nearly new' and brand new.
Cash or CC. You can get at least 10% off listed price with most shops of they offer 0% over X number of years.
I'm a save and then spend type... Probably for the daft reason of feeling like I am working towards something and the wait makes everything sweeter. I also don't think I've ever spent enough on a bike/ frame for finance to even be offered- it more about constant tinkering, incremental changes, triggers brooming and hunting out value parts rather than spaffing a ton of cash all at once
What I'd like really like to know though is where you on finance lot are getting a decent enough interest rate nowadays for this to be a justifiable reason to go that route 🙂
Savings. I generally save for things like holidays, bikes and fun stuff so have a pot of cash available each year to spend. Just choose what to spend it on.
I will often put them on a card to get points/rewards etc. but pay off before interest is due. The only risk with 0% is if your circumstances change. At least with a pot of cash you don't owe anybody anything.
My last bike was my roadie at £2k but my CX/Mtb were much less and my commuter built out of spare parts and bargain bin stuff. I tend to keep them going for a good number of years as well - wear them out and break them.
Sale of previous bike and car (return to bangernomics) funded the last bike. Money was there, so paid for straight off rather than credit, as well as the build coming from a few different local shops.
I'm usually save and spend type, but with the price of bikes these days my next one might be 0% finance?
I'd rather buy second hand but I've never had a new bike before.
cheap components form chainreaction and used frames on pinkbike.
Normally s/h or frame only so cash. But my last mtb is a new out 2016 model so nothing s/h or big discounts. I still got 10% of and 36 mnths at 0%.
DP
So a mixed bag then 🙂
I have a mortgage and paying off a car but for some reason I really fear the idea of any other credit! I must be old before my time 🙂
Cycle to work scheme - I've bought 4 over the last 5 years.
I enjoy the configuring and building, plus I'm a tightwad, and there's two other bike racers in my house, but I like my bikes light.
Most of my bikes get raced, and I'll only buy what I can afford to replace if it gets wrecked.
Current XC race bike is currently a cheap frame off the classifieds, new fork, new Stans wheels (heavy discounted as they're SS from 2013), s/h cranks, s/h brakes, cheap finishing kit, carbon seatpin from an old road frame (short-term swap after I gave my mate mine minutes before a race) just left it on, s/h saddle, drivechain from the cheap drawer at the LBS.
Wouldn't buy on credit - the idea of it being destroyed before I'd paid for it puts me off too much.
Save then spend. Every month I keep a fun fund topped up, then normally around this time each year I use it for something, bikes, guitars etc.
Actually pay for everything on CC but cleared all the time, only for points that pays for flights through the year never pay interest.
I don't finance anything I don't need, the purchase joy dissipates quicker than a finance agreement.
If I can't afford it, I don't buy it. If I can't afford it, and don't need it, I certainly won't buy it
Bought my road bike cash, but paid for the new, poshest bike I've ever had, mtb on CC. I could have taken the money out of my savings, but why bother if I can pay it off as quickly (or as slowly!) as I want to on a 0% credit card.
That said a few months into things I did start to get antsy for no real reason, and threw most of my spare cash at it to pay it off pretty quick. No reason other than a dislike of debt (again for some reason mortgages don't count). I'm also saving for the next one into a 'potential fun toys' fund so as to have the cash up front, whatever and whenever it may be. Not for a while yet in any case.
Cold hard cash every time for me. I have thought about and weighed up the pros and cons. But I can't get out of my head that I will be uncontrollably poorer for the next however many years. Buying a bike or whatever is fine...it's the slippery slope. Currently don't have any debts at all (other than student loan). Everything gets paid for in cash, cars, bikes, phones, etc. Prefer it that way.
Always cash
Sometimes as a triggers broom
Sometimes 2nd hand
Occasionally as a F*** this I want something new, shiny and that works.
I want to know where all these people are getting these amazing deals and earning significant amounts of interest on their savings. My cash ISA gives me about 1.1% IIRC.
You're all delusional, and I'm astounded by how many people get themselves into debt so they can buy shinier toys. Not because I have some sort of moral high ground, but from reading other forums, most people are a lot more debt-averse than people on here seem to be. And also if you're paying full sticker price for bikes (even with 0%) then you're getting bent over.
I don't care what other people do, of course, I'm just surprised.
...and the bike industry reaps the £££. Yes bikeshops can earn peanuts and go under but how many sell tubes, parts and full £££ bikes and make shed loads on poor staff minimum wages?
How much guff do owners feed their shop managers about profits etc from t/o?
Always cash to get a 10-30% discount, but about to buy an online only bike next, so undecided
I only ever seem to buy frames rather than complete bikes and then move everything across. Until I realise that some of the bits don't fit and have to buy new bits 🙁 . For the 'smallish' stuff i'll buy cash. For big purchases like frames or forks if there's a 0% deal available i'll do that but always have the cash as a back up. If no 0%, I will buy cash. This of course is on the proviso that I can spare the cash. I stopped using cc years ago after being a total dobber with them.
Apart from some will money and one ill-advised HP on what turned out to be a BSO hybrid ( Raleigh had the cheek to put a headbadge on it...) I've sold used/bought used on an in-out basis for all of married life 8) , usually adding a bit of cash and trading up along the way. However this year have sold two used bikes from the diminished stable to pay a lump sum/deposit on one used (demo) bike. That only covers half the purchase price so have to borrow the rest. Not a very expensive purchase compared to most - yet more than I've spent on any bike for the last 15 years. It makes sense to sell the stuff one hardly uses in order to buy something that will see a lot of use. Making space in the process...
I build bikes myself and replace parts or upgrade as I go along. The amounts I spend in one go are fairly modest and I fund it from short term savings.
I cycle almost every day and will happily open my wallet to get what I want, but thankfully my tastes have settled at the Hope/XT/105/Cotic/Surly (sensible and not too flash) end of the market.
Done the saved route and used the LBS which offered 0% finance. Last bike (Whyte) was finance cos it was the last one of the right size and I loved the demo! Having said that lots of LBS use the bike finance chaps and it works well. Downside is the temptation of the SC Hightower........
I pay cash. Finance is fine in principle, but (a) I don't spend money I don't have and (b) the return on the money if I keep it at bank compared to the hassle if I miss a payment on the borrowing for some reason just isn't worth it.
🙂
Last one was credit, kind of a good solution at the time. Took a demo bike out, managed to damage it, had a chat with the LBS (good mate) and we worked out a price as there were no more of that bike left in the country (pointless demo for him to keep running) damage was minor but would impact resale. We did a price, cash flow was tight so we put it through his magic finance calculator and both left happy.
Triggers broom is what I've always done too until now, when I hit the wheel size issue.
Got 3 bikes atm. Hardtail, 160mm and fatty, all 26".
I needed frame, forks and wheels minimum so quite a lot of cash.
Usually through blood sweat and tears, some degrading grovelling, and ignoring threats of divorce.
HTH
0% credit card to buy. Then pay it off from savings, bonus, or over a few months with 'spare' wages.
2nd hand
C2W
Sold old bikes, saved for new one...
Last new bike was from T***z who were offering a £3.5k bike for £2k at 0% finance over 3 years. Also got 5% cash back through reward scheme (like quidco) At the time I had the cash, but 0% means I'm paying £60ish a month and the rest is in crappy savings. I'm not usually one for finance but at 0% it's a no brainier. It also means I can't look at new bikes till this one is paid off!
A mixture.
I mostly build my bikes as off the shelf never ever give me the spec I'm looking for.
I buy parts 2nd hand and new in a sales or full retail.
The last off the shelf bike I purchased as a Cervelo s3. I wanted one but didn't want to buy at full retail so went looking for a deal.
In the end I managed to get a new one from Spain when the euro rate was poor. The dealer had lost his dealer rights so I paid 1700 delivered. Just over half price with full guarantee.
I'm lucky to have money in the bank, but if I can get a deal at 0% interest and a good price I see no reason to spend my money.
Cash. If I can't afford it I won't buy it until I can. Never know what's around the corner plus the thought of taking out credit to buy a luxury is madness in my eyes. As for "leave my money to earn interest"...you what?! The rates are cr*ap right now!
[i]you keep the money in your own account making interest! [/i]
If you get £3k on an interest free and keep £3k in the bank, then use this to pay off the £3k over 2 years you'll probably make about £10 in interest...
For me, buy on a credit card, pay the statement when it arrives. That way it costs me no interest but I still get the cc protection.
Despite buying everything up until now on C2W, I think I might build my next bike, as I've been hankering after a Bowman Pilgrims frame for a while..
Last one was 0% finance, before that saving up. The finance was the difference between getting it at the start of the summer and the start of winter. I did think long and hard about it though!
Another Triggers Broom buyer here..
Occasional new frame, but mostly 2nd hand bits and online shops for discounted parts.
Frame on finance. 18 month normally as I tend to keep the bike 2 years, save for the 6 months for the deposit for the next one.
Parts where possible are from existing bike or new in sales/deals.
My worry is next bike will be 650b which means "new" wheelset and forks.
I have one bike from the bike to work scheme, 1 mtb bought new and a second-hand one. I don't have a credit card or loans, I pay cash because I choose to have a small house and inexpensive car, which leaves me with enough cash to spend on bikes and kit.
My cash ISA gives me about 1.1% IIRC.
well that's still > 0% 😉
But also, if you shop around there are better deals, current accounts paying 3% etc, not to mention anything else (higher risk) you might be investing your money in.
Having said all that I don't use finance, I'm a save and spend guy, the only finance I have is my mortgage, I just [i]hate [/i]owing money and am terrified of having to service a debt after I've either destroyed the product or end up in a situation where I can't afford to pay it in future.
Saving up. I'll buy new parts but both of my frames are second hand- Trigger's brooms here too. If I can't afford it I don't buy it.
Where are these bike shops offering cash discounts? I've never had anyone offer money off for cash when I've asked.
C2W is hard to beat even if you buy on an interest bearing credit card! Not that I'd ever do that.
Jamis Gravel Bike £700- Corporate Health Account
Chromag circa £2100- Insurance Money
Surly Krampus £2300ish- Mixture of Corporate Health Account, CRC Gift Voucher for Warranty, won the frame and a few spare parts.
Surly Karate Monkey £800ish - Corporate Health Account and a few spare parts.
Previous few bikes had been a Trigger's broom sort of thing.
I save the money, pay by credit card then promptly pay that off and claim the air miles.
If its really expensive, pay half cash and the other by credit card, my LBS understands that sometimes a gentleman may need to keep some secrets from the wife!
Cashmoney.
Or sometimes card (but from savings).
Not worth the hassle of credit for my meagre needs.
"If you get £3k on an interest free and keep £3k in the bank, then use this to pay off the £3k over 2 years you'll probably make about £10 in interest..."
Interested in the maths on that .
excel spreadsheet fag packet maths says it would be >230 quid over 3 years at 5% (which i am getting in an account on 3k currently) - even at 1% its 45 quid.
for the sake of a bit of discipline - setting up at direct debit thats free money over spending your own money. I'm a big fan of stoozing BUT that only works if its a carefully thought out planned purchase otherwise your just spending money for the sake of spending.
FWIW for bikes i spend on an interest bearing credit card and pay off at the end of the month before interest applied - but i stooze on general spending and put the end of month statement value into savings until the end of 0% - before paying off , canceling the card and starting again.
All of this goes out the window if you have existing interest bearing debt as your interest is likely more than that of the money your earning.
I did the same calc as Trail Rat and came out with different numbers 🙂 But pretty similar. I have a Santander account paying 3%, and according to my fag packet that would make me £131.25 "profit" over the three years on the £3k 0% example. £130 is £130, but over three years it's an average of <£4 per month and that's not going to change my lifestyle very much. I'd feel happier with the peace of mind that it's all paid for and out of the way.
Having said that, the last time I bought a complete brand new bike was 1998, and that was only because it was heavily discounted at the end of the season. Everything since is s/h for whole bikes, a mix of new & s/h for parts, and a few nice freebies from a relative who's in the bike trade 😉
Matched betting, latest bike will be paid for courtesy of Paddy Power, Ladbrokes, William Hill... etc.
Next one might not be mind they have pretty much all banned me now 🙁
5% (which i am getting in an account on 3k currently)
More info definitely required here! 🙂
Money saving Expert dot com have a list of the best 0% credit cards, some offer you up to 24 months now (or more, i forget) - finance on any bike!
mine is a legacy with n ationwide but tsb doing 5% on 2k current and thats without searchin.
Drove a 5 hour round trip for my last one as the shop had the ones I wanted to see in stock and good length of 0% on offer. They ended up offering 10% off cash or full RRP on finance. So ended up paying cash. Not quite what I'd planned for but not a major disaster I guess.
Have done both ways and C2W in the past, usually look more at what else I'm paying out monthly then balance the risks against that.
my first mtb was given to me. my second was a used Marin i paid £600 for...but that was in 1996
first ever bike i bought from a shop was a gt palomar in 1999 after the previous one got stolen..cost me £175 brand new...i was skint after blowing all my money doing up the Marin
after that i've only ever bought the frames/components separately
fast forward more than 10 years and i bought my next complete bike 2 years ago...it was my hybrid bike for commuting to work on...bought through cyclescheme
of the about 26 bikes i've owned in the last 26 years only 3 have been complete bikes
i'm planning on getting a top end bike for my 40th next year...i doubt i'll be able to pull together £4-5k in cash so i'm saving up as much as i can for the deposit then the rest will have to be on finance
Mainly cash. I have 8 bikes. 6 of them were cash (technically credit card but paid off on the next statement due date so no interest charged), 1 was C2W and 1 was 0% finance (with the money in the bank to cover it).
Sold my motorbike, used the cash to have our bathroom redone, and bought a mountain bike with what was left. Kind of reverse midlife crisis!
I got hit by a taxi and broke my collarbone, Leigh Day did their thing, so I bought a 2nd hand T275c
I usually buy new and secondhand parts funded buy the sale of my own bits.
Although the last full bike purchase was on 12 months 0%.