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Discussion Starter · #1 ·
I haven't ridden since I was a kid. I'm hoping to get a bike real soon because of the nice weather. My lbs that sells Specialized and Giant has same as cash financing with a duration depending on credit rating. Unfortunately the one that sells Konas and Gary Fishers doesn't offer financing. I've never used any financing other than in store before. Are there banks that do the same as cash loans? I've only found ones that have interest from day one. Just wondering if I should keep looking or if they don't offer those types of promotions straight to consumers. Thanks.
 

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Buying the bike with a credit card is pretty much the same thing. I'd doubt that a bank would give you a traditional loan, as they would with a car. The collateral (used bicycle) is too sketchy. I'd be willing to guess that opening up a new credit card with an attractive introductory rate would be your best interest rate. Probably as good or better than what the lbs was offering.
 

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Discussion Starter · #4 ·
Boognish said:
Buying the bike with a credit card is pretty much the same thing. I'd doubt that a bank would give you a traditional loan, as they would with a car. The collateral (used bicycle) is too sketchy. I'd be willing to guess that opening up a new credit card with an attractive introductory rate would be your best interest rate. Probably as good or better than what the lbs was offering.
The lbs was offering financing starting at 90 days same as cash. I have a good credit rating so I might be able to pull for even longer than that. I like taking advantage of same as cash deals because I'm good at paying the balance off before the end.

RiDE said:
American General Financial Services

They handle the financing for Supergo... 12 month no payment no interest or something like that. I saw their ad in velonews as well... financing Litespeeds and Merlins.

If you can find a credit card that offers no interest for one year than that's pretty much the same thing. :)
I'll have to call them. I noticed that they have a local branch in my town. Thanks!

I've never heard of a credit card that has an option for no interest for a certain amount of time on purchases. I'll keep looking though. Thanks!
 

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The bank will give you a personal loan. You don't tell them what your going to spend it on. If you've never had a loan you are probably just getting your credit to start being built up. You get a number...ie...478 and you go to buy a Chevy S-10, to get good financing you need a credit of 560 so you wouldn't qualify. That is just and example but that is how they look at it. You can also put some of your own money in a reserve account at the bank you want to borrow from, that you can't touch until your loan is paid back. you want to borrow 1500 you need to put $750 in a reserve...

I doubt you'll find a credit card with no interest for a year...maybe 6 months. After that though you'll get hit hard on the interest.

Um...I always like to save my own money. I guess it takes a little longer but then there is nothing left to worry about but turning the cranks... ;)
 

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Discussion Starter · #6 ·
Yes but waiting means missing out on some great weather. That's not a sacrifice I'm willing to make in Oregon. I'm 24 and I've more than just started my credit. I've got some platinum credit cards and I've never had a problem getting approved before. I bought a Gibson Les Paul on a same as cash promotion a few years ago. I've never been late on a payment and I've never not paid off my balances before the end of the month. I realize they're hoping I'm late on the same as cash promotions because then they get to charge me interest from the first day until present.
 

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Financing a bike just seems like a bad idea

mtnrider said:
The bank will give you a personal loan. You don't tell them what your going to spend it on. If you've never had a loan you are probably just getting your credit to start being built up. You get a number...ie...478 and you go to buy a Chevy S-10, to get good financing you need a credit of 560 so you wouldn't qualify. That is just and example but that is how they look at it. You can also put some of your own money in a reserve account at the bank you want to borrow from, that you can't touch until your loan is paid back. you want to borrow 1500 you need to put $750 in a reserve...

I doubt you'll find a credit card with no interest for a year...maybe 6 months. After that though you'll get hit hard on the interest.

Um...I always like to save my own money. I guess it takes a little longer but then there is nothing left to worry about but turning the cranks... ;)
I know you weren't looking for this sort of feedback, so feel free to tell me to FO. But financing a mountainbike seems like a lousy idea. First off, as with everything, why buy more than you can afford? You can have a blast on a $300 hard tail. Second, it is a (rapidly) depreciating asset, so if you don't hit that 'same as cash' cutoff date and get hit with all the interest, you've made a fools investment. But it goes further than that. Not only does a bike lose like 30% of its value the first time you ride it, its a mountain bike. It will get scratched and dinged. But also, pieces will break off, and you'll have to pay to replace them. Parts and labor, unless you're going to finance a toolset too.

And you've got to buy a helmet. And water bottles. And chain lube. And tubes (or patches). And tire levers. And a pump. And chain lube. And brake pads. And tires. And these are only the necessities. There's also shorts, jerseys, gloves, shoes, powerbars, sports drinks, car racks...the list goes on and on.

This sports can get expensive. So it doesn't seem like a good idea to start off in the hole.
 

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It sounds like you know how to use credit to your advantage and wisely. The only question is if you are going to be paying off a the balance within 6 months, is it worth the $50 or so in potential savings that to buy a bike that may not be the one you want. For me, it wouldn't be.
 

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401k loan possibility

First, I totally agree with upndown. This is an expense not an investment. I know that you are only 24 so this may not work but if you have a 401k retirement plan you can loan yourself the money and pay yourself the interest. Since the bike is relatively inexpensive and the stock market sucks right now you wouldn't loose much if anything on a $2000.00 loan. The money will come right out of your paycheck and you can set the payment time for whatever duration you want (6,12,18 months).
 

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Discussion Starter · #10 ·
Hey thanks for the replies. I financed my guitar because I've owned lesser guitars before. They're good for a short period of time but then I notice their flaws and only think of upgrading. I wanted a solid guitar that would really last me. The Les Paul did this and it was also of good enough quality that it was worth upgrading a pickup. I didn't feel like I was wasting my money and should just buy a better guitar instead. For a bike I want a solid base to build upon. Something that will last me a good while and something I can grow with.

Financing has never been a problem before for me. I always have a backup plan if worst comes to worst. I realize they depreciate fast but I wanted to buy new to get the warranties because I hope to have the bike for a good while. I also wanted to kick start a relationship with my lbs. I realize it's not an investment in the sense you mean. Personal loans aren't required to be investments. It's just a way of altering cash flows. I turn my future cash flows into a lump sum today that better serves me. Plus I don't have to waste away my summer saving and missing out on some great weather.

CDMC what do you mean by is it worth a savings of $50?
 

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He means, buy the bike you want.

dissonance said:
CDMC what do you mean by is it worth a savings of $50?
He means, buy the bike you want. Don't buy from the shop with same as cash financing just because of that. He's saying pick out the bike that is best for you and buy it. If that shop doesn't have the 'same as cash' deal, just put it on a credit card. Because if you're paying it off in 6 months, the interst charges will be minimal - like $50. But that's $50 well spent, compared to settling for a bike that's not your first choice.
 

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Here is a reply I gave to someone with the same question?

mtbr member

Join Date: Jan 2004
Posts: 37 Don't do it.

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If you can not save up enough for the bike you want in a couple of months, you can not afford it. Realistically no one finances anything they can pay off in three months. If you do not have enough in the bank to purchase a bike, your net value is basically zero. This leaves you nothing to fall back on if any real needs emerge ie. auto repairs, time off from work, fire, etc. Save your credit for when you are prepared to purchase a house or to finance a new business. Do not risk ruining your credit for some bike bling, there are plenty of desperate people with ruined credit trying to sell bikes they can not afford on Ebay. Take advantage of their foolishness and get yourself a sweet slightly used ride, while they still make payments. Whatever you decide to do just be sure you ride it like you stole it.
 
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