Best way to raise ?1500ish for bike?

[loply]

hi folks,

my test is coming up and i plan to buy a 500 for my first bike, till i want to get a sports bike,

my question is - whats the best way for me to raise £1500ish for the bike + some gear?

a loan of £1500 from HSBC comes with like £400 interest would i be well advised to buy on credit card?

i want to be paying £40-£50 a month in repayments, so 24 months ish.

whats the most sensible option?

[NickD]

Stick it on the plastic, then keep tranferring the balance to the best deal you can. Get it right and you'll end up paying next to no interest.
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I was only doing what it said on my licence officer....
Tear along the dotted line!

[Frost]

Most sensible option is to get your test and licence out of the way first, save up for a crappy bike, then work your way up.

[loply]

Yeah our financial director at work does that, but being 20 and no-homeowner, and generally new at this stuff, i dont know if id be up to that game.

[loply]

hey frostyone, it would take me a year or so to save up for a crappy bike, heck, itd take me a year or so to get out of overdraft so i could start saving!

[Ste]

Best way of raising money is employment, if you can wait I would be very tempted to wait until you have the money in your hand rather than from a loan. If you can't, then if you'll be able to pay it back quite quickly put it on your credit card and pay it back as soon as you can. Just find out the APR rates for loans and for credit cards and find out which will be the cheapest way of borrowing money for you.

[Frost]

I spose i am still of the old fasioned school of thought: If you don't have enough money to buy it with some left over, dont buy it.

[ZRX61]

Get a job....

[iCraig]

You can easily get a 500cc bike for less than £1000, infact theres a 1989 GPZ500S on Autotrader for £700, and it has low miles too.

So £700 + a few hundred for gear.

[Ste]

Remember to budget for insurance, and your bike will need money spending on it to feed it oil, brake pads, oil filters, petrol, tyres, air filters, and any other parts which wear out (or break).

£400 insterest on £1500 is about 28% APR, I think they're trying to tell you something; it's not a good idea.

[Nath]

[hugo-a-gogo]

debt is the worst form of poverty

save up, then buy a bike
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"There are some things nobody needs in this world, and a bright-red, hunch-back, warp-speed 900cc cafe racer is one of them - but I want one anyway, and on some days I actually believe I need one. That is why they are dangerous."
Hunter S Thompson
clicky 4 bikey

[stinkwheel]

Bank of Mum+Dad. This is what I am doing with my car (bearing in mind I am 26 and in full time employment) for reasons of simplicity I want to keep the company car expenses seperate from my pay.

My parents actually suggested it, they gave me a 6 grand loan at 6%apr. This is cheaper than you would get from the bank so I am well enough pleased and it is good from my parents point of view because it is more than they would be getting from their savings account. They see it as a kind of short-term (2 year), tied investment.

Good old mum and dad.
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“Rule one: Always stick around for one more drink. That's when things happen. That's when you find out everything you want to know.”
I did the 2010 Round Britain Rally on my 350 Bullet. 89 landmarks, 3 months, 9,500 miles.

[mrchips]

I believe it saving up for a few months/years then buying it. That is it then, you don't need to pay anyone back and will enjoy it more because you've paid for it.

[headlamp]

DO NOT put it on a credit card! If you have a bank account go to them and see about a loan with a low APR. Also look online - finance companies are falling over themselves to lend money. You should be looking for a loan with an APR of between 7 - 10%, however it may be higher for you as I guess you are not a homeowner and therefore more risk. You should also go to a dealership as occasionally they have special finance deals.

Credit card companies will charge you between 14% - 22% interest, also they will increase your spending limit so that you put all the accessories on too! You'll end up paying through the nose!
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Using a mobile phone while driving a car should be made a capital offence!

[pipnet11]

buy a crap one first then save up for a good one.

If you are technically minded enough go to your local scrap yard. Finding a ruinning bike isnt usually difficult, it'll cost next to nothing but will need you to put the time in to get it road worthy.

My GS125 for learning on cost £50 from the local scrap yard and about £150 to get on the road, excellent!

Im currently on the search again for a 350-ish thing, or a classic 500 (no laughing please) to do the same again.

Phill
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I love the girls that do, I hate the girls that dont, I hate the girls who say they will and then they say they wont, but the girl I like most of all and I think youll say Im right, is the girl who says she never has but looks as though she might. - Max Bygraves

[Kickstart]

Hi

That interest rate is horredous. You should be able to get a loan for that amount with a far lower interest rate.

All the best

Keith
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Traxpics, track day and racing photographs - Bimota Forum - Bike performance / thrust graphs for choosing gearing

[Jammy-G]

Sell as much of your crap on ebay as you can. Other than that get a job, work weekends, get 500 odd quid a month. Wont take you long. Ask for money for your christmas presents, or sell your christmas presents when you get them. Start up a business on ebay and buy wholesale items and sell them off individually. Theres loads of ways mate !
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RooRoo: just like the time i stuck my finger up my arse with no lube at all and she didnt talk to me for hours

[stryker]

The RAC do small loans with just 6% interest. Is that better.

[Ste]

Bear in mind pretty much all loan companies shout about doing loans from ~6% APR. What they don't shout so loud is subject to terms and conditions, unless you've got a perfect credit record you'll pay more APR than that. But 28% is daft, you shouldn't need to pay more than about 15% APR really.

[ZRX61]

[dodsi]

ok having just taken a loan out to pay for my old bike and buy a new one i think i am ok to say that virgin loans are very cheap

i pay 6.5% apr which breaks down like this

£2500

£167.73 interest

£2667.73 total amount repayable over 2 years

£111.15 per month (24 months)

HSBC charge silly amounts of money

go onto autotrader and log onto the finance center and see who is offering the best loans!

[Ste]

What APR you're paying is only really useful to know when looking for loans if they're with your age and your general view of your credit record (have you had any loans paid back sucessfully before, any credit cards, any charges for unauthorised borrowing etc) as the same company will give different people different APR rates dependant on their credit record.

[dodsi]

im 19 with next to no credit record

[jay12329]

I only got credit on my first bike because they offered me 0% so i had the money earning me interest while I wasn’t paying any on the bike loan.
I saved up and got myself the better bigger bike. I wouldn’t get a loan for the bike cus I saw that over 3 years of paying interest on a cheep bike the payments would have easily bought and insured a much better bike. Just think about your finances, a friend managed to buy a car by putting the money she would normally spend of cigarettes into a pot, took a little over 18months!
If you can’t afford to buy a bike can you really afford the repayments on the loan?
There is also a huge satisfaction in buying a bike with your money that you have earned and saved. When i rode away from the garage on my new bike i knew it was mine!
J

(The opinions expressed in this post are those of the individual and not the Jay12329 Corporation as a hole.)