Buying a motor on a 0% finance deal...

tk338

Now I was sure this would get asked a lot, but I did a search and apparently not, however I'm new here... First post! Woot woot! I'm sorry if I posted this in the wrong forum (: This one seemed appropriate!

Quick background; I left school, decided not to go to uni, on the basis I'd get not a lot out of it for the money, and where I want to go with my career in the future. Jobs being hard to find I'm currently in the fast food industry, very tedious, but it pays the way! I get paid fortnightly, having about £200 to spare each fortnight normally getting blown on just unessentials.

A few months back i bought a bike, a brand new one on finance, I don't regret it one bit apart from the fact I've since passed a full bike test and grown out of it, well out of it and I need something a bit bigger to get me around, I underestimated the lack of power this one would have roads over 50 mph are a real struggle and altogether not fun!

So I'm looking to selling this one and moving up to something a bit bigger, but how I go about it is really where I'm stuck. I'm 20, living at home, my only monthly outgoings are rent, a small phone bill and my bike, as I said before leaving me about £200 spare a fortnight, after my current bike loan has come out...

I should also mention I'm not even attempting to learn to drive a car on the basis of cost, mainly insurance!! and the fact I only ever need to ferry myself around, I don't need to go shopping, a bike is infinitely cheaper for me!

So my options are as follows;

1. Pay off my bike in full after 6 months + of savings and save for a bigger bike, probably used meaning I'll be stuck with this current one for a very long time, something I'm reluctant to do,

2. Pay off my bike in full after 6 months + of savings and get more finance on a new or used bike...

3. Or yamaha have a 0% deal on at the moment and it is affordable! Roughly looking at £100 a month spread over 5 years, which I would plan on saving up and paying off in one. The only problem is is the deal is only till September 30th (Here I could pay off my bike, by part-x to the dealer and the small amount of savings I have, could offset the difference in money I'd loose for depreciation)

4. Part-x my bike for another bike, buying a used one on loan at a certain rate...

I know you guys can't decide for me, at the end of the day it is my decision, and a large part of it is the fact my only form of transport although manageable, it really is something I want to move on with onto something bigger.

Just from a monetary perspective and slightly personal circumstances involved what would you do?

In short I have till september 30th to decide on this 0% loan on a new bike which I was looking at anyway, I'm assuming new although services etc would have to be paid for, it would be more reliable and something I could look after over the years...

skintdragon

Hi there and welcome to MSE forum.

The only thing I can say is although the 0% finance sounds ideal, it does not necessarily mean you WILL get it.

Do you have additional credit taken out under your name besides the one for the bike you currently own?

Sorry I don't really have much to contribute towards your dilemma, but all I am trying to highlight is 0% finance is "subject to status", blah blah, and all the small print that comes with it.

Good luck!

tk338

Hey there!

Thanks very much!

I'm not actually allowed to take out the loan alone, my mum is, willingly, a guarantor, obviously I shall have spesk to her about it again but so far she has been pro the idea

andy69_2

I dont have any debts except a mortgage. The way i see it is if you cant afford it, you can't have it, i say that to everyone who wants a loan, When i was 20 I wanted to get a car on finance etc etc, but I kept getting told not to do it, so I never and then a few months later and now im so glad i never and never have taken a lone UNLESS I REALLY NEED TO I wont do either. SO my advice to you, is to just save up for what you want

CLAPTON

how much is your current loan for?
how much per month
how many payment left to pay

what are the equivalent details of the 'new' loan?

triticale

I would be very wary of buying a bike on credit.

Have you priced up insurance? If you can't afford fully comp and you stack it, how would you afford to fix/replace it while still making loan payments?

You can get an excellent reliable 500cc bike for not much money. I would strongly recommend saving hard for the next 6 months, then looking again at your situation with a bit of cash in the bank.

Apples2

tk338 wrote: »

I'm not actually allowed to take out the loan alone, my mum is, willingly, a guarantor, obviously I shall have spesk to her about it again but so far she has been pro the idea

Please don't even consider using a guarantor.

If mum is willing, ask her to get a loan in her own name, then give you the cash.

It is most likely she will get a much better interest rate so it will be cheaper for you.
She is also completely in control of her own finances so she can ensure the repayments don't fall off the rails.