cash is KING.
finance, whats better?
- Thread starter YZFer
- Start date
SweetOnion
Well-known member
Financed my bike at 3% through the bank.
Made way more than 3% on my TFSA this year. like 6x more. Why would I pay off my bike?? I'm struggling to find a reason.
I actually took a 5 year term, and my total cost of borrowing is going to be 600 dollars and change. I made more on that investing it, this year alone.
It is a "Recreational Vehicles and Equipment" loan from TD.
Made way more than 3% on my TFSA this year. like 6x more. Why would I pay off my bike?? I'm struggling to find a reason.
I actually took a 5 year term, and my total cost of borrowing is going to be 600 dollars and change. I made more on that investing it, this year alone.
It is a "Recreational Vehicles and Equipment" loan from TD.
vociferous
Well-known member
18% on a tsfa?
SweetOnion
Well-known member
Yep. Self managed through Waterhouse.
Op, answering the original question, there is never a good time to finance a bike. However, I have and would again, so go see your bank and check into what the best arrangement could be for you, then have that info in hand when you go to the bike show and see what incentives are being offered. The banks are in the business of lending money, the dealers are in the business of selling bikes and assisting in financial services, their motivations are a little different.
There is no such thing as 0% financing , somebody somewhere is paying to finance the project. Dealers may have incentives from the manufactures to move certain models, and may throw some freebees in , but interest rates are moving a little and the dollar is dropping so deals may be harder to make.
Do your homework and make the best arrangement for you and most importantly do not let the emotion and excitement put you into an expensive loan to have a new bike.
There is no such thing as 0% financing , somebody somewhere is paying to finance the project. Dealers may have incentives from the manufactures to move certain models, and may throw some freebees in , but interest rates are moving a little and the dollar is dropping so deals may be harder to make.
Do your homework and make the best arrangement for you and most importantly do not let the emotion and excitement put you into an expensive loan to have a new bike.
That is just smart money management, which is what most people that borrow money can't/don't do. There is a huge difference between borrowing money because it's financially advantageous and borrowing money because you don't have it.
