Is road bike financing a bad idea?

Question

I want to purchase a road bike. I have enough money to buy a entry level bike, but I dont want to purchase something that I'm going to sell for a depreciated value later on. So im thinking of investing in a good one right now for the long run. So back to my question, do you think receiving financing from a store is a bad idea?

Answer 1

I never understand why people think splashing out money on a fancy bike is necessary unless they have pretensions of riding competitively. Entry level bikes are, with few exceptions, the only bikes I ever buy- I run them into the ground because I use them every day then I dump them and buy a new one. Entry level bike doesn't necessarily equate with cheap c**p so personally I would never even think of getting into debt to buy a nice looking bike when such a competitive market  ensures good quality is to be found at a cheap price if you take the time to look for it. Become a good cyclist then when you get a good bike you will be able to do it justice.

Answer 2

I financed my Trek Madone last year with Trek Credit.  They were offering 12-months interest free.  I was able to make on-line payments from my checking account of 50 dollars every week and paid the debt before the end of the 12-months.

That being said, financing is a slippery slope and a lot of people get in trouble with too many "buy now, pay later" schemes.  If I hadn't paid the entire debt within the agreed upon time, Trek would have hit me with a 25% interest rate for the entire purchase amount.

Be careful.

Answer 3

I'm always wary of any type of loan as it adds to the burden of your financial situation and may reduce flexibility.  But that said, I think it would be a fine idea to get your dream bike now provided you prepare to pay it off - and pay it off early - that can also add to your credit score for a bigger loan later if you do it right.

So be sure to factor what your saving by not driving.  Apply that money towards paying off your loan!

I'm not sure I'd go into the purchase with the intent to resell however - no matter what you are going to depreciate the asset once you leave the bike shop.  Personally, I feel like you can never have too many bikes and you can use them for different purposes, but that's just me.

Selfishly though - I do hope many people purchase sweet road bikes and then decide to resell them because... well I would like to buy them!

Answer 4

um, yeah, unless you find 0% financing.  you're better off waiting for a sale or if you have a good bike shop see if they'll give you a deal on a leftover model from last year.  I bought a year end model and saved big $$.  It wasn't anything advanced, but it wasn't entry level either, and after a few upgrades over the last year I have something I can ride for a long time.  I got upgraded shimano components, a carbon front fork and seat post, areo bars and new pedals.  maybe you could even put it on lay-away?