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New Bike Prices Are Insane (Bike Economics)

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Old 04-04-18, 02:57 AM
  #26  
SHBR
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To be fair, any bike can be destroyed by its first crash.

I'd hazard a guess that there are 7KG bikes that are as tough as bikes that are twice the weight.

Also, old steel bikes are often stolen and damaged too, especially if they are kept in good condition.
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Old 04-04-18, 03:01 AM
  #27  
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Originally Posted by General Geoff
I put all my daily expenditures on a credit card. Free 1.5% cash back. Pay every statement off in full. Haven't spent a dime on credit card interest yet.
we do the same thing, everything goes on CC then it get's paid off in full every month.
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Old 04-04-18, 03:04 AM
  #28  
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Are bikes built by hand or by robots? Anything that is built by hand is more expensive than robot built. Can you imagine what automobiles would cost if there built like they were in the 50's and 60's
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Old 04-04-18, 06:30 AM
  #29  
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Originally Posted by sdmc530
I can not believe anyone finances anything but a home or collage.

[scratches head...] Do you mean that you don't believe, or that you question why? Because people finance all kinds of both necessities and luxuries...every minute of every day of every year of their entire lives. At a cost that they have no concept of how to compute.
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Old 04-04-18, 06:59 AM
  #30  
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Originally Posted by robertorolfo
while more "run of the mill" stuff is still around $5k.
Lies.

I bought 2015/2016 105 equipped Giant Propel aero race bike in 2017 for $1650 on sale. All in with shoes, pedals, and other kit was right at $2100. For a UCI approved aero racing bike. All carbon. Acceptable OEM 30mm alloy wheels.

In it's current trim with 50mm race wheels (used), power meter (used), and upgraded crank/cassette I'm up to probably about $3000 total. Well, $3000 even including clip-on bars, TT helmet, and skinsuit for TT events.

More than enough to go race legit USAC races or do hammerfest or race-sim club rides. Too much bike for someone only wanting to do a pace-line B-group or A-group ride.

I think you need to lower your standard of what you consider "run of the mill".

You can get a very very good all carbon 105 equipped bike for under $1500 these days. Even that will be plenty of bike in the "run of the mill" range.

Nashbar has an $800 Shimano 105 equipped CX or gravel bike. So, under a grand for 105.

I'd say at actual races my bike is probably right in the middle of the price range and accessories in USAC Cat 4/5. Looking in the parking lot at the Cat 3 guys getting ready, about the same. Some of the P/1/2 stuff looked a little more bling.

I'd say your average B-group club rider that makes good money at their job probably has a way nicer bike than about 75% of actual racers.

Most any bike with Shimano 105 is going to be plenty for "road" or even CX or adventure bike. You don't need $5k of bike even to go racing.
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Old 04-04-18, 07:17 AM
  #31  
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Originally Posted by Phil_gretz
[scratches head...] Do you mean that you don't believe, or that you question why? Because people finance all kinds of both necessities and luxuries...every minute of every day of every year of their entire lives. At a cost that they have no concept of how to compute.
I simply question why...luxury items should never be financed. Should be saved for..... drives me nuts to see people, heck family members finance things like TV's and such. Have discipline to save money, use a budget and understand finance, life is much easier and stress is way down this way!
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Old 04-04-18, 07:19 AM
  #32  
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Personally, I agree with the OP. I'm shocked when I see some of the prices that bikes and their related parts are going for. You would have a hard time convincing me there is any way possible to justify those kind of prices for a bike. But, on the other hand, if you have the money and this is something that appeals to you... who am I to stand in your way?
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Old 04-04-18, 07:30 AM
  #33  
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Probably that high of a price so they can give them to Pro Teams for free
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Old 04-04-18, 07:44 AM
  #34  
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Originally Posted by sdmc530
I simply question why...luxury items should never be financed. Should be saved for..... drives me nuts to see people, heck family members finance things like TV's and such. Have discipline to save money, use a budget and understand finance, life is much easier and stress is way down this way!
I don't think such a blanket statement is warranted, as it sometimes makes sense to borrow money - even if you have the cash. For example, I once went to purchase a new car, and took along my checkbook. When the dealer offered to arrange financing at .9% interest for five years, I decided to take the loan and leave my money in a mutual fund -- which was earning >10% during those years. In other words, I made money on the loan. A few years later, I did the same thing using a HELOC to finance some home improvements.

To get back on-topic: I will probably never be in the market for a $10k+ bike...But I would gladly finance any new bike purchase if the interest rate is lower than I could receive on an investment.
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Old 04-04-18, 07:51 AM
  #35  
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Originally Posted by robertorolfo
And, well, OH MY GOD. Over $15K for a bicycle. For a freakin' bicycle! Yes, it's top of the line. Yes, it's carbon fiber. But seriously? Even the slightly lesser models were over $10k, while more "run of the mill" stuff is still around $5k.

What is this madness?

Now I should also add that I have a background in motorcycles, having owned a few and used them as my only source of transportation/commutting (no car, no bicycle, only public transport as an alternative) for few year stretch. So do you know what $15K will buy you in the motorcycle world? Something very, very decent. Something that will blow the doors off of just about any sports car on the road.

Maybe cars are more your speed? And you know what, there are quite a few entry level cars that come in around the $10K mark these days. Yes, the entire car... all four wheels of it.
You are comparing a top of the line bike to a mid level motorcycle and a basic econo car. You know Ducati Superleggeras clock in around $90k right? For a two wheel motorcycle? I mean, I can buy a house and a bit of land in the rural world for that money, for a price of an engine and two wheels and a bit of plastic. Cars? Lets not even talk about the amount of $200k+ supercars running around the average city. I can buy a pretty decent house in nearly any city in America for that cost. $15k for a top of the line racing model seems down right cheap compared to those prices, when you compare like to like. In that direction, if you want to compare bikes to the prices you are citing, you are looking around $1500 for a bike comparable in level to that $15k motorcycle, and $400 for a bike comparable to that car.

Also lets consider most folks on a $15k bike actually have a use for it: racing. I know more than a few folks whose weekends are spent at the track with motorized vehicles. $15k doesn't get you a whole lot in that world, certainly not much beyond a basic setup in most racing series, even in cost controlled things like Autocross or Chump Car.

Originally Posted by Metieval
the sad part, the Majority of the $1,000 entry level bikes are not any better than some of $100 Craigslist bike...

yet people flock to buy them, cause they are "new".
Yes, but without $1000 new bikes, there would never be $100 used bikes on CL
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Old 04-04-18, 07:55 AM
  #36  
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Originally Posted by Koyote
I don't think such a blanket statement is warranted, as it sometimes makes sense to borrow money - even if you have the cash. For example, I once went to purchase a new car, and took along my checkbook. When the dealer offered to arrange financing at .9% interest for five years, I decided to take the loan and leave my money in a mutual fund -- which was earning >10% during those years. In other words, I made money on the loan. A few years later, I did the same thing using a HELOC to finance some home improvements.
Yes, I do understand your point, and your right! But I will say short of this type of situation and being a major needed purchase, I would throw a car into that category but still normally paying interest on a purchase is not good thing. We just choose not too. We buy a new car every 5-6 years. We have a savings account for vehicles and after we get it built up again we can then choose to buy another new car. Done this three times in the last 15+ years, always been able to buy a new car and never financed one yet.

Originally Posted by Koyote
To get back on-topic: I will probably never be in the market for a $10k+ bike...But I would gladly finance any new bike purchase if the interest rate is lower than I could receive on an investment.
I could never by a 10K+ bike that is just insane to me....besides I don't know if I could tolerate sleeping on the couch for the rest of my life
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Old 04-04-18, 08:00 AM
  #37  
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Originally Posted by jefnvk

Yes, but without $1000 new bikes, there would never be $100 used bikes on CL
Funny you say this, I saw on CL yesterday there was a carbon Bianchi road bike with older Ultegra? group set that looked really clean for $600. That is a good deal for that bike used I thought

here is the listing....Not sure what the new price of this bike it but thought it looked good?

https://siouxfalls.craigslist.org/bi...514862090.html
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Old 04-04-18, 08:07 AM
  #38  
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Originally Posted by robertorolfo
Ok, so I'm still fairly new here, and also fairly new to the sport/hobby (I've always ridden bikes here and there, and grew up on them as a kid, but never this much as an adult). When getting into bikes, I've taken the classic and vintage route for several reasons, and while price was one of them, it wasn't a major factor.

So recently I've been curious about more modern bikes, and taking a look around at what people are selling. But just now I followed a link to the Trek website where someone suggested a commuter bike for a poster in here, and I decided to click on the "Road Bikes" section to see what was going on.

And, well, OH MY GOD. Over $15K for a bicycle. For a freakin' bicycle! Yes, it's top of the line. Yes, it's carbon fiber. But seriously? Even the slightly lesser models were over $10k, while more "run of the mill" stuff is still around $5k.

What is this madness?

Now I should also add that I have a background in motorcycles, having owned a few and used them as my only source of transportation/commutting (no car, no bicycle, only public transport as an alternative) for few year stretch. So do you know what $15K will buy you in the motorcycle world? Something very, very decent. Something that will blow the doors off of just about any sports car on the road.

Maybe cars are more your speed? And you know what, there are quite a few entry level cars that come in around the $10K mark these days. Yes, the entire car... all four wheels of it.


So, seriously, how in the world can they justify these bike prices? I don't want to hear about R&D costs, because just as much money, if not more, is spent on designing a good motorcycle or even a basic car. And I don't want to hear about materials, because no way in heck 15lbs of whatever the heck they are using can cost more than hundreds of lbs of motorcycle material, or even more car material (no matter how cheap it is). Labor? Are you kidding me? Your hand-laid carbon fiber still isn't taking more time and man (or robot) hours than assembling a motorcycle or car. Just the complexity of an internal combustion engine alone...

I get it. These companies need to survive, and their sales of high end bikes won't approach those of bigger car and motorcycle brands, so they need higher margins and whatnot. I get that. But still. Something is seriously wrong here.
It's time we buy China as they improve their quality over time.
No one can dispute China's extreme progress over the years.

After seeing food prices skyrocket over the years, clothing, and just about everything else in the U.S, I'm basically not buying anything brand new in the U.S unless I really really need it or if it's necessities like food. Let supply and demand fix this greed. No one buys this inflated crap- prices go down.

**** being ripped off. Our pay doesn't increase as much as our damn inflation + prices.
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Old 04-04-18, 08:26 AM
  #39  
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Depends on what level you're looking at. In 1993 my brand new Trek 8000 MTB cost exactly $1000. Fully rigid with LX components. Today the same level with a suspension fork isn't that much more. In 1997 I bought my brand new Raleigh R700 (still have it). Ultegra 600 components, carbon fork and it cost $1200. Not much less than the same level today. Matter of fact, you can find Ultegra equipped road bikes at the same price 21 years later. Now that I think about it, in 2012 I bought my aluminum Focus Culebro with Ultegra 6700 on sale for $1200.
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Old 04-04-18, 08:28 AM
  #40  
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Originally Posted by sdmc530
This is going to come off in a snobbish tone and I don’t mean for it to be that way but I can not believe anyone finances anything but a home or collage.
Do you drive a car? Got 15 -30 K in your sock drawer? Furniture, home remodel and wait for it, major medical bills. Start there.
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Old 04-04-18, 08:28 AM
  #41  
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You are comparing top of the line, world-class competition-level bicycles (nearly identical to those that win world class races) produced in limited quantities to mass produced mid-grade daily driver consumer level cars and motorcycles.

Go take a look at the cars and motorcycles that win world-class races (on and off-road) and see what they cost.

Yes, you do see joe-schmoe riders out on these $15K bikes sometimes, but that is because bikes are CHEAP enough that $15k gets you pretty much the best in the world (or close to it).

To judge an industry by the few outling models is just stupid.

Look at it this another way: compare what $750 gets you today vs the same dollar equivalent 20 years ago (~$490). I am sure plenty of retro-grouches will insist that nothing has improved (that is another argument), but you are definitely not getting less.

Last edited by Kapusta; 04-04-18 at 08:40 AM.
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Old 04-04-18, 08:35 AM
  #42  
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Originally Posted by nzhu
It's time we buy China as they improve their quality over time.
No one can dispute China's extreme progress over the years.

After seeing food prices skyrocket over the years, clothing, and just about everything else in the U.S, I'm basically not buying anything brand new in the U.S unless I really really need it or if it's necessities like food. Let supply and demand fix this greed. No one buys this inflated crap- prices go down.

**** being ripped off. Our pay doesn't increase as much as our damn inflation + prices.
This statement is utter nonsense. By any reasonable historical or international comparison, prices in the US have been relatively very stable for at least a couple decades now - and that includes food and clothing. You can look that up.
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Old 04-04-18, 08:52 AM
  #43  
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Originally Posted by robertorolfo
Ok, so I'm still fairly new here, and also fairly new to the sport/hobby (I've always ridden bikes here and there, and grew up on them as a kid, but never this much as an adult). When getting into bikes, I've taken the classic and vintage route for several reasons, and while price was one of them, it wasn't a major factor.

So recently I've been curious about more modern bikes, and taking a look around at what people are selling. But just now I followed a link to the Trek website where someone suggested a commuter bike for a poster in here, and I decided to click on the "Road Bikes" section to see what was going on.

And, well, OH MY GOD. Over $15K for a bicycle. For a freakin' bicycle! Yes, it's top of the line. Yes, it's carbon fiber. But seriously? Even the slightly lesser models were over $10k, while more "run of the mill" stuff is still around $5k.

What is this madness?

Now I should also add that I have a background in motorcycles, having owned a few and used them as my only source of transportation/commutting (no car, no bicycle, only public transport as an alternative) for few year stretch. So do you know what $15K will buy you in the motorcycle world? Something very, very decent. Something that will blow the doors off of just about any sports car on the road.

Maybe cars are more your speed? And you know what, there are quite a few entry level cars that come in around the $10K mark these days. Yes, the entire car... all four wheels of it.


So, seriously, how in the world can they justify these bike prices? I don't want to hear about R&D costs, because just as much money, if not more, is spent on designing a good motorcycle or even a basic car. And I don't want to hear about materials, because no way in heck 15lbs of whatever the heck they are using can cost more than hundreds of lbs of motorcycle material, or even more car material (no matter how cheap it is). Labor? Are you kidding me? Your hand-laid carbon fiber still isn't taking more time and man (or robot) hours than assembling a motorcycle or car. Just the complexity of an internal combustion engine alone...

I get it. These companies need to survive, and their sales of high end bikes won't approach those of bigger car and motorcycle brands, so they need higher margins and whatnot. I get that. But still. Something is seriously wrong here.
The whole premise of your thread is mistaken. While it is true the big boys (Trek and Specialized in particular) have a number of very expensive models over $15K, I would wager that the vast majority of bicycles sold in this country retail for less than $1,000, and even if you are a serious cycling enthusiast, you really don't need to spend more than $2K or at most $3k on a bicycle.

Since you brought it up, let us go back to the Trek website. (though in the real world, there are other brands and models of comparable quality that you might find cheaper, but whatever) So you are interested a new Trek bicycle.

Maybe you are just a recreational cyclist looking for a bike to do occasional fun rides, or just ride to the coffee shop. Something like the FX2 or Verve 2 retails for less than $500, and should be good for years of light use. In this category weight really isn't an issue, but even so, the FX is around 27 lbs, the Verve, 28 lbs.

What if you want to jump up to a road bike? Today, you could get a Trek Domane AL3 on sale for $869.99. So what do you get for sub $900? You get an aluminum frame with carbon fork. (and there was a time not too long ago where you couldn't get a carbon fork on a bike retailing for less than $2k, so in some ways things are getting better). You get 9 speed Sora components. Pretty pedestrian, but again, maybe just 10 or 15 years ago, you needed to go up to 105 or Ultegra to get 9 speeds, so pretty decent. And a bike weight of 21.5 lbs. All in all, pretty decent. Not many vintage bikes you will find these days sub 22 lbs and with 9 speed components.

But say you are an enthusiast, so you want better performance. You want full carbon, and 11 speed components. The Emonda SL6 retails for $2,500 and is full carbon, full Ultegra. And it weighs just a hair over 16 lbs. Unless you are a professional bike racer, this is all the bike you will likely ever need.

So to sum it up. Utility cycling for $500 or less, entry level road for under $900, and ultimate performance for $2,500. If you plug these numbers into a cost of living calculator from, say, 1980, I think you will find the prices competitive with what was available then. For example, in 1980, I went into my local bike shop and bought myself a brand new Nishiki 10 speed for $150. The Nishiki was an entry level 10 speed. That same $150 in today's dollars is, $452, which is almost exactly what a Trek FX2 retails for. And, for just tooling around town, the FX 2 is a far better bike than my old Nishiki Sport was.

Now, I do remember back in 1980 lusting after a high end Raleigh, which was, if memory serves, one of the nicer bikes my local shop had in my size. But it was out of my price range at $650, which in today's dollars would be around $2,000. And that Raleigh likely weighed in the low to mid 20 lb range, would have had beautiful Campy components, but they would have been just 2 x 5 speed, and friction shifting. So yes, today's carbon fiber wonder bikes might be just a bit more expensive than the Venerable Reynolds or Columbus steel bikes of yesteryear, but the the performance is way better.

Last edited by MRT2; 04-04-18 at 09:17 AM.
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Old 04-04-18, 08:54 AM
  #44  
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The problem with this discussion is that it is about the price of an item, in this instance a high-end bicycle. It's not about the price. It isn't entirely about the value of the item either. It's about an individual's comfort level of spending on what some consider "frivolous" items.

It's entirely perception. One person assigns a high value to something another person views as a waste of money. Adding to the complexity is the wavering yardstick of righteous indignation based on a given personal financial position. "I can afford to spend $300 on a bike, anymore than that is excessive and spending $2000 means you are insane!" Insert various numbers and you cover the gamut. The numbers used aren't important, it's the inability to see beyond your own self limits.

It's simpler to not worry how others spend money you don't have and don't expect others to not like what you don't like. I don't have a $15,000 bike and never will. I don't worry about that and don't resent the guy that does.

Last edited by desmodue; 04-04-18 at 08:59 AM.
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Old 04-04-18, 08:54 AM
  #45  
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I will avoid the temptation to really get into this. But, I will say that $5,000 does not buy a "run of the mill" bike. It buys a really nice bike. Last year I bought a Colnago World Cup CX for $1500. AL frame w/CF fork and all 105. My GF bought a Colnago CF road bike with all Ultegra 11-sp for $2600. I'm pretty sure I could find a very sweet ride for $5K.
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Old 04-04-18, 08:58 AM
  #46  
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Originally Posted by desmodue
The problem with this discussion is that it is about the price of an item, in this instance a high-end bicycle. It's not about the price. It isn't entirely about the value of the item either. It's about an individual's comfort level of spending on what some consider "frivolous" items.

It's entirely perception. One person assigns a high value to something another person views as a waste of money. Adding to the complexity is the wavering yardstick of righteous indignation based on a given personal fianacial position. "I can afford to spend $300 on a bike, anymore than that is excessive and spending $2000 means you are insane!" Inserting various numbers and you cover the gamut. The numbers used aren't important, it's the inability to see beyond your own self limits.

It's simpler to not worry how others spend money you don't have and don't expect others to not what you don't like. I don't have a $15,000 bike and never will. I don't worry about that and don't resent the guy that does.
True.

I teach economics. When we get to consumer theory, and willingness-to-pay, I usually tell my students what some of my bikes cost - none more than $3k, but they still think I'm crazy for spending so much on a mere bike. Then we go around the room, and I ask a few kids "What's important to you?" They quickly figure out that each of them has their own priorities that others would find insane. One kid had a $3k shotgun...One had spent $1600 on tattoos...Expensive cars...Etc.
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Old 04-04-18, 09:11 AM
  #47  
sdmc530
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Originally Posted by Leebo
Do you drive a car? Got 15 -30 K in your sock drawer? Furniture, home remodel and wait for it, major medical bills. Start there.

Ok, this is going off topic a bit and I don't want to be preachy on anyone but here goes:

Yes, wife and I both have a car. i have a older truck and wife has a newer SUV.

Yes, we have one years salary in the bank. Didn't happen overnight but we have that security in case one of us looses a job or whatever. Took time and going without things but we have that and some in the "sock drawer"

Yes, we can afford furniture but how much is a person needing or buying? It last a long time, yes can be a large investment but you don't buy it all at once

Remodeling vs. upkeep is a big difference, and yes we have a budget for this too.

Medical can be a wild card, you got me here. We are fortunate enough to have good insurance, some people don't have this luxury. Let me tell you about medical bills, my son who is now 7 and thank god healthy had 4 major surgery before he was 5, he had birth defects, kidney and bladder issues. Man it was spendy for all the medical care but yes we could pay for it because we had the savings.

I am not going to preach to anyone here about money, however this financial lifestyle is available to anyone. Requires discipline and not always getting what one wants. Life sucks sometimes....I wish I had a 10K bike, who doesn't what that "super bike".

My point is people don't do a great job with finance like they should and relay way too much on financing things.

Is there ever a need for a 10K bike, good lord no but how sweet it would be!
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Old 04-04-18, 09:25 AM
  #48  
Koyote
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Originally Posted by sdmc530
Ok, this is going off topic a bit and I don't want to be preachy on anyone but here goes:

Yes, wife and I both have a car. i have a older truck and wife has a newer SUV.

Yes, we have one years salary in the bank. Didn't happen overnight but we have that security in case one of us looses a job or whatever. Took time and going without things but we have that and some in the "sock drawer"

Yes, we can afford furniture but how much is a person needing or buying? It last a long time, yes can be a large investment but you don't buy it all at once

Remodeling vs. upkeep is a big difference, and yes we have a budget for this too.

Medical can be a wild card, you got me here. We are fortunate enough to have good insurance, some people don't have this luxury. Let me tell you about medical bills, my son who is now 7 and thank god healthy had 4 major surgery before he was 5, he had birth defects, kidney and bladder issues. Man it was spendy for all the medical care but yes we could pay for it because we had the savings.

I am not going to preach to anyone here about money, however this financial lifestyle is available to anyone. Requires discipline and not always getting what one wants. Life sucks sometimes....I wish I had a 10K bike, who doesn't what that "super bike".

My point is people don't do a great job with finance like they should and relay way too much on financing things.

Is there ever a need for a 10K bike, good lord no but how sweet it would be!
Actually, one of the nice things about getting older is realizing that the bike is NOT holding me back. At this point, a super-light racing bike would look kind of silly under my fifty-something (cough!!) self.
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Old 04-04-18, 09:28 AM
  #49  
rydabent
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The simple fact is that bike mfg have brain washed people into thinking that a plastic bike is worth $15,000. Yes this is nuts.

A fool and his money are soon parted.
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Old 04-04-18, 09:32 AM
  #50  
fietsbob
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Bikes have many price tiers, OP looks at the top end, OTOH , my local shop carries the bikes that most people buy .

in $500 to $2K range.. and at those prices the bikes are very nice , and function just fine..
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