Originally Posted by
PeteHski
Why pay the whole amount up-front when you can pay exactly the same amount in smaller regular payments? Let's say you are buying a £10k bike and you have £10k sitting in cash savings. Is it smarter to pay the £10k straight away or pay the same £10k in monthly payments at 0% interest, while you keep the balance in an interest earning savings account or some other low risk investment? Why give away all your cash up front when you don't have to? Obviously this requires some level of discipline that some people clearly cannot handle.
I pay cash on everything.
I just avoid being the sucker.
A £10k bike new will sell 50 cents on the dollar in a year.
An alternative way of looking at it.
I have used the same approach to cars for over 30 years. I just bought a big German car that sold for $112K new. Three years old with 18K on the clock. I paid $50k. Cash. Please don't bother telling me I made a bad decision.
Young people who finance £10k bikes are making a mistake. Buy something pretty good but used. Go on vacation with the money saved. Take pictures.