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Bicycle repossession. Is it coming?

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Bicycle repossession. Is it coming?

Old 06-24-21, 11:05 AM
  #76  
PeteHski
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Originally Posted by Cpn_Dunsel View Post

Most of our our purchases these days are done without cash. Gas pumps, grocery stores, online shopping. It's all credit. Even those people that claim to pay cash are often just using a debit card, which is technically still a form of short term credit.
Just to clarify, when I meant cash I didnít mean a pile of bank notes and coins. I meant just paying for the item up-front in full rather than taking out finance to pay it off monthly.

If I bought a new bike in ďcashĒ that would actually mean putting it on my credit card, which is then automatically paid off in full at the end of the month. While technically that is very short term credit, I wouldnít consider it as buying on finance.
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Old 06-28-21, 12:03 PM
  #77  
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I must be old. Didnít know you could finance a bicycle.
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Old 06-28-21, 01:22 PM
  #78  
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Originally Posted by rosefarts View Post
In 1996, my junior year in high school, I financed my ProFlex 855. Had it paid off within the first three months as it was a 90 days no interest type of thing.

Just mentioning this as an example that bicycle financing is nothing new. I believe every major manufacturer offers some credit option and most shops work with a lender.

Repossession though. Iím not sure. Itís extremely easy to hide a bike. Easy to trash it to the point of being almost worthless. And certainly anyone going to bank auction is looking for a screaming deal.

The lenders are probably happy enough to wreck your credit, charge tons of late fees, and eventually call a collection agency.

So even without the repo guy, donít buy things you cannot afford.
As someone stated above....if the bike was not used as collateral then there are no legal means to "repossess" it (I suppose the company could come and "steal" it back Something other than the bike could be used as collateral: part of a home equity loan, auto...prob'ly some other kinds of assets. If it was just a personal loan (no collateral) then wage garnishment and/or credit annihilation would be the case.
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Old 06-28-21, 11:51 PM
  #79  
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Bike Loans

My first good bike was financed at my local bike shop in 1966 for $100.00. I didn't know that the owner extended me credit because my father had gone in and bought the bike and arranged that I would pay the owner 10.00 per week for 11 weeks. He then paid my father $100.00 and kept the other $10.00. I was 16 at the time. I was 36 before I found out the truth.
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Old 06-29-21, 05:11 AM
  #80  
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Originally Posted by msu2001la View Post
What credit/financing offers are you referring to? Are banks really doing bike loans?
My first "good" bike was bought with a bank loan. Of course it was 4 decades ago, it was a small town locally owned bank and the vice president of the bank was helping to teach me about credit and the responsibilities that go with it. Now as I type that, I'm reminded how thankful I am for that experience to learn to be a responsible citizen and the importance of having a good reputation with a local lender. That seems like an easier row to hoe than the credit score culture big banking has created.
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Old 06-29-21, 06:40 AM
  #81  
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Anytime someone offers me a zero percent finance offer, I'm pretty much taking it.

Beyond big things - homes, cars - I don't buy things I can't really afford. But if I can spread payments out over 6-12 months and invest my money elsewhere over that time, well, that just makes good financial sense.

For example, earlier this year, I bought a bunch of weights and lifting gear. They offered 12 months same as cash. The monthly payment was about three times my monthly gym membership. Once I had the gear, I cancelled my gym membership. So really, it cost me very little each month for the year to have my own weight gear, and after three years, it will start paying for itself since I will not be paying the gym membership.
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Old 06-30-21, 07:24 AM
  #82  
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Originally Posted by indyfabz View Post
I bought a car in 2016. It cost a lot less than my annual income. I could have paid cash for it, but I financed at 0%.
Smart man.

I did the same thing in December, plus, we financed a bunch of furniture at 0% over the last year. Both were a fraction of my income, but the money was free. I wasn't getting a lower price paying cash.

As for bikes and repos, as mentioned there is really no enforceable lien on a bike when financed. Bike financing is typically done on a credit line/credit card basis. Those companies make their money off the interest rate, and play the odds on default. Plus, if you can get a $10k bike financed, you likely have a really good income and really good credit, both of which make you a good risk. The riskier business is the $1k bike and loan that just about anyone can get.
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Old 06-30-21, 08:43 AM
  #83  
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Originally Posted by JimPeltier View Post
My first good bike was financed at my local bike shop in 1966 for $100.00. I didn't know that the owner extended me credit because my father had gone in and bought the bike and arranged that I would pay the owner 10.00 per week for 11 weeks. He then paid my father $100.00 and kept the other $10.00. I was 16 at the time. I was 36 before I found out the truth.
Thatís an interesting story. Iíve done the opposite with my kids. I asked if they want to make a dollar. When they say yes I ask them if I can borrow 5 and pay them back 6.
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Old 06-30-21, 03:16 PM
  #84  
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Originally Posted by SkinGriz View Post
Thatís an interesting story. Iíve done the opposite with my kids. I asked if they want to make a dollar. When they say yes I ask them if I can borrow 5 and pay them back 6.
20% interest? As long as you were going to pay them back in a year or two, I hope they took the deal.
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Old 06-30-21, 03:30 PM
  #85  
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Originally Posted by PeteHski View Post
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.
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Old 06-30-21, 04:41 PM
  #86  
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Originally Posted by GhostRider62 View Post
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.
So.only ďsuckersĒ buy new. Well I guess that makes me a sucker then. But really it just comes down to what you can afford. Would it make any sense for Jeff Bezos to buy a used car? Iíve done the used car thing many times in my younger days, but now I can afford to be a ďsuckerĒ. I avoid finance though unless itís close to zero percent.
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Old 06-30-21, 05:28 PM
  #87  
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Originally Posted by PeteHski View Post
Why pay the whole amount up-front when you can pay exactly the same amount in smaller regular payments?
Avoiding monthly payments allows you so save more money each month which can be put into savings and have more disposable income for other things. I would never purchase a $10 000 bike on credit because a $ 2000 -$3000 dollar bike is all I really need and I can buy that for cash and eliminate unnecessary monthly payments.
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Old 06-30-21, 06:22 PM
  #88  
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Originally Posted by wolfchild View Post
Avoiding monthly payments allows you so save more money each month which can be put into savings and have more disposable income for other things. I would never purchase a $10 000 bike on credit because a $ 2000 -$3000 dollar bike is all I really need and I can buy that for cash and eliminate unnecessary monthly payments.
It doesnít matter whether itís £10k or £2k when it comes to the concept of interest free credit being better than paying 100% cash up-front. Avoiding monthly payments by effectively paying all of the monthly payments in one hit at the start is not really avoiding anything. The bike still costs you exactly the same either way. Whether you can afford £10k or £2k is an entirely different matter.

If you are smart about using interest free credit then you actually have more savings during the period of the credit. Where people tend to go wrong is buy things on credit that they cannot actually afford. But again thatís another matter entirely.
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