Should You Finance Your Accessories? – #Tuesday Tip
When it comes to protective safety gear on a motorcycle I have witnessed enough evidence to support the fact that wearing full protective gear when riding your motorcycle, even if you are going to the shops and back and its 50 deg. Outside, it is the sensible thing to do. Anyway, everyone has their own opinion on that, I wanted to chat around the best way to buy your accessories.
Most dealers advertise that you can finance your protective gear with the purchase of your motorcycle which is most definitely possible and supported by most banks. The thing is, should you be financing your accessories? Is it the sensible thing to do?
When purchasing a new motorcycle, it makes sense to upgrade your protective gear to the latest safety technology or renew your current gear which may have passed its sell by date. Helmets have a lifespan which is often overlooked. As an example, if you spent R10 000.00 on protective gear and included it in the finance of your new motorcycle over 72months (The average term that motorcycles are financed these days) then you would have ended up paying approximately R14 644.00 for your protective gear approximately R203 pm. If you purchased your protective gear and put it on your credit card you would attract a higher interest rate and therefore you would end up paying R16 421.76 at approximately R228.00pm. Did you know most South Africans never pay off their credit cards as they keep using the facilities available, so this figure could be higher.
If you sell or trade your motorcycle every 3 years like most South Africans, the same protective gear would cost you approximately R13 315, if the motorcycle was settled in full. Sounds high doesn’t it? Please note that the figures below do not include bank initiation charges or other charges. (Always contact a qualified Financial Services provider before making an informed decision).
|WITH BIKE||WITH BIKE PERSONAL LOAN||CREDIT CARD|
|AMOUNT||R10 000.00||R10 000.00||R10 000.00|
*Excludes the banks monthly admin fee and initiation costs
In an ideal world and if you can afford it, buy your protective riding gear cash. You could argue that it’s better to keep the cash for a rainy day and rather add your accessories to your motorcycle finance. You can however not put a price on safety, if it’s going to cost you approx. R203 p/m to keep yourself safe and possibly save your life then I believe R203 p/m a is a small price to pay.