Best way to borrow money for a month or two?

[mboy]

As per the title... What's the best way to borrow money for a month or two?

I have committed to buying a new bike off a guy desperate to sell it this month... No real problems my end other than a little light of the capital... But I have a 999 Experian Credit rating, so...

How to borrow the capital?

Well to be fair, if my current bike sells tomorrow, I'll be fine... Market is still a little slow though. I've got mine up for £10k, I've agreed £12.5k with this bloke... Much as I'd love him to, he's not gonna take mine in PX (this is all private)... I have a £9k offer for mine from a trader on the table, but that would leave me £1k light of where I would like to be. This guys bike would be £14k in a dealer, which combined with the fact the dealer would only give me £9k for mine, leaves a £5k deficit... So you can see for a £2.5k saving, it really is worth the small amount of hassle...

I've checked and I can get all manner of credit cards, but I don't need to make a "purchase" nor do I need to balance transfer to another card. What I would need is a "money transfer" card, and the cheapest I can get one of those for is 4% on the balance needed (£10k) so would cost me £400...

I can get a loan with TSB @ 6.1% over 2yrs or more... Which leaves me 22 months longer than I will need to pay it off (I envisage my bike will go within a month, two at the most), so if there's no early repayment penalties then no problem, but gets more expensive if there is...

Any other thoughts/ideas?

Payday loans are an absolute non-starter as they trash your credit rating... I have spoken to my Dad but he's said max he could lend me for a month would be £2k, he just doesn't have the spare cash he used to, its all tied up in assets these days.

First world problem for sure, but any advice welcome...

[Yorick]

Short term overdraft?

[mboy]

Short term overdraft?

Max of £5k limit on an arranged overdraft on my bank account sadly... 39.49% APR means it would only cost £143.42 if I used it for a full 31 days though, which is reasonable...

I guess I have £5k in savings too I could use, but was hoping not to touch that, penalties associated with taking it out, even short term annoyingly.

[Yorick]

If I was nearby I'd lend you it myself. Bit difficult from over here.

[ChrisW]

I've read it a couple of times but I might still be wrong - is this for a grand?

[mboy]

I've read it a couple of times but I might still be wrong - is this for a grand?

£10k

[ChrisW]

I've read it a couple of times but I might still be wrong - is this for a grand?

£10k

OK, apologies.

[mboy]

If I was nearby I'd lend you it myself. Bit difficult from over here.

Much appreciated, but yeah, would be more than a little difficult. Not least of all getting my current bike to you as collateral!

[Pirahna]

My advice is never borrow money for vehicles.

[Yorick]

My advice is never borrow money for vehicles.

I did when I had to early 90s. But always paid cash since.

[MyLittleStudPony]

My advice is never borrow money for vehicles.

I'd go into the temple and overturn the money lenders' tables.

[mboy]

My advice is never borrow money for vehicles.

I don't think you understand the concept here...

I am borrowing short term (potentially, my bike might sell in the meantime meaning I don't need to), in order to save £thousands...

I don't need the money for more than a month most likely. My current bike is worth £10k, the one I'm getting £12.5k, I have the £2.5k difference no problem, I just haven't sold my bike yet... Though I will of course.

THAT is why I am looking to borrow the money... It will of course be fully paid off the moment I sell my current bike.

I did when I had to early 90s. But always paid cash since.

I always pay cash. Even if I need to borrow, I still pay cash... PCP/HP finance always ends up incredibly expensive in the long run, far cheaper to get a personal loan if you need to finance it over a period of time. But I don't need to do that, I literally just need to sell my bike today, or borrow £10k for a few weeks...

The reality of the whole deal is compared to walking into a dealership and PXing my bike against the same bike in a dealership, which would cost me £5-6k to do, I am paying £2500 for the change... But I just need to find £10k cash for a few weeks in order to do so.

Anyway... Just remembered I actually have £3k coming in in a couple of weeks for an investment I've just cashed in, I have just extended my overdraft facility to £5k online and if needs be, I'll just lose a month or two interest on my £5k in savings too... So I should be all set now...

[Count Steer]

Interesting how we have different 'styles' when it comes to finances (there's an article on this in today's 'The Conversation' newsletter that got me thinking about what I'd do).

If I was bothered about paying interest on a loan or losing interest on an investment/savings + the possibility I might have to take a hit on the price of the old bike, I'd be wondering why I need to spend the other £2.5k on such a marginal improvement. (+ the old bike is 'the devil you know'...I'd be pondering 'what if the new one is a lemon? I'll be £2.5k + + down and wanting my old bike back'.

Hey ho. We're all different eh?

[mangocrazy]

It all hinges on the owner's concept of 'what the bike is worth', which is some notional figure based on a mixture of emotion and current selling prices. The cold hard truth is that a bike is only worth as much as someone else is willing to pay for it.

[mboy]

I’d sell my bike to the guy who is offering £9k right now, then you’re down by a grand but you’re still up because you’re getting the other bike cheap.

If you borrow money on the strength of what you think your bike is worth and you can’t sell it for that (and maybe the guy offering £9k decides to withdraw his offer or drop it to less), then you’re in a fix.

Bikes don’t seem to be selling well at the moment, you might be lucky but if your whole plan pivots on it selling quickly for the money you want, then you could come unstuck.

I'm not losing £1k cos spring hasn't properly sprung yet! Besides I asked for any potential short term money borrowing tactics, not terrible business advice!

It all hinges on the owner's concept of 'what the bike is worth', which is some notional figure based on a mixture of emotion and current selling prices. The cold hard truth is that a bike is only worth as much as someone else is willing to pay for it.

For sure, and mine is currently the cheapest bike of its kind on the market in the UK right now, by £500 too... Spoke to a couple of mates in the trade and they've said that "spring hasn't really sprung" basically... Not yet at least. Need a week of good weather, then bike sales will start booming.

Interesting how we have different 'styles' when it comes to finances (there's an article on this in today's 'The Conversation' newsletter that got me thinking about what I'd do).

If I was bothered about paying interest on a loan or losing interest on an investment/savings + the possibility I might have to take a hit on the price of the old bike, I'd be wondering why I need to spend the other £2.5k on such a marginal improvement. (+ the old bike is 'the devil you know'...I'd be pondering 'what if the new one is a lemon? I'll be £2.5k + + down and wanting my old bike back'.

Hey ho. We're all different eh?

It's worth it to me, where I am financially right now... In a few months we will have committed to a new house, a bigger mortgage, and my monthly expendable income will shrink substantially as a result. Right now I can easily afford the £2.5k to upgrade to a nearly new bike with almost 4yrs warranty left (the new bike is a month old, registered on a 24 plate! Hardly likely to be a lemon). If it was much more than £2.5k to do so though, and I wasn't planning on keeping it for that 4yrs, then indeed I wouldn't bother...

[irie]

...
I hope I’m wrong and we both get a sale, I guess time will tell, but if we’re talking about borrowing money then I don’t think it would be a good move to do it on the strength of a sales boom being just around the corner.

Agree with you, especially with a General Election 'just around the corner'.

[MyLittleStudPony]

And this time the remoaners will get in and take all the money from the horrid old people and give it all to transes and immigrants.

[irie]

And this time the remoaners will get in and take all the money from the horrid old people and give it all to transes and immigrants.

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[porter_jamie]

Take a personal loan out over 5 years or whatever and pay it off in a couple of months

[mboy]

All sorted in the end...

Arranged my £5k overdraft facility, took £5k out of savings, got paid my salary, Dad lent me £1k and the GF £500 just in case.

Organised to go up and pick the bike up yesterday (13th) on Thursday (11th), and of course as soon as I did that, I had people interested in my bike... So I picked the new bike up yesterday, sold the new one today in the end (for the asking price)...

Didn't even touch the overdraft in the end! Dad and GF paid back already. Turned out nicely in the end!