Cash or Finance MTB? Spending your hard earned money on bikes.

What’s inside this week:
1. Will that be cash, card or financing sir?
2. Arctic rides.
4. MTB video of the week.
5. Good hack, or is it whack?

Should I finance a new mountain bike?

When it comes to buying a mountain bike, the decision between cash or finance largely depends on your personal financial situation, how much you’re willing to spend, and the type of bike you're looking to buy. Below is advice tailored to first-time buyers, intermediate riders, and experienced riders, with a focus on factors like bike prices, depreciation, quality vs. price, and available finance options.

1. First-Time Buyers

General Advice

• Budget Consideration: For first-time buyers, new mountain bikes can be a significant investment, especially if you’re looking for something that offers solid performance off the beaten path. Bikes can range from R10 000 for entry-level models to upwards of R70 000 or more for well specced mid-range options. It's important to balance cost with the bike's long-term value. Sorry to burst that bubble, but a R3000 - R5000 bike is not a mountain bike, it is a commuter at best and not worth your money.

• New vs Secondhand bikes:

  Secondhand bikes seem like a no-brainier, Someone else has already suffered the initial depreciation and you can buy the bike for significantly less than retail… The risk of buying secondhand for first-time buyers unfortunately outweigh the lower price tag. Due to the technical nature of bicycles and the difficulty with which one spots existing issues, means that you may end up with more than you bargained for - in a bad way. I myself have plenty of experience when having bough bikes previously with sellers trying to hide issues on bikes. Unless you know a shop that’s willing to go over the bike, or a friend that knows his stuff to look it over, I would recommend shopping around for deals on new bikes rather than scrolling the classifieds looking for bargains.

  

  Merida is a great place to start looking for great value, quality MTB’s.

Cash vs. Finance:

• Cash: If you can comfortably pay for the bike in cash without affecting your other financial obligations, this is generally the best option. Paying upfront avoids the interest and potential fees associated with financing. Additionally, you’ll own the bike outright, meaning no future payments to worry about.

  • Pros: No interest, no ongoing payments, full ownership.

  • Cons: If you drain your savings or emergency fund to pay for the bike, you might find yourself financially strained.

• Finance: If you don’t have the cash upfront or don’t want to deplete your savings, financing can be a good option, especially if the terms are reasonable (low interest rates or 0% financing options). However, ensure that you’ll be able to comfortably make monthly payments.

  • Pros: Spread the cost over time, maintain cash flow.

  • Cons: Interest rates (unless it's a 0% deal through your company or another 3rd party like parents), ongoing payments, potential for debt if not managed well. Also a bike is not an asset - it depreciates very quickly, so over a 72 month period you will be paying for a bike that you won’t be able to sell once paid off.

Recommendation for First-Time Buyers:

• If you’re on a tight budget or uncertain about your biking needs, start with a discounted last season mid-range MTB in the R15 000 -R30 000 range. This will give you good quality without over-committing financially. If you're financing, ensure the monthly payment is manageable (around 10-20% of your monthly income, if possible).

• Avoid over-financing or purchasing higher-end bikes if you’re just starting out, as depreciation can be steep and you might not be using the bike as much as expected in the beginning.

• In both cases, insurance on your new bike is a good idea. The last thing you want to do is spend your money and have nothing to show for it due to accident or theft.

2. Intermediate Riders

General Advice

• Understanding Value: Intermediate riders often have a better understanding of what they want out of a bike—whether it’s better suspension, more responsive geometry, or lighter materials. The price range for mid-level bikes typically sits between R25 000 and R70 000, and while these bikes can have higher upfront costs, they also deliver improved performance and durability.

  

  What a deal! The Scott Spark at that price is a no-brainer. Great intermediate bike at 40% off. You don’t even have to sell the cat.

Cash vs. Finance:

• Cash: If you’ve been riding for a while and have saved up for an upgrade, paying in cash could still be the best route. You get the full value of the bike without any financing concerns. If you have an old bike to sell, that also helps with affordability for a new bike.

  • Pros: Full ownership, no interest or ongoing commitments.

  • Cons: May require more upfront saving if you’re looking for a high-end bike.

• Finance: For intermediate riders looking to upgrade to a higher-quality bike, financing can make more sense, especially if the bike offers features you’ll really benefit from (like a better suspension system, lighter frame, or more advanced drivetrain). Look for low-interest financing for the best deals. Make sure the monthly payments fit within your budget.

  • Pros: Access to better bikes without draining savings, manage monthly payments.

  • Cons: Monthly payments, potential for interest if you don't pay off early. As mentioned previously - a bike is not an asset.

Recommendation for Intermediate Riders:

• Consider financing if you’re upgrading from a lower-tier bike to a mid-range or higher-end model. A reasonable financing plan might make it easier to access a higher-quality bike without a massive upfront payment.

• Be cautious with expensive upgrades—make sure the bike features are something you need or you’ll use regularly. Don’t overextend yourself if the bike you want is at the top end of your budget.

• New vs Secondhand bikes: If you have been riding for a while you either know enough yourself, have a friend that knows or have a relationship with a shop that can check a secondhand bike over. Or you may have a riding buddy selling his bike. In this case, secondhand is a solid choice. But always do your due diligence.

  

  Proceed with caution.

3. Experienced Riders

General Advice

• High-Performance Needs: Experienced riders and race enthusiasts often know exactly what they want in terms of frame material, suspension, geometry, and other advanced features. These bikes typically cost more, ranging anywhere from R60 000 to R150 000+ for high-end models (carbon fiber, advanced suspension systems, electronic drive trains, super light weights etc.).

• For experienced riders, the return on investment and performance-to-cost ratio become crucial.

• Last year’s top model will be considerable less than next year’s flagship model. If you can find the last stock of the previous year (especially if there were no major changes), you could save in excess of 50% on new price. We saw that recently with Spez and Trek bikes.

  

  R40k saved. High end bike from last year and at R2709 P/M - they even give you the option to finance it.

Cash vs. Finance:

• Cash: If you can afford it, paying in cash is still the best option—especially for high-end bikes that might cost in excess of a hundred thousand rand. You’ll avoid interest and the possibility of monthly payments that may stretch out longer than you intend.

  • Pros: No interest, no ongoing payments, and full ownership.

  • Cons: Might require draining your savings, selling a kidney or a car, or using emergency funds for a top-tier bike.

• Finance: If you want to preserve your savings and maintain cash flow for other investments or purchases, financing can make sense, especially if there are low interest options. Be cautious of long financing terms, though, as this can lead to higher overall costs due to interest - and depreciation is severe on top end bikes.

  • Pros: Spread the cost over time while still getting the high-performance bike you want.

  • Cons: Ongoing payments, the potential for high interest if not careful. Depreciation on expensive bikes.

    

    You could get two of these OR a 2026 SWorks Epic with live valve suspension and electronic drive train.

Recommendation for Experienced Riders:

• If you’re willing to spend on a high-end bike, it’s probably best to pay in cash if you have the financial flexibility. This eliminates the long-term commitment of financing.

• If you need to finance, speak to your bank or shop for low-interest options, and ensure that the monthly payments won’t stretch beyond your budget. Aim to pay off the bike as soon as possible to avoid interest.

• New vs Secondhand bikes: Top end bikes depreciate very quickly after their first 2 or 3 years in the market, so if you don’t NEED next year’s model, you could score a bargain on a used like-new bike.

  If you have been riding for a while you either know enough yourself, have a friend that knows or have a relationship with a shop that can check a secondhand bike over. Or you may have a riding buddy selling his bike. In this case, secondhand is a solid choice. But always do your due diligence.

Depreciation Considerations

Depreciation is a significant factor when buying any bike. A mountain bike’s value typically drops 20%-40% in the first year, and around 50%-70% over 3-5 years, depending on the model. Here’s how it affects cash vs. financing decisions:

• Cash: You own the bike outright, but keep in mind that its value will decrease quickly, especially with high-end bikes. If you’re planning to upgrade every few years, you’ll take a hit on resale value.

• Finance: If you’re financing a bike, depreciation may feel like a double hit, especially if you’re locked into monthly payments for several years and the bike loses value faster than you're paying it off.

For first-time buyers and intermediate riders, you might want to consider a mid-range bike with good resale value, while experienced riders may want to choose high-quality components that won’t depreciate as quickly if you plan to keep them for a while and re-use them on your next bike. This would mean that your next bike can be a frame-only purchase or a lower spec model, that you can then swap those new parts over to your old frame to sell it on and help fund your new bike.

Summary of Recommendations:

• First-Time Buyers: If you can afford it, buy with cash to avoid debt. Otherwise, go for financing with low interest rates if necessary, but don’t over-commit to an expensive bike.

• Intermediate Riders: Financing is often a good option to access a mid-to-high-range bike without exhausting savings, but make sure monthly payments are manageable.

• Experienced Riders: Ideally, pay in cash to avoid financing fees, especially for high-end bikes. If you must finance, opt for low-interest deals and pay off the bike quickly to minimize interest. No matter what you tell your other half, these do not appreciate in value over a year or two.

Always keep your financial stability in mind, and ensure that any financing option you choose doesn’t stretch your budget too thin, especially given that bikes depreciate quickly. If you feel ashamed to tell your friends or spouse what you paid, you’ve probably overspent…

I hope that helps with choosing your next bike and how to fund it.

Arctic Rides:

We spent time with friends of ours, Chris, Benedicte and their boys Gunnar and Einar in Lefoten, Norway. I enjoyed getting a glimpse into what bikes they ride, considering they are in the arctic circle and have arctic weather for a considerable part the year.

Norwegians are cool people. They love to be outside and spend time outdoors regardless of bad weather. They are geared for it though. Chris is part of the Arctic Triple Challenge organizing team - google it.

About the author:
Hello, I’m Francoin, an Industrial Designer in the cycling industry based in Somerset West, South Africa.

Tools, lights, accessories and bicycle design is my daily graft.

This newsletter is to share some of the experience & industry insight that I pick up along the way, with fellow cyclists. If you are new to the sport, or been riding for many years, I plan to give you something of interest in every edition.

Thanks for subscribing and Happy trails!

FV

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