Financing

[MotoF150]

I go riding with guys that own top of the line expensive bikes and they have a big monthly loan payment that goes with it, and these guys are broke, they can't even afford to buy a riding jacket or a helmet, I mean the have the nicest bike but they look like welfare bums riding it, one of the guys I know owns a new Honda VTX 1800 and his rear tire is worn out, there is no tread left, and after riding for a while the tire flatens out square, I told him he needs a new tire before he kills himself, so he went to the dealer, he told him they are in stock for $220 installed, he complained thats too much and he never did replace the tire. What im getting at when they guys spend and go on a big monthly payment on a new bike they end up having no money left over for required and needed parts and repairs for their bike. You have to spend money for the up keep of ur bike and nobody plans for that.

[Jthmeffy]

*milk sprays out of nose* holy "poo poo", Moto said something that maid sense.. the apocalypse is truly coming.

[MotoF150]

the same way like being inside a druggie's house, when ur inside a druggie house there is no furniture, the carpet is torn and worn out, dog droppings on the floor, they have a cheap TV up on cement blocks, but the outside of their house is the most beautiful looking home in town, the same way with guys owning the expensive bikes, it looks good on the outside, but the inside is a wreck.

[dablade]

In the event you do decide to finance, a home equity loan makes a lot of sense. You can write off the interest on your income tax. If you plan to pay your loan off early, you may want a simple interest loan through a bank. Most car and bike loans are rule of 78's, and you will pay all of the interest if you pay off early.

[Scoutmedic]

Personally, I'd avoid financing through the place you're buying from. You can bet the dealership is making money off it somehow. 9.9% is high.

Join your local credit union. Generally, their rates are lower, they treat you on a more personal level and, if you do have problems, they're more willing to sit down and work with you.

The home equity loan is an even better suggestion. If it's an option for you, go that way first, then credit union, then your personal bank.

[storysunfolding]

9.9% is a bit high for a motorcycle loan. That's the rate I'd get from eloans on a used bike. Shop around and I'm sure you can find a better rate. Then ask yourself this question- can I afford the monthly payment? and Do I want to take on this monthly payment? but most importantly Will the significant other get pissed that I took on this monthly payment?


Diemonkeys-

You need a bit more real world experience before you answer these questions. I know your intentions are good, but your never go into debt routine is only great for the financially irresponsible.

I got my bike financed at 5.9%. With automatic payments that dropped to 5%. I'll have it paid off by mid summer. In the meantime if "poo poo" happens I have an extra $6k laying around. 5% on a loan for half a year is good insurance and there are no penalties to paying it off early.

Yes, it's a stupid idea to get loan after loan when you can't afford it. It's stupid to get any loan when you can't afford it. However when you budget your money you can responsibly leverage your assets to buy what you want within reason.

You've also advocated never using credit cards. I put everything on credit cards. I pay them off at the end of the month unless I'm ok with getting a large purchase and paying it off with my budgetted fun money each month. For the most part I don't pay finance fees. When I do I get a rate of 7.9% because I have an excellent credit history from using my cards and having alot of available credit.

The best part? I have free travel insurance, I get 10-30% of car rentals, I get 5% cash back on all purchases made during the last year ($1500 in free money last year). On top of that I get 3% off gas and restaurant tabs. Now if my dealer would have let me pay on my card, I may have waited an extra month to pool my monthly play budgets so I could pay it off and take advantage of my anytime 5% off sale!

[Fast Eddy B]

just say no to finance. it's a tax on the impatient. buy used, fix it up, and have more fun.

[storysunfolding]

just say no to finance. it's a tax on the impatient. buy used, fix it up, and have more fun.

OR...It's a cost covering the risk of an institution lending you money. Or it's a means of paying a bit more for what you can't afford now.

Used is a very attractive option, but if you convince everyone to buy used then you'll never see a newer used bike hit the market. In 10 years you'll still be on mostly non efi bikes! I have 30 year old bikes to a 3 month old bike and I'll tell you that there are less headaches the closer you get to a 3 month old bike.

[Big B]

just say no to finance. it's a tax on the impatient. buy used, fix it up, and have more fun.

says the guy with an '06

[-Holiday]

I would never finance a bike. Or a car. Or anything other than a house.

People who put themselves in debt and pay a whole lot more for something they can wait a short period of time (maybe a year or two at most) is one of the most mentally challenged things I've heard of.

Stop being so impatient!

ahh, youth. i remember when i was that idealistic. i would (and have) financed cars, my expedition was purchased with help from the bank, and no, it's not something you can "save up for a year or two for"
in a way, i've also "financed" my motorcycle, in that i took out a home equity loan, where i get to write off the interest on my taxes. a very non-mentally challenged way to be impatient i suppose

Yes, but how many kids do you know that can handle taking out loan after loan and not screw up their life?

Maybe in the future, when my money is secure and I'm not in school and working part time, as with most "kids" who show up here looking for help with financing.

Anyone who needs to ask is too young to know.

you''re going to have a really hard time buying that house if you dont establish some credit to begin with. Having a credit card at a young age and using is responsibly is something everyone should do. I know what you're saying about taking loans you cant pay, but you also need to establish credit so some day you can buy that house.