Thoughts on Financing...

Message

BMK · #21 Unread post by **BMK** » Mon Aug 06, 2007 5:12 pm

While I believe you do need to establish a good credit history in this day & age, I personally would not put myself in debt for something that is, after all, a hobby.
My car, my house...different story, but a motorcycle? No thanks.
I didn't buy a bike until I was able to pay for it, and the insurance, in full before I left the dealership.

tropicalhotdog · Tue Aug 07, 2007 1:53 am

BMK wrote:While I believe you do need to establish a good credit history in this day & age, I personally would not put myself in debt for something that is, after all, a hobby.

You say that like it's not a vitally important thing!

Hey, if life's a painting, hobbies are the color betwen the lines.

hayden · #23 Unread post by **hayden** » Tue Aug 07, 2007 2:05 am

I don't see the harm in getting a low limit card. If you walk into the bank you have always had an account at and try to get a card with a $500 limit, I don't see how they wouldn't... unless you don't have adequate income at all or have a bad history there with checks or something.

I always hear of these people who don't have credit cards and think for a short while it might be neat to be "off the grid". But then I have to book a hotel, or rent a car, or buy airline tickets, or rent a moving truck, etc, etc. How the hell people don't have credit cards is a mystery to me.

Get one with a low limit, pay it off every month, and at least build up some kind of rating. If you get in a bind and can't pay it off one month, at least you can't go too crazy on it because you only have a small credit limit on it.

Depending on the bike too, you can get really good rates. Suzuki just had a deal where you could get a 4.9% finance rate for 2 years. That's pretty good, and you could always pay off the balance as soon as the 2 years was up.

IcyHound · #24 Unread post by **IcyHound** » Tue Aug 07, 2007 2:20 am

I don't see the harm in financing a 'toy' espcally if you don't happen to have other bills. Other bills come and go, what you chose to finance is your choice.

I'd never finance furniture. My couch isn't something I want to pay for every month nor my bed, but many people do. I'll get second hand stuff first and shop around for freebies.

DieMonkeys · Tue Aug 07, 2007 4:26 am

Whatever, I can't argue with the brainwashed. It's pointless.

BMK · #26 Unread post by **BMK** » Tue Aug 07, 2007 4:32 am

tropicalhotdog wrote:
BMK wrote:While I believe you do need to establish a good credit history in this day & age, I personally would not put myself in debt for something that is, after all, a hobby.
You say that like it's not a vitally important thing! Hey, if life's a painting, hobbies are the color betwen the lines.

No, no...I agree that hobbies and toys are absolutely vital!

(Hey, I own an airplane for cripes sake!)

I just am careful on what things I'm willing to go into debt for. Sometimes people focus on how credit can help them, but don't give much thought to the downside if they get sick, lose their job, etc. It doesn't take much for even the most well-meaning person to start spiraling down hill in the credit / debt game. Trust me.

Also, around here, there's going to be a few months of winter. I don't ride in the cold, slush and snow, so to me, it makes no sense to be making payments on a bike that is just sitting in my garage unable to be used.

Nalian · #27 Unread post by **Nalian** » Tue Aug 07, 2007 4:32 am

Just because someone disagrees with you does not mean they are brainwashed.

You do not see the value of credit - that's fine. Apparently you haven't tried to get an apartment on your own in a major city. In this area if you have no credit you're relegated to many month-to-month communities, and they are not places I would choose to live.

Please explain to me how it is brainwashed to want to get the best insurance rate, be able to rent an apartment, easily obtain a cell phone, not have to worry about your ability to get a job, etc, all of which can factor on your credit score. I'd love to hear how all of that is stupid.

tropicalhotdog · Tue Aug 07, 2007 4:34 am

DieMonkeys wrote:Whatever, I can't argue with the brainwashed. It's pointless.

That's kind of rude. These all seem like pretty reasonable, well-thought out responses on this thread, from people who are trying to help.

Asserting that you're the only smart person in the room is usually a sign that the reverse is true.

Bost · #29 Unread post by **Bost** » Tue Aug 07, 2007 4:54 am

The ONLY way i would ever use my credit card right now, (student card with no fee's and lower interest) is if i have the cash sitting next to me when i'm making the said purchase. I then go home and go online to my online credit card and i pay off the bill the second it shows up on their system.

Only times i do this is for grocery's/gas, I try to stay away from pleasure purchases as they tend to become more often the more you "swipe". Invisible money might be good for some but its easy for people to get out of hand with it. Glad I'm not one of them...

ANDS! · #30 Unread post by **ANDS!** » Tue Aug 07, 2007 5:02 am

Hah, I bought my car outright, I have plenty of friends, I have a scholarship, I'm only 21.

The point was not to prove that YOU can do it.

The problem with credit cards is that they have ingrained this "You must have good credit" BS into our skulls. You can have no credit and get a home loan.

A home loan and a credit card are two different things. And if you search hard enough you can no doubt find some shady institution willing to hook you up with a credit card after jumping through X number of hoops, and maybe someone will give you a home load, with a TERRIBLE rate, that you end up getting forclosed on because you can't afford the payments and the interest on it.

ANDS, you don't need to own that "sweet ride" right now. You can get a "duct-tape" ride, save up, sell the duct-tape ride, move up to the "rusty-bolts" ride, save up, sell that, etc. In about 2 years you'll have something nice.

Or, if your finanaces allow you latitude, you can get that nice ride pay 400 a month on it (instead of tossing it to some other frivilous thing), have it paid off AND establish credit. You forget, thats what the OP is trying to do as well as get a new bike - establish a line of credit for himself. Paying cash for EVERYTHING will come to bite someone in the "O Ring". Noones saying rack up massive credit, but having NO CREDIT, especially in this day and age, is not smart. If I had kids, and had to pay the house payment, I would certainly think twice about financing a bike. I don't. So instead of tossing down 7G's for that bike I REALLY wanted, Ill pay 300 a month for three years, and never miss it.

I assume an actual bank loan would give me a much better interest rate, but I would almost definitely need a co-signer.

Most definitely if you can get it from the bank; and yea - youd probably need a co-signer if you financed through the dealership as well.

Whatever, I can't argue with the brainwashed. It's pointless.

Its brainwashed to understand that having an established CREDIT PATTERN is a good thing? If you have the cash to pay for anything and everything you want, from a house, to a car, to a bike, to w/e - by all means - go cash all the way. Just pray that at some point, you never need services that hinge on your ability to make periodic payments.