Quote:
Originally Posted by Cedilla
I financed my bike with Sheffield financial 60mo at 6% interest. 0 down. A year later I am regretting my choice. I walked into the stealership with nearly 4 grand in my pocket that I had been saving for months. I ended up financing the whole bike, and blew the money on god knows what, and now I still owe $4200 on a bike thats worth maybe 3k on a good day. It does not seem like much money, but I work part time making $9 an hour, so its a pretty big deal to me. So now I badly need a new car, but I really don't want to take out another loan, when I have 4 yrs left on the kawi loan.
I would say listen to kkim, he knows what he is talking about.
To all of the people that are saying you need to be rich to pay cash for a new car. I know somebody that paid cash for their house at the age of 24 while working a low paying retail job.
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Wow. This is good example of getting in over your head. It probably seemed like a good deal at first because you could swing the payments, and you would have that cash to spend on other things. But you didn't realize the size of the hole you were digging. Of course, that's how they sell this stuff too. The good news is, with a little planning and dedication, you can improve your situation. You can cut a year off of your loan by adding $20 to each payment (Assuming a loan for $4,500 at 6% over 60 months). Up that amount to $50 and you would cut 2 years off of the loan.
As you have pointed out, you don't have to be rich to save money (you had said you had saved $4200 prior to buying your bike). What it comes down to is one's patience to save for something they want instead of using credit to get it right away.