July 12th, 2010, 01:08 PM | #1 |
Darksider
Name: Britton
Location: Maryville, Tennessee
Join Date: May 2010 Motorcycle(s): 2003 SV650S; 1982 Suzuki TS125 Posts: 106
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Financing Terms
Ok guys, I'm about ready to sign up for the MSF class so that means that I will also begin looking at bikes. So anyway, I've go a question for those who did not have the $4,000 to $5,000 laying around to drop on a bike. I will probably end up financing through a local credit union and was wondering what most of you set your term for (2 years, 4 years, or whatever). Just wanting to know what I should be looking at...anyway, please don't think I'm an idiot for asking this question I just want to get as much info from some average Joe's like myself (or Jane's) before the bank or Kawi tries to stiff me for a lot of cash.
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July 12th, 2010, 01:13 PM | #2 |
ninjette.org sage
Name: Nate
Location: west virginia
Join Date: Apr 2010 Motorcycle(s): 2009 Honda CBR600RR Posts: 633
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i have mine thro justice federal credit union .. around 7% interest with $1k down monthly payments are roughly $160 a month for 12 months
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"Riding a motorcycle is like playing sports, not everyone is cut out for it." - WVNinja |
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July 12th, 2010, 01:17 PM | #3 |
ninjette.org guru
Name: David
Location: Burlington, MA
Join Date: Mar 2010 Motorcycle(s): 2004 Ninja 250 (sold); 2008 Plasma Blue Ninja 250 Posts: 364
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I think the biggest factor is what you can afford as a monthly payment. I set mine for 4 years through my local credit union with 0 down because I prefered the lower monthly payment. I do also have an older gen 04 I bought for cash that broke that I need to repair and sell to put against the loan. Another thing to think about is if you do 3 or 4 years and decide to sell before hand you need to find a buyer, pay off the rest of the loan to get the title before you can transfer it over.
So i guess what I'm saying is it depends if you want a lower monthly payment or want to own it outright quicker. |
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July 12th, 2010, 01:19 PM | #4 |
Join Date: Nov 2008 Posts: Too much.
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I would never borrow money to buy a bike. If you don't have the cash in hand, can you really afford it?
Save the amount, then purchase the bike. |
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July 12th, 2010, 01:23 PM | #5 |
ninjette.org sage
Name: Nate
Location: west virginia
Join Date: Apr 2010 Motorcycle(s): 2009 Honda CBR600RR Posts: 633
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Why not take a loan? I see nothing wrong with it. Just because I don't want to go out and drop $5k on a bike doesn't mean I dont have the amount to do so. Sure i could have saved 4 months and owned it outright but why not just make payments. Life = debt in some way shape or form you will always be in debt to someone. If your not then hey.. give me some money your obviously growing it on trees.
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"Riding a motorcycle is like playing sports, not everyone is cut out for it." - WVNinja |
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July 12th, 2010, 01:24 PM | #6 |
ninjette.org sage
Name: Cindy
Location: Wethersfield, CT
Join Date: Apr 2010 Motorcycle(s): 2010 Ninja 250R Posts: 691
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I just got the Kawi Good Times card. 4.99% financing for 24 months and then it goes up to 15.99%. I put down about a third of the purchase price, and I'm paying minimums for now at $46/mo.
BTW this is the only loan I have, I don't have student loans, car loan, credit cards etc etc. I needed a way to get to school asap which is why I took out the loan. I did have cash to pay for the bike but I like to keep something in my savings just in case. |
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July 12th, 2010, 01:28 PM | #7 | |
ninjette.org guru
Name: David
Location: Burlington, MA
Join Date: Mar 2010 Motorcycle(s): 2004 Ninja 250 (sold); 2008 Plasma Blue Ninja 250 Posts: 364
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Quote:
I could have bought it outright but I got the loan to improve my credit score by diversifying the type of credit I have plus extending my history of payments. |
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July 12th, 2010, 01:29 PM | #8 | |
Darksider
Name: Britton
Location: Maryville, Tennessee
Join Date: May 2010 Motorcycle(s): 2003 SV650S; 1982 Suzuki TS125 Posts: 106
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Quote:
Taking a loan would be the more realistic thing for me - i've not exactly got the kind of job that lands a couple thousand dollars a pay check but yes even if I don't have cash in hand I really can afford it. |
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July 12th, 2010, 01:44 PM | #9 |
ninjette.org certified postwhore
Name: Sean
Location: Mary Esther, FL
Join Date: Jan 2009 Motorcycle(s): 2008 Ninja 250 1998 HD Road King Posts: A lot.
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Just try and get a loan with the best interest rate and pay that thing off as soon as you can, no more than two years.
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July 12th, 2010, 01:52 PM | #10 |
ex-ninjette.org guru :o
Name: Trevor
Location: Barrie, Ontario
Join Date: Jun 2010 Motorcycle(s): 2003 SV1000 S Posts: 475
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i was going to go with the kawi 1.9% over 360 months, but apparently they tack on a bunch of extra fees, so the dealer advised me to go with a bank @ 7.9% over 60 to get the minimum payment down, but it's open so I plan to pay more than the minimum every month, and if I get tight for whatever reason, I can fall back to the lower payments.
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July 12th, 2010, 02:24 PM | #11 |
ninjette.org certified postwhore
Name: Frugal
Location: Dallas/Fort Worth (DFW)
Join Date: Mar 2010 Motorcycle(s): Several Posts: A lot.
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Get as short a loan term as you can afford, otherwise you'll wind up paying nearly as much for interest as the bike itself cost. Nothing sucks worse than paying $7,000 for a $4,500 bike that will be worth $3,000 or less by the time a long term note ends.
Another consideration: With a note you'll have to carry full coverage insurance for theft and collision (your fault). The insurance co will not pay off the loan balance, only the value (used) of the bike itself. With a long term and/or high interest loan the amount owed will be more than the insurance value, leaving you still making payments on a bike that's gone (totaled or stolen). It's foolish to get into that position. If you can't pay cash, the next best thing is to save up as much as you can for a large down payment so that at least you won't be upside down on the bike. And, if you can save $3k up there's a good chance you can find a low mileage used bike in good condition and pay cash, leaving you debt free with money from future income to do routine maintenance and purchase gear with. As a new rider it's much more likely that you'll total the bike, too. It doesn't take much to total one, BTW, just trash the plastics and tank and a few other parts. |
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July 12th, 2010, 02:58 PM | #12 |
ninjette.org sage
Name: Scott
Location: DFW TX
Join Date: Jul 2009 Motorcycle(s): 2009 Ninja zx6r Posts: 609
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I tend to agree with kkim. For most people, a bike is not their daily mode of transportation, its more of a toy.
That said, if you are going to finance it, I think FrugalNinja250 was spot on with his advice. Get the shortest term you can, with the largest down payment you can afford. When you're only talking about a few thousand financed, interest rate really isn't that big of a deal. If you are a new rider getting his first bike, I would also recommend picking up something used and cheap and avoid financing. That way, you can learn without fear of messing up a bike you still owe lots of money on. And if you get tired of the bike a year or two down the road, you can always sell it (and probably get close to what you paid for it) and move on to something bigger without worrying about losing your shirt in depreciation. |
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July 12th, 2010, 03:12 PM | #13 | |
ninjette.org certified postwhore
Name: Travis
Location: Warwick, RI
Join Date: Apr 2009 Motorcycle(s): 2009 Ninja 250R Posts: A lot.
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Quote:
I recommend paying it off as fast as you can if you do finance it. Make an extra payment or two a year and save some money on interest.
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Addicted to anything that has an engine and rolls. |
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July 12th, 2010, 03:12 PM | #14 |
Darksider
Name: Britton
Location: Maryville, Tennessee
Join Date: May 2010 Motorcycle(s): 2003 SV650S; 1982 Suzuki TS125 Posts: 106
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thanks for all the advice everyone! Looks like I'm gonna save for a bit before I get a bike. My father-in-law has an older suzuki 125 dual sport I can probably practice on until I save the money up. Thanks again for the suggestions....I love this forum you guys (and gals) know your stuff!
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July 12th, 2010, 03:40 PM | #15 | |
ninjette.org sage
Name: Josh
Location: Richmond VA
Join Date: Oct 2009 Motorcycle(s): 2008 Triumph Bonneville Black Posts: 627
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Quote:
The only reason I would be hesitant to finance though, is most of time with a lien on the title, you will have to have full coverage insurance, which may cost enough to truly make financing unaffordable.
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'08 Bonneville Black sold->'08 Ninja 250R | OES Swingarm Spools | EBC HH brake pads | reflector delete | no-cut brake light modulator | DIY fender eliminator |
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July 12th, 2010, 03:54 PM | #16 |
Join Date: Nov 2008 Posts: Too much.
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I wouldn't say "no one".
I haven't taken out a loan on the last few new cars I've purchased. Certainly, I've paid cash for all of my bikes. And I do have a money tree... it's called a good job and a savings account. It took me a lifetime to learn that lesson, but learn it I did. I'm trying to pass on what I've learned to those that would care to listen. Just because you can't imagine/realize it, doesn't make it unobtainable. Britton- good decision. I wish you the best in your quest to own a bike in the future... plus, I love dual sport bikes as well and you may discover a whole new world of motorcycling to enjoy. |
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July 12th, 2010, 04:12 PM | #17 | |
ninjette.org sage
Name: Josh
Location: Richmond VA
Join Date: Oct 2009 Motorcycle(s): 2008 Triumph Bonneville Black Posts: 627
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Quote:
Most who have a good job and a savings account simply don't have the kind of extra money in it to just go out and buy a new bike/car/house. You sound like you think financing is for the financially unwise, when in fact, it's the only way most of us regular joe's can afford to buy anything that expensive. Having a good job only makes you sure that you can pay the monthly bills on your loans.
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'08 Bonneville Black sold->'08 Ninja 250R | OES Swingarm Spools | EBC HH brake pads | reflector delete | no-cut brake light modulator | DIY fender eliminator |
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July 12th, 2010, 04:46 PM | #18 |
Join Date: Nov 2008 Posts: Too much.
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Yep, I was born with a silver spoon in my mouth and mom and dad gave me buckets of money whenever I cried for it. If you believe that... you, sir, know nothing about me or my past.
If you are living/surviving month to month to barely pay the bills, you really need to look into gaining some financial stability in your life. The problem with most people is that they spend what they make and beyond, when they should be saving it instead. |
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July 12th, 2010, 06:06 PM | #19 | |
ninjette.org sage
Name: Josh
Location: Richmond VA
Join Date: Oct 2009 Motorcycle(s): 2008 Triumph Bonneville Black Posts: 627
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Quote:
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'08 Bonneville Black sold->'08 Ninja 250R | OES Swingarm Spools | EBC HH brake pads | reflector delete | no-cut brake light modulator | DIY fender eliminator |
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July 12th, 2010, 06:07 PM | #20 |
ninjette.org certified postwhore
Name: Donger
Location: So CAL
Join Date: Dec 2009 Motorcycle(s): "Is that a Ninjer 1000?" Posts: A lot.
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This is entertaining and I am learning so many life lessons here fellas--thanx |
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July 12th, 2010, 06:17 PM | #21 |
Darksider
Name: Britton
Location: Maryville, Tennessee
Join Date: May 2010 Motorcycle(s): 2003 SV650S; 1982 Suzuki TS125 Posts: 106
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Guys, look, sorry to cause an argument over ninjette members. I just wanted to ask some questions and get some advice. I didn't want (and wasn't looking to) start an argument. There are more people more fortunate than others and there are people that understand how to save and those who don't. I'm not saying that anybody on this forum fits into either category...that's not for me to judge. I'm still pretty young (26) and I know in time I will be more financially stable. c'mon ninjette people aren't suppose to argue...isn't there some kind of unwritten code or something?
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July 12th, 2010, 06:17 PM | #22 | |
ex-ninjette.org guru :o
Name: Trevor
Location: Barrie, Ontario
Join Date: Jun 2010 Motorcycle(s): 2003 SV1000 S Posts: 475
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Quote:
the kawi financing looked good on paper until you added all the fees. I usually get a pretty good tax return too, so when that time comes I'll put a chunk of change down on it too. |
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July 12th, 2010, 07:08 PM | #23 |
Join Date: Nov 2008 Posts: Too much.
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no argument here, just explaining my point of view.
adrian... go change your tire. |
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July 12th, 2010, 08:40 PM | #24 |
ninjette.org certified postwhore
Name: Donger
Location: So CAL
Join Date: Dec 2009 Motorcycle(s): "Is that a Ninjer 1000?" Posts: A lot.
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Hahhahahaaaa- do you recommend a good tire? Should I save up for it or take out a loan? Lol
Btw- you both have solid points--like you I saved up to buy my bike but in my younger years I financed all my vehicles- builds credit and easier to pay off. Posted via Mobile Device |
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July 12th, 2010, 09:22 PM | #25 |
ninjette.org sage
Name: Scott
Location: DFW TX
Join Date: Jul 2009 Motorcycle(s): 2009 Ninja zx6r Posts: 609
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Just to add my $.02: I think there is a difference between financing an automobile because you don't have the money to buy it out right, and doing the same for a bike which is not your main means of transportation. One may be a necessity while the other is a luxury. But this just comes down to how people manage their finances. As long as you're not over your head with payments, then its all a matter of opinion.
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July 12th, 2010, 10:11 PM | #26 |
ninjette.org sage
Name: Chris
Location: Huntsville, AL
Join Date: May 2009 Motorcycle(s): 2009 Ninja 250 (sold) Posts: 755
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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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The Ninjette is not a disposable bike. You are not ever supposed to get rid of it. It is like a [friendly] herpes virus.... once you got it, you get keep it forever. Originally posted by-Headshrink |
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July 13th, 2010, 05:38 AM | #27 |
ninjette.org certified postwhore
Name: Jason
Location: Jacksonville, Florida
Join Date: May 2010 Motorcycle(s): 09 Ninja 250R SE, 07 Honda CRF230F, 06 Honda CRF150F Posts: A lot.
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09 250R SE: Paying it forward one post at a time! Don't forget to add yourself to our Member Map |
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July 13th, 2010, 06:11 AM | #28 | |
ninjette.org sage
Name: Scott
Location: DFW TX
Join Date: Jul 2009 Motorcycle(s): 2009 Ninja zx6r Posts: 609
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Quote:
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. |
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July 13th, 2010, 07:23 AM | #29 |
ninjette.org guru
Name: David
Location: Burlington, MA
Join Date: Mar 2010 Motorcycle(s): 2004 Ninja 250 (sold); 2008 Plasma Blue Ninja 250 Posts: 364
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I'll chime in again on my situation. I do agree with kkim that just the amount you pay in interest makes a 4k vehicle cost you 7k. Same thing with a mortgage. My undergrad degree was finance and my masters right now is currently finance concentration. I've also worked as a non profit debt counselor so I know what debt can do to some people. Saying all that though its not always the worse thing in life if used correctly and within reason. Something alot of people seem to miss out on is every dollar extra you pay over the minimum payment goes directly to principle. Right now my minimum payment is 71 but I pay 100 per month and should have the 4 year loan payed off in around 2. This is also if I don't get my old bike fixed and sold. A small loan on a ninja 250 can be good for help building a credit history at a young age like I am right now. These payments are easily affordable to me but it all comes down to budgeting.
I do enjoy having my shiny things though from saving up as well. This year I've bought a 52inch, 40 and 32 inch LCD tv's. |
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July 13th, 2010, 10:01 AM | #30 | |
ninjette.org certified postwhore
Name: Paulette
Location: .
Join Date: Jun 2010 Motorcycle(s): 2010 Ninja 250R Posts: A lot.
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Quote:
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July 13th, 2010, 10:05 AM | #31 | |
ninjette.org certified postwhore
Name: Paulette
Location: .
Join Date: Jun 2010 Motorcycle(s): 2010 Ninja 250R Posts: A lot.
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Quote:
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July 13th, 2010, 10:05 AM | #32 |
ninjette.org dude
Name: 1 guess :-)
Location: SF Bay Area
Join Date: Jun 2008 Motorcycle(s): '13 Ninja 300 (white, the fastest color!), '13 R1200RT, '14 CRF250L, '12 TT-R125LE Posts: Too much.
Blog Entries: 7
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Don't think of it as paying for them, think of it as covering yourself. If they are uninsured, what is the likelihood of any meaningful collection if you do find yourself suing them? That said, if you have decent quality medical insurance that will cover you no matter what, perhaps uninsured/underinsured coverage might not be cost-effective. But typically that coverage will include loss of pay while you're out of work, while medical coverage doesn't.
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Montgomery Street Motorcycle Club / cal24.com / crf250l.org / ninjette.org ninjette.org Terms of Service Shopping for motorcycle parts or equipment? Come here first. The friendliest Ninja 250R/300/400 forum on the internet! (especially Unregistered) |
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July 13th, 2010, 10:10 AM | #33 | |
ninjette.org certified postwhore
Name: Paulette
Location: .
Join Date: Jun 2010 Motorcycle(s): 2010 Ninja 250R Posts: A lot.
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Quote:
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July 13th, 2010, 10:17 AM | #34 |
ninjette.org dude
Name: 1 guess :-)
Location: SF Bay Area
Join Date: Jun 2008 Motorcycle(s): '13 Ninja 300 (white, the fastest color!), '13 R1200RT, '14 CRF250L, '12 TT-R125LE Posts: Too much.
Blog Entries: 7
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Sounds quite high, definitely shop around.
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Montgomery Street Motorcycle Club / cal24.com / crf250l.org / ninjette.org ninjette.org Terms of Service Shopping for motorcycle parts or equipment? Come here first. The friendliest Ninja 250R/300/400 forum on the internet! (especially Unregistered) |
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July 13th, 2010, 10:22 AM | #35 | ||
ninjette.org sage
Name: Cindy
Location: Wethersfield, CT
Join Date: Apr 2010 Motorcycle(s): 2010 Ninja 250R Posts: 691
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Quote:
It is all about budgeting your finances, I always had a percentage of my paychecks go into savings and when I was working 2 jobs, the 2nd job pay strictly went into savings. Unfortunately the American way of life is to put everything on credit and live life constantly paying off debt. Quote:
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July 13th, 2010, 10:27 AM | #36 |
ninjette.org guru
Name: David
Location: Burlington, MA
Join Date: Mar 2010 Motorcycle(s): 2004 Ninja 250 (sold); 2008 Plasma Blue Ninja 250 Posts: 364
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I would def look around. I was 22 new rider full coverage was around 300 for the year maybe a bit less.
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July 13th, 2010, 10:27 AM | #37 |
ninjette.org certified postwhore
Name: Jason
Location: Jacksonville, Florida
Join Date: May 2010 Motorcycle(s): 09 Ninja 250R SE, 07 Honda CRF230F, 06 Honda CRF150F Posts: A lot.
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Keep shopping around. My statefarm insurance is less than $18 per month for full coverage and uninsured motorist coverage. $500 deductible with 25/50/50 coverage.
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09 250R SE: Paying it forward one post at a time! Don't forget to add yourself to our Member Map |
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July 13th, 2010, 10:34 AM | #38 | |
ninjette.org certified postwhore
Name: Frugal
Location: Dallas/Fort Worth (DFW)
Join Date: Mar 2010 Motorcycle(s): Several Posts: A lot.
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Quote:
Yes, you can sue the other party for damages, but if they don't have anything of value such as assets or bank accounts that you can attach (remember what OJ did to his millions?) then you might as well be suing a pot of air. Those kind of people are referred to in the trade as "judgment-proof". Remember, when you sue someone who has no reasonable chance of coming up with the money to satisfy a judgment your lawyer is going to ask you to pay him up front, in cash. |
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July 13th, 2010, 10:55 AM | #39 | |
ninjette.org sage
Name: Scott
Location: DFW TX
Join Date: Jul 2009 Motorcycle(s): 2009 Ninja zx6r Posts: 609
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Quote:
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July 12th, 2011, 06:45 AM | #40 |
That rider dude.
Name: Eric
Location: Orlando, Fl.
Join Date: Apr 2011 Motorcycle(s): 2011 White Ninja 250 SE. Posts: A lot.
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Bike Financing?
Hey guys.
I know I shouldn't and what not, but I'm thinking about getting a loan to get a bike. I know I'll be able to have it paid off by september and... well.. I got the fever. Lol. But I was wondering how does financing work for motorcycles year wise. You know how on a car you can select to pay off the loan within 2, 4, ect years, is it the same with motorcycles? I dont plan on going anywhere near even a year or 6 months. I plan on having it paid off in about a few months. I was just wondering. Thanks! |
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