Bike Financing?

[Xoulrath]

Originally Posted by TXJ

Getting a auto loan isn't a bad thing, but when you get into the "I can afford it, it's only $XXX a month" frame of mind and start financing more stuff is when you're in trouble.

Well said. There isn't anything wrong with financing, assuming you are willing to pay a bit more for something. What gets people into trouble is the mentality that they can "afford" the monthly payments. Before they know it, they have 10 monthly payments.

I let financing work for me. I know the financiers hate it too. I have many times taken advantage of 0% financing to get something a bit sooner than I might otherwise have. Then I pay it off before that balloon interest hits and laugh my ass off.

[Mr.E]

Thanks for all the great input guys, I really do appreciate it. I thought about it and took all you said into consideration. Seeing how I feel responcible and have planned out my whole move, I will most likely be financing my bike and pay it off quick. If my credit is too horrible my parents agreed to co-sign. I have a stable job and good money income at the time being. I also have money stored on stand by incase anything were to happen to my stability. Thanks for the input x-)

[drowe531]

Originally Posted by Alex

The next lesson is then that after a certain point, credit scores don't mean squat. The public emphasis on them is drawn out by the finance industry to encourage people to care so much about their credit score to actually spend additional money on credit to inflate an otherwise meaningless number.

In other words, for someone who earns a reasonable income, pays any debts on time, and manages their finances halfway intelligently, their credit score will be a-ok without them thinking a whit about it. Spending any extra money with the justification "I could pay less, but this will help my credit score", is someone who still hasn't figured things out.

After a while you are right it does become pretty moot, but seeing as I'll be in the process of buying my first home soon it is nice for me to have a higher score. The diversification of debt was the reason I took out the motorcycle loan. Did I pay a little bit in interest yes, but I also didn't have the 3k in cash at the time last year I was working a temp job while I was finishing my masters. I was also lucky(unlucky depending on your view) to have been living at home with very little expenses.

Also just starting out a career, employers are pulling credit scores/reports to help them decide if you seem like a reasonable person. After a few years when you have prior experience again it may be moot but early on its nice to have a score that shows you have some sort of responsibility.

[almost40]

Originally Posted by alex

the next lesson is then that after a certain point, credit scores don't mean squat. The public emphasis on them is drawn out by the finance industry to encourage people to care so much about their credit score to actually spend additional money on credit to inflate an otherwise meaningless number.

In other words, for someone who earns a reasonable income, pays any debts on time, and manages their finances halfway intelligently, their credit score will be a-ok without them thinking a whit about it. Spending any extra money with the justification "i could pay less, but this will help my credit score", is someone who still hasn't figured things out.

+10000000

[Xoulrath]

Originally Posted by Mr.E

I also have money stored on stand by incase anything were to happen to my stability.

I think this is perhaps the most important thing if you plan to use credit/financing at all. If you are living paycheck to paycheck and don't have extra in the bank, then credit and financing are definitely poor ideas.

[midknight]

ok guys, just an update for my case (the OP)....not much of an update. I had a little girl about three months ago so the luxury of a bike has been put on hold.... BUT, right now my plans are to wait until income tax comes and use as much of it as I can to put towards a bike (I know, I know...that's a long time a way, but i've waited this long right?). There is a possibility that I will finance (a very small amount) but actually, I am looking in the used market because you can find almost new ninjettes for a near a couple thousand less than what you can get a brand new one (and having to worry about dealer fees AND BREAK IN PERIODS).

I believe each person has there own situation, but for me, the least I have to finance the much better I will be.

[Mr.E]

Well it turns out financing wasnt an option I could use. But, they let me put the bike on lay away and took it off the floor so it's mine x-) I'll be getting it mid september.

[caps]

Originally Posted by Mr.E

Well it turns out financing wasnt an option I could use. But, they let me put the bike on lay away and took it off the floor so it's mine x-) I'll be getting it mid september.

even with the co-signer?

[Mr.E]

yeah my cosigner had worse credit then we thought even though she has a good job and what not. Credit score hasn't caught up to her yet. X-( but I think I can wait till sept. Knowing I got the exact one I want is a good feeling lol.

The finance guy was surprised the owner let us put the 250 on lay awa. Usually he doesn't.

[Xoulrath]

Originally Posted by midknight

I believe each person has there own situation, but for me, the least I have to finance the much better I will be.

This is true for everyone, most people just don't acknowledge it or don't realize it.

Good luck with the kid and the bike.

[kkim]

Mahalo, Britton, for the update, but more importantly, congrats on your new bundle of joy. I know when I was raising my 3 kids, the saying that always came to mind was that "it takes cubic dollars to raise kids". I'm sure it's even more applicable now days.

Gl with your bike plans, but I think you'll find there are going to be higher priorities for awhile.

[Alex]

/merged the "financing" threads we had going on; they covered the same ground and had some good information.

[midknight]

Originally Posted by kkim

Mahalo, Britton, for the update, but more importantly, congrats on your new bundle of joy. I know when I was raising my 3 kids, the saying that always came to mind was that "it takes cubic dollars to raise kids". I'm sure it's even more applicable now days.

Gl with your bike plans, but I think you'll find there are going to be higher priorities for awhile.

Thanks kkim, yeah I have much higher priorities right now...it's still in the back of my mind and my wife and I are still making plans, but my baby comes first...by the way here's a picture (I don't believe it's thread jacking if I started the thread right? ).....

Baylee Kay born April 16, 2011

[kkim]

[Bosgarage57]

Britton shes adorable! Family ALWAYScomes first. When you get your bike and everything give us a holler, we'll ride with ya.

[midknight]

Originally Posted by Bosgarage57

Britton shes adorable! Family ALWAYScomes first. When you get your bike and everything give us a holler, we'll ride with ya.

Thanks, I'm sorta partial to her and i'll absolutely yell at ya when I get a bike! I hope to have one by next season...if nothing else, a used and abused cheapo craigslist bike that I can putt around on and call my own.

[Bosgarage57]

Hey my ninja 250 is a "cheapo" I bought, 06 with 5K miles on it, bought for a grand Just gotta look around. If you need help looking you just gotta holler at me. Around sept or so people will be selling bikes cheap to make room for winter.

[n4mwd]

Originally Posted by midknight

Thanks kkim, yeah I have much higher priorities right now...it's still in the back of my mind and my wife and I are still making plans, but my baby comes first...by the way here's a picture (I don't believe it's thread jacking if I started the thread right? ).....

Baylee Kay born April 16, 2011

Time to start saving for a good helmet for the baby (when she gets older of course).

[kyrider]

This is my plan - Buy used bike(which I did)to get my skills up and then graduate to a new bike. It is always best to pay cash if you can.

[YORCHI]

I got a 4 year loan through my credit union to pay for the bike and then a 1 year personal loan to pay for the gear. I should have it payed off completely by the end of summer when a few big deposits I'm counting on hit my account.

[pucktoplay1]

I agree with kkim in most cases, but in my situation I bought my ninja with cash that I had saved up knowing that I was going to upgrade in the future. I am looking at buying my next bike and getting a loan for it so that I can build up my credit since i'm only 19 and have no credit. A small 5-6k loan is a perfect opportunity for me to start building my credit. I will be making a 1/3 down payment and borrowing the rest to pay off. A minuscule bike loan is almost like getting one of those small credit building loans to me with the added benefit of getting a new bike in the process

[Xoulrath]

Good luck with that. Just remember that bikes are toys. You may not get a loan for one if you have no credit, even with putting a 1/3 down. You might have to get some type of personal loan, and depending on where you get it, the interest rates can be high.

[pucktoplay1]

Originally Posted by Xoulrath

Good luck with that. Just remember that bikes are toys. You may not get a loan for one if you have no credit, even with putting a 1/3 down. You might have to get some type of personal loan, and depending on where you get it, the interest rates can be high.

Not sure if you were being sarcastic with the good luck but thanks.. Anyway I was already approved for the loan at a decent interest rate, but interest is not really too much of a problem on small loans. However if I do run into any problems my father has already agreed to co-sign as he realizes the importance of credit building and good credit as well.

[blink]

Save for it, then put a down payment on ....as in save half maybe?

[Jiggles]

Originally Posted by pucktoplay1

I agree with kkim in most cases, but in my situation I bought my ninja with cash that I had saved up knowing that I was going to upgrade in the future. I am looking at buying my next bike and getting a loan for it so that I can build up my credit since i'm only 19 and have no credit. A small 5-6k loan is a perfect opportunity for me to start building my credit. I will be making a 1/3 down payment and borrowing the rest to pay off. A minuscule bike loan is almost like getting one of those small credit building loans to me with the added benefit of getting a new bike in the process

You cant get a loan without credit XD

I tried to get a loan from a credit union (which is much easier than a bank because they really do look at your entire financial standing) and they said they would be able to offer me a loan once my credit history reached 2years 6months. If you want to build up your credit, get a credit card from your bank and use it to buy gas and pay it off each month. I've been doing this for 2years 5months and my credit score is 731.

It takes time to build up your credit history and prove you are capable of paying back what you borrow.

[TXJ]

Originally Posted by Jiggles

You cant get a loan without credit XD

Depends on the loan. Small recreational loans are hard to get without a solid credit history. Banks and credit unions will take a chance with a low credit applicant for higher value loans. Mainly because the bank/union stands to make more if you default. My wife worked as a loan officer for some time. During the "first time home buyer" rebate, banks approved anyone who walked in the door and were willing to sign. Bad credit, low credit, new credit etc, sign the 80 page mortgage contract and you're approved at %3.5 - %4.5.

For small recreational loans it's a larger risk to the lender, so they're harder to get. You can have a extremely low debt to income ratio, a good beacon score and still be denied a loan for whatever reason they want to give you. Since in the lenders eyes, if you can't afford 5k for the recreational vehicle you may not be able to afford the loan payment and insurance payment monthly. Defaulting on a small loan like this brings little profit.

[Jiggles]

Originally Posted by TXJ

Depends on the loan. Small recreational loans are hard to get without a solid credit history. Banks and credit unions will take a chance with a low credit applicant for higher value loans. Mainly because the bank/union stands to make more if you default. My wife worked as a loan officer for some time. During the "first time home buyer" rebate, banks approved anyone who walked in the door and were willing to sign. Bad credit, low credit, new credit etc, sign the 80 page mortgage contract and you're approved at %3.5 - %4.5.

For small recreational loans it's a larger risk to the lender, so they're harder to get. You can have a extremely low debt to income ratio, a good beacon score and still be denied a loan for whatever reason they want to give you. Since in the lenders eyes, if you can't afford 5k for the recreational vehicle you may not be able to afford the loan payment and insurance payment monthly. Defaulting on a small loan like this brings little profit.

Maybe thats why they gave me a student loan but not a bike loan XD

[Mr.E]

^^ student loans are much more different. I get those too but through the government. For me, its based on income and taxes, rather then credit scores and what not. That of course going through fafsa which is a government loan for those who can't afford. I doubt credit score has anything to do with student loans if its not through a bank or credit union that is.

[Jiggles]

FAFSA denied me because of my parents income, even though they are not contributing to my educations financial cost. They will not even cosign my loans which made it a real bitch to find someone who would give me a student loan without a cosigner. Wellsfargo told me to screw off but a local credit union approved me for up to 25k each year.

[Xoulrath]

Originally Posted by pucktoplay1

Not sure if you were being sarcastic with the good luck but thanks.. Anyway I was already approved for the loan at a decent interest rate, but interest is not really too much of a problem on small loans. However if I do run into any problems my father has already agreed to co-sign as he realizes the importance of credit building and good credit as well.

Mike, I wasn't being sarcastic at all. Loans for toys in a good economy can be hard to get. In a bad economy, they can be impossible.

And I wish you and your father weren't right about needing a good credit score, but it becomes more true every day, unfortunately.

[Mr.E]

Originally Posted by Jiggles

FAFSA denied me because of my parents income, even though they are not contributing to my educations financial cost. They will not even cosign my loans which made it a real bitch to find someone who would give me a student loan without a cosigner. Wellsfargo told me to screw off but a local credit union approved me for up to 25k each year.

Whoops. That sucks. I was of course speaking strictly in terms of fafsa. The negitive thing about them is they do depend on parents. Are u dependent/living with them?

See if u went for school loans through a bank or credit union thennnnn credit scores will deff be a factor lol.

[Jiggles]

Originally Posted by Mr.E

Whoops. That sucks. I was of course speaking strictly in terms of fafsa. The negitive thing about them is they do depend on parents. Are u dependent/living with them?

See if u went for school loans through a bank or credit union thennnnn credit scores will deff be a factor lol.

I live with them but I claim myself on taxes so independent. However, FAFSA only see's you as independent if your parents are deceased, if your homeless, have a kid, someone else relies on you, etc. They would not let me register independent so they wouldn't give me a loan

[chalk]

don't buy a new bike, buy one 1 or 2 years old. Save the money on stealership fees and all that crap, save money on insurance because you'll be insuring the older bike for what a new bike is truly worth once you ride it off the lot. The key is to get your experience in man.
p.s. if you have older hobbies that you accumulated stuff with, sell that stuff, do what ever it takes to get into biking. get focused - avoid as much debt as you can.

[Mr.E]

I never knew that. I always thought if you wernt ur parents and you claimed ur own taxes that would make you a dependent... huh. Guess I need to start saving up for next year then x-(

[Xoulrath]

Originally Posted by Jiggles

I live with them(parents) but I claim myself on taxes so independent.

I hate to break this to you, but if you live with your parents, then you are not independent. Having your own job and money doesn't automatically make you independent. You rely on your parents for housing. Unless you pay them rent, they are providing something of value for you. And even if you pay them rent, I don't know how FAFSA would count that.

I am not trying to be rude to you or put you down. I am just letting you know that being 18+ and having a job and money doesn't automatically make you independent.

[Cuongism]

Under FAFSA rules though, no student is independent unless they're 24, on active duty, married, homeless, have a dependent or have deceased parents. It doesn't matter if you live on your own and provide everything by yourself unfortunately.

[kkim]

Originally Posted by Cuongism

Under FAFSA rules though, no student is independent unless they're 24, on active duty, married, homeless, have a dependent or have deceased parents. It doesn't matter if you live on your own and provide everything by yourself unfortunately.

this is true.

[Mr.E]

Sadly. I can see how its a good thing and yet a bad thin for it to be that way.

[Jiggles]

Originally Posted by Xoulrath

I hate to break this to you, but if you live with your parents, then you are not independent. Having your own job and money doesn't automatically make you independent. You rely on your parents for housing. Unless you pay them rent, they are providing something of value for you. And even if you pay them rent, I don't know how FAFSA would count that.

I am not trying to be rude to you or put you down. I am just letting you know that being 18+ and having a job and money doesn't automatically make you independent.

I was talking from a tax standpoint that I am independent. Now even if I was living on campus or renting an apartment/room FAFSA would still not allow me to claim independent and would still say I am dependent and would disqualify me from any student loans/grants.

Now from a realistic view I am 95% independent I'm not just 18+ and have a job. I pay for all my stuff, insurance, food, sundries/toiletries (w/e you call them) gas, clothes, school, bills. The only thing I am not paying is rent. But I'm sure I make up for that by doing nearly every chore around the house, laundry, dogs, lawn, pool, garbage, dishes, etc.

So yes I do think I am independent and I do think I am quite deserving of a federal loan. And notice I'm looking for a federal loan not a grant. I'm 100% willing to pay the money back. If it wasn't for the local credit union that approved my student loan, I wouldn't be able to go to school full time.