financing

thorracer11 · 06-07-2008, 11:48 PM

I am getting ready to purchase my first bike. They said I would probably need a cosigner. It would be a used bike around 5-7 grand. I was wondering If my friend would have good enough credit to cosign, he was able to get a $5,000 loan bout a year ago for a car, think that is sufficent? I think it would mean he could cosign. Thanks

BuiltGypsy · 06-07-2008, 11:53 PM

Cosigning is a dangerous game few people get into for damned good reasons. If you mess up on payments it falls on them and they turn around and fall on you. Hard. It would be better, perhaps, for both your friendship and potential future financial security to wait until you could pay cash for the bike.

soccerpimp09 · 06-08-2008, 12:35 AM

5-7 Grand for a used first bike? must be a new GS500?

Financing any bike is a dangerous game - since it only takes one mistake to eat away all your resale value - then you are in debt more than its worth - and what if you are hurt too bad to work and make payments? -

Financing a starter bike = bad idea.. since that is the time you are most likely to drop it from a newb mistake...

AND spending 5g's on a starter isnt that smart even paying cash - since you are more likely to mess it up - 5g's can buy a few decent starter bikes... lol as in.. 2 ninja 250's - with ease..

why not save up what you would be spending in payments - find a used 250 for like 2 grand.. save yourself a big potential loss...

RayOSV · 06-08-2008, 03:50 AM

^^ +1 to what these guys are saying. Listen to them.

thorracer11 · 06-08-2008, 08:05 AM

well appreciate the advice. But could someone answer my question, just wondering.

Hound · 06-08-2008, 08:12 AM

It depends on your credit and your friends credit. Motorcycles are considered luxury items and have a different chart when credit is decided upon. However, most of the motorcycle manufactures have come up with a solution to auto loans, and that is personal credit cards that they put the bike on.

You can do this yourself if your credit is good enough and get a lower rate. It is more sensible. However, I am sure the dealership will do everything they can to assist you in getting the bike. However, because you are asking these questions know that you are a prime target to be bent over and raped cheerfully by the dealership and the loan/credit company for this bike and as a finical decision, it is a very poor on.

BuiltGypsy · 06-08-2008, 09:20 AM

The problem with getting a credit card as your financing tool for a bike means you're using a credit card to pay for a bike. Also, the most prolific credit card financing plan in the motorcycle purchasing, at least that I'm aware of, is HSBC and they have a very spotty history with their customers (a few years ago they lost a $500 million lawsuit because of this). Also, if you miss a single payment your interest rate can shoot up to the maximum -usually somewhere in the neighborhood of 30-35%- and suddenly you're paying double what the bike actually costs just because of the interest.

Cosigning is, in all seriousness, something you shouldn't even consider. If you wind up losing a job, or something unforeseeable happens, you could wind up screwing your friend over financially for some time. It's a selfish thing to do to even put your friend in that position to begin with.

Keyboard Ninja · 06-08-2008, 09:46 AM

This guy doesn't care about what "could" happen apparently.

You and your friend should go to the dealership and just try. The worse they can say is no, but with a decent down payment I'm sure anything is possible.

soccerpimp09 · 06-08-2008, 11:08 AM

Great... another one of those "yea ok.. cool advice.. dont care.. gonna do what i want" guys... urg...

RayOSV · 06-08-2008, 11:08 AM

Used bike loans will have an even higher interest rate than new bike loans. If you need a cosigner and the cosigner doesn't have great credit, your rate will absolutely suck. I'm sure you could find some way and the dealer will "help" all they can, but it just isn't a good idea.

thorracer11 · 06-08-2008, 11:20 AM

thanks for the advice. I will take it and use and get a used 250 where I could pay with cash. Don't be so quick to judge. There are some smart people that take advice. I was just curious and wanted to know. Nothing wrong with that is there.

636blurr · 06-08-2008, 12:05 PM

save up your money untell you can pay cash for the bike you want.

BuiltGypsy · 06-08-2008, 12:09 PM

Quote:

Originally Posted by 636blurr

save up your money untell you can pay cash for the bike you want.

This should be true if the bike you want costs $2,000 or $12,000. The only thing I'm ever paying interest on again is a home loan, to hell with financing.

636blurr · 06-08-2008, 12:29 PM

Quote:

Originally Posted by BuiltGypsy

This should be true if the bike you want costs $2,000 or $12,000. The only thing I'm ever paying interest on again is a home loan, to hell with financing.

Unfortunatly with the buisness I have more debt than I would like, I have all my equipment paid for (not bad three semis sitting around debt free woo hoo). but have my pickup truck payment and a few house payments still, but IM whittling away and determined to be done with it.

soccerpimp09 · 06-08-2008, 12:49 PM

I like to stay debt free - at my age - its not a time to be way in debt... start debt free... - got a car and a bike -paid cash- - i'll finance a house.. nothing more...