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what's up bitches
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okay, im reading around that it's a great time to be financing for a bike these days. Especially w/ the low interest rates. (at least for Kawasaki?) Well, my plan was to get a bike at the end of the summer, hopefully. I was hoping to buy a used Kawasaki 500r or 250EX ... in cash at the end of september at the latest. Cash, pretty much because i wouldn't be able to handle high interest payments and stuff like that when im not working too much during the school year. I'm pretty sure i can save up $2k for a used kawasaki by then. But, im your opinion, would you say it's better for me to buy a new one at $3k Out the Door price and finance right now when it's cheap? I called the kawasaki dealer and he said they don't have used bikes right now cause the finance rate is real cheap which is true. And a new 250ex will cost me $3k out the door. Probably bring it down to $2850 if im lucky. :D Anyway, i'm not too experienced with loans, financing and stuff like that cause hell, i'm only 18 right? So just wondering what my options here are. Either get a used bike at the end of summer when i have cash for about $2k. Or, get a new 250ex for $3k right now financed. I'll have about $1k more to pay but it'll be a new bike of my own, and being 18, ill be able to build my credit during that time. That's pretty much all the advantages i can think of.. of getting a new bike. So you oldies give me some advice eh? :) Jk

Also, i really don't know how to go about and calculate this, and i would never trust a dealer to "calculate" for me. So if i WERE To buy a $3k bike, how much would the monthly payments be at the low financing rates they're giving out now? My plan would be to keep it very low and pay it off when i get quick bursts of money (I.E. christmas and birthdays, bonuses, etc.)

Thanks for the help. i've been flooding the forums with questions lately but i assure you, it'll stop soon. :)
 

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Well first, will this be your first bike ever? have you ridden bikes before? if you havent ever ridden and will be learning how to clutch and everything wait for the used one, or find a cheap used one now. you will find it really sucks to drop your brand new bike a bunch of times while learning. If you have ridden before and dont have to learn right from the start, then if you can afford the new one go for it.
 

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You wont get a Ninja 250 for $3k out the door...if you do your lucky. Msrp on a 250 is the price they go UP from not down from. Ninja 250's sell like hot cakes and they make little to no money from them, so they don't have to go down in price. Supply and demand my friend. To answer your question though. Get a used one that is a year or two old and save yourself some cash. You need cash for gear $300-$1000 and cash for insurance $100-$1000 depending on how insured you want to be. www.ninja250.net is a good source for used 250's.
 

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what's up bitches
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Discussion Starter #4 (Edited)
jiffy said:
You wont get a Ninja 250 for $3k out the door...if you do your lucky. Msrp on a 250 is the price they go UP from not down from. Ninja 250's sell like hot cakes and they make little to no money from them, so they don't have to go down in price. Supply and demand my friend. To answer your question though. Get a used one that is a year or two old and save yourself some cash. You need cash for gear $300-$1000 and cash for insurance $100-$1000 depending on how insured you want to be. www.ninja250.net is a good source for used 250's.
Thanks for your input. Actually, i called my local kawasaki dealer and he told me a ninja would cost about $3k out the door.. and a 500r would be about 4-5k. I believe that ninja250's sell fast and supply and demand will bring up the price, but for some odd reason... where i live, there is very low demand for sportbikes i think. I live in orange county, socal and i see more harley riders and cruisers than sportbikes. The Cycle Trader shows barely any ninja250 (maybe 2), craigslist shows a much of gxxrs and cbr's but no ninja's. :( So i'm just guessing thats the reason for a low price on these? And, gear i'm thinking about $500 would get me decent gear. Insurance i was quoted about 600/year for ninja 250.

I'm just asking cause if i can get used, i would get used in an instant. BUT, i just can't find them!! i looked on ebay, craigslist, and local kawasaki dealers dont have used bikes. cycle trader shows nothing either. And because of the rarity of them (other than new), i can't find the ones i want... like the colors, or something that hasn't been dropped. I tell ya, it is EXTREMELY hard to find a decent newer ninja 250/500r with minimal damage and nice color,conditions, and mileage AND the price to all fit. I've tried ninja250.net but most of those bikes are out of state.. and if i were to ship them, they would be the exact same price as a new bike. LOL

So i guess i'm just asking the older people here to give me some financial advice rather than the choice of the bike. Would it be wise to get a new bike over used, considering the price, the fact that i would have to finance (even though i would be able to pay 70% of it in cash later on during the summer), and so forth? Thanks again.

EDIT:Oh yeah, never thought of this. but since im 18 without credit, can i even get financed?
 

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First off, you might want to check your credit rating. You might have not established a significant amount of credit yet to get the bike financed. Most likely, you might not be able to get it financed at their low rate. I'm not sure what some of the dealers look for when financing but the best thing to do is go into a dealer and act like you're buying and ask them to quote you for financing it.

Secondly, if you're considering buying a new bike that you're gonna sell in a year or two think again....For example, if you finance all $3000 at a 5% (did not actually do the math) and the total future value on your loan is something like $3500, you know have an extra cost of financing. Say you get it for $3500 (total amount of loan). <<< this does not include the dealer mark up which can be upwards of an additional $500. If you were to subtract $3500 - 2200, you've already lossed over $1000. On almost any vehicle you will lose money.

Third, consider the extra expenses. Say you do save up $1000 for the bike...you're gonna spend at least $500 in gear and accessories (helmet, jacket, gloves, pants, boots, bike cover, tankbag, parts, mods)

Fourth, if you're college and I am as well financing anything is the worse thing you can do. Think about it long term if you mess this up you're gonna mess up you're credit in the future. I know from being in college for the past 3 years to expect the unexpected. You might need some money for spring break, a plane ticket, paying court fees, parties, and possibly tuition. If you dont have a steady income financing does not work to your advantage at all because it is a scheduled payment on debt you have incurred by buying the bike. If you can't pay it, its theirs again. This is most important in college. At times you will need to save for up to 2 - 3 months payments. Chances are the bike might not even be paid off by the time you're ready to sell it.

Fourth, buying a bike is a learning experience, so you want to get the most out of that education. With a new bike you might not be inclined to take it apart or it might break your heart too much when it gets dropped. Trust me, I dont abuse my bike but I expect that thing to drop every now and then, if it didnt the world wouldn't be right. There's also maintenance that is involved. If anything major happens with your bike think about the expense to repair it (tires, battery, plastics)


Fifth, good things come truly to those who wait. If you're a business major you'll know this quote: "The best part about it, I'm liquid" Thats what you want to be. You wont to pay straight cash money for things.
 

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Man i've taken out 2 bike loans while in college, and still in college and i never had a problem making payments. But i will say you do have to consider you do have a monthly payment looming overhead. When i'vebought the bikes ive known that if rough times come i can sell the bike and break even One being a 00f4 in 01 and 02 954 in 03
 

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what's up bitches
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Discussion Starter #7
Thanks for the help! I have decided to go with a used bike. Hopefully if i can find one. If not, im going to wait and save up some money and see how much i can downpay.
 

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what R you lookin' at?
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first bike

buy small, buy used, buy cash
 

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Go to the bank and get a "note."

When I went to get a loan to buy a used bike, the bank (who's president it luckily my g/f's dad), recommended I do this. It's a loan, but you get a FIXED interest rate. That way, you are only required to pay the interest each month, and you are free to pay off the principal WIHTOUT penalty at will.

So, if your credit score is not established/low, this might be a good option for you. You might get raped by a high rate, but if you can pay off the principal in under a year, more power to you. You'd be surprised what your credit score is. I just graduated from school three week ago, and the only things I've ever payed to help establish credit is my cell phone bill for the last 7 year, and I've been paying $50/mo. on my SallieMae loan for school. Hell, I'm even currently turned into a collection agency, and my credit score was 734. Anything over 700, and I can garuntee that you can get a loan for anything, even a mortgage if you so wish.

Good luck.

Explore your options.
 

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I would say get a used bike too.

Bought a brand spanking new ex500 a while ago and didn't have anything left for jacket, gloves or boots.

But I did have a helmet :D
 

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My first bike was a ninja 250 that I paid 1000 bucks for...sure it didn't look that great but I turned around and sold for what I paid after I was finished with it.
 

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d.kerg said:
I just graduated from school three week ago, and the only things I've ever payed to help establish credit is my cell phone bill for the last 7 year, and I've been paying $50/mo. on my SallieMae loan for school. Hell, I'm even currently turned into a collection agency, and my credit score was 734. Anything over 700, and I can garuntee that you can get a loan for anything, even a mortgage if you so wish.

Good luck.

Explore your options.
Agreed. My score is currently 706 and I just got approved for any house under 140,000. The only payments I can think of that are re-occuring is World of Warcraft. That and I use my bank card as credit all the time, never use cash any more. Although I'm not sure if that actually builds up credit, can anyone clarify on that?
 

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what's up bitches
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Discussion Starter #13 (Edited)
d.kerg said:
Go to the bank and get a "note."

When I went to get a loan to buy a used bike, the bank (who's president it luckily my g/f's dad), recommended I do this. It's a loan, but you get a FIXED interest rate. That way, you are only required to pay the interest each month, and you are free to pay off the principal WIHTOUT penalty at will.

So, if your credit score is not established/low, this might be a good option for you. You might get raped by a high rate, but if you can pay off the principal in under a year, more power to you. You'd be surprised what your credit score is. I just graduated from school three week ago, and the only things I've ever payed to help establish credit is my cell phone bill for the last 7 year, and I've been paying $50/mo. on my SallieMae loan for school. Hell, I'm even currently turned into a collection agency, and my credit score was 734. Anything over 700, and I can garuntee that you can get a loan for anything, even a mortgage if you so wish.

Good luck.

Explore your options.
Wow nice.. you got great credit. So you're saying if i want to get a used bike (and i don't have the cash to pay it all).. i should go to the bank and get something called a "note" right? I only need about $1500 if the bike were to cost $2k. My dad would help me make payments IF something were to go terribly wrong AKA lose job. But so far everything's great. And you're saying if you get the "note", you just pay the interest every month until you can pay the actual price of the loan whereevr you want? (Obviously not great if you take long cause of the interest rate) But that sounds doable. How much do you think id be looking at a month for the interest if i were to take this option on a $1500 loan. I'm definetely sure i can get $500. I was thinking of just dividing up the payments.. pay gear in full, pay 1/2 of insurance in cash (for the year), and pay about $1500 for the bike.

yeah i would like to build credit and i'm thinking of a used bike. Like others have mentioned, no money for jacket and gloves. haha
 

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Go to a bank or credit union for the loan. The $39 payment thing through dealers is a credit card, and if your a week late once they will jack the interest to 20% or so.. I have heard many horror stories.

I went to my credit union and got 4.09% fixed. It is the way to go.
 

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Hey.. be careful about some of the dealer supplied financing.. Most of the ones that say "$80 / month" are a giant rip off. You are only paying the intrest for the first couple years. Then your payment goes up to $300+, and you have a two year old bike, and you owe the exact same as when you bought it. They almost talked my wife into it when she bought her F4i.
 

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what's up bitches
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Discussion Starter #16
I just went to a kawasaki dealer to check it out. They said the payment for the first two years would be $45/month and then 2.5% of the balance after 2 years. (I thinkit was 2.5%.. i forgot). But anyway, the $45 is only the interest, but i would be able to pay the principle off anytime i want. BUT if it IS thru credit card like pesticide posted, i would definetely not want to do that.

So going to a credit union and getting a fixed rate won't jack up my prices if i'm late on a payment or anything like that right? Once again, i have no credit so ill probably get declined for a loan right? ( i can probably get a co-sign though)
 

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But with a bank loan don't you have to get full coverage??
 

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what's up bitches
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Discussion Starter #18 (Edited)
zx6r said:
But with a bank loan don't you have to get full coverage??
If by full coverage you mean Comprehensive and Collision, that's no problem cause i will be insuring my bike with those two options.

Man what a headache! ... still don't know too much of my options.

I also went to Bank of America and they said they dont do motorcycle loans anymore. So i guess im looking at Credit unions?... Another problem i ran into, is that credit unions, such as Capital one have a MINIMUM loan amount for $7500, which makes it even HARDER for me to get approved and also the payments as well..All i need is about $1500! maybe i should just go with the kawasaki dealer program and work to get the principle paid off before the 1st 2 years so i don't get raped by that "jacking up" of interest.
 

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First Bike... Small, Used, Cash...

I really liked that advice. Especially if you agree with the fact that you are buying your 'first' bike, not your 'last'. It isn't going to stay around very long most times.
 
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