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Here's the question: How do you prefer to pay for your new bike? Do you prefer to pay cash or finance your bike? If you financed your bike, did you go to an outside lender or did you finance through the bike manufacturer? Would you do everything the same way on your next bike? What advice would you give a newbie looking to purchase his first bike?
 

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I am being honest here.

If I buy new again...
No Matter what, and I mean No Matter what, I will never take a loan out for over 3 years(other than mortgage) again. Whether it is a car, truck, bike etc...

Me myself, I probably will never buy new again. It is in no way worth it. I am buying my next bike from ebay(which will hopefully be soon).

So you want that new 600RR.... sweet ride.:thumb:
 

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My first bike was a Ninja 250. I bought it new and paid cash for a few reasons:

1. I had no idea what to look for in a used bike.

2. Nobody would let me test drive a used bike because I had no experience. (I know, I did it backwards and bought the bike a couple weeks before I took the MSF course.) :p

3. The bike was a leftover 2001 so I got it cheap.

4. There were no used 250's for sale in my area except a 1996 that some dealer wanted $2200 for. :eek:


My current bike, 99 F4, I bought used, with cash, for the same reason that I always buy my cars used. The same reasons that duessel mentioned. IT IS NOT WORTH IT. You can pay $8,000 for a new 600 and the second you sign the paperwork it becomes a used bike and loses 10%-20% of its value. :eek:

I would not take ANY loan out for a bike. I don't believe in getting loans for toys. And in the Midwest, a bike IS a toy, not your primary means of transportation.

Sure, I would like to have the latest and greatest, but it just is not worth the money you lose.
 

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slaintedan said:
Here's the question: How do you prefer to pay for your new bike? Do you prefer to pay cash or finance your bike? If you financed your bike, did you go to an outside lender or did you finance through the bike manufacturer? Would you do everything the same way on your next bike? What advice would you give a newbie looking to purchase his first bike?
if you got the cash use cash if you dont then finance, but beware of INTEREST!!!!!:finger: it will hurt in the long run if your interest rate is high, so if your going to finace go for the shortest loan time/years that you can afford and look for low interest rates :D hope this helps
 

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Money is so cheap nowadays, that I would use the dealer incentive financing till it runs out, then transfer the balance to a low teaser credit card, and keep revolving until I pay it off (all the while making higher than minimum payments). :twofinger
 

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Cash will usually be the least expensive. A loan from the dealer will probably be the most expensive. A loan from the manufacturer, OTOH, can be inexpensive. Honda, for example, is currently offering low rates on sportbikes. It's important to understand the difference. On a dealer loan, they're basically reselling--and marking up--financing provided by an outside lender. But if the manufacturer is providing the financing, I don't thing the dealer has an opportunity to mark it up.

Interest is, in general, not tax-deductible. But there are some special cases where it is, and that may give you the opportunity to let Uncle Sam help you buy a bike. Mortgage interest on your house and margin interest on a brokerage account may be tax-deductible. So a second mortgage or margin loan may be the least expensive way to borrow. But see an accountant (I'm not one) before you take out that kind of loan .
 

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If you have the cash, then that would be the most econmical
way of buying a bike; however, money does not grow on
trees (at least not for me). I have mine financed through
People First and got a rate of 6.75%. I would absolutely
stay away from the dealer brand financing if I were you.
Yamaha, Honda, or whatever the brand have good deals
until you look into it. Yeah, 17.9% after the intro is done
which may be only six months or so. It's a credit card from
the bike maker. Unless you could get if refinanced at a much
lower rate it might be worth it. I would only go 36 months
for a loan though. LIke I say People First have good terms
and rates if you want to finance. Good Luck. ;)
 

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I recommend paying cash, especially for the newbs. For most folks, a bike is a toy. I don't see any reason for folks to get creative in financing to get a toy they can't afford in the first place. I hate hearing about a younger guy paying $200 or more a month in a payment then another $200 on insurance to ride an R6 less than 4000 miles a year.
 

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I just bought a 2003 R6.. Financed it through Yamaha.. 6 months 0 down 0 interest 0 payments. Am I going to do that? no. It will be paid off in 6 months. I put money down, and I'll make payments for 6 months. Basically cash, but without the advantage of being able to talk them down a few Benjamin Franklins. Was it worth it? Who knows? I'm young. The bike starts up effortlessly in the morning and revs at a smooth 1000-1200 to warm up. I have the peace of mind of a 4 year unlimited mile warranty (after I buy the extended warranty), and peace of mind that it hasn't been beaten or abused.

Later
 

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as mentioned, financing is cheap right now. i would never finance through a dealer, their rates are usually too high. personally, i financed. money was and still is too cheap not to. if you have a balance on your credit card and you're paying cash for a motorcycle, you're misdirecting your funds. my credit union gave me like 6.5% or so (sounds high today, but this was 2000).
 

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FZR400Tony said:
my credit union gave me like 6.5% or so (sounds high today, but this was 2000).
Yeah, wanna know what I am paying right now in interest rates......13.9%:eek: :eek: :eek:

All because I can not refinance the bike right now. :finger:
 

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yeah, the lowest rate the dealer had was like 14.99 from suzuki and 18 or 19 from a bank they deal with. but my credit union gave me the spring special car rate. but in the days when 3.9% is high on a car....
 

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Financing a bike

The big hit is the insurance and if you finance you need full coverage. I see it a lot. Brand new bikes for sale because someone brought one home and then found out the insurance would be $1,500 or more a year. That adds a lot to the annual expense.

Home equity loans are a great way to finance. Mine is about 3.5% right now. Many use the London prime which is even lower. So, cash is the way to go unless you can use a home equity loan which doesn't require coverage of the bike.

Read that part again. Home equity loans don't require full insurance on your bike!!!
 

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Personally I've bought all three bikes I've had brand new. With new bikes you know how they are being broken in, that their maintenance is kept up, etc. I guess I just don't trust people enough to buy used. Usually if someone is selling something there is a reason (something wrong). If I were more mechanically inclined though, I might lean more towards a used bike as minor repairs would be no big deal to do myself and I'd love to let someone else take that initial depreciation hit!

That being said, I've financed all of the bikes also. I set them up for the longest term in order to get the lowest payment amount. I did this for a few reasons. First off just in case something happens that I get laid off or something, I have low enough payments to be able to make them. Secondly, I never had any intention of paying the minimum, usually it was 2 to 3 times the minimum. Doing that you end up getting ahead on payments and everything you send goes to the principle anyway, so the interst rate doesn't mean anything whether it be high or low. The other reason I do this is because it looks really good on your credit report if you take a 5 year loan and pay it off in 2 or 3 years and show regular payments.

I could be wrong in my thinking, but it's worked well so far. Plus there is nothing like pulling away from the dealer on a brand spankin' new bike!:thumb:
 

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Re: Financing a bike

Smoke Eater said:
The big hit is the insurance and if you finance you need full coverage. I see it a lot. Brand new bikes for sale because someone brought one home and then found out the insurance would be $1,500 or more a year. That adds a lot to the annual expense.

Home equity loans are a great way to finance. Mine is about 3.5% right now. Many use the London prime which is even lower. So, cash is the way to go unless you can use a home equity loan which doesn't require coverage of the bike.

Read that part again. Home equity loans don't require full insurance on your bike!!!
the downside to doing this is if your bike gets stolen. depending on your area and bike, you can easily be risking never seeing your scooter again. that's why my old bike had full coverage even though it was paid off for years.

honestly, i've thought about getting theft on my racebike. but then again, my insurance is CHEAP.
 

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spicersh said:
I could be wrong in my thinking, but it's worked well so far. Plus there is nothing like pulling away from the dealer on a brand spankin' new bike!:thumb:
I agree with your way of thinking.
 

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I just bought a new bike, $5000 down, $5000 fiananced at 9.9%. The financing is for 3 years, however its open ended, so I'll be paying it off early. I bought my first bike (the learner) last summer used, and have sold it to close to what I paid for originally. I was told dealers actually like you to finance, it gives them a little kickback.

I would buy new, as others have said just because you know it hasn't been abused and there is a warranty. The depreciation of bikes doesn't seem to be all that much, and you can buy last years model for a couple grand off of what you'd normally pay.
 

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EL_Fudge said:
I just bought a new bike, $5000 down, $5000 fiananced at 9.9%. The financing is for 3 years, however its open ended, so I'll be paying it off early.
Please tell me you are kidding? :eek:

No offense, but you paid $10,000 for a F4i? :eek:

Are bikes more expensive in Canada?
 
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