financing prices plus more?

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#1
Well I'm ready for a new bike, I'm selling my cr and getting a 2002 125. I figure I will have about $2000-$2500 down and the rest I will need to finance. What is the cheapest most dealers will go per month and about how much a month would it take to get it paid off in 2 years? What about stuff like Yamaha's credit card thing and all those special financing things? Also what is an estimate on a '98 cr125 that has about 1 1/2 seasons on it. renthal handle bars,fmf pipe silencer, new tires, new top-end, new plastic, new air filter, polished frame,new chain and sprocket,very recently pro-action serviced the suspension,replaced bushings and springs. Would they offer me like $1000 or like $2000? I really don't think I will be able to sell my bike.
 

justql

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#2
A dealer will not gie you as much for your bike as you can get for it yourself. Even with that said you shouldn't have to finance much if you trade yours in and have $2000 trade.
 
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#3
The $2000-2500 was the money from my bike I have now, so I would have to finance like half of it. And I know the dealer will rip me off but if I can't sell my bike by spodefest and im getting desperate I might have to resort to that. Just spend over $1000 to rebuild the thing and am going to turn around and sell it for less than the amout I bought it for before I rebuilt it :( im so sad. $1000 for 3 rides
 
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AlynB

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#4
MooCow,

I'm not sure what the prices are on new 125's, but I assume you will be financing about $2500-3000. Interest and financing charges should run about $500-600 above this. Payments on this will run from $125-150/mo. , depending on how much you borrow. That's for two years. Most banks will finance bikes for up to three years. Bank interest rates run about 10 1/2 to 11 percent. I believe the Yamaha credit is quite a bit higher, but for two years, the difference in cost and payments will be minimal. Also, if you finance through a dealer, it saves a trip to the bank.

As far as your bike goes, you will probably come out better if you can sell it.
I have no idea what a dealer might offer, but if you only expect to get $1000-2000 for it , I would definitely sell. This may take more time, but it's worth it.

You can figure your payments more accurately on the Cycle Trader web site.

Hope this helps. Good luck.
 
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#5
Well those answers are about what I excpected so thats good, I guess. Well a new 125 runs about $5000 so how much can I expect out the door? Also when I go and talk about prices what should I do? Should I try and get him to go lower, get him to throw stuff in or what? Thanks
 

AlynB

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#6
You should be able to talk them down a little on the price. At least get them to drop things like paperwork fees, destination charges, etc. Agree on a price verbally, then check the paperwork to be sure nothing was slipped in.

You can also see what you can get them to throw in "at cost", that is their cost. Things like aftermarket parts, helmet, hand guards, etc. I've done this several times. They're usually willing to deal this way.

If you don't like the deal they offer, just walk out. I'm sure there is more than one dealer in you're area.
 

biglou

#7
Moo-I don't know if you can get a rate close to this, but my bank (a small town bank) has secured loan rates of 8.9%. Unsecured rate is 14%. "Secured" means that the bank will want to know exactly what you are going to do with the loan money. "Unsecured" means they won't have to know, but you will be paying a higher interest rate. If you get a secured loan for the bike you will have to register it and have it insured. The bank will be on the title as a lien holder. That way if it is stolen or destroyed, the bank will get their money back for the balance of what is owed on it, since they will have a lien on it. The remainder of the payoff would go to you. Keep that in mind. For me, the insurance amount is minimal. But it varies quite a bit from area to area.
There will more than likely be a "small" charge just for the bank to write the loan, roughly $50 or so. And once you register it, you will have to pay sales tax (in Missouri, you only pay for the "Trade difference". IE: you sell your bike for $2000 and buy a $5000 bike, you only owe sales tax on the difference of $3000. That may or may not be true for your state.) And you will be responsible for paying a yearly "Property Tax", which should be minimal. When that is paid also varies from state to state.
My guess is that you will need about $500-600 on top of what you are buying the bike for to get rolling. Most banks will add that amount to the loan, especially if you are buying new. They will generally loan up to 90-95% of the value of the bike/car/whatever. Keep in mind that this will raise your payments over just financing the cost of the bike. For two years it should raise it around $25-30 a month.
Is your dad willing to cosign for you? This is a good way to build credit for yourself and also to take advantage of your dad's (hopefully) good credit rating. Once it's paid off, you will have that as a reference for the future, when you may want to finance another bike, or a car, etc.
When you are first starting out, there will always be some expense that you had no idea about. Your dad should be able to lay everything out for you and give you a pretty good guess as to what the costs are. And shop around at different dealers to get your best price. Good luck!:)
 
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#8
Well of course nothing can go right for ol' moo, something always has to screw up. My dad co-signed for his step son for a truck. My half- brother decided to not pay the last $150 of the truck off. My dad didn't find this out for 6 months...My dads perfect credit is now dead :( We were suppose to get a new truck and found this out right before we were going to get one. My dad said I shouldn't have a problem getting the money for a new bike but I worry about it. Also kellys blue book says the trade in value for my '98 cr125 is like $2450...Is kellys always high or what?
 

AlynB

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#9
I had figured the $500-600 extra into the payment. Sometimes the bank will waive the insurance, but if not, be sure to buy your own. If the bank provides it, the cost is outrageous.

Your dads credit is probably not ruined, he could probably still cosign. If not, you should'nt have a problem getting a secured loan.

I'm not sure about the book values, they are generally high for my area, but maybe not for yours.
 

biglou

#10
Sorry to hear about the credit thing. A shop should give you exactly what the Kelly Blue Book or the NADA book says is the trade-in value for your bike. If not, go to another shop. That is providing, of course, that the bike is well maintained and in good shape. Having it as clean as possible doesn't hurt, either.
If you have a bank account somewhere, they should be willing to give you a loan. A bank will most always be a better choice than a dealer finance as far as interest rates go. That's why I chose to go with my little, one-branch bank. When I call them, a real live person answers the phone, not some computerized machine.
If you finance through the dealer, tell them that you would like $500-600 cash for your bike and to put the rest of its value down on the new one. This will give you the money to take care of all the registering and insurance costs. Just keep in mind that this will increase the amount that you will have to finance. The dealer may also be able to add the sales tax in with the finance amount. Bottom line is, it will be less cash money you will have to have up front, but it will be more that you will have to finance. Before you sign any loan papers, either from your bank or from the dealer, you should know almost exactly what your monthly payment will be.
Once it's all said and done, you'll have your payment book and you will know exactly what you need to pay each month and you will get into a routine. Just don't forget the anual expenses that will come up such as property tax and insurance. You'll have to budget for those so you are prepared to pay them.
This is a great way to build credit for yourself, but don't let it go sour or it can haunt you for quite a while. Educate yourself, make sure you are well informed before you make any decisions and this will be a great learning experience for you. And of course, there is the thrill of owning that brand new bike! :cool: Trust me, you never get over that no matter what your age!:D
 

justql

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#11
I do not think the bank will loan a minor money without a parent cosigning.:(
 

biglou

#13
A couple more things:

1) AlynB is right that if your lender provides the insurance, it will be outrageous. Whoever you borrow the money from is going to require that you have the bike insured. If the bike is lost, for whatever reason, you are definitely not going to want to pay the balance of the loan off for it. This is how the lender guarantees he will get his money back. Plus, if you have it paid off, and it gets stolen/destroyed the next day, you are definitely going to want something for it, right?

2) Trading in isn't always a bad idea for several reasons. The buyer may have HIS financing for your bike fall through. He may not be able to come up with the money for any number of reasons. Also, you don't have to mess with answering phone calls, giving directions, waiting for people to show up, etc. You may only be getting $100-300 more than the dealer will give you. You have to decide if your time is worth MAYBE getting that much more.

3) If you sell to an individual, find out for sure what kind of receipt will be required so that you only have to pay tax on the difference in price between your old bike and your new one. This could save you a couple hundred dollars. You don't want to show up at the license bureau without what THEY want as proof of sale.

4) For a trade-in, all that aftermarket stuff is worth zilch. If you have any stock parts laying around, put them back on and sell your aftermarket stuff individually. This will give you a little more cash in your pocket to do with whatever needs to be done. There will always be something to buy to upgrade or personalize your new ride.

5) Your cosigner doesn't have to be a family member, but you will have a great responsibility to that person, family member or not. If you are late on a payment or default on that loan, it will go against both of your credit ratings. That's a terrible thing to do to a friend!

6) Yes, if there's a will, there's a way! Play smart and you'll figure something out. Don't be afraid to ask around. Ask the shops, ask your bank and other banks. All of these places have plenty of experience dealing with these exact situations. They should be able to tell you what your options are.
Again, good luck.:)

OK-That's everything I can think of. Sorry for being so long-winded!
 
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#14
I'll add a few ideas too...


Here's my recommended plan:

1. First things first: sell the bike! It has been my experience that you will save a SIGNIFICANT dollar by selling it yourself. I have been insulted any time I asked a dealer how much he would give me for a bike. Be patient and sell it privately...you'll be glad that you did!

2. If you can clean the heck out if it and not ride it anymore this is ideal, but may not be practical.

3. Start out on the high side with the price, most buyers feel better about the deal if they talk you down a hundred or three. Let them.

4. Advertise! This is the key! Newspapers, grocery store bulliten boards, bike shops, word of mouth. Also, you could take it to a local race and put a sign on it...I have had good results this way.

5. If you don't sell it by spode fest time, ride it!


On dealing on a new bike:

1. Regardless of your actual intentions, pretend like you AREN'T comitted to a certain brand or deal. Once they know you are hooked, the dealing stops!

2. Always talk bottom line, out the door price. They have a calculator, let them figure this out. If they hesitate to work it this way, they don't deserve your business.

3. Go to several dealers and get them to compete with each other, even if you don't want a Suzuki (for example). (concerned look on your face)"gosh, I don't know, I read in a magazine that these weren't as fast as the Hondazukis"...etc

4. Decide what you are willing to spend and stay within this guideline.

5. Dealer financing isn't a good deal, avoid it if you can. There's already been enough on this.

6. If the price is close on the bike you want, try to get them to throw in parts. Not grips and stickers, either...we're talking tires, o-ring chains, etc. They will hesitate, but just like any other negotiation, the middle ground may end up being a good deal for you. Remember, they only pay dealer cost for these parts.

7. Getting a little bit ahead of the game here, but when you get that new bike, I recommend a very thorough inspection before even starting it, I usually take about half the bike apart while it's still factory-clean, check everything, loctite, lube, etc. I have yet to buy a new bike that doesn't have a loose bolt somewhere, a dry air filter or bearing, etc.
 

Danman

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#15
There are some realy good tips posted here. On the financing. Finance as little as possible. If they want to do it through some type of credit card find out what the rate is. Also plug all the numbers into an amortization chart. There are several on the internet. Just do a search. Most will be for morgages, but they will tell fairly close to what your payment will be. As stated above if they won't deal leave and find someone who will. If you choose a model that is new and in demand that deal will not be as sweet. Just be persistant.