financing prices plus more?

[Patman]

Moo looking at the numbers you are potentially leaving $1,000 on the table between KBB trade-in and retail values. That may no seem like a big deal but if you finance it for 24 months it's a good $45 off EACH payment. Most dealerships feed off peoples instant gratification desires which means it's pretty easy for them to convince you your bike isn't worth that much THEN the next guy is convinced your old bike is a great piece woth more than they are asking. Don't get me wrong not all dealerships are this way but it IS more often the rule than the exception. Another possibility you should consider besides selling your bike outright is to purchase a new model bike used. There are a lot of folks that THINK they are going to ride only to turn around and sell a 1 year old bike with almost no hours on it for cheap. What's the difference between a almost new '01 CR125 from a private party and a '02 CR125 from a dealer? You might be suprised.

Bottom line, don't just jump in. Take your time, look at all your options, weigh them then decide what is best for your situation.

 

[zio]

Ditto what someone above said about the ammortization table. I have one that is all dog-eared and held together with tape. Well used. It has come in handy when buying anything that will be financed. I actually don't need it anymore, I have most rates memorized (I think 8%, at 48 months costs $24.88 per thousand borrowed).

Knowledge is key when it comes to buying from dealers. When I walk into a dealership (lately, been buying a few used cars) and say to them "this is how much I want to spend, and I know that to finance it will cost exactly $X dollars per month for X months, show me what you can do", there's no bartering going on back and forth. If they try and convince me to spend more than that, out the door I walk. I hate slimey dealers who try and sweet talk me into a sale. It's really hard to be tough, but you have to. That's why I like to tell them up front how much money I want to spend, and that I'm very firm on that. Then they can decide if my business is worth it to them.

Second- be very careful about what type of financing you do. Although those revolving credit type deals may offer a lower interest rate, watch out. If you miss ONE payment, you're screwed. The rates shoot up, you get hit with big late fees, and for the rest of your life you end up making payments and never put a dent in the balance. If I were you, I'd opt for the regular, traditional fixed-payment plan. Even if the interest rate is a bit higher (say 9.9% instead of 7.9), the difference over a few years won't be as big as if you were short on cash once and missed a payment. That's what the "Rav Charger" deal is with Honda- a credit card, not a traditional fixed loan. BTW- when I bought my CR, financed through Honda, I didn't have to get insurance.

Finally- and this is the hardest lesson of all- be patient. You have all the time in the world. Just like "You Know Who" always shows us that His time is what matters, not yours. You'll always learn long after the fact that you could have waited. And it usually hurts. One more thing- my Father owns the cattle on a thousand hills. Keep that in perspective.

And good luck!!! I envy the heck out of you for being able to buy a new bike.

 

[MoO_coW]

Don't envy me for anything, Im getting a bike instead of a car at the age of 16 :scream: :eek: :confused: So if I go through the bank I have to get insurance on my bike???

 

[zio]

It's just as well- I wrecked my first car within 6 months of owning it. So did most of my friends. At least with your dirtbike, you'll appreciate it!

And, if you're looking for input- I'd say stick with what you know- buy a CR. Or the kTm. Who knows. Visit the dealers, sit on each one, buy the one that gives you the biggest goose bumps. Or pick your favorite color. Or go for the most well built/durable. Or most popular. Or least popular. Here's the method that gets my vote- pick a brand name out of a hat. How cool would that be to mess with people's heads everytime they ask why you bought the CR/KTM/KX/RM/YZ.

 

[Patman]

So if I go through the bank I have to get insurance on my bike???

Something you SHOULD check on BEFORE getting all wrapped up in the process Moo. Think of it this way. If you were going to lend a 16 year old $3K for a dirt bike would YOU want some security on the item? Example: Oh it fell out of the back of my friends truck and got run over by a 18 wheeler carrying 70,000 pounds of steel so I can't ride it why should I pay for it? OR Somebody stole if from in front of my friends house and I don't have it any more why should I pay for it?

If your getting a secured loan (i.e. lower rate) you can bet the bank will want the item covered. Sure Progressive should cover it but like most things related to 16-20 year old is will cost you.

Sorry man, not tryin' to bring you down but I figure it's beeter to know sooner rather than get blown out of the water later. I've been there.

 

[MoO_coW]

How much more is a unsecured loan?

 

[Patman]

Moo you NEED to clue in here bud. I doubt anyone here can answer this type of question with a solid "this applies to Moo" answer. Here is what YOU need to do.

1. Get the phone book and find "Banks" in the yellow pages.
2. Call a couple of them ask to speak to a loan officer.
3. Ask the following questions:
- Can I obtain a loan for a 2002 CR125 (or other name) through your bank?
-What are the various options available to me as far a loan types?
-Will insurance on the bike be a condition of the loan?
-What portion of the value will the bank finance?

There is your homework. Get these questions answered and THEN go shopping.

 

[MoO_coW]

Well no one is going to give me a 16 year old boy working part time a loan for thousands of dollars, I already know that.

 

[WoodsRider]

Originally posted by MoO_coW
Well no one is going to give me a 16 year old boy working part time a loan for thousands of dollars, I already know that.

Who told you this? When I was your age I had my first car loan for $1,500, co-signed by my parents, and three credit cards (The Bon, JC Penney and MasterCard). My only source of income was a paper route, considered self-employment in those days since I had to collect the money from my customers. The problem is too many people use credit to buy stuff they don't need or can't afford. I only use a credit card if I have the money to pay it off. They are easier to carry than cash or a checkbook.

You've been given some excellent advice in this thread, especially by Patman. Everyone will eventually develop a credit history. The earlier you start, and the more responsible you are, the easier it will be to obtain credit in the future. Just watch out for gimmick loans and bogus interest rates.

 

[Patman]

Well no one is going to give me a 16 year old boy working part time a loan for thousands of dollars, I already know that.

Really? You KNOW this how? You already called the banks? Moo by assuming the hopeless position and waiting for someone to pluck you out of it your only defeating yourself. Go dial the dang phone, ask questions, once you have exhausted the options then look for other options. Maybe a relative? Maybe a used bike that you can pay cash for? I'll set you up right now with a 1999 YZ125 that I can personally assure you is not a ragged out roach for about $3,000. What more could you want? It's the king of the heap of current 125's (except for maybe the 01' KTM), it's priced well, I have seen and ridden the bike and can verify the bikes complete history from the day it left the showroom floor, it's even located reasonably close (SW Pa.). Sorry I'm not going to drive up, pay for it and the bring it to your house full of gas with new gear to match. You can hang out here and cry about it all you want but you have fallen into that pit before and I think you may end up staying there the next time it happens.

I'm done.

 

[MoO_coW]

No I haven't fallen into a pit. I just know that me calling up banks asking for $3000 will result in a waste of time, my dad works with banks and know how they work, He told me this and I believe him. And im not crying around, im looking for alternative ways. And yes, I have fallen into pits many times and every time I have climbed out of them, that just gives me the experiences to know how to climb out of them in the future. I rode my first mini bike that I bought for $100 1 year and 4 months ago, Things have being rushed for me and I have had many problems because of that. Getting money isn't going to stop me now.

 

[MX265]

Moo,

Have you asked the "Family Business" yet? They give out loans. Interest and penalties are pretty bad if you don't pay it back though... ;)

Better and safer idea is to buy what you can afford, even if it is used. You said you have $2500.00 to put down right? Another $500.00 and you could get a pretty good ride and won't be bound to the bank or the "Family Business". Just a thought. Good luck.

 

[WoodsRider]

Moo - To translate Patman:

"Crap, or get off the throne!"

Posting on DRN about not having enough money is a waste of bandwidth and isn't getting you any closer to a new ride. Get your butt out from in front of the PC, start making some phone calls and quit complaining!

 

[MoO_coW]

Jeez, some of you guys sure are pissy :D .

Posting on DRN about not having enough money is a waste of bandwidth and isn't getting you any closer to a new ride.

Well actually it is because im finding out all the things I need to know BEFORE I call the bank, You see, im 16, I haven't delt with the bank and had no idea about all the fees and things I would need to take into consideration. Before I call up a bank that could potentially loan a large amout of money to me I want to act like I have done my research and know what they are talking about. I just asked a simple question, if you think im waisting bandwitdh than please don't contribute.

 

[Yamamoto]

Just what Moo Ordered

For Sale: 1998 Honda CR 125. Very clean with many extras like, Pro Taper bars, Applied Racing triple clamps, forks valved by Pro Action, Renthal front and rear sprokets, DID chain, FMF fatty pipe with powercore II silencer, new rear brake pads used once,all brand new plastic any color to suite buyer, also new graphics and seat cover. Bike never raced, new ring this spring but no time to ride. extremely well maintained, good tires, polished frame. $3,000 firm

See Look Polished frame ...never raced...lol

 

[70 marlin]

woow there Moo!

Remember who your talking too! these guy's are just tyring to help © "it's called tough love" it's is deffently possible for a minor to buy on credit Moo, you just need daddy's majic signature, and trust! but©
age 16yrs first loan chelsea state bank, unsecured loan "second car"
age 17yrs second loan, hospital & health service credit union© " sold first car and bought newer car"
age 18yrs third loan, Ann Arbor bank & trust© first new bike, finaced threw dealer ship lot lizzard, right off show room floor oow what a feeling© never rode by any one but me!
Moo it's always better to pay cash if you have it or can wait, but if you can't where there's a will there's a way©
to beat the banks, do double payment or pay extra every time you can!

 

[Coop]

Moo, Pat didn't say call the bank and ask for a loan. He said call and ask them what you are asking here. When he said ask: "Can I get a loan for a 2001 CR125", he meant make sure they give loans for dirt bikes. Loans, interest rates, etc. are different in every area. So you will get the best answers from a local bank. Besides if your Dad works with banks and knows how they work so well, why aren't you just asking him? Then you will really get the answers you need. You obviously aren't interested in listening to the advice given to you here.

Coop

 

[MoO_coW]

Bottom line, don't just jump in. Take your time, look at all your options, weigh them then decide what is best for your situation.

Moo - To translate Patman:

"Crap, or get off the throne!"

I am taking patmans first advice, taking my time and not just jumping in. Yes I realize I need to call the banks now but im not ready for that yet. Just don't get all agitated at me because im not doing everything you suggest to me right now. There were several options in this thread and im looking at all of them right now.

Besides if your Dad works with banks and knows how they work so well, why aren't you just asking him? Then you will really get the answers you need. You obviously aren't interested in listening to the advice given to you here.

My dad isn't a bank genius or anything but I do believe what he says to an extent, he is my dad after all. Put yourself in my shoes, my dad says the opposite of what someone I have never met(yet) on the internet says, For me I would tend to go with my dad, I guess I shouldn't have though. I know now I do need to call banks first though and speak to a loan officer about the stuff patman said. And saying im not interested in listening to the advice given here is pretty overgeneralized, just because I said "no" at first to one piece of info doesn't mean im not interested in listening to any of the advice.

And :D this wink means I was joking for cryin' out loud.

 

[WoodsRider]

Moo - There are three types of people in the world.

1) Optimists - Those who look at the glass and say it is half full. These people are always smiling no matter how bad things get.

2) Pessimists - Those who look at the glass and say it is half empty. This is you. Don't believe me?

Well no one is going to give me a 16 year old boy working part time a loan for thousands of dollars, I already know that.

3) Realists - Those who simply take it upon themselves to fill the glass. We also tend to shout out things like...

"Crap, or get off the throne!"

... to pessimists.

 

[Offroadr]

Originally posted by WoodsRider
Moo - There are three types of people in the world.

1) Optimists - Those who look at the glass and say it is half full. These people are always smiling no matter how bad things get.

2) Pessimists - Those who look at the glass and say it is half empty. This is you. Don't believe me?

3) Realists - Those who simply take it upon themselves to fill the glass. We also tend to shout out things like... ... to pessimists.

:) :D