loan for a bike

[adstott]

Now that I'm out of the Navy and going to school my paychecks aren't what they used to be. I've been wanting to move up to a 250 and sell my brother my 91 cr 125 but I've been having trouble getting a loan for a few thousand for a used bike. I have excellent credit and my 93 Jeep Grand Cherokee is free and clear so my brother said I should look into a title loan.

Does anyone have any experience with these? It's frustrating when you never miss a payement on anything and still can't get a loan. I've only looked for a loan at one local bank but if they wouldn't except me there is not reason anyone else would. I also want to keep the number of credit applications down to a minimum because that can look bad also.

 

[Okiewan]

Is there anything wrong with the current bike? You getting everything out of it?

I can't say that I would EVER borrow money for a dirtbike, but I can understand the situation. Maybe a new bike would be easier to get financed? Just a thought.

 

[dirty~d~]

Some banks are more likely to issue a 'personal loan' than they are a loan for a used motorcycle. Have you tried applying for a personal loan to cover the cost of the bike? Also, it's not something that I would really recommend, but there is the option of using a credit card. Most cc companies will give you 'checks' that you can write against your account, BUT you are looking at a very high interest rate.

 

[kelsorat]

One thing to think about is applying for a loan through the dealership. Most of the manufacturer's out there utilize a finance company for their loans, i.e. Transamerica, Household etc. These companies offer 6 mos no interest or even 12 mos (yamaha). Their approval procedure and giudelines are less stringent than a bank. The catch is that if you do not pay off the amount financed balance your new loan apr will be based upon the intial purchase value. This could be upwards of 17.9%.
Now if you are approved for the loan app your approval status could conceivably be broadcast to credit card companies i.e. you will recieve some junk mail. Apply for one of these cards that offers 0% APR for a limited time. Even if you do not recieve these offers via snail mail, you could log on to some credit card websites and get all the 0% APR offer info and apply that way. If your credit rating is as good as you say, number 1, these finance companies will approve you because they are betting that you will not pay off the balance in time, and they get to reap the benefits of high interest, but number 2- you will transfer that unpaid balance to a 0%APR card and get a minimum of 6 more months interest free.
It's a risk, but worth it in my opinion.

 

[Okiewan]

... or, you could keep what you've got until you save enough green... a cash buy is interest free and no strings.

 

[LaRider20]

At my bank I have $3500.00 in overdraft protection. When my 15 year old wanted to buy his first (used) bike he had $1300.00 cash but the bike he wanted was $4300.00. What I did was write a check on my overdraft account for $3000.00 to cover the rest of the bike. He pays back my account $100.00 a month at 6% interest. The bank treats this just like a low interest loan and it doesn't affect my credit in any way. It worked for us and might be an option for you.

Good Luck,

LaRider20

 

[biglou]

If you own your vehicle outright, and have a bank account, you should be able to get a secured loan against your vehicle, provided you have full coverage insurance on it. There will be some title work as they will want their name listed as a lien holder in case of loss. After you pay off your loan, they return your title (in Missouri) along with a lien release that show they have no interest in the vehicle. These types of secured loans should be at a much lower interest rate than an unsecured, or "signature", loan. It amounts to borrowing from yourself since you are borrowing against the equity in your vehicle. They will probably only loan you a certain percentage of the vehicle's value, however. Something around 80% is fairly common, I think. Of course, this is all contingent upon you having decent credit. Regardless, I would steer clear of the title loan places. They're approving any and all comers for a reason-good credit not required. ie: highest interest rates allowed by law. Granted, if necessary, it may be a way of rebuilding damaged credit, but that is the only reason I would look into a situation like that.

Another plus is having a small town local bank where they know you. It does have its advantages. :thumb:

 

[gxdragon]

Originally posted by Okiewan
... or, you could keep what you've got until you save enough green... a cash buy is interest free and no strings.

I would have to agree with Okie. It's very easy to get into financial trouble very quickly. Be careful what you borrow for and be sure you have the means to pay back what you borrow. When I first started establishing my credit I would not buy anything unless I already had the money to pay for it.
You also have to plan for unexpected expenses, cars break down, bike parts break, stuff happens...
Put away as much as you can every month, with that and what you get for your 125 by next summer you'll have a good down payment. Maybe you won't have to borrow too much or not at all.

 

[gwcrim]

How much money are we talking here? What's your 125 worth? Beggers can't be choosers. But if you're a good salesman/shopper you could probably upgrade for less than $1000. Wait until you graduate to get the new expen$ive bike.

I've seen nice used mid '90s KX500s for less than $2000. Ta heck with them little 250s!

 

[adstott]

I did save a decent amount of money in my six years in the navy, enough to pay for a good used bike outright but I would like to keep the money in the savings. Whenever I take money out of my savings I feel terrible, like I just did something wrong.

I wish I could wait four and a half years until I got out of school to get a nice new bike but I like to ride too much.

The only problem with my 125 is that it's just not enough for me. I only bought the bike because after I got out of the navy I was bored of my a@# so I bought it from a friend for a few hundred dollars and spent my summer working on it and fixing it up. It's a good bike but I'm just too big for it and I would like to sell it too my brother so I can have someone to riide with. Going to the track by yourself is not near as much fun as having as having a friend to race.

I almost didn't start this thread because I feel like a little kid whose piggy bank is too small but that is not the case. If I couldn't afford a bike loan I wouldn't get one, it's just frustrating when you know you're a responsible individual and the bank basically says they can't trust you to pay back there money.

Oh well thanks for the advice. I probably won't get the loan for a few more months anyway but I just wanted to see if anyone had done title loans before. There's no way I would ever go to one of those title loan stores, they seem a little untrustworthy too me.

 

[Okiewan]

I hear ya about the savings account! There is something to be said for having reserves to cover the unknowns. Good luck.

 

[nikki]

Given the bike has a title and you have decent credit, you should be able to finance it over 24-36 months with a bank or credit union (typical interest rates between 4%-10%). And like Lou said, they might require insurance as well.

Actually I see nothing wrong with financing a newer dirtbike if you buy it for a good price. If you don't wanna throw down the lump sum all at once, then just put down a decent down payment and pay like $100-$150 a month. And if you decide to get rid of it (to get something else, because you don't want the payment, etc) then you just pay off the loan balance with the proceeds from selling (assuming you sell it at a good price and put enough down that you come out "ahead").

 

[Smit-Dog]

Be aware that the loan broker may require full insurance coverage on the bike, which could end up being a lot more coverage than you need/want, and cost several hundred dollars more per year. Check to see what your insurance premium will be before signing the deal.