Monthly Payments on bike ( from Dealer few Questions??)

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jaco12

Member
Mar 11, 2006
47
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Hey guys, Is it Really worth Paying Monthly for a bike off a dealer?, and do Dealerships usually do Monthly payments on Used bikes too?, i just think this is the best plan for me right now since im low on cash, i dont have a problem with paying for a bike for 2 years... i just wanna hear other peoples opinions!
 
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mxrider76

Member
May 12, 2006
70
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watch that the intrest dosent go from 70$ or something cheap a month to 20% next year if you dont pay it off. honda is famous for that
 

MXGirl230

Stupid tires and trees
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Mi. Trail Riders
Dec 19, 2002
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From my experience no. I got screwed on my Honda b/c of a loan I got for it. It started at about 8% interest and after a year went up to 25%. I'm sure that was in small print somewhere...but I was 18 and just wanted a new bike. I ended up paying almost $2000 more on the bike than what the loan was for. I was stupid though and only paid the minimum. A lesson learned the hard way.

Save up your money and pay cash or pay cash for a nice used one.

If you do decide to go that route DO NOT pay the minimum.
 
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adam728

Member
Aug 16, 2004
1,011
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I agree with NOT PAYING JUST THE MINIMUM!

I've worked at a few shops and have seen how monthly payments can be good or horrible. If you can only make the minimum payment on one of the manufacturer cards, don't bother getting the bike. I've seen people do that and come in 2 years later trying to trade in for a new bike and they find out they've only been paying the interest rate that whole time and still owe $6K on a bike that's worth $3500. A straight rate loan from a bank can be a good thing, your min payment will get it paid off in a set number of years. Those "2.9% financing and $19/month" deals will have you paying for life if you only do the minimum.

I got my KDX with 3.9% financing, but I paid every cent I could and got it paid off in 10 months. The fine print on those "really good" deals usually states that the interest goes through the roof after 2-3 years or if you miss one payment. If I remember correctly mine would have jumped to 24% if I was late on a payment!
 

Patman

Pantless Wonder
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Dec 26, 1999
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As a general rule toys should be paid for in cash. Dirt bikes are in no way an "investment" no matter how many times the salesman might throw the word out. They are toys, toys that depriciate VERY VERY quickly! Unless of course you are the dealer selling the used toy... Yup it might be hard to walk away from that nice shinkey ne bike but you'll be happier in the long run.
 
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jaco12

Member
Mar 11, 2006
47
0
So its sounding like its not gonna be a good idea... The bike i was looking at to pay monthly on was a 02 yz 125 for $2799 from a dealer, im willing to pay $100 a month for it, would that be a better idea?... or should i just keep saving my pennys and by the time i get enough i'll be 40..
 

XRpredator

AssClown SuperPowers
Damn Yankees
Aug 2, 2000
13,504
19
jaco12 said:
. . . The bike i was looking at to pay monthly on was a 02 yz 125 for $2799 from a dealer, im willing to pay $100 a month for it . . .
Click to expand...
I guess it depends on how many months you gotta pay that $100. If it's only 28 months, that's awesome.
 

Patman

Pantless Wonder
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Dec 26, 1999
19,765
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jaco12 said:
... or should i just keep saving my pennys and by the time i get enough i'll be 40..
Click to expand...
I guess it depends how old you are today. If you are 39 then sure save until you are 40 and buy it! If you are 20 then consider you would have put away $24,000 not including any interest on that $100/mo.

I guess I'm trying to help because I know so many people that have money issues, STUPID money issues. Everything from an employee that makes decent money and got a very nice Christmas bonus yet he went and bought a $400 leather jacket with it, only to have bill collectors constantly calling him for unpaid/late bills and asking to borrow money and for pay advances. Or the people I know that live in a gated community in a $1M house, send their child to Baylor University ($$), have 4 vehicles, a club membership, fancy vacations and the rest of that lifestyle yet have the same bill collectors calling them!

Sometimes making the right choice sucks.
 
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FruDaddy

Member
Aug 21, 2005
2,854
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More likely that would be a 36 month loan, you could reasonably expect to pay at least 18% interest on a used bike. I'm not sure that any 02 125 is worth $2800, which is near what I paid for an 04 KX250 (in excellent condition) a year ago.
Typical fare on a new bike is 2 years at a low introductory rate (2.9-5.9%) with a low monthly payment, then a hike to at least 19% and a corresponding increase in the payment. Any salesman that wants you to come back for your next bike will make sure that you are aware of the terms up front, but some don't really care, or expect you to look really close at the little words on the big sign.
 
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jaco12

Member
Mar 11, 2006
47
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J

jaco12

Member
Mar 11, 2006
47
0


Why would i have to put away $24,000 on a $3000 bike?
 
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bsmith

Wise master of the mistic
LIFETIME SPONSOR
Jun 28, 2001
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OK $2,800 at 24 months at 0.00% Interest is $116 a month.

So they are giving you some really funky Math, or it's credit card application!

The Credit card min is $100 a month and you would never pay it off. That is most likely 99.9% interest.

If you "need" it go to a normal bank and see about a loan, but stay away from any dealership or manufactorer Credit card. They will be min 21% rate with no structured payment schedule!

Local Bank might not loan on that old of Bike though. Most likely need a new one or at least 1 year old. Even if you can get a strucured bank loan, a 24 month loan for $2800 would be about $130 a month at 12%.

Also, on a Bike loan I beleive you will be required to carry Insurance. Proof of Insurance will be required at signing.
 
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FruDaddy

Member
Aug 21, 2005
2,854
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Welcome to adult life, there are consequence for your decisions. You really need to know what you are gettin into. It is true, that you would definitely have to pay more than $100 per month to pay that bike off during the introductory, low interest period. Unfortunately, you won't get that offer on a used bike. Instead, you will get a jacked up interest rate and end up paying a couple of thousand dollars in interest during the next 5 years. You would actually do better to get a low interest credit card. 5-15% is better than what you can expect on a used bike.

I knew at the age of 5 that I would one day ride motorcycles. It took me 20 years to get my first street bike. It was worth the wait.
 
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DarbySS

Member
Dec 11, 2006
23
0
jaco - Listen to Patman. His advice is solid.

This is the way I used to be. I would decide I really needed something and I had to have it now, and I've wanted it forever, etc., etc. I wanted it sooooo bad it hurt........I could taste it!! I didnt want to wait, FINANCE BABY!

Luckily I met a chick who cured me of those problems. Took a couple of years, and I got outta debt and swore I'd never get back in. We pay cash for everything now. If I cant pay cash, I cant afford it. That's the best attitude to have.

So many Americans are swimming in debt, especially credit card debt. Financing a "toy" is alot like credit card debt. The interest rate almost always goes w-a-y up in a year or so, and there are tons of hidden fees if you pay late, even 1 time.

I just bought my first bike at age 28. It's an 05 honda CRF250. I bought used, because thats what I could afford, and I paid cash. I looked around until I found a really clean one, with few hours and I think I got a deal.

Pay cash dude. If you dont have the cash, save unitl you do. I know it seems like a long way off, but it'll be worth it.
 
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jaco12

Member
Mar 11, 2006
47
0
Hey, i TOTALLY understand now, thanks for pointing me in the right derection, or should i say my Parents basiclly told me where to go when i told them about it too... I think i should either keep saving, or pass on the Dirtbike idea for now, wait till im older, Thanx for the Help Guys :cool: :cool: :cool: :cool:
 

Patman

Pantless Wonder
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Dec 26, 1999
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Don't waiting until you are old, wait until you are financially able to do it. Sure you might be a year older or 8 years older. So what?

I just bought a new truck. I didn't NEED it but I would within a year or so. I check around and found a few 2006 leftovers that dealers were looking to move because the 2007's were on the lot. I then looked at what interest rates were and incentives and figured the $3500 cash back would be less than the $6000 I'd save with the 0% interest rate. So no I didn't pay cash for the new rig but I am basically doing that since I am not paying interest on the loan. This allows me to use that money to create other money. Trust me dude it doesn't happen because you wish it to.
 
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bsmith

Wise master of the mistic
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Jun 28, 2001
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The key here is to take advice for people not involved in the deal! The salesman doesn't care if you go broke and the bike gets repo'd, he gets paid to sell.

So coming to a place like this and listening to some of us who have made those mistakes will get you much more in the long run!


Good Choice BTW :cool:
 

oldguy

Always Broken
Dec 26, 1999
9,411
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We do take advantage of the Yamaha 0% interest no payments for 12 months everytime we buy a bike BUT we have the cash sitting in a bank account and always pay it in full during month 10. If they are willing to let me use their money I am glad to do it but be carefull because 1 day after 12 motnhs the interest rate goes to 18% and starts at the time of purchase. It is a pyramid that now makes a bike worth half or so of the payoff amount.
In order to help my son establish a credit history his new bike was purchased in this way on a Yamaha card in his name. He had the full amount in the bank and agreed to make 10 months of payments of at least $100/ month out of money he earns working. Without realizing it he will have at least $1000 left over when he pays the bike off at month 10.
BTW we always pay it off 2 months ahead of time so we know the check cleared in advance. I have heard way to many people wait to send it in right at the deadline and then get slammed with 1 year of interest when the check doesn't clear until 2 days after the due date. That is a common scam on everything offering free no payment financing- they are banking on the fact you won't have the money or just forget the deadline.
 
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tnrider

Sponsoring Member
Jun 8, 2003
576
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if you MUST have this - then try some alternative financing. fix a fair interest rate and see if a parent or sibling will loan you the $ (assuming you are trustworthy...). i have done this before with family (some friends) and typically they will save 1/2 of the going interest rate and i get a better interest rate than my $ would get in the bank - especially doable if you are talking about 12/24-months on a small amount of $. if you go this route - write up a contract to protect both of you...
 

CaptainObvious

Formally known as RV6Junkie
Damn Yankees
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Jan 8, 2000
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Two things that should never be financed are dirtbikes and prostitutes.
 
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FruDaddy

Member
Aug 21, 2005
2,854
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CaptainObvious said:
Two things that should never be financed are dirtbikes and prostitutes.
Click to expand...
Hey, don't forget about tattoos! 5 payments left, but no job, I sure hope they don't repossess it :yikes: .
 
C

Cory326

Member
Feb 3, 2007
22
0
I put my YZ on layaway, its used, but who cares. It runs decent and I should have it paid off by the time the ground thaws and the snow melts.
 
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