Newbie to dirt with a question about $$$

[Choppa']

First of all, hello, this site looks very very nice and has alot of helpful info.

Ok,I am really, really, really getting serious about getting a 2000-2003 yz 125 but im not too sure about how much the actual bike is going to cost me per month. I went to my local yamaha powersports and was looking at an 03 yz 125 for $3600. One of the salseman told me that it would be around 60-80 dollars per month (forgot the amount of time), Was he pulling my chain or anything, or is it really about this price per month?(sorry if that sounds newbish) Also, what do most of you guys pay for your bikes per month?? Thanks in advance! :eek:

 

[CaptainObvious]

Plug the following equation into Excel. The A1, B1 C1 and D1 are the cell locations. You can change the principal (A1), the Term in months (B1) and the Rate (C1) to suit your needs.

A1 3600
B1 36
C1 0.09
D1 =PMT(A3/12,A2,-A1)

Using the above, I got 114.48 for 3 years and 89.59 over 4 years. Personally, I wouldn't finance a dirtbike for more than 2 years.

 

[jwren00]

3600 sounds pretty expensive for that bike. You could find a way better deal for an 00-03 yz 125 out there. Keep looking!

 

[Patman]

Besides the monthly payments you also need to factor in wear items like top ends (piston, rings & gaskets) which need replaced on 125's fairly often as well as tires, fuel, oil, chain lube, air filter cleaning & oiling supplies.

 

[evenslower]

Financing a used dirt bike (or new for that matter) is generally not the best idea. You should be able to get an 00-03 yz 125 for much less than that. I sold an 02 that was in awesome shape earlier last year for $2200.

 

[Choppa']

Thanks for the replies.

Got one quick question, why wouldnt financing be the best idea? I dont have much cash saved up so would it be better to finance, or just get a loan through my bank. Thanks again

Also, yall are right, the price is too high.

 

[Patman]

The main reason you don't really want to finance a dirt bike is that they depriciate in a big hurry.

FYI an loan is financing they are all using somebody elses money to finance your purchase.

Save your money and pay cash for a nice bike. You will have a feeling of reaching a goal and you'll have developed good money handling habits.

 

[High Lord Gomer]

Easier said than done.

..I want to ride NOW!!!!

 

[3SuperSports]

Be patient grasshoppa' ! The finance charges are just money you're throwing away. Get an older used 125 if you can't wait and then save up for a new one. You'll be glad you did.

 

[BlackRaptor]

I agree with you guys. With Bikes cash is the only way to go. I will admit when i purchased my ATV years back i needed to build up some credit so i took out a loan for it and paid it off in 3 months.

Also if you're paying payments on a bike and you mess it up bad you'll be sick each month when you have to pay a loan payment on something that isn't working. This time of year you can get very cheep bikes off online auction houses.

 

[MXGirl230]

Thanks for the replies.

Got one quick question, why wouldnt financing be the best idea? I dont have much cash saved up so would it be better to finance, or just get a loan through my bank. Thanks again

Also, yall are right, the price is too high.

TRUST ME!!! DO NOT FINANCE!!! You lose so much money. I learned this and will never do it again. If you only pay the minimum all you end up paying off is the interest. Read the fine print. My interest started at 8.9% (or something like that, under 10) by the time I paid off my bike this summer my interest was at 21.04%. The $150 I paid a month ended up just paying off the interest. I ended up selling my street bike to pay off the card. I never missed a payment, I paid the bill as soon as I received it.

You can find a really nice used bike for less than $3200. Save up your money and pay cash. If you want a new bike some dealers will cut you a deal if you have cash. I bought my '01 CR125 for $3200. It was practically brand new, had been ridden for two weeks by a local pro rider. He had everything already done to it. He qualified for LL's and his mom and dad bought him another new bike. Anyway my point is there are good deals out there. Just save your money and shop around.

We picked up my husbands '99 YZ125 for $1100 this past spring. It's in great shape and runs excellent. All it needed was some plastic.

Sometimes you can get lucky and find a dealer that has some bikes a couple of years old still in the crate. Dealer around here bought out another dealer and was selling '03 YZ125's for $3600. Save your money and keep looking around.

 

[Brian]

borrow the money from your Dad :) :laugh:

 

[rydesred]

yeah im kinda wishing in some ways i hadnt financed mine but my apr is 6.9% and its fixed the whole loan term. the loan is automatically 4 yrs. but i can pay it off early with no penalty. the cheapest cash i could walk out the door with my cr after taxes and all that b/s was like 6100 and over the 4 years my intrest would be like 900. gonna pay it off in two so that will cut it in half. still too much money for a bike period. but i have like no credit and i wanted a fairly small payment on something in which to establish credit. in all honesty tho with whats in the papers around here i could buy like 2 or 3 decent bikes for what im gonna pay for mine.

 

[mtk]

Well, I've got a slightly different take on this.

I agree that "conventional" financing will cost you a nice chunk of change, particularly on motorcycle financing from the dealer since they tend to have high interest rates.

However, I bought both my CR250s and my Maico 490 using a credit card and I'm not paying a dime in interest. Here's how I did it: I have a job, a mortgage, and good credit. As such, I get credit card offers in the mail on a near-daily basis, most of which have 0% interest for at least a period of time. I simply deposited a Visa check (from a current credit card account I had) in my bank to "create" the funds for my bikes. That was my loan application. Then I took two of those "0% APR, no balance transfer fees" credit card offers I got in the mail, called them up, and transferred the balance to them (half on each card). Other than the small nominal fee for the first transaction, I'm using a big chunk of the bank's money and it isn't costing me a cent. If I can't get it paid off before the end of the 0% period, I'll simply take another application out of my junk mail and transfer it again.

As long as you never have a late payment, you'll never pay a cent in interest. I get to use their money for nothing and also get to ride the bikes now, rather than save for a year and then buy them.

Most importantly, I get an immense amount of satisfaction out of beating the credit card companies at their own game. :)

 

[sorny]

When I was shopping around for a YZ I ended up with my 99 250. Got a great deal ($1200) because the head pipe was dented really bad from a fall and the gear shift lever was bent. He let the neighborhood kid ride it around the year, and the kid was so short that he couldn't reach the ground and laid it over on a rock somehow. Anyways, I didn't have $1200 so I went to the bank and got a personal loan. I have good credit, just not a lot of it, only had a few cars financed. Usually personal loans give you a pretty crappy interest rate depending on your credit and if you have collateral (which you usually wouldn't for a personal loan), but mine was about 6%, not bad. I paid $110/month for 12 months and its went by pretty fast -- it'll be paid off this May. So if you want a good deal on a bike find one that has something small wrong with it, not a blown motor, but maybe needing plastics or tires or something that will knock it down a lot more then the cost of the parts.

 

[CaptainObvious]

Where are you Choppa? I have a very nice, race ready, '99 KX125 I'll sell ya cheap.

 

[Choppa']

oklahoma

 

[buck_y_lee]

Well, I've got a slightly different take on this.

I agree that "conventional" financing will cost you a nice chunk of change, particularly on motorcycle financing from the dealer since they tend to have high interest rates.

However, I bought both my CR250s and my Maico 490 using a credit card and I'm not paying a dime in interest. Here's how I did it: I have a job, a mortgage, and good credit. As such, I get credit card offers in the mail on a near-daily basis, most of which have 0% interest for at least a period of time. I simply deposited a Visa check (from a current credit card account I had) in my bank to "create" the funds for my bikes. That was my loan application. Then I took two of those "0% APR, no balance transfer fees" credit card offers I got in the mail, called them up, and transferred the balance to them (half on each card). Other than the small nominal fee for the first transaction, I'm using a big chunk of the bank's money and it isn't costing me a cent. If I can't get it paid off before the end of the 0% period, I'll simply take another application out of my junk mail and transfer it again.

As long as you never have a late payment, you'll never pay a cent in interest. I get to use their money for nothing and also get to ride the bikes now, rather than save for a year and then buy them.

Most importantly, I get an immense amount of satisfaction out of beating the credit card companies at their own game. :)

:) Haha, currently doing that with my credit card, though we don't get 0% here in Australia.

 

[velosapiens]

Be patient grasshoppa' ! The finance charges are just money you're throwing away.

better to throw away money than throw away months or years of potential riding time that you'll never be able to get back.

if i were short on cash, i'd look for a clean 1-2 yr old 2-stroke 250. should be able to find one under $3k no problem.
mw