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Best to save up and buy used or finance new?

To finance or to save up?

  • Save up and buy used from BARF or Craigs

    Votes: 57 91.9%

  • Finance and buy new or used from a dealership

    Votes: 5 8.1%
  • Total voters
    62
slpywes said:
Oh and a technicality question for those in the know: Do motorcycles count in the category of "auto loan" or is it a "personal loan?"

You would think banks would make this kind of information more readily available without having to go into the bank and talk to someone...
Click to expand...

Some banks will have it classified under a "Used Vehicle Loan" and others will have it classified under "Auto Loan" and others will have it simply under "motorcycle loan".

DO NOT get a personal loan for a motorcycle. The interest rates are outrageous on them-- we are talking AT LEAST 15%.

Also for most secured loans (loans with collateral) they have a minimum loan amount of around $2-3k. YMMV, gotta check out the banks for this one.
 
SNsMoto said:
A lot of people are scared to finance through the dealership because they hear so many horror stories when in fact if you do your hw, financing through a dealership has some of the best deals because of promotions they have going on.

Sometimes they'll have 2.99% APR or sometimes even 0% etc. The part people are scared of is all the number crunching with the salesman. The easiest thing to do is bring your financial calculator that has time value of money functions and you can get great deals. I always nerd it out and bring my calc when my buddies ask me to tag along :laughing.

That said, should you still decide to go through a bank, it's pretty straight forward:

-You go in the bank and apply for a loan
-Your credit will be run and you are either going to be approved or declined
-If approved, the bank cuts you a check and you purchase your bike.
-You pay the bank monthly

It's hard getting approved for loans right now and rates aren't all that great. Remember, the first time you go rate shopping you have a grace period to shop around at other institutions so that your credit won't be dinged any more than it did the first time.
Click to expand...

Thanks Steven and everyone else that has been contributing to this thread. I know a lot of places and communities that would have said Google it so I'm really happy with the responses that I have been getting.
 
"You want it bad, you get it bad"
that's what i tell myself when i wanna go into a dealer and buy a duc!

Unless of course you make good money, in that case, get it while the gettins good!
 
tough to argue financing a toy, especially to someone just starting off. But really at the end of the day, you know your finances better than any of us, what you are making, what debt you have already, what your income is expected to do over the next year, what else you have going on in your life, etc., etc. Right now, outside manufacturer specials, I don't think there is any great financing out there. But that is subject to change. While I understand not wanting to be saddled with somone else's mechanical nightmare, that just points to maybe having the bike checked out or doing a little extra homework on your end to avoid it. Hard to say without knowing the back story.
 
I'm going to try and use very gentle language here:

Do you have the security and disposable income to put yourself in debt for a non-essential item? If so then go ahead. If not it may behoove you to go the cash route and not follow the refi-credit lemmings who have bankrupted themselves and their communities.
 
SNsMoto said:
A lot of people are scared to finance through the dealership because they hear so many horror stories when in fact if you do your hw, financing through a dealership has some of the best deals because of promotions they have going on.

Sometimes they'll have 2.99% APR or sometimes even 0% etc. The part people are scared of is all the number crunching with the salesman. The easiest thing to do is bring your financial calculator that has time value of money functions and you can get great deals. I always nerd it out and bring my calc when my buddies ask me to tag along :laughing.

That said, should you still decide to go through a bank, it's pretty straight forward:

-You go in the bank and apply for a loan
-Your credit will be run and you are either going to be approved or declined
-If approved, the bank cuts you a check and you purchase your bike.
-You pay the bank monthly

It's hard getting approved for loans right now and rates aren't all that great. Remember, the first time you go rate shopping you have a grace period to shop around at other institutions so that your credit won't be dinged any more than it did the first time.
Click to expand...

Be aware though, that some of those great deals are promotional rates, also called teaser rates. As in 2.9% on a 5 year loan, but the 2.9% is only for the first 10 months, after that it is 14.9% or something. So unless you can reasonably pay it off early, it isn't a deal.

slpywes said:
Oh and a technicality question for those in the know: Do motorcycles count in the category of "auto loan" or is it a "personal loan?"

You would think banks would make this kind of information more readily available without having to go into the bank and talk to someone...
Click to expand...

depends on the lender. Some have "recreational vehicle loans", some have a motorcycle tab off their Auto page, some classify it as a "personal vehicle loan", of they may have a vehicle loan area on their website that has car loans, and "everything else" really just depends on the company.



SNsMoto said:
Some banks will have it classified under a "Used Vehicle Loan" and others will have it classified under "Auto Loan" and others will have it simply under "motorcycle loan".

DO NOT get a personal loan for a motorcycle. The interest rates are outrageous on them-- we are talking AT LEAST 15%.

Also for most secured loans (loans with collateral) they have a minimum loan amount of around $2-3k. YMMV, gotta check out the banks for this one.
Click to expand...

Yes, generally speaking a "personal" loan will not be appropriate for this. Some lenders will base the min/max loan amount on different criteria, like FICO, year of the vehicle, etc. All things being equal, you should expect to get better rates on a new from a dealer bike than a used bike. Then the rate on a used from the dealer rate will usually beat the used from a "third party" rate. It can make it so that paying slightly under new retail for a low mileage used bike will actually cost you more than if you just bought it new from the dealer.

That said, I think a lot of lenders have gotten out of the used bike financing, especially 3rd party used bike sales.
 
Beauregard said:
I'm going to try and use very gentle language here:

Do you have the security and disposable income to put yourself in debt for a non-essential item? If so then go ahead. If not it may behoove you to go the cash route and not follow the refi-credit lemmings who have bankrupted themselves and their communities.
Click to expand...

2nd this one!!

Also, If you do save and pay cash. (which I recommend that you do). Give yourself the loan. Then while your riding your used bike, make payments to yourself plus interest until your used bike is "paid off" to you.
 
Used bikes are usually a better value, but there's something about having a brand new one that's hard to put a price on. It's nice to know that nobody has stripped the drain plug, put the brake pads in backwards, or any of the other stupid shit that mechanically uninclined cheapasses do for maintenance in order to save a few bucks over the price of taking it to somebody who knows what they're doing. There's something really cool about having a warranty, and there's something strangely satisfying about being the first one to scratch it.

What I've done in the past is to finance the bike, then pay off the loan very quickly, like in the first 6 months. That way, you build your credit, don't pay too much in interest, and get to ride a new bike right now. Of course, this means you need the means to make way more than the minimum payment. I have no idea whether or not you do.
 
A degree from Cal is an achievement you should be very proud of. And you should congratulate yourself on a job well done. Lots of good dealer financing at 3.99% or lower, if you can get that rate on a bike you really want (and have a garage to store it in), then go for it.
 
Beauregard said:
I'm going to try and use very gentle language here:

Do you have the security and disposable income to put yourself in debt for a non-essential item? If so then go ahead. If not it may behoove you to go the cash route and not follow the refi-credit lemmings who have bankrupted themselves and their communities.
Click to expand...

+1

I was in your shoes a few years ago. Finished college, got me a job, wanted toys again.
I'm pretty cheap and understant credit so it was a non issue fighting the urge to get raped the Amercian way. I saved up lotsa money and can buy whatever I want worry free. If I pitch it into the ocean the next day I wouldn't cry too much and buy another one after work on Friday. Toys are a lot more fun when you can treat them like toys.

I should put you in touch with some retards I know who bought new Mustangs and M3's and Aprilias two hours after walking off stage.
 
Ask alot of queations and make sure there is no hidden costs if you finance through a dealership, I bought a new 07 ZX6R off the showroom floor and ended up getting screwed...it was my fault for not asking more questions, The sticker on the bike said $100.00 per month, but they failed to tell me that this was a defered payment offer, So there was a $49.00 per month charge on top of the $100.00 for the defered payment, They also failed to tell me the defered payment deal was only good for 6 months, Then the interest rate sky rocketed. I didn't put anything down so I noticed when the second bill came the amount I financed was growing, I ended up refinancing with my credit union and was lucky to get a very good rate, This is the route I would check first (Credit Union) One other thing I would seriously look into if you finance, Is GAP insurance coverage, If you total the bike the the balance you owe will be paid off no questions asked, I had this happen to a truck I bought, I rolled it, and owed 22k still, It was paid off within a week, This coverage is usually very reasonble, But I would only buy the GAP coverage if your lopsided on your loan. Also I prefer to buy new, atleast this way you know it has been broken in properly, and you will know it's history, Just my 2cents.

Note: I have heard that GAP coverage has been revised, and there has been some loopholes created so the insurance company could have an out and get out of paying the bike off, The source was not the most reliable, So I don't know if this is true, Also I have never had to use GAP coverage on a bike..So Please don't take my word for it ...just ask and get the facts before you spend the $$$ on this extra insurance.
 
I'd buy used because I like the idea of having somebody else take the massive deprecation hit after the first couple years. I'm also not crazy about having to pay a 10% tax on top of the dealer price for a new bike (or even a used bike if it's from a dealer).

Btw, Go Bears!
 
haha wow, just got off work and checked the the messages you guys have been posting. Checked the polls and everyone seems to be leaning on the save up side. I graduated from college and I guess it's time to be an adult. I'll keep my eyes open for good financing deals and shop around a little to really figure out what I want. Unless something really catches my eye (nothing really has, as of yet) I think i can fight the instant gratification demon. Papa Chiang taught me better than to live outside my means =)

Everyone, thank you for the helpful insight. I never thought I'd rack up 3 pages worth of helpful information and suggestions. I'd like to think barf helped me make the right choice.

Lastly, just out curiosity, what about getting a motorcycle via auctions? Anyone have experience with that? Is it as as hit or miss as Craigslist? Is it worth it? Also, can anyone recommend any good dealerships in the East Bay? I only know of Berkeley Honda Yamaha and East Bay Motorsports in Hayward.

If anyone cares, I'll post updates when I do buy a bike!
 
it'll be difficult to get a motorcycle loan for a used $3k bike.

you'll be better saving up and buying in cash. pay off your student loan so you don't have it hanging over you as you age, settle down, buy a home, etc.
 
I think you already know the smart answer... you're in debt with student loans and have very little cash ($1000). You can't afford what you want. That's pretty simple math in my book. Even if you could get an incentivized loan at say 1%, you're still paying for a new bike. The market is hammered right now. 2 and 3 year old garage queens with hardly any mikes are going for nearly half of what they cost new.

Save up til January and you be amazed at what 5k in cash will buy you. Seriously... 5k in January when it's shitty and rainy outside will buy you a bike that cost 7k in June.
 
I have bought brand new and for me it was a good idea because I had a plan to pay it off in 2 years. I was able to do that so it worked out. Most people never follow through with that. I voted for buy used because it's the best option for a majority of people. Also you can spend the extra money on trackdays and gas lol
 
Coming from a person who is horribly financially irresponsible, save and buy. Not that that's what i do , but that's what you should do.
 
Update!!!

Hey everyone!! Thank you or all the advice. I managed to save up around 3k, shopped around and found a very reasonably priced 07 SV650 at SF Moto. Just got back from there and will be picking the bike up tomorrow afternoon.

Can't wait to get back on two wheels!! :teeth:teeth:party
 
My credit union, gave me a loan to buy a used bike. Something like 6 or 8%. They knew it was a bike, and kept the title as collateral. But since they consider bikes toys, I didn't get the same rate as my car or truck loans. My Yamaha loan was either 0% or 2.9% for the first 2 years, then it was 13.9%, but I paid it off in 2 years. If you can get the teaser rate at the dealership, and can pay it off at 2 years, it's not a bad deal. The credit union loan is $105 per month for 5 years. We'll see if the Ducati lives that long. 2 to go.
 
for me, it'll depend on what i want and how much i want to spend. if cl/barf fits those, then i'll buy used, if a dealer has it, then i'll fiance.

tho I will not buy a 100% new bike. a used from dealer is reasonable =)
 
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