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post #1 of 15 (permalink) Old 08-20-2006, 08:34 PM Thread Starter
 
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newbie...help

im lookin to get financed for a bike soon...but i jsut turned 18 and i got nooo credit...
but i hear theres lenders out there thatll deal out high risk loans to people with no credit...
any one gone thru or came across something of that sort?
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post #2 of 15 (permalink) Old 08-20-2006, 10:43 PM
 
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Originally Posted by AfternoonDelight1 View Post
im lookin to get financed for a bike soon...but i jsut turned 18 and i got nooo credit...
but i hear theres lenders out there thatll deal out high risk loans to people with no credit...
any one gone thru or came across something of that sort?

What i did was visit the local credit union and say that I wanted to build my credit.. they gave me a $1000 loan at a very low interest rate. They set me up with another account to put the $1000 in and I would pay off the monthly payments on the 1000k loan with it... It cost me about $50 in interest but built some credit... they financed me for all my loans so far... Most Bike dealers will find a way to get you financed but they will KILL you with the interest rates... if you have another vehicle like a car that is registered and titled in your name and is of value you can put it up as collateral on the loan...
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post #3 of 15 (permalink) Old 08-20-2006, 10:56 PM
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Quote:
Originally Posted by AfternoonDelight1 View Post
im lookin to get financed for a bike soon...but i jsut turned 18 and i got nooo credit...
but i hear theres lenders out there thatll deal out high risk loans to people with no credit...
any one gone thru or came across something of that sort?
Get a credit card, or better yet, a gas card... Use it and pay it off every time you get a statement... It's going to take you 6 months or so and you will have some credit to build off of...

To tell you the truth, I would look for somewhat of a beater 80's sportbike... Pay cash and forget about financing for a while... 18+sportbike+financing=crazy insurance payments... If you aren't financing you can get liability and save some cash...
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post #4 of 15 (permalink) Old 08-21-2006, 05:28 AM
 
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to the fourm and bike world. Now lets get down to reality. Your young. You have no credit. You will get raped on interest rates. And INSURANCE. I suggest you get a couple of insurance quotes on the shiney new ride you want to finance. You will have to carry full coverage on that bike. Expect that to cost you ALOT of money.


I would follow onesickpsycho's advice and save a few bucks and buy used. No monthly payments, no interest, and no full coverage.



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post #5 of 15 (permalink) Old 08-21-2006, 06:59 AM
 
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Originally Posted by marko138 View Post
to the fourm and bike world. Now lets get down to reality. Your young. You have no credit. You will get raped on interest rates. And INSURANCE. I suggest you get a couple of insurance quotes on the shiney new ride you want to finance. You will have to carry full coverage on that bike. Expect that to cost you ALOT of money.


I would follow onesickpsycho's advice and save a few bucks and buy used. No monthly payments, no interest, and no full coverage.
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post #6 of 15 (permalink) Old 08-21-2006, 07:21 AM
 
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Originally Posted by marko138 View Post
to the fourm and bike world. Now lets get down to reality. Your young. You have no credit. You will get raped on interest rates. And INSURANCE. I suggest you get a couple of insurance quotes on the shiney new ride you want to finance. You will have to carry full coverage on that bike. Expect that to cost you ALOT of money.


I would follow onesickpsycho's advice and save a few bucks and buy used. No monthly payments, no interest, and no full coverage.
A quick back-of-the-envelope calculation comesup with this:

Let's say you pick and SV650 or 650 Ninja: Out-the-door with tax, tags, set-up and minimal gear...Helmet, boots gloves...

$7400.00
5Yrs
22% interest. (The base rate is prolly in the 12-14% range, the dealership tacks on another 6-8% for additional profit to the dealer, 'cause you don't care, you are soooo GRATEFUL you got financed.)
That's $202/mo
Because you are the age you are, your full coverage insurance will be in the $1200-$3200/yr range ($100-275/mo), depending on locale and driving record.

Sooo, on a new mid-sized bike, your monthly nut will be in the $300-450/ month range, depending on how bad the dealership and the insurance company throw you under the bus. Over the life of the loan, you're going to pay in the neighborhood of $5000 in interest on that $7400, and that full coverage insurance will run you between $6000 and $16000!!!!!!!!(now you know why insurance companies are such good investments) during the life of that loan.


Just thought you should know.
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post #7 of 15 (permalink) Old 08-21-2006, 07:22 AM
 
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... ... ...

Nothing to add...just
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post #8 of 15 (permalink) Old 08-21-2006, 07:23 AM
 
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Excellent analysis OTB. Reps added.



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post #9 of 15 (permalink) Old 08-22-2006, 06:58 PM
 
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yea, i got a bad finance rate on my new bike (10.9%) so im paying it off this year, my parents are lending me the money and im just paying them off over the next 2 years instead

woot woot
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post #10 of 15 (permalink) Old 08-22-2006, 07:19 PM
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build your credit slowly and then think about a bike, give it at least 8 months of payments before you attempt to apply for a large loan that would be required for a bike. Just remember everytime you apply for credit, you make your score worse.

That $1000 loan is a great idea, tater. I can't give you reps yet though.

2005 Honda CRF88RR - 2007 Honda CBR600RR
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post #11 of 15 (permalink) Old 08-22-2006, 07:37 PM
 
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Is getting a cosigner out of the question? I know that's how I financed my motorcycle, I got my dad to cosign with me. I never had any credit before this, but based on his credit, I got the lowest rate they offered. As far as insurance goes, I recommend you look at Progressive (unless you can get USAA, if you're a military family). I'm 20, have 2 tickets, and I pay $95 a month for absolute full coverage...they quoted me $55 a month when I just called them to ask about the minimum requirement in VA. So you could be paying as little as $50 a month for insurance...just make sure you shop around beforehand.
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post #12 of 15 (permalink) Old 08-22-2006, 07:48 PM
 
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I had excellent credit until the ex wife decided to stop paying my bills and taking all of our house funds and paying off all her bills.. so when we got divorced all her bills were paid off and I was about 6k in the hole in late credit card bills and no more house funds... but hey it's all good I get to see my daughter twice a week and pay the ex wife about $750 a month plus carry the health insurance coverage for the three of us too...

(don't get me wrong on that last part I wish i could have my daughter every day and I do think that I should pay for child support) My daughter never has to miss out on anything if she wants to take dance classes she does if she wants swimming lessons she goes, if she decides she wants to take a arts and crafts class i'll pay for whatever she wants but me giving the ex $750 a month that she spends on vacations to cancun and jewlery..



back to our regularly scheduled thread..............
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post #13 of 15 (permalink) Old 08-22-2006, 07:50 PM
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Quote:
Originally Posted by tatersalad View Post
My daughter never has to miss out on anything if she wants to take dance classes she does if she wants swimming lessons she goes, if she decides she wants to take a arts and crafts class
That should come from the $750 a month. I will never understand that bull**** they call divorce settlements. The guy always get screwed no matter how many times women say they want to be equal.

2005 Honda CRF88RR - 2007 Honda CBR600RR
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post #14 of 15 (permalink) Old 08-22-2006, 07:52 PM
 
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sometimes i hate woman....

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post #15 of 15 (permalink) Old 08-23-2006, 05:30 AM
 
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Trip good point on the credit score deal. Reps added.



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