Should I Finance a Motorcycle?
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- Опубліковано 14 жов 2024
- What is happening ladies and gents? Today I want to address a lot of recent comments by answering the question Should I Finance a Motorcycle? By far one of the most requested topics on the channel, so let's discuss motorcycle financing and whether or not you should finance a motorcycle. Pros and cons of financing a motorcycle, here we go!
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Honestly, Even though I had money for the entire downpayment of $10K ( that’s what my Kawasaki cost in India), the very thought of my Bank balance down by $10K pinched me, so I went for a Finance option !
Well that's not so bad if you actually have the money to pay it off anytime you need to hahaha, that's just a personal decision and I completely understand wanting to keep some money in reserve hahaha
So when I bought my last bike a long time ago back in 1995 I bought a used bike from a dealer. I was in a situation where I had the money to pay cash but didn't really want to take all of the money out of savings and wanted to build credit.. I went to my credit union and got a "shared secured" loan. I don't know if such loans are still available but if they are I would suspect are at credit unions. The way they work is you basically borrow your own money. So lets say you have 10,000. dollars in your account. YOu decide to borrow 3000. dollars. Your 10,000 dollars stays in the account and you continue to earn interest on it,but you are not able to touch 3000. of it. As you make monthly payments and have less owed say after a year you only owe 2000. at that point you have access to 8000. The interest rate is usually very very low, because the lending institution has no risk. IT ALLOWS ONE TO BUILD CREDIT AND AS THE BORROWER YOU ALSO GET TO HOLD THE TITLE. THERE IS NO LIEN ON THE BIKE. One could also get a regular personal loan from a bank or credit union and have the title because in that case too there is no lien.
Yes a lot of credit unions will still do a "secured loan" where you put the money in an account with them then borrow against it, so you can build credit with basically no risk! GREAT way for young people or anyone that needs to build credit!
Im financong a used hayabusa. The bike is 9500. Im financing 5k and paying the 4500 in cash. I just dont frel right coming out 9500 out of pocket. I like to keep as much money in pocket as possible for the rainy day. I can easily make the payments.
Gosh, you do such great videos. They are so helpful and well done. You are without a doubt a sensible and well informed person. This video did not give me any new info but I am sure it is very helpful to many folks, especially young people (20 somethings). I am in my 50s.
And now a message to new viewers of Alex's videos. Watch his videos , look back on his older videos. His videos are simple and not fancy with special effects or editing but it is clear he is a man of integrity with his approach to selling bikes when he was in that industry. Perhaps I am coming across as a fatherly figure but I say listen to Alex and his advice. Like I said I am in my 50's which I think is much older than Alex but he has a good head on his shoulders and gives good info. I turn to Alex not so much for the financing and purchase side of getting a bike but the knowledge he has of bikes. And since he always says PEACE at the end of a video he must be a good guy. Right now I am a guy without a bike because I am trying to save up to get the bike I want without having to finance the whole thing.
Thanks for all of the kind words Eric, I'm just doing what I do man, and it's always great to hear from you! Sorry about some of the questions I may miss over time, I'ts not intentional haha
This video is on time. I’m just now considering financing a 8k bike. I paid CASH for my first two bike and the reason I’m considering this now is because my bike was stolen last year and I’ve found almost the same bike at about the same I paid the first time.
My ring is I pay rent now as opposed to a big disposable income when I bought my first two. This decision is a struggle because I honestly will be worried about making he payments. I’m gainfully employed and am moving up the ladder and have option for overtime.
But man.. I wouldn’t even be looking if my bike didn’t get stolen. It was sentimental and I use to ride with my dad before he passed last year. I do have good credit and am good in finances and have a sizable down payment but it just feels so -- VAIN…
Gosh man. I just want my bike back. But thanks for the video
All makes good sense! Looking forward to the W800 ride. Thank you for the extra effort.
No worries, thanks for watching! Working hard to find a dealer near me that even HAS a W800 first then I'll see if I can squeeze a ride out of them haha
@@AlexSimmons11c thank you for the information I actually need a little bit more I just started financing a bike I have bad credit I gave them $4,000 down total bike price is is 10500 the finance company doesn't allow to make extra payments and they say you could pay it all off at the end if you just save up your money is there different finance companies that the bike shop should be looking at for me it's a 2011 Ultra Classic but I don't want to get killed by the interest rate that's why I wanted to pay a little more each month on the principal thank you for your time and your help
Great concept...gave me a outlook on buying my first bike....where is this location cause you patient with a ftb like myself.... thanks for the information
Yeah man i think ima finance a bike cuz im about to pay off a loan and i want a bike anyway! good video 👍
Great video. We live in a world where we need instant gratification and to hell with the long term effects. You are so right, a motorcycle and some other ‘toys’ are a luxury item, not a necessity. I had a friend who was like this. Always had to have the best of everything, as did his wife. One day shows up to an event with a top of the line decked out SUV. He was bragging that it cost almost $90k! This was the same guy who was asking me weeks before for extra work cause he needed money. Well how did he afford the SUV? He convinced his elderly mother to take out a home equity loan on her house so he could afford the car. Yup she took out a $100k 25 year term Home Equity loan so he could buy the truck. He was bragging how the dealership would have charged him $800/month but now he was only paying $350/ month. I had to explain to him that over the course of that loan he was repaying close to $200k with interest, and y time the loan was payed off he would be 3-4 cars past that car. Well, to close out, his business went under, he defaulted on the loan and his mothers house was repossessed because she couldn’t afford the loan payment on her social security.
People, just buy what you can pay for in cash, or a small loan, just like the video says.
This is great info plus who the hell would give this a thumbs down🤦🏽♂️
Hahaha thanks Edwin, unfortunately haters have to hate, and any video I do will get at least a few "dislikes" because there are a few people out there who just like to thumbs down videos. Thanks for watching! :-)
Great video. Your video was the best I seen. You do pay cash. Bring your own cash counter. P.S. nice hat.
Okay, so you ride a retro style bike. I am curious as to what you wear for gear when riding it. Did you pick out gear that has a retro look? I don't think looks should take priority over safety. I know many folks with cafe bikes wear retro clothing /helmets. When I get a Continental GT I plan to wear a full face helmet and probably hi viz. I do think some open face helmets look cooler but I wouldn't wear one. I am just curious about your selection for daily riding gear. Back when I had a bike my only thought was wear work boots , gloves, long sleeves and a full face helmet. I have learned more and plan to wear motorcycle gloves , full face helmet, motorcycle boots, and a jacket with armor. I would love to see exactly what you wear. If you have too many questions and can't answer this I understand .
No problem, I'll add it to the video list for the next week or so! I wear the same gear pretty much whether i'm riding a retro, sport, or cruisers...pretty much always the same. Full face helmet of some kind, jacket, gloves, sturdy long pants, and sturdy boots (usually mt combat boots hate to admit haha).
Like I said, I will shoot a video on this in the next week, it's on the list!
If i financed a bike, it would only be to speed up the process of getting a bike. Not really impatient. Just right now is getting to be the end of spring and in the desert itwill be tooo hot to ride soon.
Always better off buying a little more expensive motorcycle the one that you want and financing part of it. You build your credit doing that and you don’t tie up cash in a recreational vehicle. The key is to get a good interest rate. You can pay it off without penalty anytime. I’m a mortgage broker and I deal with credit all the time you always want something on your credit that can be rated. Always better off buying new if you can afford it- used bikes come with an inherent risk of hidden repairs. If you’re struggling to make a payment around $180 a month you need a different job
Go watch a few Dave Ramsey video's to get an understanding of how he feels about debt. Might change your perspective on money in a positive way.
I think i can comfortably pay the monthly payment.I don't have a finance ongoing except for my house. And now i want the S1000RR so bad, but it doesn't feel right to finance it. But i want the S1000RR. Still struggling not sure what to do.😅
I’d pay cash for a used bike but everything around me is stupid expensive. I could buy an 12 year newer bike for like $4k more but don’t wanna deplete that amount from my account. Probably gonna pay half and finance half
So I’m looking at getting a bike the day I turn 18 and I was gonna put down a 2500-3000 dollar down payment and the bike would be 4700 and I was talking with my mom and she said it’d be a good way to start building my credit because I know I could make the payments and id have it payed off pretty quick but I want another opinion if you or anyone sees this lemme know what you think
Hi Logan! If you are putting that much down and financing just a little bit to help build your credit that can be a good idea and a good tool for establishing credit, just keep in mind as such a young buyer you will not have a credit history yet, so you will most likely need your mom or another older established relative to co-sign on a loan with you.
Alex Simmons my mom also said she’d co sign it cause she supports the idea I was just double checking cause I’m knew to this stuff lol
Thanks
Thank you Alex.
What is the most (MAX) that I can put down, in order to still finance?
i know you made this comment 11 months ago, so im about a year late but there's no maximum to put down since you can pay for it in its entirety. generally speaking, the more down, the better
3:30 i have a finance for my house for 20 years 😅
Will that build up my credit?
bro idk who ur talking to but its not me.
is it my dad who is old and drives a car and has some money in bank doing nothing?
im 32, i make a good amount of money, but i spend it all lol. i bought a 125 cash 1 year ago and now i have passed my tests i need a big one, this one has depreciated a lot but i really really really want a big bike. fuck patience, i just paid hundreds to pass my big bike tests there are no more savings lol.
edit ok should i go used + finance + trade in plus pay some extra each month and get that finance down early?
I feel u dude I’m 17 though and payed like 800 total just to get my motorcycle permit and I sold my 250 now I want a fucken Harley but I don’t want to get over with finances
@@Sci-Fi-THC innit lol. i decided what im going to do and thats trade in my 125 and pay some cash some finance for a used bike.
personal loan or card is better than pcp or hp as u own the bike and you can sell it and trade it in as you see fit.
i will use cash to lower debt and make sure bike is worth it. bike finance people wanted to give me expensive credit over 5 years but really i only need a couple of thousand and can pay back in much less time than that.
i found a really nice bike for a good price and i feel like im getting a deal, i dont mind paying that off for a little bit and owning a cool bike. just decide how much you want the bike man.
if you have a garage and clean ur bike well maybe u can finance full price new harley now and it retains its value for another 20 years, but i ride my bike like i stole it and park it outside aha shit is gna depreciate i need to buy it cheap 😂😂
NEVER finance anything with tires. OR anything that floats.
That's stupid to say.
Don’t take this guy advice