I hate to ask but...

[bnizzy]

i am college student, dying to get a bike... been saving $$ but its just waaaaaaay too slow...

I just needed to ask about...

FINANCING.

How does it work? Do I need to have good credit? I'm sorry for this dumb question.... but pls help!

I just keep getting older and older and still no bike... *sigh*

saving money sucks.

[87gsxrnut]

saving money sucks

No it doesn't. It makes you appreciate your bike that much more. I have paid cash for every single bike I have ever owned. Buy low and sell high. That is how I did it. I bought an '84 GPz 750 in 1988 for $1,000. I tuned it up, cleaned it up and resold it for $1,500. Then I bought an '84 GPz 1100 for $1,200, used the profits from the 750 to put a new stator in it. I then cleaned it up and sold it for $2,000.

I also bought a 750 Interceptor in 1989 for $850. Cleaned it up, did some other major work, and sold it for $1,900. I made about $200 there when all was said and done. This allowed me to get my GSX-R 750. Oh yeah, you get to RIDE the bikes in the meantime.

It is all about utilizing what you have to make more. Get it?

As for financing, they will have you by the balls. I went in and was looking at financing a used GSX-R 1000. I have impeccable credit. Well, they promised me this and promised me that, then couldn't deliver on what they promised once I got to the financial part of the deal. So I offered cash for the bike. I made a more than fair offer on the machine. Well, the sales manager wouldn't take my offer. So, I walked. F--k those guys.

I bought a 1966 Fender Stratocaster that was owned by Brad Gillis from Night Ranger instead. A much better investment says I.

Don't mess with me.

- Nut

[87gsxrnut]

FWIW: All those bike I bought listed above were when I was in college. I didn't have much money, but I managed. Can you say Pell Grants? Hint, Hint . . .

- Nut

[SDSUsnowboards]

I have found myself in your situation. I have an account at a credit union. That's a good first step because they have good rates generally. I have no credit, and a part time job. Initially I tried having some friends with established credit cosign for me. They didnt cut it, so I was about to sell my car and use that with most of my savings to get a bike. My parents freaked at the thought of me riding only a bike, unexperienced, in rush hour every day to get to school and agreed to cosign. Manipulation on the parents works, so try that if nothing else goes. Good luck buddy =)

BTW some places will finance you even if you have no credit, look around. But as so poetically mentioned in a previous post, "they'll have you by your balls" and you'll have to put up with a horrendous rate. they might also ask for a ton of money down and a pint of virgin blood.

[Madura]

Originally Posted by 87gsxrnut

I bought a 1966 Fender Stratocaster that was owned by Brad Gillis from Night Ranger instead.

Instead of buying a car when I was 16 I bought a 1957 Gibson ES-5 Switchmaster (Blonde). I paid $2,000 which was a lot of money in 1986. (yes, I'm real old). The owner had played it with Woodie Herman and Bob Crosby. I think I made a similar investment.

[DaMaNP750]

one day i'll talk about stuff that is a distant memory...well not looking forward to that....j/k....

[c50tiger]

Originally Posted by bnizzy

FINANCING.

How does it work? Do I need to have good credit?

How it works is they give you the money for what you want, and you pay them back over time, plus interest. The amount of interest depends on your credit. It's apparently gotten to the point that darn near anyone can get something on credit.. but if your credit isn't so hot, or simply non-existant, the vig can be brutal. Even with good credit, you have to read the fine print. I've seen papers where 4.5% interest suddenly jump to prime + xx% for minor discrepencies (e.g., you're a couple days late on a payment) - others might just jack it right on up to 21%. Or higher.

One of the favorites right now - Suzuki and Kawasaki are both using this - involves a certain credit card company. When you apply for credit, you are basically getting it in the form of a credit card with credit card level minimum payments. For the first 12 or 18 or 24 months, you get a low 4.5% interest. After that it jumps up to 18% or 19%. This may be the way to go for some, but only if you can afford to pay well more than the minimum due each month so that you can swap out for a more reasonable regular bank loan before the interest starts to kill you.

Bottom line, buying on credit you can easily end up paying far, far more than the bill of sale states. Cash is always preferable.

Patience, Grasshopper.

[Bluejeans]

Originally Posted by bnizzy

FINANCING.

How does it work? Do I need to have good credit? I'm sorry for this dumb question.... but pls help!

On the other hand, done properly, a little credit is a good thing. If you have none at all, you really should consider financing something to establish your credit for that fateful day when you might want to buy a house.

If you are looking for a bike from a dealership, they typically have a finance manager who will search for a loan for you. In some cases, they can find "deals" that you might never find on your own. In my case, I chose to finance my bike for my own personal reasons. The finance manager at the dealership where I bought the bike found me very good financing with a local credit union.

Bottom line, No, you don't have to have credit to get credit, but it helps. A motivated dealership can find you a decent deal without the ballooning interest that Suzuki and Kawasaki try to blow your way.

Patience is still the key, whether you are saving or finding financing.

Here's a tip: Determine how much you think you can pay each month (realistically) for a bike PLUS insurance (call for quotes on the bike you think you want). Then, open a savings account and deposit that payment plus the insurance payment each month into the savings account. This will accomplish two things: First, you will see whether or not you can really afford the payment you think you can, and second, you will be saving money even faster. After six months, you will know if your payment expectations were realistic AND you'll have a nice little sum to put down on your bike. Downpayments often go a long way toward convincing a lender that you are serious.

Hope that helps...

[bhamon]

Don't buy on credit just to help your credit rating. It can be expensive. If that is what you are going to do, put as much down as you can so that your total financed is low and your monthly payments are well within your budget so that you can handle those emergency purchases. Credit is great if you want something before you can afford it, but it will bite you in the butt if you come into some hard times.

[87gsxrnut]

you have to read the fine print

YES!!!!! DO IT! I got screwed years ago because I didn't (truck, not bike)

If that is what you are going to do, put as much down as you can so that your total financed is low and your monthly payments are well within your budget so that you can handle those emergency purchases.

Excellent point. A good down payment will save you a lot more money in the future on the interest of the amount borrowed.

This will accomplish two things: First, you will see whether or not you can really afford the payment you think you can, and second, you will be saving money even faster. After six months, you will know if your payment expectations were realistic AND you'll have a nice little sum to put down on your bike. Downpayments often go a long way toward convincing a lender that you are serious.

And a great way to get started!

- Nut

[bnizzy]

wow....

thanx for so much advice guys.

i guess one thing's for sure... gotta have that patience.
i'll really give this whole financing thing a lot more thought, and i will definetly save money in the meantime.

thanx again for all the advice... i really really appreciate it.
at least now i sorta know whats what.

[c50tiger]

Originally Posted by bnizzy

thanx again for all the advice... i really really appreciate it.
at least now i sorta know whats what.

De nada. That's what we're here for

Good luck and remember... patience