Comments on: Save $1360.72 Off the Price of Your Next Motorcycle http://bolty.net/2009/07/14/save-1360-72-off-the-price-of-your-next-motorcycle/ a blog about riding motorcycles Fri, 10 Feb 2012 13:03:16 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: LifeOn2Whls http://bolty.net/2009/07/14/save-1360-72-off-the-price-of-your-next-motorcycle/#comment-756 LifeOn2Whls Fri, 17 Jul 2009 21:36:03 +0000 http://bolty.net/?p=850#comment-756 @Stacy: LOL. I'm a hair away from the big 3 - 0. To some I'm still young but have a still have a long credit history. That said, I believe the finance rate I got has something to do with the dealer I went through and the bank they were using. My truck is financed, along with a previous car...so I'm no stranger. I did some research on the matter and I got the bike at a big discount. Since most can't pay cash, this dealer seems to get a kick back on their finance deals with the bank. I remember seeing something about it on the papers I was signing but again, didn't matter much since I was laying the cash down shortly thereafter. @Stacy: LOL.

I’m a hair away from the big 3 – 0. To some I’m still young but have a still have a long credit history. That said, I believe the finance rate I got has something to do with the dealer I went through and the bank they were using. My truck is financed, along with a previous car…so I’m no stranger. I did some research on the matter and I got the bike at a big discount. Since most can’t pay cash, this dealer seems to get a kick back on their finance deals with the bank. I remember seeing something about it on the papers I was signing but again, didn’t matter much since I was laying the cash down shortly thereafter.

]]> By: Stacy http://bolty.net/2009/07/14/save-1360-72-off-the-price-of-your-next-motorcycle/#comment-754 Stacy Thu, 16 Jul 2009 17:14:52 +0000 http://bolty.net/?p=850#comment-754 <strong>@Dean W:</strong> Clever! Are you one of those folks who keep rolling a balance on 0% cards around while allowing that borrowed money to accumulate interest in a savings account? I always thought that trick was pretty neat, but I suspect it might be more difficult to pull off these days. <strong>@LifeOn2Whls:</strong> You must be young. *ducks* :P Yup, when used skillfully, a little credit goes a long way. Unfortunately, or fortunately I guess, I've already built up a good long credit history so the SV loan is simply burning money. At least it's financed at 5.5%! @Dean W: Clever! Are you one of those folks who keep rolling a balance on 0% cards around while allowing that borrowed money to accumulate interest in a savings account? I always thought that trick was pretty neat, but I suspect it might be more difficult to pull off these days.

@LifeOn2Whls: You must be young.

*ducks*

:P

Yup, when used skillfully, a little credit goes a long way. Unfortunately, or fortunately I guess, I’ve already built up a good long credit history so the SV loan is simply burning money. At least it’s financed at 5.5%!

]]> By: LifeOn2Whls http://bolty.net/2009/07/14/save-1360-72-off-the-price-of-your-next-motorcycle/#comment-752 LifeOn2Whls Wed, 15 Jul 2009 22:58:41 +0000 http://bolty.net/?p=850#comment-752 Great post. Financing does come with some perks that you didn't mention. Although I had most of the cash for my '09 SV, I decided to finance the bike. Not because I wanted to throw money away but I wanted it on my credit report. A credit history of credit cards alone isn't the best thing and I made sure I had the loan paid off in a couple months. The surprising thing is this...I have AMAZING credit which is coming in very handy now that I am looking for a house. When I got the finance rate back from Suzuki's lender, they wanted to charge me 14.5% interest! Had I not had the cash to back up that purchase then I would have walked out but that was absolutely ridiculous. One other suggestion for paying more on your loan, is to set up automatic payments through your bank (your bank sending the money - not the lender taking the money from the bank). Once you have done this, have $15 - 25 taken out each Friday (if you can afford it) and sent to your lender. Do this on top of your standard monthly payment. It lessens the blow of the larger lump sum each month, plus it reminds you to spend less when you go out each weekend :) Great post. Financing does come with some perks that you didn’t mention. Although I had most of the cash for my ’09 SV, I decided to finance the bike. Not because I wanted to throw money away but I wanted it on my credit report. A credit history of credit cards alone isn’t the best thing and I made sure I had the loan paid off in a couple months. The surprising thing is this…I have AMAZING credit which is coming in very handy now that I am looking for a house. When I got the finance rate back from Suzuki’s lender, they wanted to charge me 14.5% interest! Had I not had the cash to back up that purchase then I would have walked out but that was absolutely ridiculous.

One other suggestion for paying more on your loan, is to set up automatic payments through your bank (your bank sending the money – not the lender taking the money from the bank). Once you have done this, have $15 – 25 taken out each Friday (if you can afford it) and sent to your lender. Do this on top of your standard monthly payment. It lessens the blow of the larger lump sum each month, plus it reminds you to spend less when you go out each weekend :)

]]> By: Dean W http://bolty.net/2009/07/14/save-1360-72-off-the-price-of-your-next-motorcycle/#comment-751 Dean W Wed, 15 Jul 2009 20:57:36 +0000 http://bolty.net/?p=850#comment-751 Last expensive bike I purchased was the FJR, which I got 6 months no interest (Yamaha) before rolling it over to 6 months no interest (Yamaha card), which I rolled over to 6 months no interest (New Visa card) which I paid off before it hit. BTW, excluding "0% for X months" offers, good luck getting < 10% interest for a bike loan... Last expensive bike I purchased was the FJR, which I got 6 months no interest (Yamaha) before rolling it over to 6 months no interest (Yamaha card), which I rolled over to 6 months no interest (New Visa card) which I paid off before it hit.

BTW, excluding “0% for X months” offers, good luck getting < 10% interest for a bike loan…

]]> By: Stacy http://bolty.net/2009/07/14/save-1360-72-off-the-price-of-your-next-motorcycle/#comment-749 Stacy Wed, 15 Jul 2009 16:51:48 +0000 http://bolty.net/?p=850#comment-749 <strong>@Ken:</strong> Great reply yourself, Ken! I've been slowly digging my way out of debt for a while now, with a temporary setback of buying a house during the peak of the bubble. Ouch! Oh well, at least we have a nice warm garage for the bikes! :) Gotta pay off the bike first, then my student loans, and then the Big Kahuna (the house). Lots of work, but it feels good too. And it leaves more money each month for things that I really love, like riding and farkling the bike! @Ken: Great reply yourself, Ken! I’ve been slowly digging my way out of debt for a while now, with a temporary setback of buying a house during the peak of the bubble. Ouch! Oh well, at least we have a nice warm garage for the bikes! :) Gotta pay off the bike first, then my student loans, and then the Big Kahuna (the house). Lots of work, but it feels good too. And it leaves more money each month for things that I really love, like riding and farkling the bike!

]]> By: Stacy http://bolty.net/2009/07/14/save-1360-72-off-the-price-of-your-next-motorcycle/#comment-748 Stacy Wed, 15 Jul 2009 16:44:11 +0000 http://bolty.net/?p=850#comment-748 <strong>@cpa3485:</strong> You bring up some good points. I've also heard the advice about loans for depreciating assets. (Can you tell I've got personal finance on the brain?) Thanks for reminding me about zero percent financing. There's definitely nothing wrong with taking advantage of these deals when they come along. The only catch is that you <strong>must</strong> make dead certain you'll pay it off within the grace period. If you're even one day over the deadline, you'll be out a chunk of interest. Another thing is low interest loans. I know that BMW had a 3.0% fixed rate loan program for a while on new motorcycles. If you scored a loan with such a low interest rate, you'd be much better off paying down other loans that have higher interest rates first. @cpa3485: You bring up some good points. I’ve also heard the advice about loans for depreciating assets. (Can you tell I’ve got personal finance on the brain?)

Thanks for reminding me about zero percent financing. There’s definitely nothing wrong with taking advantage of these deals when they come along. The only catch is that you must make dead certain you’ll pay it off within the grace period. If you’re even one day over the deadline, you’ll be out a chunk of interest.

Another thing is low interest loans. I know that BMW had a 3.0% fixed rate loan program for a while on new motorcycles. If you scored a loan with such a low interest rate, you’d be much better off paying down other loans that have higher interest rates first.

]]> By: Ken Linder http://bolty.net/2009/07/14/save-1360-72-off-the-price-of-your-next-motorcycle/#comment-747 Ken Linder Wed, 15 Jul 2009 16:40:33 +0000 http://bolty.net/?p=850#comment-747 Yup! Great post, Stacy. Getting rid of those credit cards and loans isn't all that easy... I know... But with your method it can be done. I have been doing the 'rounding up' method on my loans and now should have my pickup paid off nearly three months early. My little consumer loan should be done early as well. Last year I had the opportunity to buy a little airplane. It was not that expensive and payments were around $275 per month for ten years (I think) with no money down. Interest? nearly 13%. I passed it up. Pinching pennies in the long run does help. Think twice about that Starbucks or Red Bull or case of beer, new shiny plasma television, or bike farkle. Maybe think more about the 'doing' rather than the 'buying.' Great reply there, CPA. Yup! Great post, Stacy.

Getting rid of those credit cards and loans isn’t all that easy… I know… But with your method it can be done. I have been doing the ’rounding up’ method on my loans and now should have my pickup paid off nearly three months early. My little consumer loan should be done early as well.

Last year I had the opportunity to buy a little airplane. It was not that expensive and payments were around $275 per month for ten years (I think) with no money down. Interest? nearly 13%. I passed it up.

Pinching pennies in the long run does help. Think twice about that Starbucks or Red Bull or case of beer, new shiny plasma television, or bike farkle. Maybe think more about the ‘doing’ rather than the ‘buying.’

Great reply there, CPA.

]]> By: cpa3485 http://bolty.net/2009/07/14/save-1360-72-off-the-price-of-your-next-motorcycle/#comment-746 cpa3485 Wed, 15 Jul 2009 13:52:47 +0000 http://bolty.net/?p=850#comment-746 Forgot to add: When I bought my scooter I was able to get a 100% financing arrangement with no payments and no interest for 9 months. I paid it off completely almost exactly 8 2/3 months after purchase. Was hoping that pissed the bank off a little bit. Forgot to add:
When I bought my scooter I was able to get a 100% financing arrangement with no payments and no interest for 9 months. I paid it off completely almost exactly 8 2/3 months after purchase. Was hoping that pissed the bank off a little bit.

]]> By: cpa3485 http://bolty.net/2009/07/14/save-1360-72-off-the-price-of-your-next-motorcycle/#comment-745 cpa3485 Wed, 15 Jul 2009 13:49:47 +0000 http://bolty.net/?p=850#comment-745 Being a numbers guy like I am, I can attest to your accuracy and your thoughts. It's much cheaper in the long rum to save up and pay cash, but the instant gratification can be difficult to deal with when every bank and loan company in the world is fighting to loan you the money NOW. I once read somewhere that for financial planning purposes, you should also never borrow money to purchase something that depreciates in value over time. A car or a motorcycle (in my case a scooter) would fall into this category. Thats's hard to do sometimes, but it does pay off in the long run. Real estate generally doesn't depreciate, so borrowing for a home is advised as long as you can keep up with the maintenance and upkeep. Recently talked with someone that had some sort of Dodge Ram Pickup and said he was upside down by $11,000 on it. (Value less than loan amount) How much would that suck! Good post! Being a numbers guy like I am, I can attest to your accuracy and your thoughts. It’s much cheaper in the long rum to save up and pay cash, but the instant gratification can be difficult to deal with when every bank and loan company in the world is fighting to loan you the money NOW.
I once read somewhere that for financial planning purposes, you should also never borrow money to purchase something that depreciates in value over time. A car or a motorcycle (in my case a scooter) would fall into this category. Thats’s hard to do sometimes, but it does pay off in the long run. Real estate generally doesn’t depreciate, so borrowing for a home is advised as long as you can keep up with the maintenance and upkeep.
Recently talked with someone that had some sort of Dodge Ram Pickup and said he was upside down by $11,000 on it. (Value less than loan amount) How much would that suck!
Good post!

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