But there's always the case that you will never have enough to afford the bike. Whereas once you start riding even if it does depreciate in value at least your smiling the entire time
@@seanrobbins712516 years ago my first sports bike at 16 was a $1,500 early 90s cbr250 which I kept until I could afford a $4,000 96 rvf400. I’ve since had I think 12 bikes, everything from husky 511s to v-rods to panigale v4s, everything bought outright. The only 2 bikes I kept for more then a year are the panigale (5 years and still own it) and the rvf400 which I still have because of its sounds due to the straight cut gears and little v4 with vtec, and because of its red aftermarket tyga fairings and single sided swing arm, I always thought it looked better then most modern bikes until I found the panigale v4 which looks eerily similar, like a big brother.
i agree, except for when you get 0% financing and a huge discount, have full coverage insurance and budget properly or have the full amount in savings/investments
@@adobomoto facts and with age comes wisdom. I was pretty smart with my money while in the military and over the past 8 years since I retired so I'm pretty much set for life. I can use my credit for things that matter like buying houses.
@@moisesojeda1085I got a first gen r1 with cash. When I wanted the cross plane the convinced me to get new vs used. Then I had an accident. Insurance totaled it. The r1 is the only street bike that matters. Owned 3.
@@bladeslayer Been doing that don't pay for anything I don't need ect ect . Still expecting to pay 50% more then I did last year for living expense. Nothing new was added.
@@TexanTemplarimagine not understanding that that imaginary number affects your life in real ways. But please, tell me more about how we can ignore established institutions. Next you’ll tell me not to pay off loans because they’re “imaginary numbers.” Or maybe we should ignore money altogether because frankly, who needs pieces of paper representing “imaginary numbers?”
Sometimes I just finance things to build my credit. When I was young I thought cash was king. As I got older I realized credit is everything in this world.
Credit is everything if you are a bug sandwitch male who needs to go to bank for everything, save, live within your means and work hard, so you dont have to take fauccis juice everytime there is a new scamdenic just because your entire life is a monthly payment 😭 get a plan ready and borrow for bussiness, if it takes off, you can cash out your toys and cars later and ride into the sunset. If it doesnt take off, at least you learned sonething for your money, and didnt just end up with depreciating liability 😂
@@djocharablaikan8601 Credit is absolutely king even if you make plenty of money as an entrepreneur. Liquid cash is used to acquire multiple investment assets (primarily financed through credit) and diversify portfolios, not dump into depreciating assets.
So true! Started on a $3,000 Ninja 300. Sold it for $2500. Got a $5000 R6. And straight traded it for a CB1000R. It’s fun getting different bikes, rather than paying 1 off forever.
Listen to this man! Financed my first bike completely new.. regret it to this day. An MT-07 at the time completely new feels good when you get it but later on the same pleasure was to be had on a second hand
If you're sure you want the bike and the payments fit into your budget, and you're willing to pay more than what it's actually worth in the long run... finance it. Building up your credit in the process. Nothing wrong with it. There would only be a few vehicles on the road if everyone had to pay cash for them. We're not all rich nor do we want to wait years to be able to enjoy our lives.
At least someone gets it, I don't understand why people think it's so wrong to buy something on credit, If you can afford the monthly payments then go for it, nothing wrong
@@Snowaxe3D the thing is bikes are pretty "seasonal" thing. After some 2 season you'll get bored with it and start looking after some better one. Too bad you still have few years of paying ahead of you...
@@Snowaxe3DHe means like after one or two years (seasons) of riding, you sell your bike for something else and don't want to be stuck paying for something you're ready to move on from.
The funniest and most affordable bike is a GSXR.. and I mean maintenance and reliability.. also, it doesn’t matter what kind of bike you ride riding is riding brother. 😁👍
Still low 6’s on motorcycles from my credit union. Paying cash is better sure, but financing isn’t a big deal either if you understand it. Also I put a good bit down so if I want to get something else a year later I’m not upside down in it. Do I spend a little more in financing ? Maybe. But I really don’t care.
You can still finance a new bike but once you acquire the bike; save up to pay off a large sum (preferably half) and then refinance with a different bank for a much lower APR and monthly payment.
BS advice given to you probably by a banker, cash is king and bikes are liabilities at best if not complete toys. I wouldnt recoment buing one if you cant afford 3, let alone borowing money for them, alot of people, especially people with 0 mechanical skills underestimate how much it costs to keep motorcycles running, so you end up with a monthly payment to the bank on top of all the rubber, brakes and chain replacements and hopefully nothing else. Plus insurance. You will be financially out of breath very fast. And thats if you dont end up droping that 20 000 dollar baby boy and toasting it or depreciating the value completely on top of a very expensive repair. Anything you pay for motorcycle over 10 grand is too much. I have a 2000 dollar bike that taught me alot of maintenance, rides just as good as new bikes if not better, spare parts are abundant and if it drops i will just get a new one. Besides you dont loose much on resale value because its allready low enough, if you want to get a new set of wheels.
@@djocharablaikan8601 You are talking to someone who has owned 6 motorcycles (3 of them new) and maintaned them all myself including valvle adjustments. What you are saying has truth to it in terms of don't ever get something that you can't afford but that is obvious for ANYTHING in life. I am saying that financing isn't the worst option out there like this video makes it out to be. And you 100% can refianance for a lower rate if not at least a lower monthly payment if you pay off a large sum because I have done it. My friends were the one who actually recommended it since they did it too.
@@HaloDude557 cope, what college did you go in? Is this the shit they teach in these clown world education centers these days? Borrowing money for liabilities? If you have 10 bucks in your pocket you are richer than dude who leases 100 000 dollar porsche, hell you are probably richer than 90 percent of America. few missed payments and you loose the car and STILL owe money, cant even ask your boss for a raise because he knows you are not going anywhere 😂 the moment you lose your job you lose it all, there is a reason you couldnt buy it cash in the first place, you cant afford it, if you cant buy 3 you cant afford one and with motorcycles this is especially the case, what makes you think you will be able to buy it with 20 + percent interest on top While paying extra for insurance and service? Do you even math? 😭
@@BoardWalkToke i hope your friends are gonna be there to buy you PBJ sandwitches if you take a spill and and get slaped with a hospital bill on top of your penalty for missed payment on a bike that now depreciated into the scrap metal 😂 and lose your job on top 😭 moronic. Buying a new bike is argueably pretty retarded even if you have cash on hand. You are loosing couple of grand the moment you ride out of Stealership, flushing money down the drain bro.
Always shop for zero interest deals. Amazon store card is zero interest for 6, 12, 18, or 24 months depending on the amount. PayPal credit is 6 months zero interest. Can't beat a zero interest easy payment plan😁👌
Those clowns on FB marketplace are wanting MSRP for their 5-year-old bikes with 15k miles on them. Almost better to buy new in this market so you don’t end up with something clapped.
@@yourwifesboyfriend6081 I hear ya I’ve seen some listings blown motor or not working at all for 3k but when I made the post I had found a 2013 ninja 650 with 2.8k miles for $800 mainly had a rusty gas tank and I think he broke the coolant reservoir and brake cylinder cause from listing they where fine in there condition but he didn’t know anything about working on stuff so it was an easy fix bout $40-50 but needs fairings still
@G SD nice currently sourcing my second bike might be a 2012 zx6r might need the front fairings and headlights but currently runs so that’s a cheap bike after I finish my first lol
So true! Bought my 2013 Yamaha Vstar 1300 new used deluxe in 2019 and never had a problem with it! Awesome reliability and a solid bike! Looking to buy a 2014 or newer Kawasaki concourse 14 ABS now.
Don’t forget that dealers also up charge, and insurance will need to have full coverage since the bike is on a loan. Was looking to buy an mt-07 as a first bike. MSRP was around $7800, and dealer price was $10200 out the door. Insurance with full coverage would have been almost $2000 a year since I’m only 20 and it needed full coverage. Ended up buying a 2020 ninja 400 for $4200 cash which i could easily resell for similar price around here, and insurance is only $600 a year for both me and my brother.
Depends on everyones standing i financed a ninja 400 new from a dealer for 7k with 6 years unlimited mileage warranty and 8 free battery replacements and also dont need full coverage or any insurance in my state.
That's exactly what did. I ended up getting 2023 Z400 paid for all in cash. I don't regret it one bit, yeah I won't have as much money in my account for a little bit, but I won't have to pay full coverage insurance plus a monthly bike payment. Yeah, i could've gone used but idk, I like my bike a lot. I recently just dropped my bike in the driveway but it still rides fine, just need a new clutch lever and my shifter is kinda bent but i don't really care about that as much. But yeah :-)
I started riding on a 80$ 2 stroke moped. I put a malossi 70cc kit on and I changed the gearing. Safe to say ive never owned a faster bike at traffic lights.
I bought my little Suzuki back in Highschool, look for a small displacement used bike that you can afford. It’s foolish to get a loan on anything but a house or business
Yeah my first bike was a 1800$ katana, got wrecked when someone cut me off and cus it had aftermarket paintjob insurance paid 4200, bought a 3k bike with that
Honestly coming from someone that worked in sales at the motorcycle dealership AND financed a bike, i do recommend financing. It helps people’s credit quite a bit. Cause the banks sees it as a toy loan unlike a car loan. Yes it does cost you because of interest and some banks actually dont have that increased interest. 🤷🏻♀️ and also helps if you can pay it off in 1/3 of the time that helps a lot in keeping down the interest.
@@mattk909 A lot of tier one customers finance even tho they can pay cash just cause it helps their score even more not cause they couldn’t afford it.🤷🏻♀️
I Absolutely agree, all my bikes have been used and bought off Facebook marketplace, I’m on my 3rd bike now, started when i was 16.. especially if you live in the Midwest where we only get 4-6 months of riding season a year.. makes no sense to make payments on a bike you can only enjoy half the year lol
There is a financial component to consider: if you have the cash to make a large purchase, it may still be better to finance said purchase. The potential to collect compounded interest or better yet, investment earnings, could not only outpace the cost of financing but also depreciation. Cost/benefit and risk would all have to be assessed. Regardless of all of this: understand that a motorcycle is a poor financial decision on all fronts, so approaching the question of how to purchase a bike from a financial perspective boils down to - dont.
I financed all 8 of my motorcycles at very low percentages (~3%) and if you over pay, you get the loan paid off really fast, establish credit history and boost your score and really I only paid about 500-800 extra for the bikes.
Had two Aprilia 2005-2010 both were in the shop more than on the road. I've been living in Europe since 2003. Been riding since 78. Do your self a favor and get a japanese bike. Italian bikes are like blind dates and that's a fact.
I learned this the hard way in 2008. He's being kind. You're more than likely end up paying more than that. Best thing you can do is pay as much as you can over the payment amount if you do finance because everything over the amount due goes towards the principal or the base value of the bike. If you can make double payments, that's even better.
I can afford it in cash but I was gone finance it because I want to get my tracker, disc lock and my exhaust. I hear you can raise your credit by financing too.
You can absolutely raise your credit. When people advise against it, that advice is mainly for poor people. Because if you miss a payment and you've already used your once per year deferral, thats it you're fucked.
I started riding in my early 30s. I bought my first bike outright. I figured that, if I didn't like riding, or wrecked the bike, I could walk (or limp) away with no strings attached. 15 years later, I bought another bike with cash-on-hand. Really wouldn't want to do it any other way.
It can mean profit for you if the bike is discontinued or said model is no longer made, increasing or decreasing the value. You can buy a bike and put 30k miles on it and still maybe resell higher than you paid for it
@@2004hondacivichybrid if you chose to buy a bike that is known for a consistent increase in value you will most likely make a good return on your bike for what you spend on it for however long you own it
No. You need to make payments on it for a year for it to really make a difference. If you have good credit and the cash to buy said bike outright, it will only cost you a fairly negligible amount to do it this way.
First let me say I love your content and your sense of humor. In your first example that's how my credit union financed my vehicle. 3% times cost. I wish I could show you cause maybe that's why credit unions are better. No added interest to the remaining balance at the end of each month just pay the principle + interest. Keep up the good work
@@DELL.ACNT. you are building a marginal credit score for a hefty price. You are litterally selling yourself to slavery for a set of wheels, best case scenario you overpay by a huge margin, worst case scenario, life happens, in this case, lets say you take a spill, end up loosing your job, get slaped with a hospital bill on top of your monthly bike payment, you miss couple of payments and you end up not only overpaying by even bigger margin but also loosing credit score and possibly even loosing whatever it is you put as collateral or get into some serious existantial problems. Never borrow for small stuff, if you still want to, ask your family members for a loan for a flat 10 percent rate on whatever it is you want to borrow. If they say no, just fuck it and start saving. Its never worth it to get involved with the bank over small stuff, you are guaranteed to regret it. I paid cash for my mototrcycle and it was like 8 grand bike, even if i paied cash, on some of those nicer bikes, parts, servicing and depreciation can go through the roof. I sold it barely for 6500 after i put in another 2000 dollars on it on repairs and accesories, imagine how much more would the loss be if you count it loan interest and whatnot. Thats 3000 dollars down the drain. And that bike just had miles on it, mint condition, imagine droping it, you are never getting a good price for droped set of wheels. Its a toy bro, dont delude yourself. Never borow for motorcycle.
@@djocharablaikan8601 It's hard not to finance a place when the cheapest dives are still in the six figures. Plus mortgage repayments are cheaper than rent.
The only time it makes sense to finance is if its your primary vehicle and youre buying something small like a 125-400. I needed something to get to my physical therapy appointments and I was gonna get a ninja 400 financed since it would only be about $600 extra. Luckily my dad stepped in and bought me the bike. That man regularly makes my dreams come true.
If you’re broke but you want it and you’re willing to do it then go for broke and finance. Money will always come, it’s better you enjoy what you wanted than regret it later when you’re incapable for whatever reason.
Yep. While you don’t wanna screw yourself over in the end, you can’t take any of that money with you and life, paralyzations, and families happen. I.e, things that will make you regret.
This is great advice for someone who doesn’t invest, or isn’t good with finances. On the other hand, if you can get 8% or lower interest, it makes much more sense to finance, and put the money you would have paid cash with in an investment account.
They probably laugh at you bc it’s clapped lol and you think it’s fast bc it’s 1000cc but that’s a sh!t load of miles, I bought a brand new bike for 10k it had 4 miles on it lol
@@jacobybarra2140 true but to rack up that many miles and be that cheap, means the bikes old and most likely clapped. All the posts I see on Facebook marketplace for old well maintained and nice bikes go for at least 5-6 grand
Your going to drop or lay it down no matter your experience level. Back in the day I parked my 05 cbr 600rr at work. It was under an awning. The asphalt was only a couple of months old and it was 70 degrees. That bike hardly had any weight on the kickstand too. I came out to find the kickstand had sunk through the crappy asphalt and the bike fell over. Another time I was low on fuel and near home. I lived in the sticks so it was a long way to the gas station. I figured I would chance that I could make it home and fuel up with a gas can I had there. I made it. But then I did a sharp low speed U-turn in my driveway to park. The little fuel I had sloshed away and the bike stalled at an angle. There was no stopping going down. It was instant. Both of those events I was a very experienced rider. I never dropped a bike when I was new to it. Just sometimes shit is gonna happen.
Got my first for 3100(2006 gsxr 600), someone stole it, and got my 2nd for 2100 (2007 fz6). I like the 2100 bike more than my first. Minimal fairings make maintenance easier, and it has a canrter stand 😍🤤
This isnt always true. My money sitting in the bank makes 4.95% interest. I financed my bike at 1.95. So the money staying with me makes an additional 3%. 12k bike with 2k down, 36 month loan I'll earn $300 a year totaling out to around $900. Thats additional warranty, 5 payments or +$25 extra on each payment. Financing will make your credit go up, especially if your paying an extra $25 each payment. Correct me if Im wrong.
I agree to an extent, personally this bike i am currently financing will be a bike that i will forever hold on to. It is a 2023 as well and pulled out of the lot with 3 miles on it. I wouldn’t finance a bike over 10k, mostly because any $22,000 bike you find is a bike that you could buy out right from another previous owner for a lower price, I also feel like if someone’s first bike is a bike that expensive, it’s going to be a bigger bike that they could not really handle COMFORTABLY anyways. Notice i said comfortably because many people do start with 600s even some people start with 1000s, but they truly do not get the comfortable experience other 1st time riders get with a smaller bike. Getting a bike in general is a risk, I have always thought of these as “toys” and not really as a means of genuine travel, at least not sport bikes. But yk, that is just me. I’m sure other people have a million things in reply to that. One love, ride safe♥️
Some people don't see it the way you do. There are people out there who _have_ to have the latest and greatest gear out there and will spend whatever they have to to get it.
Oh snap... thanks for the warning, I regularly was going to finance but if that's the case that I'll pay way more for a Ninja 400, then I might as buy it out right then.
Hey man really appreciate all the advice here. I dont have any motorcycle friends/ people i can take advice from and learn from. really appreciate your vids boss. funny asf. ill be honest tho; that k5 gxxer looking sexy asfff ahahahah
Your first bike should always be second hand. You're gonna drop that sucker: off your paddock stand, on a slope, in a tighter corner than you expected. Shit happens, better it happen to a 10 year old bike with a few scrapes on her than a shiny new one.
Remember folks, if you do finance something make sure you multiply the monthly payment x the duration of the loan to see exactly what you’d pay before you sign. For example. A loan that’s 7 years is the same thing as 84 months. If something says it’s $500 a month, make sure you do 84 months x $500 to make sure your comfortable taking on $42,000 in debt, in this particular example.
Hell, not just that, they'll add all sorts of additional fees which aren't made clear at the start. The loan I took to rebuild my engine (it was that or scrap the car, and I probably should have just cut my losses) tells you at the start what the final interest will be- except that I apparently have to pay monthly interest as well, something I didn't find out about until recently.
Let's not forget that insurance skyrockets if you finance. Unfortunately I don't think I'll be able to scrape together that much cash, but I could start a line a credit to buy it outright and pay it off that way. That's how my dad purchased every vehicle we've ever had and other major expenses, so that's what I plan to do when I get my first bike.
for my first motorcycle, a close friend told me to finance it, even if you have the cash for it to improve my credit score (I'm 22 and recently got my first card). should I still try to buy it full cash or should I follow his advice?
Where I live, it makes sense to ride a bike year-round as your only vehicle which is why I rather finance that than a car. people say not to finance bikes because they are toys, but I disagree. If you only ride your bike on the weekend and only when it’s hot out, then yes, you’re wasting tons of money because you’re not riding all the time, but if you use a motorcycle for your only vehicle, go for it. And it helps build credit too.
I like the secureness of new though, the benefit of not bumping into the lies of the previous owner or missed details. I'm looking at a new 650 that I could buy outright but it just doesn't make sense when I could use it to build my credit.
Bought myself a Suzuki GSXR 600 after completing the M.O.S.T course. If you pass it then you don’t have to do the driving portion at DMV just present card (at least in the state I was in). Anyways, I was 18 and got a Bank of America credit card with a 5,000 dollar limit. Maxed it out on the bike. Paid more than the minimum. This helped build credit at an early age. Had it for around 10+ years and sold it for 3800 before having first child. Also, mortgaged first home at 22 since I was obsessed with home prices being so low. I’ve in 2012. Girlfriends parents hated me for it (now my wife) Now, in 2022 - I financed a 2022 Harley 883 Iron and love it. Removes the need for speed temptation. Also sold the house in 2021 and made a hefty sum to allow us to buy a house on the beach. 😃👍🏼.
It’s simple “interest” is what it’s called I bought my first sportbike in march of this year I’ll have it paid off by Jan 1st. It’s not always a bad idea as long as u make every single payment on time. And it’s also a good way to build credit. Especially if ur young without going out and getting a stupid credit card
I financed my first and now currently second bike because i have nothing else to really worry about, it fit into my budget and I'm doing double toward principle because i have disposable income. Its also my only form of transport so its my own version of somsone finacing a Toyota camry. If it works for you then go for it but i dont mind at all.
I mean using an extreme example like that I would agree lol It’s ok to finance, but you should put down at least 25% but definitely more if you can. And then you should aim to pay it off as quickly as you are able. Build your credit, it’s important
You’re usually spot on with your advice but this one is off. Never is incorrect. Sometimes, it’s not a good idea to finance. First, who’s financing a bike (or any vehicle for that matter) at 10% APR? If you have bad credit then you shouldn’t be financing. But with good credit, and when the federal interest rates aren’t up like they are not, it’s really advantageous to finance things like motorcycles and other vehicles because the interest rate paid is less than what you can make on the interest accrued with that fluid cash in the market. For example, I bought my Aprilia with a similar out the door price as you used in your example. I did a 60 month, 1.99% APR and I put $3,000 down. The payments are 210 a month and the interest over the life of the loan is about $900. $17,000 invested in a simple index fund that returns 3-7% annually is much more useful than paying $900 in interest over the life of the loan. OR if you’re not into investing, having $17,000 cash ready for if a life emergency arrives is better than scrambling to then sell your bike or assets to cover those unexpected emergencies.
Still got my first street bike 2013 GSX-R 600 22k miles riding like a champ and at a 0.02% interest back in 2014 I paid about 300 dollars in total interest! Factor depreciation all you want.... I still ride whenever I please!
This applies to financing anything. The most important thing that people miss about finance vs buy, though, is there are times when financing makes more sense. When you can get a low interest rate loan it leaves your capital free and that gives you options. If you can invest the money you would have spent and get a higher rate of return than the interest you pay then financing can be the better option. Of course you have to have established disciplined spending habits and a reliable investment strategy and those can be difficult to maintain so staying within your budget and avoiding unnecessary debt is the best way for most people. But there is a reason many very rich people carry a huge amount of debt - available capital can grow and money in someone else's pocket can't.
Financing a bike is fine in the UK ... You can get 0 - 7% interest rates and the bike won't depreciate much (unless you're stupid and buy one that tanks in value). Financing allows you to buy new / nearly new and not worry about unexpected bills due to reliability issues.
Bought my first brand new cbr125r on sale for 2k, sold it a year later for 2k; bought a new cbr300r for 4K, sold it 2 years later for 3.9k. Now bought a 08 vstar 650 for 2.4k, market price is around 4k here up north. The point is, riding is fun, riding for minimal amount of money is satisfying😊
Hopefully you're not taking out a 20k loan for your first bike but if done right you can build your credit. Got a steal on a 2019 triumph street triple rs for 8000. They are currently going for 9-12k, I put 5k down and took a 3k loan. My payments are 67 dollars a month but I pay way more than the minimum I pay roughly 400. so I'll have it paid off in a few months. Building credit and still got the bike I wanted. It's definitely not my first bike but what you said is still good information.
I financed my pending m1000r. Thing is almost 40g in Canada. I don't have that cash to spare. First bike was an aprilia shiver in 2015 for 10k. Bought that one outright.
I live in the capital city of Australia, and borrowing money for a daily commuter motorcycle that you can also enjoy on the weekend as well, always ends up cheaper than catching a bus instead. In fact the motorcycle ends up paying for itself, plus free parking everywhere you go.
Man, this is the advice i always got and always ignored and will always regret it.
But there's always the case that you will never have enough to afford the bike. Whereas once you start riding even if it does depreciate in value at least your smiling the entire time
@@seanrobbins7125 live within your means.
@@seanrobbins712516 years ago my first sports bike at 16 was a $1,500 early 90s cbr250 which I kept until I could afford a $4,000 96 rvf400. I’ve since had I think 12 bikes, everything from husky 511s to v-rods to panigale v4s, everything bought outright. The only 2 bikes I kept for more then a year are the panigale (5 years and still own it) and the rvf400 which I still have because of its sounds due to the straight cut gears and little v4 with vtec, and because of its red aftermarket tyga fairings and single sided swing arm, I always thought it looked better then most modern bikes until I found the panigale v4 which looks eerily similar, like a big brother.
i agree, except for when you get 0% financing and a huge discount, have full coverage insurance and budget properly or have the full amount in savings/investments
@@frankfeng6199 who does zero percent financing for a motorcycle?
Big facts. I bought both my Busa and Bimmer cash. I hate owing people money.
It’s Cuz we’re old 😂
@@adobomoto dont worry, its not the age. Im 22 and have never thought about financing anything. Maybe my parrents tought me well or im already old
@@adobomoto facts and with age comes wisdom. I was pretty smart with my money while in the military and over the past 8 years since I retired so I'm pretty much set for life. I can use my credit for things that matter like buying houses.
@@moisesojeda1085I got a first gen r1 with cash. When I wanted the cross plane the convinced me to get new vs used. Then I had an accident. Insurance totaled it. The r1 is the only street bike that matters. Owned 3.
@@jarnogruintjes1427 how's your credit?
By the time I save $25k the bike will be 25 yrs old 😂
NAH FR 😭
Then you need to learn how to budget, i swear americans will do anything but be smart with money
@@bladeslayerRather difficult to do when everything keeps getting more expensive while our paychecks/salaries stay the same.
@@bladeslayer Been doing that don't pay for anything I don't need ect ect . Still expecting to pay 50% more then I did last year for living expense. Nothing new was added.
It never will
I got a bike payment, I could have paid for it outright but the loan helps my credit. To each their own but I like having that good credit score.
Same thing for me. Couldn't be happier.
Imagine paying more for an imaginary number lol
@@TexanTemplarimagine not understanding that that imaginary number affects your life in real ways. But please, tell me more about how we can ignore established institutions. Next you’ll tell me not to pay off loans because they’re “imaginary numbers.” Or maybe we should ignore money altogether because frankly, who needs pieces of paper representing “imaginary numbers?”
@@TexanTemplaryikes bro
If you dont take out loans, you don't need that credit score
Sometimes I just finance things to build my credit. When I was young I thought cash was king. As I got older I realized credit is everything in this world.
Credit is everything if you are a bug sandwitch male who needs to go to bank for everything, save, live within your means and work hard, so you dont have to take fauccis juice everytime there is a new scamdenic just because your entire life is a monthly payment 😭 get a plan ready and borrow for bussiness, if it takes off, you can cash out your toys and cars later and ride into the sunset. If it doesnt take off, at least you learned sonething for your money, and didnt just end up with depreciating liability 😂
@@djocharablaikan8601 Credit is absolutely king even if you make plenty of money as an entrepreneur. Liquid cash is used to acquire multiple investment assets (primarily financed through credit) and diversify portfolios, not dump into depreciating assets.
@@djocharablaikan8601credit is literally what allows you to apply for loans and mortgage I’m building my credit with a finance.
What wealthy person borrowed their way into their wealth ?
Knowledge = king not credit..
So true! Started on a $3,000 Ninja 300. Sold it for $2500. Got a $5000 R6. And straight traded it for a CB1000R. It’s fun getting different bikes, rather than paying 1 off forever.
I would be happy with the ninja 300
@abs5040 No you wouldn't
@bk What are you riding now? A Huffy?
@@lovelessissimo nothing right now...that's why I would be happy with a 300 hahaha
Some of the most fun I had was on an old suzuki gs500, horsepower isn't everything.
Listen to this man! Financed my first bike completely new.. regret it to this day. An MT-07 at the time completely new feels good when you get it but later on the same pleasure was to be had on a second hand
If you're sure you want the bike and the payments fit into your budget, and you're willing to pay more than what it's actually worth in the long run... finance it. Building up your credit in the process. Nothing wrong with it. There would only be a few vehicles on the road if everyone had to pay cash for them. We're not all rich nor do we want to wait years to be able to enjoy our lives.
At least someone gets it,
I don't understand why people think it's so wrong to buy something on credit,
If you can afford the monthly payments then go for it, nothing wrong
I bought 2 bikes like this . First one only took me 2 years to pay off
@@Snowaxe3D the thing is bikes are pretty "seasonal" thing. After some 2 season you'll get bored with it and start looking after some better one. Too bad you still have few years of paying ahead of you...
@@Alexor715 that sounds like your personal preference,
A lot of people like to ride every day,
Not everyone thinks the same.
@@Snowaxe3DHe means like after one or two years (seasons) of riding, you sell your bike for something else and don't want to be stuck paying for something you're ready to move on from.
If I was buying cash only then I would be shopping for something with pedals 🚫
The funniest and most affordable bike is a GSXR.. and I mean maintenance and reliability.. also, it doesn’t matter what kind of bike you ride riding is riding brother. 😁👍
Facts!
How is a gixxer funny?
@@lovelessissimo probably ment to say the funnest
@@prepordietryin9119 that isn't a real word, though.
@@lovelessissimosuck eggs
Good advice, I must say most people should extend this advice to many things in their lives not just bikes
If someone is getting a 10% rate they have much bigger issues
I think he was just using easy math to get to the point.
I don’t think you’re keeping up with current interest rates, are you?
Interest rates are high even if you have good credit right now…
Still low 6’s on motorcycles from my credit union. Paying cash is better sure, but financing isn’t a big deal either if you understand it. Also I put a good bit down so if I want to get something else a year later I’m not upside down in it. Do I spend a little more in financing ? Maybe. But I really don’t care.
@@johnnymembergot 2.5% last fall…
You can still finance a new bike but once you acquire the bike; save up to pay off a large sum (preferably half) and then refinance with a different bank for a much lower APR and monthly payment.
BS advice given to you probably by a banker, cash is king and bikes are liabilities at best if not complete toys. I wouldnt recoment buing one if you cant afford 3, let alone borowing money for them, alot of people, especially people with 0 mechanical skills underestimate how much it costs to keep motorcycles running, so you end up with a monthly payment to the bank on top of all the rubber, brakes and chain replacements and hopefully nothing else. Plus insurance. You will be financially out of breath very fast. And thats if you dont end up droping that 20 000 dollar baby boy and toasting it or depreciating the value completely on top of a very expensive repair. Anything you pay for motorcycle over 10 grand is too much. I have a 2000 dollar bike that taught me alot of maintenance, rides just as good as new bikes if not better, spare parts are abundant and if it drops i will just get a new one. Besides you dont loose much on resale value because its allready low enough, if you want to get a new set of wheels.
@@djocharablaikan8601 You are talking to someone who has owned 6 motorcycles (3 of them new) and maintaned them all myself including valvle adjustments. What you are saying has truth to it in terms of don't ever get something that you can't afford but that is obvious for ANYTHING in life.
I am saying that financing isn't the worst option out there like this video makes it out to be. And you 100% can refianance for a lower rate if not at least a lower monthly payment if you pay off a large sum because I have done it. My friends were the one who actually recommended it since they did it too.
@@djocharablaikan8601 people who pay cash for everything are unironically poor
@@HaloDude557 cope, what college did you go in? Is this the shit they teach in these clown world education centers these days? Borrowing money for liabilities? If you have 10 bucks in your pocket you are richer than dude who leases 100 000 dollar porsche, hell you are probably richer than 90 percent of America. few missed payments and you loose the car and STILL owe money, cant even ask your boss for a raise because he knows you are not going anywhere 😂 the moment you lose your job you lose it all, there is a reason you couldnt buy it cash in the first place, you cant afford it, if you cant buy 3 you cant afford one and with motorcycles this is especially the case, what makes you think you will be able to buy it with 20 + percent interest on top While paying extra for insurance and service? Do you even math? 😭
@@BoardWalkToke i hope your friends are gonna be there to buy you PBJ sandwitches if you take a spill and and get slaped with a hospital bill on top of your penalty for missed payment on a bike that now depreciated into the scrap metal 😂 and lose your job on top 😭 moronic. Buying a new bike is argueably pretty retarded even if you have cash on hand. You are loosing couple of grand the moment you ride out of Stealership, flushing money down the drain bro.
This is true for anything you buy at interest with credit. ESPECIALLY cars!
Make a longer video covering this! ❤
Got 0% apr for my '19 Tuono factory for $15K - I couldn't say no.
That’s the right move if you can budget properly.
Very rare but if you can find a deal like that you win.
Always shop for zero interest deals. Amazon store card is zero interest for 6, 12, 18, or 24 months depending on the amount. PayPal credit is 6 months zero interest. Can't beat a zero interest easy payment plan😁👌
Man, those were the good old days lol
Ah, the pre-covid Trump economy.
Got this advice very early in my riding life. 3 years later, 14k value on 2 bikes I own out right. Make moves every day 💪
My first bike was a $ 250 Vespa in 1977, I've had many more used bikes since. Now, I might buy my first new one. You are so right!
I’d say Facebook marketplace and whatever you can find cause one man’s trash is another man’s treasure
Those clowns on FB marketplace are wanting MSRP for their 5-year-old bikes with 15k miles on them. Almost better to buy new in this market so you don’t end up with something clapped.
@@yourwifesboyfriend6081 I hear ya I’ve seen some listings blown motor or not working at all for 3k but when I made the post I had found a 2013 ninja 650 with 2.8k miles for $800 mainly had a rusty gas tank and I think he broke the coolant reservoir and brake cylinder cause from listing they where fine in there condition but he didn’t know anything about working on stuff so it was an easy fix bout $40-50 but needs fairings still
@G SD nice currently sourcing my second bike might be a 2012 zx6r might need the front fairings and headlights but currently runs so that’s a cheap bike after I finish my first lol
So true! Bought my 2013 Yamaha Vstar 1300 new used deluxe in 2019 and never had a problem with it! Awesome reliability and a solid bike!
Looking to buy a 2014 or newer Kawasaki concourse 14 ABS now.
I bought my Ninja 400 back in January for $5,400. Paid cash. Great little bike, no regrets.
Cool, have fun reading it in for something faster this summer.
Don’t forget that dealers also up charge, and insurance will need to have full coverage since the bike is on a loan. Was looking to buy an mt-07 as a first bike. MSRP was around $7800, and dealer price was $10200 out the door. Insurance with full coverage would have been almost $2000 a year since I’m only 20 and it needed full coverage.
Ended up buying a 2020 ninja 400 for $4200 cash which i could easily resell for similar price around here, and insurance is only $600 a year for both me and my brother.
Only idiots ride a nice bike without full coverage.
Depends on everyones standing i financed a ninja 400 new from a dealer for 7k with 6 years unlimited mileage warranty and 8 free battery replacements and also dont need full coverage or any insurance in my state.
Cash is always King.
Facts. Just drop 1-5k cash on one. Most people will lay it down anyway
💯 👍 if i see someone financing a 10 grand bike as his first set of 2 wheels i know for a fact hes a noob 😭
That's exactly what did. I ended up getting 2023 Z400 paid for all in cash. I don't regret it one bit, yeah I won't have as much money in my account for a little bit, but I won't have to pay full coverage insurance plus a monthly bike payment. Yeah, i could've gone used but idk, I like my bike a lot. I recently just dropped my bike in the driveway but it still rides fine, just need a new clutch lever and my shifter is kinda bent but i don't really care about that as much. But yeah :-)
Appreciate you brotha!!
I started riding on a 80$ 2 stroke moped. I put a malossi 70cc kit on and I changed the gearing. Safe to say ive never owned a faster bike at traffic lights.
Ewww
Agreed man I been telling people the same!!
I bought my little Suzuki back in Highschool, look for a small displacement used bike that you can afford. It’s foolish to get a loan on anything but a house or business
Yeah my first bike was a 1800$ katana, got wrecked when someone cut me off and cus it had aftermarket paintjob insurance paid 4200, bought a 3k bike with that
Bought a gsxr after watching this video because he reminded me of how great a deal they are second hand. Thanks!
Honestly coming from someone that worked in sales at the motorcycle dealership AND financed a bike, i do recommend financing. It helps people’s credit quite a bit. Cause the banks sees it as a toy loan unlike a car loan. Yes it does cost you because of interest and some banks actually dont have that increased interest. 🤷🏻♀️ and also helps if you can pay it off in 1/3 of the time that helps a lot in keeping down the interest.
of course that would come from a salesman 💀💀
@@plaguesquid are you blind? WORKED. Am i gonna make money if you financed? Cause you know everything right? Retard.
The reason I'm considering financing my next bike. Got the cash to pay in full and I'll only finance if it's not a ridiculous interest rate
@@mattk909 A lot of tier one customers finance even tho they can pay cash just cause it helps their score even more not cause they couldn’t afford it.🤷🏻♀️
I Absolutely agree, all my bikes have been used and bought off Facebook marketplace, I’m on my 3rd bike now, started when i was 16.. especially if you live in the Midwest where we only get 4-6 months of riding season a year.. makes no sense to make payments on a bike you can only enjoy half the year lol
There is a financial component to consider: if you have the cash to make a large purchase, it may still be better to finance said purchase. The potential to collect compounded interest or better yet, investment earnings, could not only outpace the cost of financing but also depreciation. Cost/benefit and risk would all have to be assessed. Regardless of all of this: understand that a motorcycle is a poor financial decision on all fronts, so approaching the question of how to purchase a bike from a financial perspective boils down to - dont.
It's a poor financial decision if you buy a motorcycle as a toy, not as a daily driver.
I financed all 8 of my motorcycles at very low percentages (~3%) and if you over pay, you get the loan paid off really fast, establish credit history and boost your score and really I only paid about 500-800 extra for the bikes.
My financial algebra teacher made me just never wanna take out a loan
Did you factor in how much a new aprillia is got to cost to repair it? Gsxr any day
Had two Aprilia 2005-2010 both were in the shop more than on the road. I've been living in Europe since 2003. Been riding since 78. Do your self a favor and get a japanese bike. Italian bikes are like blind dates and that's a fact.
I learned this the hard way in 2008. He's being kind. You're more than likely end up paying more than that. Best thing you can do is pay as much as you can over the payment amount if you do finance because everything over the amount due goes towards the principal or the base value of the bike. If you can make double payments, that's even better.
I can afford it in cash but I was gone finance it because I want to get my tracker, disc lock and my exhaust. I hear you can raise your credit by financing too.
You can absolutely raise your credit. When people advise against it, that advice is mainly for poor people. Because if you miss a payment and you've already used your once per year deferral, thats it you're fucked.
Pay on time never early and never late and you'll raise your score.
@@generalfranco9399 ok cool thanks
How much is your tracker disc lock n exhaust ffs 😂😂. Don't forget gear my dude n good luck n great times ahead.
@@generalfranco9399 we got brokies who need to go to bank to buy toys calling people poor, cant make this shit up.
This is the video i was looking for, thanks
Never finance anything.
Edit: unless it's 0% APR
The best advice and finance breakdown 👍
Nice, based on this video he's recommending I get a Hayabusa. Thx buddy, see ya on the streets!
I started riding in my early 30s. I bought my first bike outright. I figured that, if I didn't like riding, or wrecked the bike, I could walk (or limp) away with no strings attached. 15 years later, I bought another bike with cash-on-hand. Really wouldn't want to do it any other way.
The moral of the story is owning a motorcycle doesn't return a profit. Hobbies aren't cheap.
It can mean profit for you if the bike is discontinued or said model is no longer made, increasing or decreasing the value. You can buy a bike and put 30k miles on it and still maybe resell higher than you paid for it
@@also20cents97yeah if any wildly unlikely thing like that happens then it’ll be worth more
@@2004hondacivichybrid if you chose to buy a bike that is known for a consistent increase in value you will most likely make a good return on your bike for what you spend on it for however long you own it
Just bought my first bike in 10 years. New, within my budget. It felt so good to write a check and own it out right!
bro got some news for ya
finance a bike
and then pay it off instantly
now you have a paid off account on your credit report for no extra cost
No. You need to make payments on it for a year for it to really make a difference. If you have good credit and the cash to buy said bike outright, it will only cost you a fairly negligible amount to do it this way.
I have a 850 credit score doing it the way you explained.
First let me say I love your content and your sense of humor. In your first example that's how my credit union financed my vehicle. 3% times cost. I wish I could show you cause maybe that's why credit unions are better. No added interest to the remaining balance at the end of each month just pay the principle + interest. Keep up the good work
Funny enough, that’s the exact way my credit union did it for my r1m.
Aside from a home or a business...never finance anything. If you can't buy it outright, you can't afford it.
I would argue even financing home unless you absolutely have no other option, and your parents, relatives or partner are renting.
If you finance smaller things, a few hundred bucks now and then, you build credit.
@@DELL.ACNT. you are building a marginal credit score for a hefty price. You are litterally selling yourself to slavery for a set of wheels, best case scenario you overpay by a huge margin, worst case scenario, life happens, in this case, lets say you take a spill, end up loosing your job, get slaped with a hospital bill on top of your monthly bike payment, you miss couple of payments and you end up not only overpaying by even bigger margin but also loosing credit score and possibly even loosing whatever it is you put as collateral or get into some serious existantial problems. Never borrow for small stuff, if you still want to, ask your family members for a loan for a flat 10 percent rate on whatever it is you want to borrow. If they say no, just fuck it and start saving. Its never worth it to get involved with the bank over small stuff, you are guaranteed to regret it. I paid cash for my mototrcycle and it was like 8 grand bike, even if i paied cash, on some of those nicer bikes, parts, servicing and depreciation can go through the roof. I sold it barely for 6500 after i put in another 2000 dollars on it on repairs and accesories, imagine how much more would the loss be if you count it loan interest and whatnot. Thats 3000 dollars down the drain. And that bike just had miles on it, mint condition, imagine droping it, you are never getting a good price for droped set of wheels. Its a toy bro, dont delude yourself. Never borow for motorcycle.
@@djocharablaikan8601 It's hard not to finance a place when the cheapest dives are still in the six figures. Plus mortgage repayments are cheaper than rent.
@@djocharablaikan8601 who can buy a house cash though?
That will never happen for me I'd be saving until I die
The only time it makes sense to finance is if its your primary vehicle and youre buying something small like a 125-400. I needed something to get to my physical therapy appointments and I was gonna get a ninja 400 financed since it would only be about $600 extra. Luckily my dad stepped in and bought me the bike. That man regularly makes my dreams come true.
If you’re broke but you want it and you’re willing to do it then go for broke and finance. Money will always come, it’s better you enjoy what you wanted than regret it later when you’re incapable for whatever reason.
Yep. While you don’t wanna screw yourself over in the end, you can’t take any of that money with you and life, paralyzations, and families happen. I.e, things that will make you regret.
That last statement haha you right though🙏🏼
This is great advice for someone who doesn’t invest, or isn’t good with finances.
On the other hand, if you can get 8% or lower interest, it makes much more sense to finance, and put the money you would have paid cash with in an investment account.
I bought a 1000cc CBR with 50k miles for 3 grand. Thing runs great and I laugh every day when I see every other rider.
Lucky asf
They probably laugh at you bc it’s clapped lol and you think it’s fast bc it’s 1000cc but that’s a sh!t load of miles, I bought a brand new bike for 10k it had 4 miles on it lol
@@578_ all depends on maintenance man, if you take care of your bike, it will take care of you.
@@jacobybarra2140 true but to rack up that many miles and be that cheap, means the bikes old and most likely clapped. All the posts I see on Facebook marketplace for old well maintained and nice bikes go for at least 5-6 grand
@@578_ very true
U r doing great keep it up. Fan from Dubai 🤘🏼
Never buy an expensive first bike because you're going to drop it or lay it down, and it will devastate your pocket book
Your going to drop or lay it down no matter your experience level. Back in the day I parked my 05 cbr 600rr at work. It was under an awning. The asphalt was only a couple of months old and it was 70 degrees. That bike hardly had any weight on the kickstand too. I came out to find the kickstand had sunk through the crappy asphalt and the bike fell over.
Another time I was low on fuel and near home. I lived in the sticks so it was a long way to the gas station. I figured I would chance that I could make it home and fuel up with a gas can I had there. I made it. But then I did a sharp low speed U-turn in my driveway to park. The little fuel I had sloshed away and the bike stalled at an angle. There was no stopping going down. It was instant.
Both of those events I was a very experienced rider. I never dropped a bike when I was new to it. Just sometimes shit is gonna happen.
@@AlphanumericCharacters if my bike fell over because of asphalt I would be pissed
Got my first for 3100(2006 gsxr 600), someone stole it, and got my 2nd for 2100 (2007 fz6). I like the 2100 bike more than my first. Minimal fairings make maintenance easier, and it has a canrter stand 😍🤤
Dealer markups too. I had a dealer try to add $4800 in markups to a motorcycle.
Straight up changed my life thank you man I love you ❤
This isnt always true. My money sitting in the bank makes 4.95% interest. I financed my bike at 1.95. So the money staying with me makes an additional 3%. 12k bike with 2k down, 36 month loan I'll earn $300 a year totaling out to around $900. Thats additional warranty, 5 payments or +$25 extra on each payment. Financing will make your credit go up, especially if your paying an extra $25 each payment. Correct me if Im wrong.
I agree to an extent, personally this bike i am currently financing will be a bike that i will forever hold on to. It is a 2023 as well and pulled out of the lot with 3 miles on it. I wouldn’t finance a bike over 10k, mostly because any $22,000 bike you find is a bike that you could buy out right from another previous owner for a lower price, I also feel like if someone’s first bike is a bike that expensive, it’s going to be a bigger bike that they could not really handle COMFORTABLY anyways. Notice i said comfortably because many people do start with 600s even some people start with 1000s, but they truly do not get the comfortable experience other 1st time riders get with a smaller bike. Getting a bike in general is a risk, I have always thought of these as “toys” and not really as a means of genuine travel, at least not sport bikes. But yk, that is just me. I’m sure other people have a million things in reply to that. One love, ride safe♥️
I’ve financed and payed off 4 different bikes so far. Ive payed cash for 3 different bikes now. Most recent cash bike is my 2021 MT-07 :)
I kind of think this guy does not like GSXR. I love this guy!
Some people don't see it the way you do. There are people out there who _have_ to have the latest and greatest gear out there and will spend whatever they have to to get it.
Oh snap... thanks for the warning, I regularly was going to finance but if that's the case that I'll pay way more for a Ninja 400, then I might as buy it out right then.
Watching from Philippines 🇵🇭🇵🇭🇵🇭. My idol😇
i eat breath gixxers and even i can appreciate a good gixxer joke. Your gix joke game strong son, keep em comin!
I paid my first Ducati Monster plus cash. Hope to keep for the next 5 years before upgrading.
Hey man really appreciate all the advice here. I dont have any motorcycle friends/ people i can take advice from and learn from. really appreciate your vids boss. funny asf. ill be honest tho; that k5 gxxer looking sexy asfff ahahahah
I lucked out on my Road Glide and was able to finance it at 21k out the door. Fortunately HDs don’t depreciate as quickly.
This is so true. Though in PH your bike's price becomes twice after you've paid all the interest.
What interest do you sign up for?😂😂😂😂😂
Smart Talk 👍👍👍
This is true in cars too- buy what you can afford in cash as these are depreciating assets.
Your first bike should always be second hand. You're gonna drop that sucker: off your paddock stand, on a slope, in a tighter corner than you expected. Shit happens, better it happen to a 10 year old bike with a few scrapes on her than a shiny new one.
If you know how to work with loans and credit they are a huge benefit, while paying cash works against you long term.
I'm 55. Owned dozens of vehicles. Never financed anything. Saved tens of thousands...
Now the Gixxer rap sounds like a love song😂
Remember folks, if you do finance something make sure you multiply the monthly payment x the duration of the loan to see exactly what you’d pay before you sign.
For example. A loan that’s 7 years is the same thing as 84 months. If something says it’s $500 a month, make sure you do 84 months x $500 to make sure your comfortable taking on $42,000 in debt, in this particular example.
Hell, not just that, they'll add all sorts of additional fees which aren't made clear at the start. The loan I took to rebuild my engine (it was that or scrap the car, and I probably should have just cut my losses) tells you at the start what the final interest will be- except that I apparently have to pay monthly interest as well, something I didn't find out about until recently.
Be safe out there guys. I just saw a fatal motorcycle accident on the freeway last week.
Let's not forget that insurance skyrockets if you finance. Unfortunately I don't think I'll be able to scrape together that much cash, but I could start a line a credit to buy it outright and pay it off that way. That's how my dad purchased every vehicle we've ever had and other major expenses, so that's what I plan to do when I get my first bike.
for my first motorcycle, a close friend told me to finance it, even if you have the cash for it to improve my credit score (I'm 22 and recently got my first card). should I still try to buy it full cash or should I follow his advice?
Where I live, it makes sense to ride a bike year-round as your only vehicle which is why I rather finance that than a car. people say not to finance bikes because they are toys, but I disagree. If you only ride your bike on the weekend and only when it’s hot out, then yes, you’re wasting tons of money because you’re not riding all the time, but if you use a motorcycle for your only vehicle, go for it. And it helps build credit too.
I like the secureness of new though, the benefit of not bumping into the lies of the previous owner or missed details. I'm looking at a new 650 that I could buy outright but it just doesn't make sense when I could use it to build my credit.
Bought myself a Suzuki GSXR 600 after completing the M.O.S.T course. If you pass it then you don’t have to do the driving portion at DMV just present card (at least in the state I was in). Anyways, I was 18 and got a Bank of America credit card with a 5,000 dollar limit. Maxed it out on the bike. Paid more than the minimum. This helped build credit at an early age. Had it for around 10+ years and sold it for 3800 before having first child. Also, mortgaged first home at 22 since I was obsessed with home prices being so low. I’ve in 2012. Girlfriends parents hated me for it (now my wife) Now, in 2022 - I financed a 2022 Harley 883 Iron and love it. Removes the need for speed temptation. Also sold the house in 2021 and made a hefty sum to allow us to buy a house on the beach. 😃👍🏼.
I have to admit this is practically the first time I have agreed with this guy, he’s exactly right with this advice
It’s simple “interest” is what it’s called I bought my first sportbike in march of this year I’ll have it paid off by Jan 1st. It’s not always a bad idea as long as u make every single payment on time. And it’s also a good way to build credit. Especially if ur young without going out and getting a stupid credit card
Some of us only make 6 figure man, have some compassion.
I financed my first and now currently second bike because i have nothing else to really worry about, it fit into my budget and I'm doing double toward principle because i have disposable income. Its also my only form of transport so its my own version of somsone finacing a Toyota camry. If it works for you then go for it but i dont mind at all.
I mean using an extreme example like that I would agree lol
It’s ok to finance, but you should put down at least 25% but definitely more if you can. And then you should aim to pay it off as quickly as you are able. Build your credit, it’s important
Strong advice.
You’re usually spot on with your advice but this one is off. Never is incorrect. Sometimes, it’s not a good idea to finance. First, who’s financing a bike (or any vehicle for that matter) at 10% APR? If you have bad credit then you shouldn’t be financing. But with good credit, and when the federal interest rates aren’t up like they are not, it’s really advantageous to finance things like motorcycles and other vehicles because the interest rate paid is less than what you can make on the interest accrued with that fluid cash in the market. For example, I bought my Aprilia with a similar out the door price as you used in your example. I did a 60 month, 1.99% APR and I put $3,000 down. The payments are 210 a month and the interest over the life of the loan is about $900. $17,000 invested in a simple index fund that returns 3-7% annually is much more useful than paying $900 in interest over the life of the loan. OR if you’re not into investing, having $17,000 cash ready for if a life emergency arrives is better than scrambling to then sell your bike or assets to cover those unexpected emergencies.
So true I’ve had just as much fun on a vesper as a super bike..
Still got my first street bike 2013 GSX-R 600 22k miles riding like a champ and at a 0.02% interest back in 2014 I paid about 300 dollars in total interest! Factor depreciation all you want.... I still ride whenever I please!
Should never buy a motorcycle to sell 5 years after buying it. Just keep it and forget what it is worth and enjoy it.
This applies to financing anything. The most important thing that people miss about finance vs buy, though, is there are times when financing makes more sense. When you can get a low interest rate loan it leaves your capital free and that gives you options. If you can invest the money you would have spent and get a higher rate of return than the interest you pay then financing can be the better option. Of course you have to have established disciplined spending habits and a reliable investment strategy and those can be difficult to maintain so staying within your budget and avoiding unnecessary debt is the best way for most people. But there is a reason many very rich people carry a huge amount of debt - available capital can grow and money in someone else's pocket can't.
Financing a bike is fine in the UK ... You can get 0 - 7% interest rates and the bike won't depreciate much (unless you're stupid and buy one that tanks in value). Financing allows you to buy new / nearly new and not worry about unexpected bills due to reliability issues.
Bought my first brand new cbr125r on sale for 2k, sold it a year later for 2k; bought a new cbr300r for 4K, sold it 2 years later for 3.9k. Now bought a 08 vstar 650 for 2.4k, market price is around 4k here up north. The point is, riding is fun, riding for minimal amount of money is satisfying😊
Hopefully you're not taking out a 20k loan for your first bike but if done right you can build your credit. Got a steal on a 2019 triumph street triple rs for 8000. They are currently going for 9-12k, I put 5k down and took a 3k loan. My payments are 67 dollars a month but I pay way more than the minimum I pay roughly 400. so I'll have it paid off in a few months. Building credit and still got the bike I wanted. It's definitely not my first bike but what you said is still good information.
I financed my pending m1000r. Thing is almost 40g in Canada. I don't have that cash to spare. First bike was an aprilia shiver in 2015 for 10k. Bought that one outright.
So glad this came up for me. I was thinking about getting a loan😅
Facts! The dealer and bank will scam you!
I live in the capital city of Australia, and borrowing money for a daily commuter motorcycle that you can also enjoy on the weekend as well, always ends up cheaper than catching a bus instead. In fact the motorcycle ends up paying for itself, plus free parking everywhere you go.