Financing a new bike

kb228
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kb228 5/10/2019 12:21pm
5/10/2019 12:21pm
MOTO732 wrote:
Financing depreciable assets is not wise.
This guy gets it!
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fourfourone
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fourfourone 5/10/2019 12:40pm
5/10/2019 12:40pm
MOTO732 wrote:
Financing depreciable assets is not wise.
kb228 wrote:
This guy gets it!
yea no shit. But how many people on here actually buy cars, motorcycles etc cash? As long as you have some money in the bank and aren't getting rapped by interest who gives a fuck. If you can pay your bills, save for retirement and always have some cushion in the bank if something happens then go for it.



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clemsonsc
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clemsonsc 5/10/2019 1:00pm
5/10/2019 1:00pm
MOTO732 wrote:
Financing depreciable assets is not wise.
kb228 wrote:
This guy gets it!
fourfourone wrote:
yea no shit. But how many people on here actually buy cars, motorcycles etc cash? As long as you have some money in the bank and...
yea no shit. But how many people on here actually buy cars, motorcycles etc cash? As long as you have some money in the bank and aren't getting rapped by interest who gives a fuck. If you can pay your bills, save for retirement and always have some cushion in the bank if something happens then go for it.



This is actually not very difficult. I have purchased 2 ford trucks in my life, and got them both for 0%. Excluding my home, I have paid less than $600 interest on anything ever.


To answer the op. Look for low interest, maybe a credit union.?? Pay 50% down you will not regret it. The goal is, figure out how to pay for something and then buy it. Don’t buy something and then figure out how to pay for it.
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kb228
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kb228 5/10/2019 1:00pm
5/10/2019 1:00pm
MOTO732 wrote:
Financing depreciable assets is not wise.
kb228 wrote:
This guy gets it!
fourfourone wrote:
yea no shit. But how many people on here actually buy cars, motorcycles etc cash? As long as you have some money in the bank and...
yea no shit. But how many people on here actually buy cars, motorcycles etc cash? As long as you have some money in the bank and aren't getting rapped by interest who gives a fuck. If you can pay your bills, save for retirement and always have some cushion in the bank if something happens then go for it.



Heres my thinking - and its fine if you dont agree. I dont make an ass load of money, and a $5000 f150 gets me to work and to the track the same as a $15,000 f150. I paid cash for mine. Same for all 3 of my bikes. I dont “need” a brand new bike. I have fun on my 2009 kx’s and i wouldnt have any more fun on a new $10,000 bike. 3 things i COULD have payments on like “normal” people. Lets put $200/month payments on each. Thats $600 a month leaving my pocket. $7,200 a year going to a freakin bank making a banker rich. I would rather keep that money and still have money in the bank and have healthy roth ira and mutual fund investments.

I watch my dad, family friends, my dads gf all have payments on EVERYTHING. Harleys, cars, matress, appliences, credit cards. You name it. Guess what happens when their car breaks? They have NO money left to fix it after all of those payments.

Ive been hardcore on the dave ramsey train for a while. After learning what ive learned, having debt for anything other than a house its flat out stupid and a good way to piss away money that doesnt need to be pissed away.
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steve_97060
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steve_97060 5/10/2019 1:04pm
5/10/2019 1:04pm
MOTO732 wrote:
Financing depreciable assets is not wise.
kb228 wrote:
This guy gets it!
using that criteria, what would you financial advisors recommend as an appreciable asset and thus safe to finance?
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clemsonsc
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clemsonsc 5/10/2019 1:10pm
5/10/2019 1:10pm
MOTO732 wrote:
Financing depreciable assets is not wise.
kb228 wrote:
This guy gets it!
steve_97060 wrote:
using that criteria, what would you financial advisors recommend as an appreciable asset and thus safe to finance?
In most cases....... land.
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kb228
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kb228 5/10/2019 1:12pm
5/10/2019 1:12pm
MOTO732 wrote:
Financing depreciable assets is not wise.
kb228 wrote:
This guy gets it!
steve_97060 wrote:
using that criteria, what would you financial advisors recommend as an appreciable asset and thus safe to finance?
Real estate
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steve_97060
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steve_97060 5/10/2019 1:14pm
5/10/2019 1:14pm
kb228 wrote:
This guy gets it!
steve_97060 wrote:
using that criteria, what would you financial advisors recommend as an appreciable asset and thus safe to finance?
kb228 wrote:
Real estate
so, land and real estate never depreciate?
kb228
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kb228 5/10/2019 1:17pm
5/10/2019 1:17pm
steve_97060 wrote:
using that criteria, what would you financial advisors recommend as an appreciable asset and thus safe to finance?
kb228 wrote:
Real estate
steve_97060 wrote:
so, land and real estate never depreciate?
Depends on where you buy really. Usually it goes up. This about rental properties that appreciate and pay you - most of the time.

Dont blindly buy land in the ghetto. Youll lose money there
steve_97060
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steve_97060 5/10/2019 1:27pm
5/10/2019 1:27pm
kb228 wrote:
Real estate
steve_97060 wrote:
so, land and real estate never depreciate?
kb228 wrote:
Depends on where you buy really. Usually it goes up. This about rental properties that appreciate and pay you - most of the time. Dont blindly...
Depends on where you buy really. Usually it goes up. This about rental properties that appreciate and pay you - most of the time.

Dont blindly buy land in the ghetto. Youll lose money there
there are several hundreds of thousands who found out the hard way that real estate can and does depreciate.

point I was making is that you can't generalize some cool slogan about finances (not financing depreciable assets) or life in general, there are no absolutes.

I think even Dave would agree with that.
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sam hain
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sam hain 5/10/2019 1:36pm
5/10/2019 1:36pm
All this free advice in here is basically useless, OP is going to do what he wants regardless of what any of us say. I'm not trying to sound like a jerk just stating facts. I think we've all been around the block long enough to know most times when people post wanting advice for something on an internet forum they already have their minds made up beforehand. They just want to see if anyone else will agree with them.
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MOTO732
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MOTO732 5/10/2019 1:43pm
5/10/2019 1:43pm
steve_97060 wrote:
using that criteria, what would you financial advisors recommend as an appreciable asset and thus safe to finance?
kb228 wrote:
Real estate
steve_97060 wrote:
so, land and real estate never depreciate?
Land and RE are not generally considered depreciable assets. You don't depreciate land as it tends to go up in value every year and does not lose value (like a dirt bike) therefore there is nothing to depreciate through the income statement as expense. More people have become millionaires from these two things than anything else on the planet. They are considered fixed assets or LT investments.
kb228
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kb228 5/10/2019 1:43pm
5/10/2019 1:43pm
steve_97060 wrote:
so, land and real estate never depreciate?
kb228 wrote:
Depends on where you buy really. Usually it goes up. This about rental properties that appreciate and pay you - most of the time. Dont blindly...
Depends on where you buy really. Usually it goes up. This about rental properties that appreciate and pay you - most of the time.

Dont blindly buy land in the ghetto. Youll lose money there
steve_97060 wrote:
there are several hundreds of thousands who found out the hard way that real estate can and does depreciate. point I was making is that you...
there are several hundreds of thousands who found out the hard way that real estate can and does depreciate.

point I was making is that you can't generalize some cool slogan about finances (not financing depreciable assets) or life in general, there are no absolutes.

I think even Dave would agree with that.
I agree w you, i wasnt the one that said that. Theres still some kind of thought that goes into it.
mxer15
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mxer15 5/10/2019 1:50pm
5/10/2019 1:50pm
Well I think we can all agree Moto is dangerous so always finance the bike unless you got 10k to burn. The reason I say this loan companies offer disability insurance on the loan and so credit cards as well. Yes you pay a little more with interest as opposed to cash, but the disability insurance was only 8.00 per month. I have financed 6 bikes over the years and used the insurance 2 times one tome for 8 months and 1 time over a year. I won't bore you with the math but it paid for the insurance and all the interest on the loans not to mention but them paying the monthly payment they prevented me losing the bike and keeping my credit clean. It's really a no brainer
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Wildeye511
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Wildeye511 5/10/2019 1:53pm
5/10/2019 1:53pm
Dont forget with financing, you will need to have insurance on the bike also.
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Muzzle
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Muzzle 5/10/2019 2:25pm
5/10/2019 2:25pm
There are ways to make financing a depreciable asset work for you if you're creative and are disciplined. Back in the day I financed my 06 KTM on a KTM credit card that had 0% interest for 24 months. Then at month 23 I transferred the balance to a Discover Card that was offering 0% for the lifetime of the balance with no transfer fee. I then proceeded to pay a little more than the minimum payment for the next 10 years and kept my cash in the bank and other investments earning a return. I never paid a dime in interest and I still ride the bike today. Now I realize that for quite some time I was under water with this strategy and it only worked by keeping the bike long term.

Too bad those 0% for the life of the balance offers are now extinct...

You can find credit cards that offer 0% for 21 months on purchases, however. If you can be disciplined and afford the payments to pay it off in that time-frame, keep your cash working for you. You won't get under water with that short of a term either.

Or, you pay interest for the privilege of using someone else's money to get your bike now, rather than waiting until you save enough on your own.
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ajk423
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ajk423 5/10/2019 2:53pm
5/10/2019 2:53pm
Heres my take. I financed an rmz in 2014, I put 2500 down and my payments were $60.00. I knew I wasnt going to miss $60.00 every month but I was going to miss that other 3000 out of my bank. Now I can pay more than 60, which I did and paid it off in less than a yr, but if I ever had a bad month I had the money available. And the car situation, I get people can go buy a cheap car cash, but what about when you need your vehicle for work and your car breaks down because you bought a piece of shit instead of the brand new car with zero issues? Now you have to take off work (no income that day), and pay for your car to get fixed (more money spent), and hope it only takes a day.
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Premix
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Premix 5/10/2019 4:51pm
5/10/2019 4:51pm
I keep my hobbies cash only, I also buy good, clean, used bikes or basket cases that I know I can fix and always get the majority of my money out of. Plenty of buddies finance their stuff. IF you have good credit and a solid cash flow, let your money work for you. Go to a credit union and get a low interest rate or take advantage of the 0% as long as you can pay it off before the promotion is up. Find a 0% credit card with a good rewards program and pay it off before the promo is up.

Don’t get caught up in the latest and greatest. A used RMZ or YZ250 can be had for 3k and will provide just as much fun. A dirt bike is a toy, not a necessity like a vehicle or a home.
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JB500
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JB500 5/10/2019 6:03pm
5/10/2019 6:03pm
MOTO732 wrote:
Financing depreciable assets is not wise.
fourfourone wrote:
Sorry but as that comment is correct not everyone has the ability to pay cash for everything. This forum is full of older established riders and...
Sorry but as that comment is correct not everyone has the ability to pay cash for everything.

This forum is full of older established riders and ex riders who have set themselves up well financially and can afford to buy toys cash. For most of us with high living expenses, average jobs etc... financing is the only way. I rather live with a bit of debt and enjoy the hell out of motocross then sit back and worry about paying 500 extra dollars because I financed something.

Personally I’m a proponent of the single payment plan. Pay cash. Even if it takes a bit longer. For you to say “not everyone has the ability” and “is the only way” is false. What you mean is some people “choose to do....”. You could buy a dirt bike with cash if you wanted to. You would just have to maybe sacrifice a few other things, or save for a while, or whatever....but saying it’s impossible is far from accurate. Best of luck with whatever you choose, either way, Hope you will be riding soon!
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yz25
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yz25 5/10/2019 7:23pm
5/10/2019 7:23pm
Muzzle wrote:
There are ways to make financing a depreciable asset work for you if you're creative and are disciplined. Back in the day I financed my 06...
There are ways to make financing a depreciable asset work for you if you're creative and are disciplined. Back in the day I financed my 06 KTM on a KTM credit card that had 0% interest for 24 months. Then at month 23 I transferred the balance to a Discover Card that was offering 0% for the lifetime of the balance with no transfer fee. I then proceeded to pay a little more than the minimum payment for the next 10 years and kept my cash in the bank and other investments earning a return. I never paid a dime in interest and I still ride the bike today. Now I realize that for quite some time I was under water with this strategy and it only worked by keeping the bike long term.

Too bad those 0% for the life of the balance offers are now extinct...

You can find credit cards that offer 0% for 21 months on purchases, however. If you can be disciplined and afford the payments to pay it off in that time-frame, keep your cash working for you. You won't get under water with that short of a term either.

Or, you pay interest for the privilege of using someone else's money to get your bike now, rather than waiting until you save enough on your own.
That is how it’s done! Did this a few times. But had world of problems getting my title!
Keith72
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Keith72 5/10/2019 7:42pm
5/10/2019 7:42pm
Muzzle wrote:
There are ways to make financing a depreciable asset work for you if you're creative and are disciplined. Back in the day I financed my 06...
There are ways to make financing a depreciable asset work for you if you're creative and are disciplined. Back in the day I financed my 06 KTM on a KTM credit card that had 0% interest for 24 months. Then at month 23 I transferred the balance to a Discover Card that was offering 0% for the lifetime of the balance with no transfer fee. I then proceeded to pay a little more than the minimum payment for the next 10 years and kept my cash in the bank and other investments earning a return. I never paid a dime in interest and I still ride the bike today. Now I realize that for quite some time I was under water with this strategy and it only worked by keeping the bike long term.

Too bad those 0% for the life of the balance offers are now extinct...

You can find credit cards that offer 0% for 21 months on purchases, however. If you can be disciplined and afford the payments to pay it off in that time-frame, keep your cash working for you. You won't get under water with that short of a term either.

Or, you pay interest for the privilege of using someone else's money to get your bike now, rather than waiting until you save enough on your own.
12 years of payments for a dirt bike?
JeepnMike
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JeepnMike 5/10/2019 7:55pm
5/10/2019 7:55pm
Wildeye511 wrote:
Dont forget with financing, you will need to have insurance on the bike also.
X2. Factor insurance costs into what you can afford monthly. Even if you paid cash for your bike, you would be an idiot not to have insurance with the expense of bikes nowadays.
SLAPAHO
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SLAPAHO 5/10/2019 7:59pm
5/10/2019 7:59pm
yes, save up a bunch money for a couple of years, or better yet, just pull your cash out of the bank and spend it all on a dirt bike, great advice...
oh and good luck buying a house with zero credit, or did the high and mighty in this thread have a co-signer? not everyone lives in the sticks where you can buy a house for $150k, that will barely cover the driveway in lots of places...
if the situation is right, like zero interest on rmz's for 60 month was a couple of years back, that was a no brainer. not saying everyone should finance a bike, but it works out great for lots of people. with good credit, money is still pretty cheap right now...
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Muzzle
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Muzzle 5/10/2019 8:08pm
5/10/2019 8:08pm
Muzzle wrote:
There are ways to make financing a depreciable asset work for you if you're creative and are disciplined. Back in the day I financed my 06...
There are ways to make financing a depreciable asset work for you if you're creative and are disciplined. Back in the day I financed my 06 KTM on a KTM credit card that had 0% interest for 24 months. Then at month 23 I transferred the balance to a Discover Card that was offering 0% for the lifetime of the balance with no transfer fee. I then proceeded to pay a little more than the minimum payment for the next 10 years and kept my cash in the bank and other investments earning a return. I never paid a dime in interest and I still ride the bike today. Now I realize that for quite some time I was under water with this strategy and it only worked by keeping the bike long term.

Too bad those 0% for the life of the balance offers are now extinct...

You can find credit cards that offer 0% for 21 months on purchases, however. If you can be disciplined and afford the payments to pay it off in that time-frame, keep your cash working for you. You won't get under water with that short of a term either.

Or, you pay interest for the privilege of using someone else's money to get your bike now, rather than waiting until you save enough on your own.
Keith72 wrote:
12 years of payments for a dirt bike?
Yes, but I was only paying like $25 bucks a month. The point is I knew I would be keeping the bike for a long time and would never have to pay interest so why use cash that was earning money? I paid as little as I possibly could and ride that free gravy train.
SLAPAHO
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SLAPAHO 5/10/2019 8:11pm
5/10/2019 8:11pm
kb228 wrote:
Real estate
steve_97060 wrote:
so, land and real estate never depreciate?
kb228 wrote:
Depends on where you buy really. Usually it goes up. This about rental properties that appreciate and pay you - most of the time. Dont blindly...
Depends on where you buy really. Usually it goes up. This about rental properties that appreciate and pay you - most of the time.

Dont blindly buy land in the ghetto. Youll lose money there
great advice, so where did you buy your rental property at? asking for a friend
kb228
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kb228 5/10/2019 8:22pm
5/10/2019 8:22pm
steve_97060 wrote:
so, land and real estate never depreciate?
kb228 wrote:
Depends on where you buy really. Usually it goes up. This about rental properties that appreciate and pay you - most of the time. Dont blindly...
Depends on where you buy really. Usually it goes up. This about rental properties that appreciate and pay you - most of the time.

Dont blindly buy land in the ghetto. Youll lose money there
SLAPAHO wrote:
great advice, so where did you buy your rental property at? asking for a friend
Walmart
SLAPAHO
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SLAPAHO 5/10/2019 8:27pm
5/10/2019 8:27pm
kb228 wrote:
Depends on where you buy really. Usually it goes up. This about rental properties that appreciate and pay you - most of the time. Dont blindly...
Depends on where you buy really. Usually it goes up. This about rental properties that appreciate and pay you - most of the time.

Dont blindly buy land in the ghetto. Youll lose money there
SLAPAHO wrote:
great advice, so where did you buy your rental property at? asking for a friend
kb228 wrote:
Walmart
ahhh, yes, it's all making sense now...



kb228
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kb228 5/10/2019 8:40pm
5/10/2019 8:40pm
SLAPAHO wrote:
great advice, so where did you buy your rental property at? asking for a friend
kb228 wrote:
Walmart
SLAPAHO wrote:
ahhh, yes, it's all making sense now... [img]https://cdn.cnn.com/cnnnext/dam/assets/181117105848-02-wildfire-walmart-tent-1117-exlarge-169.jpg[/img]
ahhh, yes, it's all making sense now...



To answer your other questions 150k can buy a house on 2 acres with a 2 car garage and a full basement and maybe a seperate pullbarn if youre lucky. If you cant fork out money at one time to buy a TOY, then maybe you cant afford it and may have to settle for a $5000 2016 ktm which is essentially the same as a new one anyways.

To each their own. If youre OK with financing then go for it. Financing a brand new vehicle will never make sense to ME when you look at the math. Plus if im paying for something i like to actually own it. Not let the bank own it.
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SLAPAHO
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SLAPAHO 5/10/2019 8:51pm
5/10/2019 8:51pm
kb228 wrote:
Walmart
SLAPAHO wrote:
ahhh, yes, it's all making sense now... [img]https://cdn.cnn.com/cnnnext/dam/assets/181117105848-02-wildfire-walmart-tent-1117-exlarge-169.jpg[/img]
ahhh, yes, it's all making sense now...



kb228 wrote:
To answer your other questions 150k can buy a house on 2 acres with a 2 car garage and a full basement and maybe a seperate...
To answer your other questions 150k can buy a house on 2 acres with a 2 car garage and a full basement and maybe a seperate pullbarn if youre lucky. If you cant fork out money at one time to buy a TOY, then maybe you cant afford it and may have to settle for a $5000 2016 ktm which is essentially the same as a new one anyways.

To each their own. If youre OK with financing then go for it. Financing a brand new vehicle will never make sense to ME when you look at the math. Plus if im paying for something i like to actually own it. Not let the bank own it.
i didn't have any questions for you. i don't need your advice, i don't need to finance anything. i don't owe anything on my house. i was just wondering where your rental property was that you were giving others the advice about. you know, not everyone wants to own someone else's hand-me-downs, if someone wants a new bike and the only way they can do it is to finance it, well let them do it... it's not your money.
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Texas Built
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Texas Built 5/11/2019 1:54am
5/11/2019 1:54am
opyguy wrote:
if you have bad credit you SHOULD NOT be financing dirt bike..
The problem with bad credit is youre going to be paying 19% interest. Your interest payment alone will be $150 a month. But if you can be responsible and swing it, it can help you clean up your credit.
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