Im turning 18 and i want to buy a new bike. How hard will it be to get a loan?

6/10/2014 1:15pm
JeepnMike wrote:
I have a different view.. Are your parents willing to co-sign for you? At some point in every person's life, you need credit.. By doing exactly...
I have a different view.. Are your parents willing to co-sign for you? At some point in every person's life, you need credit.. By doing exactly what this young man is looking to do, I established perfect credit at a very early age by financing my motorcycles. My 2nd (financed) bike I bought when I was 19 I got a loan on my own due to the good credit I built buying a bike at 18 co-signed by my parents. In terms of lenders, you may want to find a good local credit union and get pre-approved with your parents co-signiing. This way you can shop your brains out until you find the best deal and buy on the spot vs. shopping and hoping and possibly settling for something or spending more than you planned.

I know paying cash is nice, but especially in this day and age it isn't realistic, these guys know that. Be smart about it and make an arrangement with your parents that assures them you will make the payments, and make them on time. I think more important than anything if you do finance a bike, INSURE IT!!!

Good luck!
Agreed.

I was able to pay off my bikes every month and was able to build a great credit.

My 12k truck I bought with a loan. My APR is under 3%, I believe it's 2.5%.
motolyfe
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6/11/2014 4:29pm
Thanks everyone for all the info.
Still not totally sure what to do.. Sure there's always that possibility of me missing a payment and digging myself into a hole but i'm very confident I could make the payments on time, plus it would help my credit.. I'm not taking out a massive loan, maybe 5k MAX.
erikcrvjl
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6/11/2014 6:14pm
motolyfe wrote:
Thanks everyone for all the info. Still not totally sure what to do.. Sure there's always that possibility of me missing a payment and digging myself...
Thanks everyone for all the info.
Still not totally sure what to do.. Sure there's always that possibility of me missing a payment and digging myself into a hole but i'm very confident I could make the payments on time, plus it would help my credit.. I'm not taking out a massive loan, maybe 5k MAX.
Well, hopefully you don't screw yourself too much... But that looks unlikely
6/11/2014 6:23pm
If you can't afford it now, why are you buying it?

The Shop

motolyfe
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6/11/2014 6:45pm
TripleFive wrote:
If you can't afford it now, why are you buying it?
I don't know if im gonna do it yet. I really, really want to.. Still have a couple months yet before I turn 18.
6/11/2014 7:23pm
have you guys seen the new 15's?Silly



lots of good advice on here.some tips i will give you is pay yourself first. what you bring home(net) is not how much money you have. a piece of that pie goes away to a safe place. the other tip ,just my opinion...........dont buy a new bike yet. buy what you can pay for. there is a difference in what you can buy and what you can afford. time flies,be patient and good luck.
SEE ARE125
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6/11/2014 7:43pm
I'm assuming you'll still be living at home, and have little to no real expenses. Do you currently have a job? If so, figure up how much you make a month and how much you need for gas, cell phone and other expenses and pile up as much as you can. Summer is here, should be easy for a young man to find some extra work to do, maybe helping a neighbor spread mulch or something. You can make good money doing odd jobs. If you can find the strength to just wait, you could easily put $500 in the bank each month and in less than a year have the $5k. By then you could either score a sweet deal on a leftover '14 or if you make more than you thought you would, even buy a new '15.

Some posters disagree with me on the debt thing, and I can see their point(kinda), but debt can be a slippery slope, especially for someone as young as you. Would you run out and buy a pack of cigarettes on your birthday and start smoking just because you legally could? Debt is the same way, it can become addictive and snowball with loans and credit cards until you owe $50,000 and you don't even know what you bought with it. If you really feel you need some credit, get a small $500 line of credit at a credit union(you can get this without a co-signer) and practice with that. That way if something bad happens, you only owe $500 instead of $5,000.

Here's some motivation... I bought my step-son his first bike, a CRF50, when he was 5. He's about to buy a new to him(used) bike, in cash, with his own money. He's 7. He keeps the money we got out of the CRF and he has a few hundred that he's saved up for a little over a year to get a new bike. He's been doing laundry for $1/load, dishes for $1/load, feeding the dog for $1, minor yard work for $5, etc. He's been working his butt off. Between the CRF money($650) and his savings, he has almost $1000 to throw at a decent Craigslist bike. I know if he can do it, you can, too. You're young, I don't want to see you get screwed over and start your adult life in the hole, but in the end it is your life and you can live it how you please. Good luck!
shanes
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6/11/2014 7:52pm
if you can't afford to buy it how are you going to run it ?

one of the best things i ever did was move to Asia 15-16 years , being a foreigner, there is no loans, no credit cards, no mortgages etc etc if you wanted someone you saved and brought it , i learnt to live with in my means . a good lesson that has served me very well over the years .

remember a bike is a toy its not essential so don't borrow money for one, save and buy a used 2 stroke you can afford , easy to fix yourself and cheap to run .

JeepnMike
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6/11/2014 8:51pm
You guys are killing me.. If this kid finances $5K the walls aren't going to come crumbling down around him. If he makes his payments on time, all he is doing is building good credit with a short term loan. If he has a co-signer he might even get a decent interest rate. Every single one of us relies on and NEEDS credit.. There is nothing wrong him starting at 18 years, many of us did it and we aren't dead. Those of you saying doom and gloom, at what age do you recommend people start building their credit?? 18-19 years is a perfect age to start making small purchases be it credit or a small loan for a motorcycle, it has to start somewhere. Many people buy their first homes in their 20s... You can't do that without credit.

If he was saying he wants to finance $10K worth of bike, throw in all of the gear, and do it mowing lawns, I could see the reason for alarming him. It sounds like he is being pretty realistic though, we shouldn't discourage that. I know when I was a kid I didn't have $5K laying around, and I would have been old by the time I saved that much to pay cash for anything. I learned a lot financing bikes at this age.. I learned how to hold down a job (cleaning a welding shop at night), I learned responsibility, and I learned how credit works.. That sounds horrible huh?
Getndome
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6/11/2014 9:11pm
I only said don't do it because I feel like I overpaid for my bike as most people do who buy new, unless you know someone.
endurox
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6/11/2014 9:43pm
motolyfe wrote:
So I turn 18 soon and im pgoing to buy a new motocross bike. My problem is that I don't know how hard it will be...
So I turn 18 soon and im pgoing to buy a new motocross bike. My problem is that I don't know how hard it will be for me to get a loan since I have no credit. Any tips on how or where to get a loan? I only need like 4-5k since ill have the rest saved up. would it be best to go through the shops financing? or get the loan somewhere else then just pay the shop off and make payments to the bank? Also I have a job and don't have any tickets either if that makes a difference.
Thanks.
why buy something new at 18 years old and throw half the value away plus interest as soon as you leave the dealership, save up and pay cash for a 3-5 year old bike ridden by a senior rider. Old guys got the money to put all the bling on. So you get a tricked out bike that was barely ridden by an old guy.
my nickel's worth
Terryble
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6/11/2014 11:14pm
I'd really whole-heatedly suggest that you save up some more a find yourself a deal on a used bike. I speak from experience on this.

When I turned 18 I convinced my mom to co-sign on a DRZ400SM (street legal supermoto) for me to commute to school and work on. She agreed and I walked out of the dealership incredibly happy with my new bike. I had also gotten the extended warranty, tire hazard, and everything else they were selling because it didn't affect my monthly payment (dumb, dumb, dumb). A week later I was regretting it. I hadn't read any of the fine print and that $105/month payment that I could afford no problem would become something much worse 12 months later, although at the time I did not know what. I spent sleepless nights Googling ways to get out from under the bike but nothing could be done.

I finally came to terms with it, understood that I had screwed myself and resolved to just get the bike paid off as quickly as possible. At least I had something to ride. Six months after I purchased the bike I walked out of my apartment to head to work only my bike wasn't there. It was stolen while I slept and never recovered. Being the invincible teenage I was I didn't have full coverage insurance on the bike because nothing would ever happen to me. So now I didn't have a bike, I still had the payment every month, and if I didn't pay it my mom's credit would take the hit (she has never had a single bad thing on her credit).

Twelve months later the special financing ran out and my new interest rate kicked in. That month the payment went from $105 to $280 and continued to increase to $350/month over the next year. I purchased the bike in 2008 and finally paid it off last summer. By the time I finished paying for it I had paid over $22,000 for a bike that was less than $7,000 new.

If I had saved the money up I could have bought a nice used bike for less than $5,000 and if it had still been stolen I would have just been out $5,000 without any of the additional headaches. Financing that bike (and not having better insurance) was the worst financial mistake of my life to this point (and hopefully the worst I'll ever make).

Don't get sucked into financing a toy. Save up and buy one cash. There are better ways to build your credit.
Juss
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6/11/2014 11:40pm
Juss wrote:
In a perfect world. Let me give you some advice. Never ever go-sighn for anyone!
RMT wrote:
The world is what you make it. Just because you got sold shitty rims doesn't mean this kid will. My credit has been spotless since my...
The world is what you make it. Just because you got sold shitty rims doesn't mean this kid will. My credit has been spotless since my teens. I bought quite a few bikes on credit with my parents co signing and always paid them off and on time. I guess that experience is why I went on to get a degree in finance and can buy just about anything today with just a signature. Then again, there is always glass half empty guy buying tires at Montgomery wards!
My guess is, you live in you parents basement & smoke up all you dads weed! That was 20 years ago and I learned from my mistakes. Dont really give a shit, what you say you make or do!
KGAspeed
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6/12/2014 7:34am Edited Date/Time 6/12/2014 7:35am
JeepnMike wrote:
You guys are killing me.. If this kid finances $5K the walls aren't going to come crumbling down around him. If he makes his payments on...
You guys are killing me.. If this kid finances $5K the walls aren't going to come crumbling down around him. If he makes his payments on time, all he is doing is building good credit with a short term loan. If he has a co-signer he might even get a decent interest rate. Every single one of us relies on and NEEDS credit.. There is nothing wrong him starting at 18 years, many of us did it and we aren't dead. Those of you saying doom and gloom, at what age do you recommend people start building their credit?? 18-19 years is a perfect age to start making small purchases be it credit or a small loan for a motorcycle, it has to start somewhere. Many people buy their first homes in their 20s... You can't do that without credit.

If he was saying he wants to finance $10K worth of bike, throw in all of the gear, and do it mowing lawns, I could see the reason for alarming him. It sounds like he is being pretty realistic though, we shouldn't discourage that. I know when I was a kid I didn't have $5K laying around, and I would have been old by the time I saved that much to pay cash for anything. I learned a lot financing bikes at this age.. I learned how to hold down a job (cleaning a welding shop at night), I learned responsibility, and I learned how credit works.. That sounds horrible huh?
I agree with this. Some of you are making it sound like A.) its crazy and irresponsible that he doesn't have 7k in cash laying around to buy a new bike and B.) he is destined to file bankruptcy if he gets a loan.

Relax.

In general, yes, cash is best. I myself have financed three bikes in my post-college years and had no issues at all. BUT, I used a small credit union that had a great rate and was excellent to work with. Big banks suck.

Telling him to pay cash is ridiculous. At 18 you're not going to have it (unlikely).

But with that said, there are indeed great used bikes out there. Sounds like you've been burnt a few times buying used, but get someone to help you find one that is without-a-doubt a good buy. I personally hate the gigantic hit you take when buying new - looks like you live in Portland - it's big enough, you should have plenty of options. I have the resources to buy any new bike I want, but if I was buying a new bike right now, I'd still look for an ultra-clean used bike and be patient. New bikes are fun, but paying 5k for a bike is more fun than paying 8k.
rcannon
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6/12/2014 7:58am
I dont think its to bad an idea. You have to find away to get a decent interest rate, though. No 20% stuff, and watch out for factory finance deals. Often these are brutal if you dont pay of fin time, etc.

Having payments on things made me want to get out of bed and go to work. Do better at work. Get more money for nicer things.

Take someone with you when you buy it. The reason is salespeople are very good at what they do. Your expecting that, so you''ll fight for a great bottom line price. You get your price and the deals over.....LOL

No. You are then led into the finance office, and these people are better at what they do than the salespeople. Its not uncommon to spend another 1500.00-2000 in there with extended warranties, insurances, undercoatings (yes, I saw a very hot finance lady sell a guy undercoating for his atv 129.99) and probably other thigns added since I sold bikes..

Fight for every dollar. When they start talking about the payment, remember even 5.00 extra, per month, is 300.00 dollars, total, after 60 months.

JeepnMike
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6/12/2014 8:05am
I mentioned earlier, no matter what we debate about financing or not, GET INSURANCE!!! It is cheap enough to not matter.. If you can afford the bike payment, you can afford a few bucks a month to insure it too. I know one poster above mentioned how hellish it can be to make payments on something that was stolen and isn't coming back.. That is the dumps. I had a buddy get his bike stolen off of the trailer that was hooked up to the car, he was SLEEPING in. He made payments for 2 years on that bike and never saw it again. Bikes can get stolen in places you didn't think would ever happen.

Anyway, don't be cheap here. Insurance is the same price as a couple McD's meals, anybody who says they can't afford insurance, needs to check their heads.
motolyfe
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6/12/2014 3:01pm
Thank you all for all the advice, I really appreciate it.
I have a tough decision to make!
SPYGUY
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6/12/2014 3:20pm
Have you ever heard of Vemma?
motolyfe
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6/12/2014 3:48pm
SPYGUY wrote:
Have you ever heard of Vemma?
No, what's that?
6/12/2014 4:11pm Edited Date/Time 6/12/2014 4:11pm
RMT wrote:
Just do it and have fun. These guys are a bunch of retards. Suzuki has zero interest so that blows the loan shark interest rate straight...
Just do it and have fun. These guys are a bunch of retards. Suzuki has zero interest so that blows the loan shark interest rate straight to hell. Find a good dealer, tell them to stick the prep, freight (which is already built into the price), and bs fees and your golden. A local Phoenix dealer (Apache) is selling 14 rmz 450's for $5999. Put your two grand down, have your parents co sign the loan and make $200 a month payment if you can. In a year you will owe around $2k on the bike and you should be able to sell a one year old bike for $4000. That will give you another $2k to put down on a new one. Voila, new bike, good credit and you didn't take it in the ass. There are ways to work the system if you just look. Like looking just off the side of this forum and reading the Suzuki 0% financing offer!!!!!!!

Or you can sit around saving that $200 a month sitting at home but feeling so much like a good little Dave Ramsey.
I used to be a repo man. Your kind of advice put food on my table lol. I repoed over a dozen bikes in a three month period that folks had cosigned for and got stuck with. To a man, every borrower had every intention of paying their bill. Until they couldn't, then the cosigner got a visit from me and my rollback.
motolyfe
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6/12/2014 4:11pm
SPYGUY wrote:
Have you ever heard of Vemma?
motolyfe wrote:
No, what's that?
lol a pyramid scheme
oh lol.
6/12/2014 4:28pm
motolyfe wrote:
No, what's that?
lol a pyramid scheme
motolyfe wrote:
oh lol.
We are very similar in ages and as long as you have a steady job even if it is minimum wage, and aren't going to be fired the payments on a bike can be pretty low. Just make sure you have enough money to still put gas in your vehicle, the bike, and make it to the races go for it man!
PJ205
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6/12/2014 4:39pm
Terryble wrote:
I'd really whole-heatedly suggest that you save up some more a find yourself a deal on a used bike. I speak from experience on this. When...
I'd really whole-heatedly suggest that you save up some more a find yourself a deal on a used bike. I speak from experience on this.

When I turned 18 I convinced my mom to co-sign on a DRZ400SM (street legal supermoto) for me to commute to school and work on. She agreed and I walked out of the dealership incredibly happy with my new bike. I had also gotten the extended warranty, tire hazard, and everything else they were selling because it didn't affect my monthly payment (dumb, dumb, dumb). A week later I was regretting it. I hadn't read any of the fine print and that $105/month payment that I could afford no problem would become something much worse 12 months later, although at the time I did not know what. I spent sleepless nights Googling ways to get out from under the bike but nothing could be done.

I finally came to terms with it, understood that I had screwed myself and resolved to just get the bike paid off as quickly as possible. At least I had something to ride. Six months after I purchased the bike I walked out of my apartment to head to work only my bike wasn't there. It was stolen while I slept and never recovered. Being the invincible teenage I was I didn't have full coverage insurance on the bike because nothing would ever happen to me. So now I didn't have a bike, I still had the payment every month, and if I didn't pay it my mom's credit would take the hit (she has never had a single bad thing on her credit).

Twelve months later the special financing ran out and my new interest rate kicked in. That month the payment went from $105 to $280 and continued to increase to $350/month over the next year. I purchased the bike in 2008 and finally paid it off last summer. By the time I finished paying for it I had paid over $22,000 for a bike that was less than $7,000 new.

If I had saved the money up I could have bought a nice used bike for less than $5,000 and if it had still been stolen I would have just been out $5,000 without any of the additional headaches. Financing that bike (and not having better insurance) was the worst financial mistake of my life to this point (and hopefully the worst I'll ever make).

Don't get sucked into financing a toy. Save up and buy one cash. There are better ways to build your credit.
This same exact thing happened to me when I purchased my first bike back in 2007. Was stolen from me on Christmas of 09 and I just paid it off a few weeks ago. I dont even want to look and see how much money I forked over when all was said and done.

OP, make your own decision and do what you think is best, but think it over well and make sure you dont screw yourself in the long run.
Torco1
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6/12/2014 4:42pm
motoxxx599 wrote:
Do you have a car? Use it to run drugs between states. You will have enough to buy a bike and funmover by the end of...
Do you have a car? Use it to run drugs between states. You will have enough to buy a bike and funmover by the end of the summer. Then instead of buying a bike and a funmover go to a 10 week pilots course and then purchase a small plane. Use that small plane to bring in coke from Columbia by flying low over the gulf and landing in Mississippi. Then use a separate plane (parked at a nearby airport) to get it to Chicago and the "experts" will take it from there. You will have enough to buy a bike shop and a racetrack by Christmas. just my .02. Gotta go boys time to fly.
No shit, that's what I was going to suggest. If drug running isn't your thing, you can always turn tricks. It sounds like you're young enough to have a pretty good run at that for a while. The best part is.......it's tax free.......well, unless of course you have to "pay rent" for the corner you're working. I wasn't aware that this place is full of so many squares......talking about credit scores and responsibility and shit like that. If that isn't your thing either, you could always get into stealing peoples identities. I never really like that though because its a lot of work and you might end up stealing someones that has shittier credit than you. That will really fuck up your day.

The best thing to do in my opinion is hit up the grandparents. They'll be so happy that someone came to visit them that they'll sign any piece of paper you shove in their face. Here's where you have to be smart though, don't have them cosign for you, have them apply for the loan themselves. Chances are they will die soon and now you'll have a new bike that you don't have to pay for. The creditors aren't going to come after you because you were smart enough not to sign onto the loan and I'm pretty sure they can't collect from the dead.......it's a win win. If you want anymore ideas I'll be more than happy to share them, I've got tons of them.
FIREfish148
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6/12/2014 5:14pm
Lol there you go listen to torco Grinning
RMT
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6/12/2014 6:47pm
Juss wrote:
My guess is, you live in you parents basement & smoke up all you dads weed! That was 20 years ago and I learned from my...
My guess is, you live in you parents basement & smoke up all you dads weed! That was 20 years ago and I learned from my mistakes. Dont really give a shit, what you say you make or do!
Lighten up big guy. I wished I lived in my parents basement and smoked weed, that doesn't sound all that bad. I just don't think the wife and two kids would enjoy it as much as I would.
superorbital
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Fort Collins, CO US
6/12/2014 7:25pm
Financing a dirt bike is the worst possible thing you can do. Well, not the worst, but it is down there. Save some more and pay cash for a last years bike. Next, get a credit card and start fixing up your new last years model dirt bike using the credit card, The important thing here is to pay your balance in full every time that statement shows up and make sure you pay it on time. You will build credit, have a new dirt bike, and you will not be dependent on someone else as a cosigner when you decide to go buy a new car or some other big ticket item.
6/12/2014 10:11pm
Do it! It's the new American way. Live beyond your means and the gooberment will bail you out with taxpayer money and pass laws so you don't get duped into getting loans on big ticket items you really want but cant afford. It will work as long as there are idiots like me that go to work everyday and live within my means by riding used bikes, going without granite countertops, and keep paying taxes.

Uh wait a minute I am doing it all wrong. I think I'll get fired get my 52 weeks of unemjoyment and get me a new KTM 350, to sit in the back of my new 50k Raptor truck, to sit in the garage of my new 4000sqft Mcmansion.
JeepnMike
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6/12/2014 10:55pm
FWIW, I 100% disagree with anybody suggesting credit cards as the first venue for establishing credit vs. financing a motorcycle (if I had to choose). With a credit card, you make a few payments on time, they up your spending limit. Make a few partial payments, they up your limit, you guys know the downhill spiral from there. At least with a bike, he is establishing credit, the payments are consistent, you can't get FURTHER in debt on your bike loan unless you were dumb enough to sign a loan without a fixed interest rate, etc. At an early age, IMO consistency is important when learning lessons about credit.

A lot of folks preaching to try to pay cash and that is fine if you are that wealthy, but still, you are trying to preach the most responsible route. Anybody saying credit cards is the best route is nuts.. They are the single most simple way to lose control of your spending and finances at any age, especially at 18.

Post a reply to: Im turning 18 and i want to buy a new bike. How hard will it be to get a loan?

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