Cash vs finance on new bikes?

Depends on the deal. I financed my last bike w/ 0 down and 1.99% APR. Hard to beat that.

I'm in the camp of never finance a toy.

Depends on the interest rate and what you can otherwise do with your ten grand.

Your rate is 1.99 to finance vs 5% on investments or even 3% on a mortgage? Far better to make the payments and earn more elsewhere.

Your rate is 7.99? Hard to beat that consistently over a 5 year term, so you're better to pay cash.

Depends on your other expenses/income

Cash is best but most cannot nut that.

Finance. I hate coming off cash. I always include my interest as final price of said bike and it has to make sense.

Without a doubt if buying new:

Cash if you have money to blow.

Finance if you think your money can appreciate elsewhere faster than the APR of the term (see CD Account) plus any expenses related to the bike itself, leaving you net positive (for most, good luck..)

Bikes are a luxury expense, not an investment, therefore they should be treated as such.

I've always looked at it this way. I pay cash for my automobiles, and finance the toys depending on the situation and deal honestly. If something happens and I would lose my job or life throws a curve ball, would you rather have your mode of transportation repossessed or forced to sell for pennies, or a dirt bike? Again, definitely depends on deal/situation/finance options (for me). Just my opinion.

If you cant pay cash you shouldnt be buying it.

Finance fellows can chimen in- I heard a sharp investment individual say - never put any money down on a depreciating asset and always finance it (if rates make any sense)
Putting say 3k down on a 450, walking out the door is like pissing away 1000 bucks immediately...f that


Personally - depends where you are financially and what else you do with the money you do or dont have.

if you invest to make more finance!
If you are worried times may get tough - buy have the rest of your life solid and a decent savings account - finance! (Aside from fact you shpuldnt buy it to begin with)
Times get tough let them take it back

if you have ur shit together and like to play, cash.
Its cash back when u sell even if less

If the question is: I have the cash but I could finance..... what should I do?
Always pay cash! Unless you're a profitable business in need of an interest expense you should never finance a dirt bike . Study amortization schedules and it will all make sense. Your bike depreciates are the same rate either way. You just also pay interest, or not.

Cash is king, but if it's 0% interest, I go that route for a year as my money will make money.

I am sure you cut a big fat check for your house....

Couple bikes ago I saved my pennies paid for a new one in cash, every year I sell it when the new ones come out and usually get enough to only have to come up with 2k or so to get the new one. I usually finance that difference pay it off within that year that I own the bike.

0% is never really free it's always subsidized some way, in lieu of a cash rebate etc. Only your parents lend you money for free.... maybe!

$9000 is not the same as $100,000... one is a toy and one is your home..

0% or $600 rebate what's the better deal?

You answered the question. Don't finance, save an extra $600.

Lol

Don't forget when you finance you also have to get insurance.

I prefer the wheelie boy way of acquiring bikes.

i think pay in cash ride for 25-35 hrs sell and pay another grand and get new bike and do same over and over again that way your always on freshies.

Don't for get that if you finance you will not only have the interest charges for the loan, but also the need for insurance to cover the bike on the loan. That is a lot of extra cost.

Paw Paw

Too some people a house is not a home. Its those that may struggle.?!

I thought most factory financing was credit card type, so no need for insurance, just carrying a large balance on a card?

If you could just buy the bike; eather way! & not put more money into it like mod susp, plpes etc.....
Then buying yearly mite be possible!
But in reality dirt bikes are a money pit!
It’s a toy !!! We pay to play!

Financed or not if you dont carry insurance on your bikes you're foolish.

I’ll finance my house, well shit, you pretty much have to, but at least I can depreciate the interest, and the house will increase in value. But toys, or something I don’t really need that is simply a luxury. I have always paid cash for. If I don’t have the disposable income (cash) to buy, I start saving and stockpiling until I do. And that amount is always over and above a predetermined amount that I call my safety net (nest egg). My mother always taught me when I was growing up pertaining to a credit card, “if you don’t have the cash to buy something, don’t swipe the card”. Has worked out well for me.

I won't miss 60 a month for a couple years, I will miss 6000 coming out of my back account. Especially if I need new tires on my car soon, or my furnace goes out, or my dog breaks his leg. I can always double or triple my payments if I have the extra that month.

That's pretty much what I do, too. I don't think I have ever run a loan to term... I had a 5 year loan on truck, paid it off in 2.5 years. Took a 3 yr loan for our KX250F and KX100 (same time), paid off in 1 year. Etc. That cuts the effective interest rate considerably and meanwhile, my money's still at hand in case of an emergency. I generally try to paid off items with "fresh" money- as little draw from savings as possible- so the loan becomes, in effect, a savings of its own. When I get done, I've got the item paid off AND my original money still in the bank.

On a dirt bike, I'll finance IF 1) I get an interest rate below 5% 2) IF I don't have to pay insurance/TTL, 3) the deal is good enough.

I financed the ranch's Polaris Ranger in order to build credit for the new corporation and paid the 3-yr loan off in a year. I financed the above KX's in order to teach my son about loans and because criteria (1) and (3) were met and I didn't have the complete capital in hand at the time (about 2/3 of it). Paid that 3 yr loan off in 1 year, too. In the meantime, we had a little extra $$$ for mods and riding expenses which we needed.

Our latest KTM's were bough in CO and I'm in NM. By paying cash I avoided TTL for now (and maybe forever), interest rates, and insurance. On our KTM 150 SX and XC-W, that amounted to nearly $2000 on a $7500 bike. In both cases, I was then tight on modification money for a couple of months.

So... it just depends.