Financing a New Ktm 450

GeorgiePorgie 3/8/2020 7:46pm
3/8/2020 7:46pm Edited Date/Time 3/8/2020 7:50pm
Do you have a lot of bills ? If you answered no....fuggit. Sign and ride. You’ll bunderstand the totality of your decision after you run the piss out of her and resell. Keep doing it. By time your 40 you’ll be a bike purchasing aficionado. And you’ll advise another young buck not to finance.

When I’m 80 I’m more likely to talk about how cool it was riding the machine not how much I saved doing it.

You’ve probably spent more money on dumber things....now just don’t post it to a spoke with my wallet thread if it’s a 4 stroke.

You guys can give him all the life advice you want. But the best life advice is....going through life making decisions like he’s gonna make. Let him finance a bike. It’ll help him out later in life understanding capitalized interest. And now he has a bike. Win/win.
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RVT420
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RVT420 3/8/2020 7:54pm
3/8/2020 7:54pm
I bank with Bank of America let’s say I want to put down 4K on the bike do I just ask the bank for a 6k loan? and they cut me a check for 6k and i walk into a dealership with $10k in my pocket and start negotiating? Like I said before I’ve never bought a new bike before.
bents
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bents 3/8/2020 8:08pm
3/8/2020 8:08pm
Bought my 2018 Husky FC350 with financing at 1.99%. Easy decision. Paying it down when it is convenient and if not, no biggie.
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vetmxr
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vetmxr 3/8/2020 8:11pm
3/8/2020 8:11pm
Go to your own bank and build a relationship with them that will carry you into the future........Just be sure to get a low interest rate 6% or less, and never ever ever be anything worse than a week early with your payment..Never ever be late with a payment to a nice small local bank, and they will grow to trust your judgement and future money will be a lot easier to get......plus then you can walk into a dealer and tell them you'll be paying cash to possibly get a better deal. They don't need to know that you're using other peoples money..... loans are a good thing for people that weren't born rich...but you have to be disciplined or it will eat you alive.

I tell people that if I waited until I saved the money to buy what I want.....I wouldn't ever get it......leverage can be a good thing if you respect it....
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Panic_Rev
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Panic_Rev 3/8/2020 8:56pm
3/8/2020 8:56pm
Panic_Rev wrote:
Yes I would. It’s a luxury item and if I can’t pay cash then I don’t buy it. That’s a personal choice. I also paid cash...
Yes I would. It’s a luxury item and if I can’t pay cash then I don’t buy it. That’s a personal choice. I also paid cash for my vehicle for the reason you mentioned. It’s a depreciating asset and the less I give the banks the more I have.

One other thing to think about in your scenario is adding another payment to your monthly cash flow and the stress and it could potentially cost. For me I like the freedom of no payments even if that means my amortization schedule on all debt might be extended a month or two.
Brad460 wrote:
Just stop...it’s like no shit.....Nobody needs your financial advice- your not repeating anything everyone doesn’t already know. If he wanted to pay cash, do you think...
Just stop...it’s like no shit.....Nobody needs your financial advice- your not repeating anything everyone doesn’t already know.

If he wanted to pay cash, do you think he’d be asking about financing?

Also, no one cares what you paid cash for..
I do believe the op asked how much he should put down. I answered with my opinion. You don’t have to like it.
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Panic_Rev
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Panic_Rev 3/8/2020 8:59pm
3/8/2020 8:59pm
Panic_Rev wrote:
Yes I would. It’s a luxury item and if I can’t pay cash then I don’t buy it. That’s a personal choice. I also paid cash...
Yes I would. It’s a luxury item and if I can’t pay cash then I don’t buy it. That’s a personal choice. I also paid cash for my vehicle for the reason you mentioned. It’s a depreciating asset and the less I give the banks the more I have.

One other thing to think about in your scenario is adding another payment to your monthly cash flow and the stress and it could potentially cost. For me I like the freedom of no payments even if that means my amortization schedule on all debt might be extended a month or two.
JB 19 wrote:
You ever consider borrowing money at 5% so you can throw your cash at something that makes 20%? Believe it or not, people do it.
I’m not opposed to that idea. Except borrowing in this case is for a dirt bike. Don’t forget if things don’t exactly work out on your 20% you still need to service that loan.
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yz133rider
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yz133rider 3/8/2020 9:02pm
3/8/2020 9:02pm
mattyhamz2 wrote:
Go to your bank or a credit union and see what they will give you for interest rate. This is how I’ll be doing it for...
Go to your bank or a credit union and see what they will give you for interest rate. This is how I’ll be doing it for my next bike. Better chance of lower interest rate.

I don’t understand why y’all have to come in here and throw around your opinions of paying cash instead of financing. The guy is financing and looking for advice on FINANCING!

And OP- I financed my 14 YZ450 with zero down through Yamaha/capitol one at 12.99% and my payments were $228 a month. That was an OTD price of $9800. Would I do it that way again? No way. But $228 wasn’t bad at the time and I wanted a new bike really bad.
LungButter wrote:
Because the people saying to save and pay cash are giving solid life advice that will actually help the person in life. Those of you touting...
Because the people saying to save and pay cash are giving solid life advice that will actually help the person in life. Those of you touting the power of financing a toy are giving piss poor life advice, period.

Didn't I just see you post in another thread how you have 2 bikes but aren't in a position financially to ride currently?
JM485 wrote:
That's antiquated advise that's proving to be less and less true. If the interest rate is low (let's say < 5%) then I think a lot...
That's antiquated advise that's proving to be less and less true. If the interest rate is low (let's say < 5%) then I think a lot would argue that it would be beneficial to have some available cash rather than be sitting on nothing since you paid full for the bike. I financed mine at a low rate, put a bit down so that I would never be under water on it, and put the rest of the money into investments and have made more there than I have lost on interest to the bank. I can also pay off the loan at any time if I so chose to. If someone was quoted 10% interest and was planning to put nothing down then ya, I would agree that's a terrible decision, but to say that anything other than paying cash is bad life advise is just wrong.

I mean at the end of the day if we're really going to get down to it buying a dirtbike is an absolutely terrible life decision as it is, but you gotta live a little right?
This is insane. I have learned so many great things in here. But i hope nobody follows some of this. Goodness.
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yz133rider
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yz133rider 3/8/2020 9:09pm
3/8/2020 9:09pm Edited Date/Time 3/8/2020 10:16pm
mattyhamz2 wrote:
Go to your bank or a credit union and see what they will give you for interest rate. This is how I’ll be doing it for...
Go to your bank or a credit union and see what they will give you for interest rate. This is how I’ll be doing it for my next bike. Better chance of lower interest rate.

I don’t understand why y’all have to come in here and throw around your opinions of paying cash instead of financing. The guy is financing and looking for advice on FINANCING!

And OP- I financed my 14 YZ450 with zero down through Yamaha/capitol one at 12.99% and my payments were $228 a month. That was an OTD price of $9800. Would I do it that way again? No way. But $228 wasn’t bad at the time and I wanted a new bike really bad.
LungButter wrote:
Because the people saying to save and pay cash are giving solid life advice that will actually help the person in life. Those of you touting...
Because the people saying to save and pay cash are giving solid life advice that will actually help the person in life. Those of you touting the power of financing a toy are giving piss poor life advice, period.

Didn't I just see you post in another thread how you have 2 bikes but aren't in a position financially to ride currently?
JM485 wrote:
That's antiquated advise that's proving to be less and less true. If the interest rate is low (let's say < 5%) then I think a lot...
That's antiquated advise that's proving to be less and less true. If the interest rate is low (let's say < 5%) then I think a lot would argue that it would be beneficial to have some available cash rather than be sitting on nothing since you paid full for the bike. I financed mine at a low rate, put a bit down so that I would never be under water on it, and put the rest of the money into investments and have made more there than I have lost on interest to the bank. I can also pay off the loan at any time if I so chose to. If someone was quoted 10% interest and was planning to put nothing down then ya, I would agree that's a terrible decision, but to say that anything other than paying cash is bad life advise is just wrong.

I mean at the end of the day if we're really going to get down to it buying a dirtbike is an absolutely terrible life decision as it is, but you gotta live a little right?
Most of this discussion is insane. I have learned so many great things in here. But i hope nobody follows some of this. Goodness.
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c0ncEpT
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c0ncEpT 3/8/2020 9:25pm
3/8/2020 9:25pm
RVT420 wrote:
I bank with Bank of America let’s say I want to put down 4K on the bike do I just ask the bank for a 6k...
I bank with Bank of America let’s say I want to put down 4K on the bike do I just ask the bank for a 6k loan? and they cut me a check for 6k and i walk into a dealership with $10k in my pocket and start negotiating? Like I said before I’ve never bought a new bike before.
1st step would be to call them and inquire about rates. Tell them what you're doing and they'll be able to tell you what they have to offer. As others have said, anything over 5% is a bad deal. Try to shop for the best rate. Something closer to 2.99% or better is a good deal.

2nd step would be to go to the dealer and make a deal. Get a purchase agreement and take it to your bank. Your bank will give you a check to purchase the bike.

3rd step would be to go pick the bike up.
ktm300hater
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ktm300hater 3/8/2020 10:24pm
3/8/2020 10:24pm
Have you called chip at Munn Racing. Your profile says your in canton TX, So not far of a drive to Waco. I would almost bet he has a factory edition

18888507437
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zacksavchuk
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zacksavchuk 3/9/2020 7:36am
3/9/2020 7:36am
Best bet is to find a 1-2 year old low hour bike and not only save yourself quite a bit off new price but you also don’t lose nearly as much with depreciation.
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zacksavchuk
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zacksavchuk 3/9/2020 7:39am
3/9/2020 7:39am

In September 2018 I bought this 2016 450sxf with 20.5 hours on it for $5650 OTD. I’m a PA resident and I bought it from my closest ktm dealer in Ohio so didn’t pay sales tax.


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AJ565
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AJ565 3/9/2020 8:07am
3/9/2020 8:07am
I picked up my bike from Straight Line Motorsports. They were $1000 cheaper than Munn and TJ's so it was worth the drive to Dallas. KTM does 1.99% all the time on bikes so I filled out the credit app on their site, went and signed the paper work and left with the bike. I was there maybe 15 min.
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BroFoSho
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BroFoSho 3/9/2020 9:06am
3/9/2020 9:06am Edited Date/Time 3/9/2020 9:07am
Panic_Rev wrote:
Yes I would. It’s a luxury item and if I can’t pay cash then I don’t buy it. That’s a personal choice. I also paid cash...
Yes I would. It’s a luxury item and if I can’t pay cash then I don’t buy it. That’s a personal choice. I also paid cash for my vehicle for the reason you mentioned. It’s a depreciating asset and the less I give the banks the more I have.

One other thing to think about in your scenario is adding another payment to your monthly cash flow and the stress and it could potentially cost. For me I like the freedom of no payments even if that means my amortization schedule on all debt might be extended a month or two.
Dude, if you have ~$30k (car purchase) sitting around in liquid cash that's not a rainy day fund or for something specified you are either a drug dealer or doing it wrong.

Put that money to work!
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Shawn142
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Shawn142 3/9/2020 9:36am
3/9/2020 9:36am
I financed my '16 350 through KTM for 1.99%. Pretty sure I put at least 2k down, don't remember exactly. But the payment was under $200 a month, I always paid extra and it was mine pretty quick. Just be as financially responsible as you can with the terms, don't go for the most expensive thing you can find and put nothing down with a bad interest rate. It's all pretty common sense.
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crockett
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crockett 3/9/2020 9:38am
3/9/2020 9:38am
For those with experience selling bikes or cars
Is there any benefit to purchasing with cash regarding bargaining price?
Why not save money by investing, then when that acct has the money to pay the bike outright... buy the bike.
It’s concerning how some advice here and in life in general puts the cart before the horse.
If you guys are so tight on cashyou can’t afford to pay for a bike.. how do you afford parts?? Nvm the bling bling everyone has to have.
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RVT420
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RVT420 3/9/2020 10:28am
3/9/2020 10:28am
ktm300hater wrote:
Have you called chip at Munn Racing. Your profile says your in canton TX, So not far of a drive to Waco. I would almost bet...
Have you called chip at Munn Racing. Your profile says your in canton TX, So not far of a drive to Waco. I would almost bet he has a factory edition

18888507437
I’m out in Virginia working for maybe another year
RVT420
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RVT420 3/9/2020 10:34am
3/9/2020 10:34am
AJ565 wrote:
I picked up my bike from Straight Line Motorsports. They were $1000 cheaper than Munn and TJ's so it was worth the drive to Dallas. KTM...
I picked up my bike from Straight Line Motorsports. They were $1000 cheaper than Munn and TJ's so it was worth the drive to Dallas. KTM does 1.99% all the time on bikes so I filled out the credit app on their site, went and signed the paper work and left with the bike. I was there maybe 15 min.
When you filled out the application it was from the dealership you were buying to from?

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Madmax31
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Madmax31 3/9/2020 11:03am
3/9/2020 11:03am
Sure it's all bling....blah, blah. But those 2020 FE Husky and KTM's are the sexiest bikes known to man.

Pretty sure one of those will be in my garage within the next month or so.
AJ565
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AJ565 3/9/2020 1:06pm
3/9/2020 1:06pm
AJ565 wrote:
I picked up my bike from Straight Line Motorsports. They were $1000 cheaper than Munn and TJ's so it was worth the drive to Dallas. KTM...
I picked up my bike from Straight Line Motorsports. They were $1000 cheaper than Munn and TJ's so it was worth the drive to Dallas. KTM does 1.99% all the time on bikes so I filled out the credit app on their site, went and signed the paper work and left with the bike. I was there maybe 15 min.
RVT420 wrote:
When you filled out the application it was from the dealership you were buying to from?
Yes, it was on the dealerships web site. Its through Freedom Road Financial and was 1.99%. I emailed Bert on there and he emailed me back a few min later asking me to call him. Answered all my questions I had. I think it was like a Wednesday or so and I went and picked up the bike that following Saturday. They had it out front and everything ready to go. Easily the fastest smoothest transaction I've ever had buying a bike.
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RVT420
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RVT420 3/10/2020 3:15pm
3/10/2020 3:15pm
What’s would be a good price for a new 2018 ktm 450?
PBRvince
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PBRvince 3/10/2020 3:44pm
3/10/2020 3:44pm Edited Date/Time 3/10/2020 5:12pm
I would say at least go to your local credit union and see what rate they can give you for a loan. That way you could walk into a dealership with the cash to pay for it out right that way you wont have as much of a headache when you buy it.

That's how I plan on purchasing a new bike when the time comes.
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RVT420
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RVT420 3/12/2020 3:18pm
3/12/2020 3:18pm
So I called a shop in Pennsylvania that’s about 3hrs from me “Manassas Virginia” to get some information on a bike and he said since I’m not a resident for tax purposes he cannot sell me a bike?
Matt Fisher 3/12/2020 10:27pm
3/12/2020 10:27pm
crockett wrote:
For those with experience selling bikes or cars Is there any benefit to purchasing with cash regarding bargaining price? Why not save money by investing, then...
For those with experience selling bikes or cars
Is there any benefit to purchasing with cash regarding bargaining price?
Why not save money by investing, then when that acct has the money to pay the bike outright... buy the bike.
It’s concerning how some advice here and in life in general puts the cart before the horse.
If you guys are so tight on cashyou can’t afford to pay for a bike.. how do you afford parts?? Nvm the bling bling everyone has to have.
In general dealerships prefer you to finance as make money on the backend of the deal. No reason not to ask if you can get a better deal if financing (just pay it off early if the interest concerns you). Different dealerships and manufacture's have different priorities.

While it's generally better to buy something that depreciates outright, there are situations where financing might make more sense. Some of those reasons have been detailed in this very thread.
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yz25
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yz25 4/9/2020 6:35pm
4/9/2020 6:35pm
Yeahs is great to pay cash when you can. If you get a low APR, why not use the banks money. Save your cash for a rainy day. But my wife said I have no room to be giving anyone financial advise. Especially when it comes to a new dirt bike. No better feeling riding a new fresh dirt scooter!
CivBars
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CivBars 4/9/2020 6:36pm
4/9/2020 6:36pm
I dig that bumper!
mxracerjohn250 4/9/2020 6:45pm
4/9/2020 6:45pm
I dont finance dirt bikes, unless its 6 months at 0% interest, then I put some down and make 6 payments. Probably the worst investment ever is financing dirt bikes.

That being said, if you have too, dont buy a $12000 FE 450. Obviously does not sound like a wise investment for you. Find a left over regular 450, save a few thousand dollars. I also would NEVER go more than about 24 months on a dirt bike. You will be completely upside down on it otherwise.

Make good financial decisions when your young, it pays off. Buy a good used bike and take the other $5000 you would pay in payments and put it in a mutual fund. When your 50, you'll thank me for the recommendation.
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mxracerjohn250 4/9/2020 6:49pm
4/9/2020 6:49pm Edited Date/Time 4/9/2020 6:50pm
Superdave19 wrote:
I financed a Kawi back in 14’ and it was easy breezy... paid off early no problem. Yamaha now has 2.99%... that’s cheap money.
yamahaha131
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yamahaha131 4/9/2020 7:40pm
4/9/2020 7:40pm
I financed my YZ450 at 4.99 and would do it again. Under $200 a month and piece of mind I’m not going to get hurt from someone else’s care (or lack of) of a bike. Of course new bikes can break and I paid mine off early buy hey, it’s my motivation to go to work everyday.

I bought a nearly new, vet owned bike once and it blew up riding it around my yard. Was all stock, Looked mint, ran great when I picked it up. just sharing my experience and good luck with whatever you decide on!
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tobz
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tobz 4/9/2020 10:16pm
4/9/2020 10:16pm
Don’t do it man, put the repayments away and save for that bad boy.
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