Financing MX bike

Toccosauce
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6/8/2023 9:51am
Toccosauce wrote:
I would probably wait a little bit, I pay like $72 a month for my 22 yz250fx with $3500 down at I think under 4% (...

I would probably wait a little bit, I pay like $72 a month for my 22 yz250fx with $3500 down at I think under 4% ( I cant remember).

If you think financing a dirt bike is dumb, my mortgage agent said its the major component in me getting a house just from having that "Auto" loan.

A lot of people say its stupid to finance a dirt bike, usually because people are afraid to make a payment on something that you cant ride to work or never have the extra hundred and some odd dollars to pay the note every month. 

What's your down payment? Good credit? Might just have to wait the waves out a bit. 

dirtyrat23 wrote:
Yea there is a 2k rebate on the bike. Credit is low 700's w/ 4k down. Feels like it would be a slam-dunk deal for them...

Yea there is a 2k rebate on the bike. Credit is low 700's w/ 4k down. Feels like it would be a slam-dunk deal for them that's why I am asking on this forum.

Might shop around too, sometimes all it comes down to is a finance person that isn't great and finding rates. 

6/8/2023 10:12am Edited Date/Time 6/8/2023 10:13am

I financed bikes many years ago when I didn't have $8k-$10k to drop on a bike but enough disposable income to spread the cost out over a couple years of payments. I always made a concerted effort to pay off the loans as early as possible, usually paying a couple hundred more dollars towards the monthly payment. Getting the lowest rate possible is obviously in your best interest. If you're facing a rate above 15% I would think long and hard about whether you really want to incur that kind of debt. Rates for OHV loans are rarely favorable, even in the best of economic times. Credit unions that offer OHV loans generally have the best rates.

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dirtyrat23
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Escondido, CA US
6/8/2023 10:27am
dirtyrat23 wrote:
What type of rates are you guys seeing right now? Looking to finance a ktm 350 sxf and they quoted me around 12%. Are mx bikes...

What type of rates are you guys seeing right now? Looking to finance a ktm 350 sxf and they quoted me around 12%. Are mx bikes typically this high?

Typically, unless you provide your own financing from a credit union or your own bank it'll be that high from a dealership. Most people are actually...

Typically, unless you provide your own financing from a credit union or your own bank it'll be that high from a dealership. Most people are actually approved for less but the dealer "adds points" (extra percentage) on top of what a buyer is approved for and don't tell the customers so they can sell the deal off and make money on the back end. 

It's a practice I was never comfortable doing when I was in sales. I've seen people get approved at 2.99% and the finance manager will write it up at 12.99% and tell you to go sell the deal at that rate.

No Way. That's wild. I'm with BofA, but not sure if they offer competitive financing or how I could get financing with a CU. Could I move a good chunk of money there and qualify for some financing?

1
3rdgearpinned
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6/8/2023 10:50am
SLAPAHO wrote:

10 pages

mxb2 wrote:

Yea,in before if ya cant pay cash ya cant afford it lol. 

all those guys that say that don't have any money, have little mans disease and small dix. Do what you gotta do to get it if you want it lol. 

1

The Shop

AH387
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6/8/2023 10:56am
lumpy790 wrote:

Wonder if my Yamaha card from back in 2001 still works and what the interest rate is ?

AH387 wrote:
Wasn't the old Yamaha card 0-2% for some window of time and as long as you paid it off within that window, you were good. Then...

Wasn't the old Yamaha card 0-2% for some window of time and as long as you paid it off within that window, you were good. Then after that window it jumped up to like 18%. And the monthly minimum payment was $50 no matter what, but that didn't guarantee that you'd pay it off. It was a really weird set-up on those original cards, but also kind of cool. 

I remember in my early 20s I wanted to get the 05 YZ125 when it came out. I went to a Yamaha dealer just to see what they were going for etc. I planned on just getting a quote and then if I wanted it, I'd list my RM and then go get it. They gave me a good deal and said "might as well take it now, if you want it. Putting money down doesn't matter. Same monthly payment and same interest. Just sell yours and pay it off within that window" (which I think was 36months.) So I just brought the bike home with no money down. First payment I put a grand or so towards it. Then a couple months later I put the money that I got from my Suzuki towards it. I had it paid off very quickly. 

Falcon wrote:
I did that on several years' worth of new YZs. Buy the new one, sell the old one, pay off the new one.  I worked at...

I did that on several years' worth of new YZs. Buy the new one, sell the old one, pay off the new one. 

I worked at a Yamaha dealer, so I got the new ones for dealer cost. Sold the old ones for damn near what I owed, and reaped the benefits of zero interest for a year. I was riding brand-new bikes almost for free. 

Lol yes, that's awesome. Those old Yamaha plans were so nice. Very flexible. If you were smart/responsible with your money, you could really take advantage of that card. I overlapped a few bikes like that and it made things very easy. But those who couldn't really afford the bike and bought it with 0 money down or didn't pay it off within that window could get into trouble, with how it was set up. For me, it was pretty nice though.

mxb2
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6/8/2023 11:03am
SLAPAHO wrote:

10 pages

mxb2 wrote:

Yea,in before if ya cant pay cash ya cant afford it lol. 

all those guys that say that don't have any money, have little mans disease and small dix. Do what you gotta do to get it if...

all those guys that say that don't have any money, have little mans disease and small dix. Do what you gotta do to get it if you want it lol. 

Yep. Life is short.  

1
RichieW13
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6/8/2023 11:22am
Toccosauce wrote:
I would probably wait a little bit, I pay like $72 a month for my 22 yz250fx with $3500 down at I think under 4% (...

I would probably wait a little bit, I pay like $72 a month for my 22 yz250fx with $3500 down at I think under 4% ( I cant remember).

If you think financing a dirt bike is dumb, my mortgage agent said its the major component in me getting a house just from having that "Auto" loan.

A lot of people say its stupid to finance a dirt bike, usually because people are afraid to make a payment on something that you cant ride to work or never have the extra hundred and some odd dollars to pay the note every month. 

What's your down payment? Good credit? Might just have to wait the waves out a bit. 

FWIW, your dirt bike loan is not a "revolving loan".

 

"Revolving credit lets you borrow money up to a maximum credit limit, pay it back over time and borrow again as needed. Credit cards, home equity lines of credit and personal lines of credit are common types of revolving credit."

1
SrfNdirt
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don't call it cali, CA US
6/8/2023 11:23am

Probably gonna have to finance my fuel this summer the way it's looking right now 😕

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RichieW13
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6/8/2023 11:26am
A few years back I got a credit card with 0% interest for first 18 months. It also gave $300 cash back if you spent a...

A few years back I got a credit card with 0% interest for first 18 months. It also gave $300 cash back if you spent a certain amount within the first 90 days. Went to the dealership with $5k cash and put the rest on the card.... Got the cash back and paid the remaining balance off before the interest hit. 

How did you get the cash back?

austin_bo
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6/8/2023 11:27am

OP - there are plenty of 0% introductory rate credit cards that remain interest free for 15-21 months. Most dealers are going to charge you 3% to use a credit card on a purchase as costly as a dirt bike, but that still beats the high rate they're offering. Just try not to charge (finance) half the value of the card's limit to not adversely affect your credit. 

RichieW13
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6/8/2023 11:35am
SrfNdirt wrote:

Probably gonna have to finance my fuel this summer the way it's looking right now 😕

Gas is still significantly cheaper this year compared to last year. 

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suspensionguy
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6/8/2023 12:03pm

I financed one of my recent bikes and used a credit union. I bought the bike $1k under retail, threw $1,000 cash at it, financed the rest. I never stepped foot in the CU, was in and out of the dealership in 15min, painless. Absolutely zero regret. Bike is almost paid off now. I’ll probably sell it next year. Use 50% of what I sell it for a down payment and finance the rest. 

2
lumpy790
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6/8/2023 12:35pm
AH387 wrote:
Wasn't the old Yamaha card 0-2% for some window of time and as long as you paid it off within that window, you were good. Then...

Wasn't the old Yamaha card 0-2% for some window of time and as long as you paid it off within that window, you were good. Then after that window it jumped up to like 18%. And the monthly minimum payment was $50 no matter what, but that didn't guarantee that you'd pay it off. It was a really weird set-up on those original cards, but also kind of cool. 

I remember in my early 20s I wanted to get the 05 YZ125 when it came out. I went to a Yamaha dealer just to see what they were going for etc. I planned on just getting a quote and then if I wanted it, I'd list my RM and then go get it. They gave me a good deal and said "might as well take it now, if you want it. Putting money down doesn't matter. Same monthly payment and same interest. Just sell yours and pay it off within that window" (which I think was 36months.) So I just brought the bike home with no money down. First payment I put a grand or so towards it. Then a couple months later I put the money that I got from my Suzuki towards it. I had it paid off very quickly. 

Falcon wrote:
I did that on several years' worth of new YZs. Buy the new one, sell the old one, pay off the new one.  I worked at...

I did that on several years' worth of new YZs. Buy the new one, sell the old one, pay off the new one. 

I worked at a Yamaha dealer, so I got the new ones for dealer cost. Sold the old ones for damn near what I owed, and reaped the benefits of zero interest for a year. I was riding brand-new bikes almost for free. 

AH387 wrote:
Lol yes, that's awesome. Those old Yamaha plans were so nice. Very flexible. If you were smart/responsible with your money, you could really take advantage of...

Lol yes, that's awesome. Those old Yamaha plans were so nice. Very flexible. If you were smart/responsible with your money, you could really take advantage of that card. I overlapped a few bikes like that and it made things very easy. But those who couldn't really afford the bike and bought it with 0 money down or didn't pay it off within that window could get into trouble, with how it was set up. For me, it was pretty nice though.

I do not remember it being that low in 2001 probably closer to the teens. …. But that was a long time ago. 

You could buy parts with your Yamaha card too.

MELROSEMAFIA
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6/8/2023 1:11pm Edited Date/Time 6/8/2023 1:13pm
I financed bikes many years ago when I didn't have $8k-$10k to drop on a bike but enough disposable income to spread the cost out over...

I financed bikes many years ago when I didn't have $8k-$10k to drop on a bike but enough disposable income to spread the cost out over a couple years of payments. I always made a concerted effort to pay off the loans as early as possible, usually paying a couple hundred more dollars towards the monthly payment. Getting the lowest rate possible is obviously in your best interest. If you're facing a rate above 15% I would think long and hard about whether you really want to incur that kind of debt. Rates for OHV loans are rarely favorable, even in the best of economic times. Credit unions that offer OHV loans generally have the best rates.

 Rates for OHV loans are rarely favorable, 

They were up until this year...I was offered 0.99% by Sheffield and Roadrunner on 3 different BRP products...2020 Atv was 36 mo term...2021 Ryker was 60mo term...2022 Snowmobile was a 36mo term...Now there 7-9% APR...

OzzyDog
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6/8/2023 1:55pm

6.5% interest on $8k (assuming a down payment but there are great deals on 2023s going on right now) over three years is about $850 in interest expense.  Or $283 year, or $24 month, or $0.77 day.  I certainly would not let that get in the way of a bike if I really wanted/needed it!! 

Just think, if you wait a few years those rates may drop to 3%, a whopping $400 savings.  You can then use those savings over the three years of not having a bike on alcohol/drugs ................in order to help you get over not having a bike.

YMMV

 

7
davis224
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Cornland, IL US
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6/8/2023 2:32pm

7.19% at my local credit union. Buying a used 450 for $6k, financing $3k, using their money costs me 118.56. 

2
TeamGreen
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Thru-out, CA US
6/8/2023 2:33pm
lumpy790 wrote:

Wonder if my Yamaha card from back in 2001 still works and what the interest rate is ?

AH387 wrote:
Wasn't the old Yamaha card 0-2% for some window of time and as long as you paid it off within that window, you were good. Then...

Wasn't the old Yamaha card 0-2% for some window of time and as long as you paid it off within that window, you were good. Then after that window it jumped up to like 18%. And the monthly minimum payment was $50 no matter what, but that didn't guarantee that you'd pay it off. It was a really weird set-up on those original cards, but also kind of cool. 

I remember in my early 20s I wanted to get the 05 YZ125 when it came out. I went to a Yamaha dealer just to see what they were going for etc. I planned on just getting a quote and then if I wanted it, I'd list my RM and then go get it. They gave me a good deal and said "might as well take it now, if you want it. Putting money down doesn't matter. Same monthly payment and same interest. Just sell yours and pay it off within that window" (which I think was 36months.) So I just brought the bike home with no money down. First payment I put a grand or so towards it. Then a couple months later I put the money that I got from my Suzuki towards it. I had it paid off very quickly. 

Falcon wrote:
I did that on several years' worth of new YZs. Buy the new one, sell the old one, pay off the new one.  I worked at...

I did that on several years' worth of new YZs. Buy the new one, sell the old one, pay off the new one. 

I worked at a Yamaha dealer, so I got the new ones for dealer cost. Sold the old ones for damn near what I owed, and reaped the benefits of zero interest for a year. I was riding brand-new bikes almost for free. 

Creative Finance With Falcon Laughing

2
wwdiii
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League City, TX US
6/8/2023 3:03pm
Falcon wrote:
I did that on several years' worth of new YZs. Buy the new one, sell the old one, pay off the new one.  I worked at...

I did that on several years' worth of new YZs. Buy the new one, sell the old one, pay off the new one. 

I worked at a Yamaha dealer, so I got the new ones for dealer cost. Sold the old ones for damn near what I owed, and reaped the benefits of zero interest for a year. I was riding brand-new bikes almost for free. 

AH387 wrote:
Lol yes, that's awesome. Those old Yamaha plans were so nice. Very flexible. If you were smart/responsible with your money, you could really take advantage of...

Lol yes, that's awesome. Those old Yamaha plans were so nice. Very flexible. If you were smart/responsible with your money, you could really take advantage of that card. I overlapped a few bikes like that and it made things very easy. But those who couldn't really afford the bike and bought it with 0 money down or didn't pay it off within that window could get into trouble, with how it was set up. For me, it was pretty nice though.

lumpy790 wrote:
I do not remember it being that low in 2001 probably closer to the teens. …. But that was a long time ago.  You could buy...

I do not remember it being that low in 2001 probably closer to the teens. …. But that was a long time ago. 

You could buy parts with your Yamaha card too.

I think I have one of those Yamaha credit cards.  Haven’t used it in a long time.  I bet the rates have changed…….a lot!!!!!

Spoonguy
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6/8/2023 3:08pm

Only on vitalmx would people take financial advise from someone who needs or would borrow money from a bank for a dirt bike. Warren Buffett also is probably listening in learning a thing or two.

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smoothies862
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6/8/2023 3:54pm

Borrower is slave to the lender.

 

just trying for 8 pages🙃

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truck
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6/8/2023 3:57pm

Just do the math.... figure out total cost of loan.... ask yourself if you're going to feel great paying 13k for a 4 year old dirt bike when you make that last payment. I don't care at all about how wise it is, but towards the end when you're still paying on something you don't even want anymore but you're under water and don't really have a choice.... that's not so fun. 

NotCore
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6/8/2023 5:27pm

CEF0AA21-67F5-4927-9AD0-F9D3BF38E42D

 Good advice: 75% rejection rate.  Seems right.

Forty
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6/8/2023 5:29pm

Do what it takes to get a bike under your ass.  Be prudent, no need to be crazy, but if you want it, it'll happen.  

 

Get riding.

5
burn1986
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6/8/2023 5:40pm

Well a new bike is just too expensive to pay cash. Period. Most people don’t have $11K sitting around. So if you have to finance, find a new bike leftover, preferably sever years. Or pay cash for a beater and fix it.

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DerickYZ
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6/8/2023 5:44pm

If you’re responsible with your money, then do it. Don’t get suckered into a stupid interest rate. 
 

it’s okay to finance things if you’re responsible. Those Dave Ramsey cult followers will tell you different. It’s YOUR happiness.

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Spoonguy
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6/8/2023 6:01pm

Finance a toy, good idea. Better yet extend the loan, get two.

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burn1986
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6/8/2023 6:23pm Edited Date/Time 6/8/2023 6:27pm
Spoonguy wrote:

Finance a toy, good idea. Better yet extend the loan, get two.

 I agree that you shouldn’t finance a bike, but your comment has a little bit of a prideful haughty edge to it. 

1
lumpy790
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6/8/2023 6:33pm

If you finance pay more than just the payment amount so it goes against the principle and reduces the interest  amount 

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agn5008
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6/8/2023 6:43pm
burn1986 wrote:
Well a new bike is just too expensive to pay cash. Period. Most people don’t have $11K sitting around. So if you have to finance, find...

Well a new bike is just too expensive to pay cash. Period. Most people don’t have $11K sitting around. So if you have to finance, find a new bike leftover, preferably sever years. Or pay cash for a beater and fix it.

That’s simply not true. A lot of people can and do pay cash for a bike. Most people don’t have the money to simply decide one day to drop 11k on a bike. However, if you plan ahead and save for a bike you don’t have to finance. Tons of people who are financing their bikes think they need a new one every year and end up upside down on every bike they buy. 
 

The best and most sensible thing you can do is pay cash for your bike, keep it for 3+ years and during that 3+ years put $50 per paycheck into an envelope and put it in a safe. After 3+ years you’ll have in excess of $3600 in that envelope. Now sell your bike and use that money toward a new bike. If you are $1000-2000 short and don’t have that much money to spare to make up the difference then you truly are involved in the wrong sport. 
 

$50 per paycheck is less than what a meal costs for you and your significant other at the Texas Roadhouse on date night. People don’t bat an eye when they head over to the local convenience store every single day and buy a $9 sub, $3 drink, $3 bag of chips and a $2 snickers bar for lunch. Gotta spend the extra $2 for a piece of American cheese on that sub too. Or spend $5 per beer at your favorite bar. Or put race fuel in their dirt bike because they won their local C class once. But tell them to save $50 per paycheck and they lose their mind. 
 

like I said, I don’t think financing is always bad. 0% interest or a very low interest rate is a great time to finance. Especially if it’s the first new bike you’re purchasing and you’re looking to pay it off and keep it a few years. The problem isn’t the fact that some people can’t afford a brand new bike. The problem is some people have absolutely no self control. They get the idea of a new bike in their head and they just go finance it rather than keeping their perfectly fine bike for an extra year or two til they can save enough money to pay cash. I mean, sure I understand those stunning new graphics on that brand new bike will absolutely make you faster but come on, save a little longer. 

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maxer
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6/8/2023 6:59pm

Just got 7% on my 23' 450 sxf with the $2000 rebates from KTM (720-730 credit score). Got it for $8600 OTD with TTL. Never financed a bike before so planning on paying it off within the year.

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