Did you finance or pay cash?

Rudeboy119
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Lothian, MD US
7/13/2010 6:31am
oldx wrote:
Cash only for toy's.
Advice my dad gave me long ago, NEVER finance a toy
grover738
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Spring Grove, MN US
7/13/2010 6:32am
I swore I'd never do it but I financied a new bike last fall, an '08 zook for $5400 at 1.99% interest. I'm against borrowing for toys in general, but there are a lot of grey areas. I limited the immediate depreciation hit I'd take on my RMZ by getting it for $5400, and obviously 1.99% is about as good as it gets.

I like the rule in the article above about financing things that immediatly lose value. I bought a boat last fall, financed it, put $600 into it, used it 5-6 times, and sold it for $1250 more than I bought it for. That loan didn't bother me.

My camper loan doesn't bother me either, since the interest is low (5.49%) and tax deductible, we have such great family memories which we would have missed out on if we'd waited until we had the $17k saved up.
GrapeApe
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Mc Kinney, TX US
7/13/2010 6:34am
seth505 wrote:
I don't fully understand these statements. While I agree, paying cash would be best idea it just isn't in the cards for some people. I have...
I don't fully understand these statements. While I agree, paying cash would be best idea it just isn't in the cards for some people. I have financed my last several bikes including my current 09 yz. I kept up on maintenance and didn't lose my shirt on any of the bikes I've owned, I actually made money on 1 or 2 of them.

Just because I don't have the cash in the bank doesn't mean I shouldn't do it 100%. I have great credit and finance with a local credit union way below 15% and get to race and have a few toys...worth it to me.
And this is the new American way. Not to single you out, Seth, but this line of reasoning has become so commonplace it is widely accepted as truth. "I CAN'T afford it, so I HAVE to finance it, there are no other options." Well, there are other options. Saving, for example. Google it, it is a novel concept.
agency399
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Deer River, NY US
7/13/2010 6:35am
It depends on the situation for me.......

My 07 450 Honda was a demo bike that a local guy had used for Loretta’s and t the dealership wanted $5300.

Honda was also having a 3.6% promotion with zero down. So I bought that bike with a loan and paid it off within a year when I had extra cash.

Last year I bought a 2008 450 for $5600, and paid cash just because I had it the money. (Glad I did it this way as I blew my ACL out that next Sunday racing, but at least this year I had a brand new bike all ready to go) If I did not have the funds, and my finance rate was not over 8%, then I would finance, but those monthly payments make it hard to ever get ahead in the first place.

The Shop

seth505
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SD, CA US
7/13/2010 6:40am
seth505 wrote:
I don't fully understand these statements. While I agree, paying cash would be best idea it just isn't in the cards for some people. I have...
I don't fully understand these statements. While I agree, paying cash would be best idea it just isn't in the cards for some people. I have financed my last several bikes including my current 09 yz. I kept up on maintenance and didn't lose my shirt on any of the bikes I've owned, I actually made money on 1 or 2 of them.

Just because I don't have the cash in the bank doesn't mean I shouldn't do it 100%. I have great credit and finance with a local credit union way below 15% and get to race and have a few toys...worth it to me.
GrapeApe wrote:
And this is the new American way. Not to single you out, Seth, but this line of reasoning has become so commonplace it is widely accepted...
And this is the new American way. Not to single you out, Seth, but this line of reasoning has become so commonplace it is widely accepted as truth. "I CAN'T afford it, so I HAVE to finance it, there are no other options." Well, there are other options. Saving, for example. Google it, it is a novel concept.
Believe me, I understand what you are saying and most of us DO live beyond our means and it has caused major issues (as we all know in the US). But, like I said, I get good rates, finance what I can balance out and I choose to do that rather than taking a year or two off to save up cash. If someone loses their job, it really doesn't matter if they are financing a dirtbike, a truck OR a house....they are still screwed if they can't make the minimum payments anymore.
Cygnus
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Hanover, CO US
7/13/2010 6:42am
There is nothing wrong with taking out a loan for toys as long as it fits into your budget. The problem comes in when you do not keep a budget.
KGAspeed
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Salt Lake City, UT US
7/13/2010 7:10am
No one on here can say what is right on wrong for that individual, regarding this topic.

There are obviously some common sense methods to follow, but if you can get in with a good credit union and get a (very) reasonable rate, financing a new 8-9 THOUSAND dollar motorcycle isn't your doom or demise.

When you're in your 20s and just out of college, trying to get established, who is going to have 10K in the bank? Not many. Just have a plan in place. Make sure your payments are big enough that you won't be upside down when you plan to sell it.
jndmx
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South Kingston, RI US
7/13/2010 7:16am
We have usually paid cash.
At this point my son has only had one new bike and we have paid cash for good used stuff from the folks we race with.

Last year at the end of the season I was able to sell the 07 YZ144 for 2K and found an 07 RMZ250F with low hours a friend was selling for the same 2K.

I have gone into a little debt over the racing but mostly I try to keep it cash.
When it looked like I wasn't going to be able to afford it I got a job at the races to help pay.

Now the truck that hauls all this stuff around is a different story.....lol.
BKiller
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Mcdonough, GA US
7/13/2010 7:16am
Cygnus wrote:
There is nothing wrong with taking out a loan for toys as long as it fits into your budget. The problem comes in when you do...
There is nothing wrong with taking out a loan for toys as long as it fits into your budget. The problem comes in when you do not keep a budget.
The biggest problem is, nobody knows what their budget really is!
The average person celebrates a $200/mo raise with a $300/mo car payment.

Overspending is what has put our country in the position it is today.
Live within your means. If you can't pay cash, you can't afford it.

/End Soapbox.
hacker 522
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Orangeville, PA US
7/13/2010 7:47am
cash only. If I had to finance I would go through a home equity credit line. Much cheaper than unsecured bank loan. H.E. lines of credit run from 2 to 7%. You just cant be upsidedown in your mortgage.
zjbell
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CA, CA US
7/13/2010 7:50am
zjbell wrote:
Financing something at 15% intrest that will be worth half what you paid for it in 2 years is a joke. If you can't afford to...
Financing something at 15% intrest that will be worth half what you paid for it in 2 years is a joke.

If you can't afford to pay cash for a dirt bike, maybe that's just it... you can't afford it.
seth505 wrote:
I don't fully understand these statements. While I agree, paying cash would be best idea it just isn't in the cards for some people. I have...
I don't fully understand these statements. While I agree, paying cash would be best idea it just isn't in the cards for some people. I have financed my last several bikes including my current 09 yz. I kept up on maintenance and didn't lose my shirt on any of the bikes I've owned, I actually made money on 1 or 2 of them.

Just because I don't have the cash in the bank doesn't mean I shouldn't do it 100%. I have great credit and finance with a local credit union way below 15% and get to race and have a few toys...worth it to me.
So you can't save for something but you can afford to pay monthly and intrest? Yeah, that makes sense.
hacker 522
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Orangeville, PA US
7/13/2010 7:52am
scranton craigslist has a 09 kxf450 for 4100.00. These bikes aren't worth shit in a couple months. Without throwing 15% on top of retail.
seth505
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SD, CA US
7/13/2010 7:58am
zjbell wrote:
Financing something at 15% intrest that will be worth half what you paid for it in 2 years is a joke. If you can't afford to...
Financing something at 15% intrest that will be worth half what you paid for it in 2 years is a joke.

If you can't afford to pay cash for a dirt bike, maybe that's just it... you can't afford it.
seth505 wrote:
I don't fully understand these statements. While I agree, paying cash would be best idea it just isn't in the cards for some people. I have...
I don't fully understand these statements. While I agree, paying cash would be best idea it just isn't in the cards for some people. I have financed my last several bikes including my current 09 yz. I kept up on maintenance and didn't lose my shirt on any of the bikes I've owned, I actually made money on 1 or 2 of them.

Just because I don't have the cash in the bank doesn't mean I shouldn't do it 100%. I have great credit and finance with a local credit union way below 15% and get to race and have a few toys...worth it to me.
zjbell wrote:
So you can't save for something but you can afford to pay monthly and intrest? Yeah, that makes sense.
Yup exactly, I can afford to pay monthly and interest.

option 1: save up over several months and pay 6K cash for bike sometime down the road
option 2: find good deal on bike/sell old bike/finance payments on new bike and ride said bike

I went with option 2 and have a ton of fun riding the bike, I happen to love riding. Anything else not make sense?
chase383
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Le Nord CA
7/13/2010 7:59am
paid cash for my last two.. but have used my line of credit in the past. I certainly would never use Financing through a dealer.
7/13/2010 8:04am
seth505 wrote:
I don't fully understand these statements. While I agree, paying cash would be best idea it just isn't in the cards for some people. I have...
I don't fully understand these statements. While I agree, paying cash would be best idea it just isn't in the cards for some people. I have financed my last several bikes including my current 09 yz. I kept up on maintenance and didn't lose my shirt on any of the bikes I've owned, I actually made money on 1 or 2 of them.

Just because I don't have the cash in the bank doesn't mean I shouldn't do it 100%. I have great credit and finance with a local credit union way below 15% and get to race and have a few toys...worth it to me.
zjbell wrote:
So you can't save for something but you can afford to pay monthly and intrest? Yeah, that makes sense.
seth505 wrote:
Yup exactly, I can afford to pay monthly and interest. option 1: save up over several months and pay 6K cash for bike sometime down the...
Yup exactly, I can afford to pay monthly and interest.

option 1: save up over several months and pay 6K cash for bike sometime down the road
option 2: find good deal on bike/sell old bike/finance payments on new bike and ride said bike

I went with option 2 and have a ton of fun riding the bike, I happen to love riding. Anything else not make sense?
Makes sense if you want to lose even more money than buying one for cash. Why not save your money and ride that bike for another 1 or 2 years and pay cash? Then do that again. And again. And again. I have had buddies and a couple family members that finance a new car every year or 2 and try to tell me they make money on them. I tried to explain to them the first couple of times and then said that they, like you, already have their mind made up.
Eatmydirt03
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Arvada, CO US
7/13/2010 8:18am
GIwasB4 wrote:
With reference to another post: Not my post. [b]perhaps bikes have simply outpaced the median income for your average family? financing a dirtbike is bad business...
With reference to another post: Not my post.

perhaps bikes have simply outpaced the median income for your average family? financing a dirtbike is bad business (not singling anyone out) but a necessary evil nowadays due to the increase in price, banks thank you.

Just curious?
I financed.
Same I don't like to finance toys cash only
Kinetic1
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Gun Lake, MI US
7/13/2010 8:29am
I pay cash and buy used or left over. I paid $2900 for my 05 RM250 in 2007. It was like brand new. I can sell it for that (mostly due to the fact it is still like new because I am an anal retentive guy when it comes to the bike) tomorrow and do it all over again if I want to.

My street bike I will have to finance though. I just don't have 15k lying around. AFTER my truck is paid off. I have no credit card debt. It gets paid off every week. If I use it on Monday I pay it on Friday and never pay interest on a credit card. Another tip is to make sure all of your loans are simple interest with no penalty for early pay off.
7/13/2010 8:32am
Finance the home, cash for everything else.
The only new vehicle or toy I've ever bought was a 02 Suzuki 50cc quad, and that was only because they didn't exist on the used market. Otherwise, someone else can take the initial depreciation, I couldn't care less about being the first to own something.
ns503
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NS Toolies CA
7/13/2010 8:37am
It's worth it in the long run to build your credit rating.

Can't do that without taking out a loan at some point and paying it off per loan terms.

I bought a used 100 for one of my kids early this spring, and bought myself a new KLX250 a month ago for running around the trails after them and the odd little dual sport get-away. Did both on our 3.5% credit line. I put a lot of stuff thru that thing...
nytsmaC
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Frig Off CA
7/13/2010 8:40am
I always barter an OTD cash price, then pull out the plastic. They always flip out and get mad, but it makes me feel like I got an extra 2% discount. Screw 'em good!
bobby397
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NC US
7/13/2010 8:40am
I don't think financing toys is a good idea. Cash only here.
X2
seth505
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SD, CA US
7/13/2010 8:48am
zjbell wrote:
So you can't save for something but you can afford to pay monthly and intrest? Yeah, that makes sense.
seth505 wrote:
Yup exactly, I can afford to pay monthly and interest. option 1: save up over several months and pay 6K cash for bike sometime down the...
Yup exactly, I can afford to pay monthly and interest.

option 1: save up over several months and pay 6K cash for bike sometime down the road
option 2: find good deal on bike/sell old bike/finance payments on new bike and ride said bike

I went with option 2 and have a ton of fun riding the bike, I happen to love riding. Anything else not make sense?
Makes sense if you want to lose even more money than buying one for cash. Why not save your money and ride that bike for another...
Makes sense if you want to lose even more money than buying one for cash. Why not save your money and ride that bike for another 1 or 2 years and pay cash? Then do that again. And again. And again. I have had buddies and a couple family members that finance a new car every year or 2 and try to tell me they make money on them. I tried to explain to them the first couple of times and then said that they, like you, already have their mind made up.
Ya that is true, and that is what I am working towards (what you are all describing). Def. will keep this bike for a couple years if not 3 and then work toward cash only. But I was simply stating it is not the only option that makes sense for some....yes I agree it makes the MOST sense :]
7/13/2010 8:51am
less than 5% fixed for my ktm. I felt okay with that, but would love to buy with cash from here on out.
Kinetic1
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Gun Lake, MI US
7/13/2010 8:53am
I love swedish fish candy......bastards stopped making the purple ones though.Sad
pie8man
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Loveland, CO US
7/13/2010 9:27am
I always put down 50% or pay all cash for everything. I do not buy anything unless I can pay for it in less than 6 months and less than 3% interest. Less than 3% interest is a bargain and if your money is invested in any way it is cheaper than using your own money.
Rooster
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Edmonton CA
7/13/2010 9:36am
Always cash for me. If I had to finance I wouldn't be averse to a one year amortization, if the interest rate was decent.
Racer92
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Central, TX US
7/13/2010 9:52am
Cash only. Always.
BKiller
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199
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Mcdonough, GA US
7/13/2010 10:16am
ns503 wrote:
It's worth it in the long run to build your credit rating. Can't do that without taking out a loan at some point and paying it...
It's worth it in the long run to build your credit rating.

Can't do that without taking out a loan at some point and paying it off per loan terms.

I bought a used 100 for one of my kids early this spring, and bought myself a new KLX250 a month ago for running around the trails after them and the odd little dual sport get-away. Did both on our 3.5% credit line. I put a lot of stuff thru that thing...
What exactly is your credit score good for if you don't plan to borrow more money?


Glad to hear there are lots of "cash only" people out there. Kind of restores my faith in Americans...

kawboy388
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986
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4/2/2008
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Covington, TX US
7/13/2010 10:33am
ns503 wrote:
It's worth it in the long run to build your credit rating. Can't do that without taking out a loan at some point and paying it...
It's worth it in the long run to build your credit rating.

Can't do that without taking out a loan at some point and paying it off per loan terms.

I bought a used 100 for one of my kids early this spring, and bought myself a new KLX250 a month ago for running around the trails after them and the odd little dual sport get-away. Did both on our 3.5% credit line. I put a lot of stuff thru that thing...
BKiller wrote:
What exactly is your credit score good for if you don't plan to borrow more money? Glad to hear there are lots of "cash only" people...
What exactly is your credit score good for if you don't plan to borrow more money?


Glad to hear there are lots of "cash only" people out there. Kind of restores my faith in Americans...

My credit score affects my job and insurance rates, under 650 and they I can't be bonded by the state. It can also be a deciding factor in getting a job for many.
oldx
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Camano Island, WA US
7/13/2010 10:44am
oldx wrote:
Cash only for toy's.
GIwasB4 wrote:
So you bought new and paid cash, or used?
New. Nothing wrong with financing as long as they give me 0 interest.

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