Financing a New Ktm 450

RVT420
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3/8/2020 3:44pm Edited Date/Time 4/10/2020 9:54am
Alright Fellas I’m in the market for a new bike I’m wanting to “finance” a new Ktm 450, I’ve never bought a new bike before my last new bike my old man bought me back in 2011 it was Yz250 and I’m currently riding a 2000 Kx250 that I’m ready to retire and turn to the dark side “4 Stroke”

My questions are, what do I need when going in to finance a bike? how much should I put down? What’s the average OTD cost on a new Ktm 450? Any input I’m open to hear y’all a opinions.

Also i kinda wanted Factory Edition but no dealerships around me seem to have any in stock and I didn’t know how to go about getting one? Thanks.


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Panic_Rev
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3/8/2020 3:50pm
I would put 100% down. If that’s not possible do as much as you can without draining your emergency fund for the ER bill or any other of life’s curveballs.
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kijen
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3/8/2020 3:53pm
By a 19 leftover and save 2k or so, put down as much as you can afford. Best if you can find a low hour used, as you can save another 1000 bucks or so. Manage your wants vice what your bank account can affordSmile
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gregyou
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3/8/2020 3:53pm
Panic_Rev wrote:
I would put 100% down. If that’s not possible do as much as you can without draining your emergency fund for the ER bill or any...
I would put 100% down. If that’s not possible do as much as you can without draining your emergency fund for the ER bill or any other of life’s curveballs.
If you get a good interest rate there is ko way would use cash.
Think about how much interest they charge on your home loan or car loan. You would be better off putting the cash into them to lower interest amount.

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3/8/2020 3:55pm
im financing my 2018 yz250f. i had a good credit score and i got told by the dealer to put nothing down but i threw 500 at it. all costs like title and shit are put into the financing so out of pocket cost should be 0 assuming youre approved and put nothing down.
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The Shop

c0ncEpT
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3/8/2020 3:58pm
2.99% or less.

Walk out and find your own financing if offered a rate higher than 2.99%
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Panic_Rev
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3/8/2020 4:02pm
Panic_Rev wrote:
I would put 100% down. If that’s not possible do as much as you can without draining your emergency fund for the ER bill or any...
I would put 100% down. If that’s not possible do as much as you can without draining your emergency fund for the ER bill or any other of life’s curveballs.
gregyou wrote:
If you get a good interest rate there is ko way would use cash. Think about how much interest they charge on your home loan or...
If you get a good interest rate there is ko way would use cash.
Think about how much interest they charge on your home loan or car loan. You would be better off putting the cash into them to lower interest amount.

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.
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mattyhamz2
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3/8/2020 4:28pm Edited Date/Time 3/8/2020 4:30pm
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.
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Brad460
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3/8/2020 4:32pm Edited Date/Time 3/8/2020 4:33pm
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.
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..
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PTECH
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3/8/2020 4:50pm
As long as you don't go out and get all bonered up by the new bikes in the showroom and let some greedy dealership assholes stick you with a 17% interest rate loan, I don't see a problem buying a new bike. Negotiate a good price, don't accept a high interest rate and you'll be fine as long as your credit is good. Bring in some paystubs from your job with you, they may require it to prove your income. I would rather keep my money in the bank than sweat about paying 4% interest on the thing that will bring me the most joy in my life. My current bike I financed for 36 months at 3.79%, I made extra payments and paid it off in 20 months. I paid a little over $400 in interest for it.
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Bennett59
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3/8/2020 4:52pm
If your credit good put $2000 Down and however many months is better for you
When I had my 16 350 I put 2000 down 36 months
My yz450 I called tons of dealerships till I found someone willing to deal got it for 8 otd put 2000 down as well just ktm always little more the other jap bikes but like other said find a 19 same bike, or when the 21 come out the rebates should come around to blow out the 20s
motomike894
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3/8/2020 4:53pm
Just look around enough for good rates, long as you have even ok credit you should be able to get 5% or less, I got 2.69% when I bought my new rmz.

Rate that low not like you’re losing a lot by making payments on it.
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Snoqualmie
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3/8/2020 4:55pm
Wells Fargo is a KTM sponsor.

What do they offer?

Hello WELLS FARGO....
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ajk423
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3/8/2020 4:57pm
I financed a 2014 rmz 250, not the same numbers I know. But it was 5750 otd, I was young without an extra 5750 to spend. I put down 2500, the payments were 60 a month for 5 years. I wasnt going to miss the 60 a month but I definitely would have missed the 5750. I would do it again. 2.99% is the highest I would go, and put down what you can. I paid mine off in less than a year, just pay as much as you can afford every month, it goes faster than you think.
Philly215
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3/8/2020 5:02pm
Financing is the way to go if you get a good rate. There’s a reason why millionaires finance everything. Their money is earning more in the markets then they are paying in finance fees.

You don’t need anything special. They’ll run hard credit checks with whatever banks they usually use and let you know what rate they can get. You could also go in with your own financing ready. Hit up your bank for a personal loan or whatever.
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LungButter
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3/8/2020 5:55pm
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.
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?
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3/8/2020 5:58pm Edited Date/Time 3/8/2020 5:59pm
Get a well taken care of 17 or 18 if you can find it. Will save thousands and be just as fast. Use a credit union if possible, they have better rates. Put 2k down.
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JB 19
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3/8/2020 6:01pm
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.
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.
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mattyhamz2
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3/8/2020 6:01pm
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?
He made the decision to go with financing and was asking about financing only. If he was able to pay cash he wouldn’t be posting about financing. I’d say a lot of dudes wouldn’t be riding if they had to pay cash for bikes. $10k is a lot to drop on a bike, especially for a young family like mine. If it weren’t for financing, I wouldn’t have had that 14 YZ450 that I had for 4.5 years. And I paid it off early btw.

Remember, if financing wasn’t an option, there’d be way less bikes out there and way less dealers around.

And yes, I do have two bikes in my garage. What you don’t know is I don’t own them. I am blessed to have a father that loves moto and due to some horrible circumstances, he ended up with another brand new 2017 RMZ450 that he put in my garage for me to have a bike to ride. The 98 YZ250 in my garage was a bike he picked up for $500 5 years ago and wanted out of his garage. So if not for him, I wouldn’t have a bike to ride at all.
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VetMX.com
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3/8/2020 6:04pm
Put as much as you can down and get the lowest rate your credit score will allow and talk to a few Credit Unions. Try to send extra money every month as a second check with "Principal Reduction" in the memo line and pay it off as soon as you can..

T. Finance 40 hours a week
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Lightning78
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3/8/2020 6:16pm
Hey OP having worked in sales at a dealership I can tell you for sure if you have a good credit score you'll prob be approved for 9.99% or less BUT and this is a big BUT the dealership will not tell you that and they'll come back to you at like 14.99% ....all of these dealers mark up your interest rate substantially so they can sell your loan to another bank on the he back end to make more money.
Your best bet is to secure your OWN financing and walk in to negotiate the price, all the while tell them you're gonna finance the bike bec you'll get a better otd price on the bike and once you have the price agreed upon, before you fill out any of their credit apps, have your credit union so.ehow give you a blank check or a check with an "up to $ amount" or anything that'll allow you to pay them on the spot and pay that negotiated otd price.

That's the best way if you're gonna finance it....DO NOT finance through a dealer not only do they mark up your rate, they usually lock you into a revolving finance option like a credit card making it impossible to pay it off making the payments. Your loan will also be front end loaded meaning you'll pay ALL of the interest off first before really taking a chunk out of the principal. So making larger payments up front the first year does literally nothing.
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LungButter
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3/8/2020 6:26pm
mattyhamz2 wrote:
He made the decision to go with financing and was asking about financing only. If he was able to pay cash he wouldn’t be posting about...
He made the decision to go with financing and was asking about financing only. If he was able to pay cash he wouldn’t be posting about financing. I’d say a lot of dudes wouldn’t be riding if they had to pay cash for bikes. $10k is a lot to drop on a bike, especially for a young family like mine. If it weren’t for financing, I wouldn’t have had that 14 YZ450 that I had for 4.5 years. And I paid it off early btw.

Remember, if financing wasn’t an option, there’d be way less bikes out there and way less dealers around.

And yes, I do have two bikes in my garage. What you don’t know is I don’t own them. I am blessed to have a father that loves moto and due to some horrible circumstances, he ended up with another brand new 2017 RMZ450 that he put in my garage for me to have a bike to ride. The 98 YZ250 in my garage was a bike he picked up for $500 5 years ago and wanted out of his garage. So if not for him, I wouldn’t have a bike to ride at all.
Fair enough man. And that wasn't meant to be as dickish as it sounded, I know you are a reasonable and level headed guy.

I just f#&@^%#$ hate seeing someone get strapped to a financing plan on a toy. What makes sense at one point in life payment wise can change in the blink of an eye and sometimes there isn't anything we can do about it.
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mattyhamz2
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3/8/2020 6:37pm
mattyhamz2 wrote:
He made the decision to go with financing and was asking about financing only. If he was able to pay cash he wouldn’t be posting about...
He made the decision to go with financing and was asking about financing only. If he was able to pay cash he wouldn’t be posting about financing. I’d say a lot of dudes wouldn’t be riding if they had to pay cash for bikes. $10k is a lot to drop on a bike, especially for a young family like mine. If it weren’t for financing, I wouldn’t have had that 14 YZ450 that I had for 4.5 years. And I paid it off early btw.

Remember, if financing wasn’t an option, there’d be way less bikes out there and way less dealers around.

And yes, I do have two bikes in my garage. What you don’t know is I don’t own them. I am blessed to have a father that loves moto and due to some horrible circumstances, he ended up with another brand new 2017 RMZ450 that he put in my garage for me to have a bike to ride. The 98 YZ250 in my garage was a bike he picked up for $500 5 years ago and wanted out of his garage. So if not for him, I wouldn’t have a bike to ride at all.
LungButter wrote:
Fair enough man. And that wasn't meant to be as dickish as it sounded, I know you are a reasonable and level headed guy. I just...
Fair enough man. And that wasn't meant to be as dickish as it sounded, I know you are a reasonable and level headed guy.

I just f#&@^%#$ hate seeing someone get strapped to a financing plan on a toy. What makes sense at one point in life payment wise can change in the blink of an eye and sometimes there isn't anything we can do about it.
Hey man, I totally get that. Believe me, I’d much rather pay cash and be done with it. But man, it is so much easier to part with $150-$230 a month vs $10k in 5 minutes lol. I also don’t have that kind of money sitting around. I’ll tell you though, I’ll never finance a bike at 12.99% again, but at the time I could afford it because we didn’t have a house and only had one kid at the time. We bought a house a little over a year ago and have 2 kids now so things have changed a bit 😂 Thankfully, we have the opportunity to get ourselves in a much better spot this year and the wife is talking about getting me a bike around Christmas! Fingers crossed lol!
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Superdave19
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3/8/2020 6:41pm
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.
SLAPAHO
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3/8/2020 7:05pm
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?
so what you're saying is that it would be better for him to save up $10k and then pull it out of the bank and spend it on a dirt bike? great advice Laughing
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RVT420
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3/8/2020 7:26pm
Thanks for all the info guys. I know it’s always better if you can just pay it in one lump sum but hell for some it’s hard to come up with $9k+ but this is what’s around me at the moment I may just wait and save up but man I want a bike

captmoto
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3/8/2020 7:29pm
SLAPAHO wrote:
so what you're saying is that it would be better for him to save up $10k and then pull it out of the bank and spend...
so what you're saying is that it would be better for him to save up $10k and then pull it out of the bank and spend it on a dirt bike? great advice Laughing
Except that by the time he saves up $10k the bikes will be $12k.
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RVT420
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3/8/2020 7:30pm
SLAPAHO wrote:
so what you're saying is that it would be better for him to save up $10k and then pull it out of the bank and spend...
so what you're saying is that it would be better for him to save up $10k and then pull it out of the bank and spend it on a dirt bike? great advice Laughing
captmoto wrote:
Except that by the time he saves up $10k the bikes will be $12k.
That ain’t no lie lmao
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3/8/2020 7:42pm
Maybe Try a local credit union if possible? I had very good luck using them in the past when Used to buy new bikes.
Also it’s Just my opinion, but the FE’s are not worth the extra money. The Red Bull graphics generally get people excited.
You could buy a leftover and add more quality parts then the ones on the FE. Good luck whatever you end up choosing.

Ghost
JM485
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3/8/2020 7:44pm Edited Date/Time 3/8/2020 7:45pm
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?
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?
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