Im turning 18 and i want to buy a new bike. How hard will it be to get a loan?

motolyfe
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motolyfe
Edited Date/Time 6/19/2014 1:15pm
So I turn 18 soon and im pgoing to buy a new motocross bike. My problem is that I don't know how hard it will be for me to get a loan since I have no credit. Any tips on how or where to get a loan? I only need like 4-5k since ill have the rest saved up. would it be best to go through the shops financing? or get the loan somewhere else then just pay the shop off and make payments to the bank? Also I have a job and don't have any tickets either if that makes a difference.
Thanks.
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downard254
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downard254 6/9/2014 1:15pm
6/9/2014 1:15pm
Work more, save every penny you can, only buy essentials, and buy the bike with cash. Or, go get a used one. Just my .02 cents worth.
dazzlindino 6/9/2014 1:15pm
6/9/2014 1:15pm
ur probably gonna need a co signer...
with the questions u r asking...... it dosnt seem like you have a credit history to get it on your own....
Socket946
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Socket946 6/9/2014 1:16pm
6/9/2014 1:16pm
Don't get a loan. Do not start your young adult life this way.

Pay cash.
Grizz
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Grizz 6/9/2014 1:17pm
6/9/2014 1:17pm
My advice would be to buy a used bike and then make it all nice and such. You'll spend less than a new stock bike and it will be cheaper. New bikes are nice and all, but a lot of stock parts don't last very long anyways.

I wouldn't get a loan for a dirt bike, but that's just me.

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dazzlindino 6/9/2014 1:18pm
6/9/2014 1:18pm
Socket946 wrote:
Don't get a loan. Do not start your young adult life this way.

Pay cash.
yep 100%...
save up another K and buy a good.... hardly ridden 250 2 stroke....to start...
lostboy819
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lostboy819 6/9/2014 1:18pm
6/9/2014 1:18pm
Slim to none on getting a loan for a MX bike on your own, like dazzlin said you will need a co signer, if you cant get a co signer you will need to save up the cash.
HuskyEd
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HuskyEd 6/9/2014 1:20pm
6/9/2014 1:20pm
Someone with no credit history will pay dearly in interest. You would probably be considered "high risk". Go to the dealer, explain you situation and see what the finance dept. tells you. Just don't get into a high interest loan.
motolyfe
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motolyfe 6/9/2014 1:21pm
6/9/2014 1:21pm
downard254 wrote:
Work more, save every penny you can, only buy essentials, and buy the bike with cash. Or, go get a used one. Just my .02 cents...
Work more, save every penny you can, only buy essentials, and buy the bike with cash. Or, go get a used one. Just my .02 cents worth.
I don't want another used one. Ive bought so many used bikes off craigslist and it never fails something goes wrong with them. I just don't want to deal with the hassle of something always failing. I just want to start with something new so I know everything about it. My plan was to put like a 2k down payment, then over the next year make payments and then sell it when it has about 60-80 hours on the motor. Then pay off the loan with the money I got from the bike, and then do it all over again.
erikcrvjl
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erikcrvjl 6/9/2014 1:25pm
6/9/2014 1:25pm
Why must you buy a brand new bike? You don't even have the money for it? Get a used one, especially since it'll be your first bike by the sounds of it. Either that or save up and pay with your own dough
JeepnMike
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JeepnMike 6/9/2014 1:25pm
6/9/2014 1:25pm
I have a different view.. Are your parents willing to co-sign for you? At some point in every person's life, you need credit.. By doing exactly what this young man is looking to do, I established perfect credit at a very early age by financing my motorcycles. My 2nd (financed) bike I bought when I was 19 I got a loan on my own due to the good credit I built buying a bike at 18 co-signed by my parents. In terms of lenders, you may want to find a good local credit union and get pre-approved with your parents co-signiing. This way you can shop your brains out until you find the best deal and buy on the spot vs. shopping and hoping and possibly settling for something or spending more than you planned.

I know paying cash is nice, but especially in this day and age it isn't realistic, these guys know that. Be smart about it and make an arrangement with your parents that assures them you will make the payments, and make them on time. I think more important than anything if you do finance a bike, INSURE IT!!!

Good luck!
dazzlindino 6/9/2014 1:26pm
6/9/2014 1:26pm
downard254 wrote:
Work more, save every penny you can, only buy essentials, and buy the bike with cash. Or, go get a used one. Just my .02 cents...
Work more, save every penny you can, only buy essentials, and buy the bike with cash. Or, go get a used one. Just my .02 cents worth.
motolyfe wrote:
I don't want another used one. Ive bought so many used bikes off craigslist and it never fails something goes wrong with them. I just don't...
I don't want another used one. Ive bought so many used bikes off craigslist and it never fails something goes wrong with them. I just don't want to deal with the hassle of something always failing. I just want to start with something new so I know everything about it. My plan was to put like a 2k down payment, then over the next year make payments and then sell it when it has about 60-80 hours on the motor. Then pay off the loan with the money I got from the bike, and then do it all over again.
it will never work like that...you will never sell it for what you owe.....
first off you probably wont get a great out the door price if they are gonna finance you....
second...since you have no credit you will pay the highest finance rate allowed by law....just slightly less than a loan shark....
thirdly.. on payments...you pay off the interest first...then you actually start paying off what you bought.....
forth...never finance a toy....
Socket946
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Socket946 6/9/2014 1:26pm
6/9/2014 1:26pm
motolyfe wrote:
I don't want another used one. Ive bought so many used bikes off craigslist and it never fails something goes wrong with them. I just don't...
I don't want another used one. Ive bought so many used bikes off craigslist and it never fails something goes wrong with them. I just don't want to deal with the hassle of something always failing. I just want to start with something new so I know everything about it. My plan was to put like a 2k down payment, then over the next year make payments and then sell it when it has about 60-80 hours on the motor. Then pay off the loan with the money I got from the bike, and then do it all over again.
This is a very poor plan you've thought out.
mx965
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mx965 6/9/2014 1:27pm
6/9/2014 1:27pm
downard254 wrote:
Work more, save every penny you can, only buy essentials, and buy the bike with cash. Or, go get a used one. Just my .02 cents...
Work more, save every penny you can, only buy essentials, and buy the bike with cash. Or, go get a used one. Just my .02 cents worth.
motolyfe wrote:
I don't want another used one. Ive bought so many used bikes off craigslist and it never fails something goes wrong with them. I just don't...
I don't want another used one. Ive bought so many used bikes off craigslist and it never fails something goes wrong with them. I just don't want to deal with the hassle of something always failing. I just want to start with something new so I know everything about it. My plan was to put like a 2k down payment, then over the next year make payments and then sell it when it has about 60-80 hours on the motor. Then pay off the loan with the money I got from the bike, and then do it all over again.
Not a bad idea i know of people who do this.
erikcrvjl
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erikcrvjl 6/9/2014 1:27pm
6/9/2014 1:27pm
motolyfe wrote:
I don't want another used one. Ive bought so many used bikes off craigslist and it never fails something goes wrong with them. I just don't...
I don't want another used one. Ive bought so many used bikes off craigslist and it never fails something goes wrong with them. I just don't want to deal with the hassle of something always failing. I just want to start with something new so I know everything about it. My plan was to put like a 2k down payment, then over the next year make payments and then sell it when it has about 60-80 hours on the motor. Then pay off the loan with the money I got from the bike, and then do it all over again.
Doesn't work that way buddy. You're going to dig yourself in a hole, and wind up in a shit ton of debt. I promise you.
hvaughn88
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hvaughn88 6/9/2014 1:28pm
6/9/2014 1:28pm
Without prying too much, do you currently have a credit history? If you don't getting a loan isn't the end of the world because it at least build some credit history. Not the best way, but a way. I'm with the other guys, pay cash when you can. But in this world, it seems like not financing things is actually detrimental to young people looking to establish themselves, which is kind of sad really. I remember when I first went to the bank to talk about home loans. The banker asked me, how much is your car payment. I said I don't have one, I still drive the same truck I had when I 16. How much in student loans? None, I had a scholarship. What's your credit card payment? I don't use a credit card, I pay cash or I don't buy it. Surprisingly, those were not answers they wanted to hear because I had no credit histroy, and I have what could be considered to be a pretty decent job. I thought I had been doing everything right by not having any debt, and it's looking like more and more that that I was wrong.
dazzlindino 6/9/2014 1:28pm
6/9/2014 1:28pm
downard254 wrote:
Work more, save every penny you can, only buy essentials, and buy the bike with cash. Or, go get a used one. Just my .02 cents...
Work more, save every penny you can, only buy essentials, and buy the bike with cash. Or, go get a used one. Just my .02 cents worth.
motolyfe wrote:
I don't want another used one. Ive bought so many used bikes off craigslist and it never fails something goes wrong with them. I just don't...
I don't want another used one. Ive bought so many used bikes off craigslist and it never fails something goes wrong with them. I just don't want to deal with the hassle of something always failing. I just want to start with something new so I know everything about it. My plan was to put like a 2k down payment, then over the next year make payments and then sell it when it has about 60-80 hours on the motor. Then pay off the loan with the money I got from the bike, and then do it all over again.
mx965 wrote:
Not a bad idea i know of people who do this.
names we need names and financial statements...
on how people are able to ride a new bike for free....
Slow.Going.Fast.232 6/9/2014 1:30pm
6/9/2014 1:30pm Edited Date/Time 6/9/2014 1:33pm
downard254 wrote:
Work more, save every penny you can, only buy essentials, and buy the bike with cash. Or, go get a used one. Just my .02 cents...
Work more, save every penny you can, only buy essentials, and buy the bike with cash. Or, go get a used one. Just my .02 cents worth.
motolyfe wrote:
I don't want another used one. Ive bought so many used bikes off craigslist and it never fails something goes wrong with them. I just don't...
I don't want another used one. Ive bought so many used bikes off craigslist and it never fails something goes wrong with them. I just don't want to deal with the hassle of something always failing. I just want to start with something new so I know everything about it. My plan was to put like a 2k down payment, then over the next year make payments and then sell it when it has about 60-80 hours on the motor. Then pay off the loan with the money I got from the bike, and then do it all over again.
Wow. No dude just NO! Pay if off with the money from the bike then do it all again???!! You got to be fecking kidding me!!? Please tell me your trolling right?

I got a newish R6 on loan when I turned 18, worst decision ever. Hands down now i will never do finance when it comes to buying a new toy or car. Just save and pay cash.

Edit: doing what you just said about doing it all over again when just means one thing.....continuous debt. Just no
dazzlindino 6/9/2014 1:31pm
6/9/2014 1:31pm Edited Date/Time 6/9/2014 1:31pm
hvaughn88 wrote:
Without prying too much, do you currently have a credit history? If you don't getting a loan isn't the end of the world because it at...
Without prying too much, do you currently have a credit history? If you don't getting a loan isn't the end of the world because it at least build some credit history. Not the best way, but a way. I'm with the other guys, pay cash when you can. But in this world, it seems like not financing things is actually detrimental to young people looking to establish themselves, which is kind of sad really. I remember when I first went to the bank to talk about home loans. The banker asked me, how much is your car payment. I said I don't have one, I still drive the same truck I had when I 16. How much in student loans? None, I had a scholarship. What's your credit card payment? I don't use a credit card, I pay cash or I don't buy it. Surprisingly, those were not answers they wanted to hear because I had no credit histroy, and I have what could be considered to be a pretty decent job. I thought I had been doing everything right by not having any debt, and it's looking like more and more that that I was wrong.
all true except for buying a 7K+ toy that in the lenders eye has zero resale value.....

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hvaughn88
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hvaughn88 6/9/2014 1:33pm
6/9/2014 1:33pm
dazzlindino wrote:
all true except for buying a 7K+ toy that in the lenders eye has zero resale value.....
That's why I said "not the best way, but a way"
EastFlorida
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EastFlorida 6/9/2014 1:34pm
6/9/2014 1:34pm
Get a few credit cards, buy parts for a used bike, pay off the cards every other month or two. You must build credit for the future. You want a credit score of 750+ before considering a loan or you'll pay through the nose...
dazzlindino 6/9/2014 1:38pm
6/9/2014 1:38pm
EastFlorida wrote:
Get a few credit cards, buy parts for a used bike, pay off the cards every other month or two. You must build credit for the...
Get a few credit cards, buy parts for a used bike, pay off the cards every other month or two. You must build credit for the future. You want a credit score of 750+ before considering a loan or you'll pay through the nose...
and there you have it.....
but NEVER BE LATE ON YOUR PAYMENTS!!!!!
hvaughn88
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hvaughn88 6/9/2014 1:39pm
6/9/2014 1:39pm
EastFlorida wrote:
Get a few credit cards, buy parts for a used bike, pay off the cards every other month or two. You must build credit for the...
Get a few credit cards, buy parts for a used bike, pay off the cards every other month or two. You must build credit for the future. You want a credit score of 750+ before considering a loan or you'll pay through the nose...
true true
JeepnMike
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JeepnMike 6/9/2014 1:40pm
6/9/2014 1:40pm
You guys shouldn't assume this guy is going to make bad decisions on payments. Some of you ranting and raving about horrible experiences, they were probably self inflicted. Make your payments on time, don't finance more than you can afford, you will be fine and will thank yourself when you are rewarded with a good credit score early in adult life.
mx965
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mx965 6/9/2014 1:40pm
6/9/2014 1:40pm
motolyfe wrote:
I don't want another used one. Ive bought so many used bikes off craigslist and it never fails something goes wrong with them. I just don't...
I don't want another used one. Ive bought so many used bikes off craigslist and it never fails something goes wrong with them. I just don't want to deal with the hassle of something always failing. I just want to start with something new so I know everything about it. My plan was to put like a 2k down payment, then over the next year make payments and then sell it when it has about 60-80 hours on the motor. Then pay off the loan with the money I got from the bike, and then do it all over again.
mx965 wrote:
Not a bad idea i know of people who do this.
dazzlindino wrote:
names we need names and financial statements...
on how people are able to ride a new bike for free....
Back in 05-07 two local pros did this same thing. (im not giving you names...) anyway, they would buy 1 new bike each ride the piss out of them for 2 months, put the stock plastic back on them and sell them for alittle under what they bought them for. I know thats not what he was saying but its similar.
motolyfe
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motolyfe 6/9/2014 1:41pm
6/9/2014 1:41pm
dazzlindino wrote:
all true except for buying a 7K+ toy that in the lenders eye has zero resale value.....
not quite 7k.. I was looking at a 2014 rmz250 for 5500. That's with Suzuki's promo thing they have going on right now.
Sounds like a killer deal.
wreckitrandy
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wreckitrandy 6/9/2014 1:42pm
6/9/2014 1:42pm
With no credit history you will most likely need a co-signer. If you have money in savings and checking at the bank or, credit union, you will have a better chance doing your business there if you don't have a co-signer. You will have a much better chance getting approved on a new truck than a bike. That's just how it is. My best advice,,,,,, guard your credit like your life depends on it. Don't go to every shop trying to get approved. You're just digging a deeper hole like that. Make sure when you do apply that you're gonna get approved. Your co-signer needs to be spotless with a long, stable history of making payments. In other words, your twenty year old buddy that just bought a new truck isn't gonna be strong enough to be a co-signer. If you don't have any help, and the bank you do business with says they can't help you, you'll have to build your credit up on your own. It'll take time. Try to get a very low limit Sears credit card. Say $500. Charge a small tool box, no more than $250 on the card. Pay it down to $100 and go get a torque wrench. Repeat. Not too far down the road, they'll up your limit. Don't go crazy. Also,,, don't pay your card or loan off as fast as you can. Of course you'll beat the interest but, it won't do much to help your credit. Two or three years of this approach will have you in a much better position. My grandmother helped me get started. Thank God for grandma. If you have someone to help you get started, be grateful. Make sure that you are on time making the payments as anything that goes against your credit goes against their's as well. I'm sure none of this is what you wanted to hear but, it's reality. Good luck and remember, the only person that can take care of your credit is you. Be careful.
dazzlindino 6/9/2014 1:44pm
6/9/2014 1:44pm
JeepnMike wrote:
You guys shouldn't assume this guy is going to make bad decisions on payments. Some of you ranting and raving about horrible experiences, they were probably...
You guys shouldn't assume this guy is going to make bad decisions on payments. Some of you ranting and raving about horrible experiences, they were probably self inflicted. Make your payments on time, don't finance more than you can afford, you will be fine and will thank yourself when you are rewarded with a good credit score early in adult life.
no assuming....but look at it this way...
what if none of us pointed out...that your credit history vs. future credit is serious S^^T....
if he knows it already then good on him I say!!
overthebars39 6/9/2014 1:44pm
6/9/2014 1:44pm
mx965 wrote:
Back in 05-07 two local pros did this same thing. (im not giving you names...) anyway, they would buy 1 new bike each ride the piss...
Back in 05-07 two local pros did this same thing. (im not giving you names...) anyway, they would buy 1 new bike each ride the piss out of them for 2 months, put the stock plastic back on them and sell them for alittle under what they bought them for. I know thats not what he was saying but its similar.
Go run a new bike and sell it 2 months later. See how mutch you get for it.
dazzlindino 6/9/2014 1:45pm
6/9/2014 1:45pm
wreckitrandy wrote:
With no credit history you will most likely need a co-signer. If you have money in savings and checking at the bank or, credit union, you...
With no credit history you will most likely need a co-signer. If you have money in savings and checking at the bank or, credit union, you will have a better chance doing your business there if you don't have a co-signer. You will have a much better chance getting approved on a new truck than a bike. That's just how it is. My best advice,,,,,, guard your credit like your life depends on it. Don't go to every shop trying to get approved. You're just digging a deeper hole like that. Make sure when you do apply that you're gonna get approved. Your co-signer needs to be spotless with a long, stable history of making payments. In other words, your twenty year old buddy that just bought a new truck isn't gonna be strong enough to be a co-signer. If you don't have any help, and the bank you do business with says they can't help you, you'll have to build your credit up on your own. It'll take time. Try to get a very low limit Sears credit card. Say $500. Charge a small tool box, no more than $250 on the card. Pay it down to $100 and go get a torque wrench. Repeat. Not too far down the road, they'll up your limit. Don't go crazy. Also,,, don't pay your card or loan off as fast as you can. Of course you'll beat the interest but, it won't do much to help your credit. Two or three years of this approach will have you in a much better position. My grandmother helped me get started. Thank God for grandma. If you have someone to help you get started, be grateful. Make sure that you are on time making the payments as anything that goes against your credit goes against their's as well. I'm sure none of this is what you wanted to hear but, it's reality. Good luck and remember, the only person that can take care of your credit is you. Be careful.
good post....

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