Need Advice On Purchasing A New Bike

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1/9/2019 6:21 PM

So now that I have settled in my career and am financially stable I’m looking to buy a brand new dirt bike for the first time since I was 16!

I’m considering my options to get the most out of my purchase. Such as paying cash, cash back credit card, and possibly financing. I don’t currently have a credit card, but personally I’m leaning towards putting the purchase on a cash back card since I have the cash to pay for it and get a few hundred back just for sliding the plastic.

Another thing I have been considering to avoid dropping a lot of coin on a new bike again is to keep the new bike thing to a one or two year cycle. I figure a bike will depreciate probably around 2,000 to 2,500 in that time frame. So I put $100 a pay into a toy fund and sell my current bike and use the fund money to cover the rest of the purchase.

But let me know what you guys suggest or your personal experiences are.

Thanks!

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1/9/2019 6:26 PM
Edited Date/Time: 1/9/2019 6:28 PM

I did the credit card deal with my last bike. Sometimes the dealers don’t want to do that because of fees that they have to pay but the dealer was cool and I got another $150 or so in cash back. Paid it at the end of the month and was all good. Especially if you have the cash to cover it, if you don’t, probably look for a low financing 0% like Yamaha had last year or I think Ktm had like 1.9% or something which is almost like a free loan. That way you can keep your cash and have a cushion or invest it

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1/9/2019 6:37 PM

Cash only.

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1/9/2019 7:15 PM
Edited Date/Time: 1/9/2019 7:40 PM

Stoked for you. I look at these things while purchasing bikes as well.

Like stated above, sometimes dealers charge you fees for credit cards so check on that.

Check the financing rates from the dealer, bank and OEM, depending on what bike you are buying. My buddy just got a brand new 2018 Husky with crazy cheap interst from the OEM as they are trying to move old bikes. Over 3 years it was something like $300 total. Comes to about $8 per month, which isn't much if you need to save cash in the bank for a rainy day.

Theres also many credit cards that do 0% for XX amount of months on balance transfer. So you pay the dealer 1% fee to charge your card then balance transfer to 0% card then end up with a great financing deal.

I was brought up to never buy outside of your means, but also brought up to use the system and not go cash poor.

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1/9/2019 7:39 PM

I'm in the boat for paying cash and never finance a toy.

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1/9/2019 7:51 PM

I bought 2 new bikes in October while yamaha australia was offering 1% finance. Turns out they would only offer that finance rate on full retail price. I ended up negotiating $800 off retail price and the difference between taking the money out of my mortgage offset account and paying interest on that and the extra $800 retail price was nothing so I went cash.
You might be able to get a better price paying cash but it's also nice to have some dollars in the bank for a rainy day

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1/9/2019 7:51 PM

Good on you dude! I’m agreeing with these guys here. If you can pay for it in cash do it. It hurts at first seeing the money go but man it’s a sigh of relief getting to play and not worrying about a bill.

I like the idea of selling and buying a new one every year or two as well. I’ve been doing the same since I got back in the sport and had to start purchase my own bikes. I remember buying my first bike in cash on a 2016 YZ250F...I said to myself this will last me a few years...here I am so far upgrading every year sincelaughing

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1/9/2019 8:21 PM
Edited Date/Time: 1/9/2019 8:22 PM

I’m amazed any dealer will let you pay for a bike with a credit card. The fees are ridiculous. I’d think your best price is a clean cash deal. You’re not likely to get low rate financing and any kind of rebate. But maybe there are individual situations where they really want to move a bike and may be willing to give a great deal that includes both. When you’re buying a bike, that can be a great time to negotiate a good deal on some riding gear or other accessories. Those items have a much larger markup than a bike and they may be happy to give you a nice discount on stuff you’d buy anyways.

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Current rides: 2016 KTM 250SXF, 2017 KTM 350SXF

1/9/2019 8:23 PM

CarlinoJoeVideo wrote:

Stoked for you. I look at these things while purchasing bikes as well.

Like stated above, sometimes dealers charge you fees for credit cards so check on that.

Check the financing rates from the dealer, bank and OEM, depending on what bike you are buying. My buddy just got a brand new 2018 Husky with crazy cheap interst from the OEM as they are trying to move old bikes. Over 3 years it was something like $300 total. Comes to about $8 per month, which isn't much if you need to save cash in the bank for a rainy day.

Theres also many credit cards that do 0% for XX amount of months on balance transfer. So you pay the dealer 1% fee to charge your card then balance transfer to 0% card then end up with a great financing deal.

I was brought up to never buy outside of your means, but also brought up to use the system and not go cash poor.

Where'd your buddy buy his 18 Husky? I'm up in the Norcal area (Sacramento) and haven't had much luck finding a new 18 450.

If needed, I'd drive southward for a good deal on a new left over 18 wink

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1/9/2019 8:43 PM

In my experience you won’t get as good of a deal paying credit card because while you get cash back the dealer also gets less money due to fees. I was able to use a debit card to “pay cash” but I had to split it between 2 cards due to limits on how much you can put on each.
The best way is to negotiate the price by email or phone beforehand and then tell them you will come with a cashier’s check in that amount. That way you are essentially getting the best cash price and it’s harder for the dealer to tack on additional fees after you’ve agreed on a price. You can say the check is for X amount like we agreed.

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1/9/2019 8:58 PM

Dealerships cannot charge you the fees they must pay to the credit card companies; that's illegal. However, they absolutely can and will consider your method of payment when offering you the best deal. Guess what the difference is? You guessed it: exactly how much those fees are. It's around 3% for Visa/MC and maybe more for AMEX.

Keep in mind that the dealership earns money from the bank for financing, so let them finance it for you. You can usually get a better deal on the bike that way, and then just pay thing thing off with your first payment if you are averse to financing a toy.

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Braaapin' aint easy.

1/9/2019 9:07 PM

CarlinoJoeVideo wrote:

Stoked for you. I look at these things while purchasing bikes as well.

Like stated above, sometimes dealers charge you fees for credit cards so check on that.

Check the financing rates from the dealer, bank and OEM, depending on what bike you are buying. My buddy just got a brand new 2018 Husky with crazy cheap interst from the OEM as they are trying to move old bikes. Over 3 years it was something like $300 total. Comes to about $8 per month, which isn't much if you need to save cash in the bank for a rainy day.

Theres also many credit cards that do 0% for XX amount of months on balance transfer. So you pay the dealer 1% fee to charge your card then balance transfer to 0% card then end up with a great financing deal.

I was brought up to never buy outside of your means, but also brought up to use the system and not go cash poor.

NeedMoto wrote:

Where'd your buddy buy his 18 Husky? I'm up in the Norcal area (Sacramento) and haven't had much luck finding a new 18 450.

If needed, I'd drive southward for a good deal on a new left over 18 wink

2018 HUSQVARNA FX 450
https://losangeles.craigslist.org/sfv/mcd/d/castaic-2018-husqvarna-fx-450/6786416487.html
Photo

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1/9/2019 9:12 PM

CarlinoJoeVideo wrote:

Stoked for you. I look at these things while purchasing bikes as well.

Like stated above, sometimes dealers charge you fees for credit cards so check on that.

Check the financing rates from the dealer, bank and OEM, depending on what bike you are buying. My buddy just got a brand new 2018 Husky with crazy cheap interst from the OEM as they are trying to move old bikes. Over 3 years it was something like $300 total. Comes to about $8 per month, which isn't much if you need to save cash in the bank for a rainy day.

Theres also many credit cards that do 0% for XX amount of months on balance transfer. So you pay the dealer 1% fee to charge your card then balance transfer to 0% card then end up with a great financing deal.

I was brought up to never buy outside of your means, but also brought up to use the system and not go cash poor.

NeedMoto wrote:

Where'd your buddy buy his 18 Husky? I'm up in the Norcal area (Sacramento) and haven't had much luck finding a new 18 450.

If needed, I'd drive southward for a good deal on a new left over 18 wink

Also saw this:
https://portland.craigslist.org/wsc/mcd/d/hillsboro-2018-husqvarna-fc-450/6790339448.html

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1/9/2019 10:33 PM

So OTD is now before DMV fees, sales tax and "applicable fees"?? whistling

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1/9/2019 10:47 PM
Edited Date/Time: 1/9/2019 10:49 PM

If you dont have a credit card, you need one. BTW I dont see any credit card company giving you a card with a 10K limit right away. Try closer to 1K. Theyll bump your limit up with time.
Also remember the cash back rewards are usually 1 or 2% and maybe an extra high reward on something like gas or food. The fees the credit card companies charge is ~3.5%. The dealership is not gonna sell you a bike at rock bottom price knowing they gotta eat another 3.5% in processing fees. Pay in cash or finance for the best price.

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1/10/2019 3:00 AM
Edited Date/Time: 1/10/2019 3:01 AM

Pay cash for as much as you can without wiping out your entire bank account. If you cant pay 100%, do 50/50 on cash and financing or 75/25. Make sure to make the down payment big enough so that the lein is far less than the value of the bike in 2-3 years.

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1/10/2019 5:05 AM
Edited Date/Time: 1/10/2019 5:07 AM

Always pay cash unless they offer 0% financing. If you can’t pay cash, then a new dirt bike is not something you should consider purchasing. My experience has been to run a bike until it needs a bottom end rebuild if you want to get the most out of your bike.

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1/10/2019 5:31 AM

Before you buy a new bike, buy one of Dave Ramsey's books.

Then pay cash.

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1/10/2019 6:35 AM
Edited Date/Time: 1/10/2019 6:36 AM

I usually finance my bikes. I typically will buy a left over to save some money and then I do the same thing after a few seasons. I don't ride as much as I did when I was younger so I keep the hours low. After a few season ill sell the bike with under 80ish hours and it will be more then enough to satisfy the loan. I then buy another left over.


Some people may think its crazy but since I have good credit the interest rates are very low. Doing this i always have a fresh bike. I dont have to worry about engine problems or speding serious money on repairs. I always have a reliable bike to ride and rarely have to deal with expensive failures. I ride 450s and dont ride very agressive so I really dont even have to worry about top ends.


Literally my monthly payment in less then what I spend to have a cell phone. In my eyes Im okay with that to always have a bike that starts, looks good and is pretty much problem free.


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1/10/2019 6:40 AM

CarlinoJoeVideo wrote:

Stoked for you. I look at these things while purchasing bikes as well.

Like stated above, sometimes dealers charge you fees for credit cards so check on that.

Check the financing rates from the dealer, bank and OEM, depending on what bike you are buying. My buddy just got a brand new 2018 Husky with crazy cheap interst from the OEM as they are trying to move old bikes. Over 3 years it was something like $300 total. Comes to about $8 per month, which isn't much if you need to save cash in the bank for a rainy day.

Theres also many credit cards that do 0% for XX amount of months on balance transfer. So you pay the dealer 1% fee to charge your card then balance transfer to 0% card then end up with a great financing deal.

I was brought up to never buy outside of your means, but also brought up to use the system and not go cash poor.

NeedMoto wrote:

Where'd your buddy buy his 18 Husky? I'm up in the Norcal area (Sacramento) and haven't had much luck finding a new 18 450.

If needed, I'd drive southward for a good deal on a new left over 18 wink

Thank you sir, much appreciated!

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1/10/2019 6:44 AM

JB500 wrote:

Cash only.

Why use your own money, when other peoples money is so cheap, or free (0%apr)

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1/10/2019 7:12 AM

I just bought a 19 YZ250f and they offered a a full 4 year warranty and lifetime battery replacements for an extra $1000. I think you can pay a little more and get theft protection also. The warranty covers parts and labor, so I would look into that. Obviously it doesn't cover chains, sprockets, etc. but it covers any internal motor or fork work.

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1/10/2019 7:18 AM

MELTON139 wrote:

I just bought a 19 YZ250f and they offered a a full 4 year warranty and lifetime battery replacements for an extra $1000. I think you can pay a little more and get theft protection also. The warranty covers parts and labor, so I would look into that. Obviously it doesn't cover chains, sprockets, etc. but it covers any internal motor or fork work.

I'm sure that warranty has a lot of "fine print" to it.

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1/10/2019 7:20 AM

Move as quickly as possible on the purchase. The waiting is the hardest part.....life is too short. Use a low interest credit card (no dealers in my area would accept a $10000 purchase with a credit card because it costs them too much) if possible or see what the finance rate is. If the finance rate is under 3%.....that is acceptable. Anything over 3% and I would try to pay in cash.

If you do get a loan....pay it off as quickly as possible.

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1/10/2019 7:25 AM

I’ve financed plenty of bikes and don’t regret it. I plan on paying cash for my next one later this year though. Just have to find the deal that makes the most sense for your situation.

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1/10/2019 7:29 AM

Cash is king ,if you can do it. But establishing credit is good also.a payment will be less than a cable or cell phone bill. Finance it for 3,pay it off in two years.

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1/10/2019 7:39 AM

NeedMoto wrote:

Where'd your buddy buy his 18 Husky? I'm up in the Norcal area (Sacramento) and haven't had much luck finding a new 18 450.

If needed, I'd drive southward for a good deal on a new left over 18 wink

Jetworld Powersports. About 6 minutes up the road from me right now. Great guys over there. Think it's a 3 man show over there. Really good dudes.

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2017 RMZ450
2005 YZ250-sold :,(
1998 YZ250
2005 KX250F

80% of the time it works every time
IG @hammerfamily_4 & @2HRacing
Thanks to : Factory Effex, N2Dirt, Acerbis, DT1, Fasthouse, Matix, FMF, ASV, 100% & Mika Metals

1/10/2019 5:25 PM

Cash, and out of state to prevent sales tax.
Find a left over 1 or 2 year old bike. It will be soooo much better than your last bike and save the $$ difference. You are not racing at a top level so who cares?

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1/10/2019 5:52 PM

VetMX.com wrote:

Cash, and out of state to prevent sales tax.
Find a left over 1 or 2 year old bike. It will be soooo much better than your last bike and save the $$ difference. You are not racing at a top level so who cares?

I've been trying to do this exact thing on a leftover 18' 250-F. I'm in the Sacramento area and I can't find a Yam,Kaw,or Suzuki for under $7,100!
On a 18'!!

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1/10/2019 7:26 PM

SwingHard wrote:

I've been trying to do this exact thing on a leftover 18' 250-F. I'm in the Sacramento area and I can't find a Yam,Kaw,or Suzuki for under $7,100!
On a 18'!!

I thought Roseville Kawi/Yam had a decent sale during their location move? 250Fs 7k OTD. I could be mistaken though

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