I think you will find that most toys are in fact financed.
|
|
|
Stupidly overpriced motorcycle for sale thread
- Thread starter killerkeith
- Start date
I think you will find that most toys are in fact financed.
Absolutely.
Depends how you finance them. Some people mentioned lines of credit. I paid both of my bikes off in less than a year using a credit line. I guess, it cost a couple hundred bikes more, oh well.
LoneRonin
Well-known member
I did something similar...When I bought my bike I was 19 and Kawi was doing 0% financing the first year then it jumped to 9%!! I put $800 down and took advantage of the one year and then paid it off, it was my first 'big' purchase and I was able to use it to build my credit rating and got a 3 year extended warranty out of the deal.
I'm a little late on this but that is eye-watering. Who's agreeing to a 7-year term on the other end? I would say that the risk to the lender would be pretty high, the bike is not going to worth a whole lot in 2021
Last edited:
Risk directly relates to interest rate (which I already mentioned). The lender is laughing all the way to the bank.
By 2021 that bike will have already been paid for more than 2 times over. Being able to also repo it at that point would be the icing on the cake.
lator-illa
Well-known member
I work for one of the big banks, and used to be in the Auto Finance department. There's no way our bank would ever approve this type of loan, especially on a motorcycle.
Working at that department, it's unbelievable how many people take 7 to 8 year loans on Autos. God forbid they get into an accident years down the line, and they still owe more than half of the loan. They'll be faced to buy a new car while paying for the existing loan.
But a 7 year loan at $150/month on a small motorcycle lol....dude must've been desperate. Probably reached out to a high risk lender.
Thinking ahead? :lmao:
This is the country of i want now, no matter what it costs.
If you already have a 900,000 house on a 40 year mortgage, bike financed and are maxed out every month how can you possibly buy that dream kia you've always wanted? 7,8,9 year loan is the answer...
Yep.
I think the big problem is people have started looking at their credit allowance like everyone used to look at their bank account. As long as they haven't maxed it out, they feel like they've got room to increase it. Instead of having a pile of money that they can only spend until they hit $0, they have a debt amount on a piece of paper that they can only spend until it reaches the number where people start saying no.
People (like that guy with the bike) don't take the time to calculate what things are actually costing them, and they certainly don't even consider buying things outright.
In the states I know they have a "Truth in Lending" section that needs to be on every financing agreement. It fairly clearly outlines how much money you're getting and what it's going to cost you monthly and over the entire agreement. Basically a "cost of borrowing". I wonder if this guy knew he was paying 12k for a 5k bike, and if it would have changed his mind.
+1. A friend of a friend provides high-risk auto loans, he just traded in his aston and bought a lambo. There's a lot of money in low-dollar, high-interest loans.
Absolutely:
[video=youtube;PDylgzybWAw]https://www.youtube.com/watch?v=PDylgzybWAw[/video]
Dresden
Well-known member
You think it's just the Kia buyers?
http://www.motorcars-intl.com/exotic_financing.aspx
http://www.lamborghini-talk.com/vbforum/f47/lease-gallardo-7204/
Try buying a Lamborghini or Ferrari on a 12 year lease/finance and see how that works out for you. I blame Instagram for making (faking) people think they too can afford an exotic car on a $100k salary...
lator-illa
Well-known member
Errr....I thought a Cost of Borrowing document would be standard in Canada? Aren't lending companies required to disclose the amount being borrowed to the clients?
:lmao: that's some funny ****
I just used the kia as an example, i don't doubt it that everyone out there does it and not just for cars
Everyone has a "smart phone" yet people aren't smart enough to run the quick math? There's a calculator on every phone out there lol
lator-illa
Well-known member
Like you mentioned, the problem is people plan for the now. So even their math is for their monthly payments. So if they can manage to squeeze in the monthly payments, they'll do it, even if it's for 7+ years.
Of course they do. They're the same people doing a hardware upgrade one year into their three year contract, signing for another three years so they can upgrade their iPhone 5 to an iPhone 5s
Dresden
Well-known member
They sell those handsets at The Source. Saw them just the other day.
|
|
|
|
|