Is this possible?

5

5n7even

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Well this is bit disappointing, but this is bound to happen to someone who is brand spanking new. So today I was lurking around Honda Canada website and looked truth there promotional deal on the CBR300R, pretty nice if you ask $80 or so a month on financing at 1.9%. The problem is I have an outstanding financing with Honda Canada for a 2013 CBR250R that I gotten from Ready Honda in June or July. Sadly, I ended up financing this thing close to $5,500 at 9.99%. I still have $3,978.40 outstanding on the bike and my monthly payments are $161.97.

So I was wondering is there a way to somehow trade-in/return my 250r for the 300r with the nice financing options on the 300r? Or is there no option other than to pay off the bike and move onto something else? This was a rather stupid move on my end, but this was from someone coming from a 50cc scooter and 300cc sounded pretty scary at the time, so I made a noob mistake which has been kicking me in the *** now.

Realistically both bikes are rather similar in power, with 300cc being tiny bit more powerful and having a nicer look to it. I can live with my 250r but was wondering if there are some options, 9.99% vs 1.9% is a rather big difference so yeah. I was thinking of selling the bike, but best offers are around $2,500 which still leaves me with $1,478.40 which I don't frankly have, and honestly I doubt anyone would want to buy a bike knowing its still under financing. I could keep quite, but that would make me an a-hole and that is not very nice, so I would need to bring this up. I was thinking of selling the bike and just continuing the payments on the bike until the loan is repaid in full on the amount that is remaining.

I really don't know... I really don't know what should I do. I been trying to make money to put down on the balance owing, but something unusual and random usually sets me back like a speeding ticket I got few months back and then there are the lawyer fee's and pile of bills and you know the fun goodies.

Eh, well that is all I could say I guess, kind of made myself disappointed and tiny bit depressed as I'm writing this, been trying best way to solve this and yet I don't see a clear solution.
 
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9.99%!!!! holy crap!!!!
You're probably locked in and your only option is to try and sell it for enough to cover the rest of your financing cost. It's in your best interest to get out from under that finance rate.

Did you try contacting Honda Canada?
 
JoeyB said:
9.99%!!!! holy crap!!!!
You're probably locked in and your only option is to try and sell it for enough to cover the rest of your financing cost. It's in your best interest to get out from under that finance rate.

Did you try contacting Honda Canada?
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Yeah, it's pretty crazy interest on a used bike, but that's what I was given. No. I did not contact Honda Canada, why? Would I be able to negotiate something with them?
 
If you got 9.99% on the 250R, I doubt you would qualify for the 1.9% deal on the 300R.
 
5n7even said:
Yeah, it's pretty crazy interest on a used bike, but that's what I was given. No. I did not contact Honda Canada, why? Would I be able to negotiate something with them?
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If you don't ask you won't know.

So this is a financed 'used' bike? Damn, you must have really really really wanted to ride.
 
JoeyB said:
If you don't ask you won't know.

So this is a financed 'used' bike? Damn, you must have really really really wanted to ride.
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Yep. I was pretty hyped since getting M2, but I only had 50cc scooter which I rode for 3 months before jumping onto the 250r. I like the bike, but it's bit overpriced for a used bike and at the time I did not fully think this truth, just wanted a bike. Did not have much money on hand as well to buy used from Kijiji or something, so financing was my only option really.
 
Your only option to get out of the financing agreement you no longer want is to either sell the bike, come up with the difference in value (as you've calculated) and clear the lien...or, use the bike as a trade in towards the new bike and see if the dealership can jiggle the numbers for you, but don't expect their valuation for trade in to be very good, probably wholesale value, so if they (for example) only offer you $1500 on trade in value you're still left with a $2500 loan outstanding in the end which, yes, they might be able to roll into your new financing for you (if your credit is good), plus the value of the new bike loan...and suddenly you're way upside down.

Can't hurt to go talk to the dealer and see what they say. Who knows, they might give you a good valuation on the trade in order to make a sale if their margins allow it.
 
I figured that was the case. It's a hard pill to swallow I'm sure.
 
Matt Rain said:
If you got 9.99% on the 250R, I doubt you would qualify for the 1.9% deal on the 300R.
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This. 1.9% is subject to credit approval. If you have had a better credit you wouldn't be paying 9.99%. I wouldn't even try as it will be another hard credit check.
 
Yanny said:
This. 1.9% is subject to credit approval. If you have had a better credit you wouldn't be paying 9.99%. I wouldn't even try as it will be another hard credit check.
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Not sure about that, something in the 10% range isn't unheard (seems rather typically, honestly) of for a used vehicle - percentages can go as high as about 14% down to about 4.5% at the best for a personal vehicle loan for someone with impeccable credit and a history with the bank in question.

If he just walked in and took the first offer (as it sounds like he did, without any negotiation) it wouldn't surprise me that the 9.9% had more to do with "Here's the paperwork, sign here" as opposed to credit score. If he had bad credit I'd expect to have seen something in the 14% range, or if it was REALLY bad credit...well, I have a relative with horrible credit (including an undischarged bankruptcy) paying over 25% on a car right now. :rolleyes:

Here's a good example of even a big bank charging 25% on a used car. Now, their stupidity (and then their complaint after the fact, apparently too stupid to even recognize the situation before signing) is another story, but alas...what I'm getting at is that 9.9% isn't really atypical in the end for financing a used vehicle. There are some who would call that rather attractive - even an unsecured personal line of credit is running about 7-8% right now.
 
The dealer may make a deal for you, but they would have to be making some profit in there somehow, so even if you got the lower rate, you end up owing more overall, perhaps with a larger balance and longer term. There's no magic here, just mathematics. This is very common practice with car loans and leases.

Also, unless they are an idiot, no-one will buy your current bike unless he lien is paid-out.

Probably best to keep on as you are, focusing on reducing your expenses here and there and increasing income wherever possible to pay off your debt and save for this recreational hobby.

oh yeah - speeding, lawyers,... I'd suspect that Insurance is going to be a bigger concern for you than any of this 9.9%/1.9% discussion.
 
It will not be worth it. You will wind up owing even more money, and all for what? So you can buy the same bike with an extra 50cc. Ridiculous idea. Ride your 250 and learn from the whole experience.
Besides I guarantee if you buy a 300, you'll be wanting to "upgrade" again next season. Ride the 250 for a season or two, then you'll be able to sell it for what you owe.

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follow Icemans advice. take your life lesson. you bought a spontaneous purchase and got hung with a typical interest rate on toy. enjoy the 250, pay it down at as fast a rate as possible. When the loan is discharged go do something else.

Don't feel bad about it, your only guy 9,754,897 to buy a toy at an unfavourable interest rate. Your not alone.
 
You are what is colloquially known as "in the bucket".
If you go in shopping now, you will put pressure on the salesman to try and put you into a worse deal.

Your best bet is to start paying cash for things, and do without for a while, until you can pay off your debt. It won't be easy at first, but later on, you'll wonder why you even wanted some of that crap.
 
OP, reread the financing you were looking at...pretty sure in the ad I saw the 300 is $80 biweekly.
Also, you made a bad financing decision and want to finance again? After reading your post I think you may need to get some priorities straight. Pay down the loan. Don't get yourself into situations that involve lawyer's fees. You rode a 50cc scooter for all of 3 months? Was that financed? Do you still have it? If not, where is that money? I'm kinda all over the place here but this type of ish kinda pisses me off. Kid at work has a 2008 vw. Needs about $2k in work. Says it's not worth it to fix it, wants to know if I think if it's a good idea if he buys a newer used car for $30k. No matter how I tell him no, he tries to justify it. In a few years he will be asking me why he doesn't have a down payment for a house....
Anyway, do not try to buy the 300. If you are able to pay out the loan, I would look at hetting someone to refinance you at a lower rate if possible. If not, pay the bike down, keep your nose clean and consider this a lesson on how not to spend your money.

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What others have said. You can either be underwater on this bike, or really underwater on the next one
 
FLSTC said:
oh yeah - speeding, lawyers,... I'd suspect that Insurance is going to be a bigger concern for you than any of this 9.9%/1.9% discussion.
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A good point....OP, when does your insurance renew? I'd be apt to make sure you can actually afford to ride this year before jumping into financing on a bike you may have to park after the fact. What tickets did you get that are so bad they involve lawyers?

Motorcycles + New Rider + Young Rider + Tickets = Astronomical Insurance.
 
If your loan on the current bike is open ended, pay the damn thing off asap. 10% isn't crazy high for someone who has a poor credit rating. My first car (used) was 24% 2 years. Open ended. I paid it off after a year, now I can buy a 60 G car and get 0.99%. Make sure you pay your bills, keep the bike and don't waste your money on a 300 that is basically the same bike.

Don't be stupid with your money... also, it sounds like you don't have much of it because you only owe 3,900. That peanuts in the whole spectrum of things. Pay it off, save money by not eating out, cutting down on extra crap that you don't need. We have all had to live without before.
 
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Joe Bass said:
OP, reread the financing you were looking at...pretty sure in the ad I saw the 300 is $80 biweekly.
Also, you made a bad financing decision and want to finance again? After reading your post I think you may need to get some priorities straight. Pay down the loan. Don't get yourself into situations that involve lawyer's fees. You rode a 50cc scooter for all of 3 months? Was that financed? Do you still have it? If not, where is that money? I'm kinda all over the place here but this type of ish kinda pisses me off. Kid at work has a 2008 vw. Needs about $2k in work. Says it's not worth it to fix it, wants to know if I think if it's a good idea if he buys a newer used car for $30k. No matter how I tell him no, he tries to justify it. In a few years he will be asking me why he doesn't have a down payment for a house....
Anyway, do not try to buy the 300. If you are able to pay out the loan, I would look at hetting someone to refinance you at a lower rate if possible. If not, pay the bike down, keep your nose clean and consider this a lesson on how not to spend your money.

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this


dont finance toys, get your priorities straight (owning a motorcycle is not a priority), good for you for asking for advice before making another bad financial decision, keep asking for advice in the future, it usually ends up cheaper than not asking for advice
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