Is this possible?

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I'm gonna go against the grain here a little bit, I don't think financing something is the worst possible idea like the general consensus here seems to be. If you can truly afford whatever you're buying, financing it could just be a way to get it quicker (yes obviously the interest you pay is the price for doing so). Again, if you really can afford it then it's just a tool you can use to balance out your cash flow instead of paying a large lump sum for something.

I didn't "finance" my bike, but I bought it using my line of credit. If I tightened the belt and saved up for it, I could have the entire price of my bike in less than 6 months. But I decided I really wanted the toy, so I just bought it. Is it the best financial decision I could've made in my current situation? Nope, and I know that. But I don't think it's nearly as disastrous as some people seem to think.

Now I'll put on my flame suit.
 
Financing something you can actually afford is one thing, but there's a lot of people that finance things they have no business owning in the first place, and I think that's where things go awry with many people when they either end up upside down (a good example here, owe more than it's worth and suddenly want out), or suddenly you miss as little as one paycheque (living on the bleeding edge) and you immediately start missing payments.

Basically, If you can barely afford all the payments on all the shiny baubles in your garage/driveway, chances are financing was a bad idea to begin with. ;)

That, and financing toys. A motorcycle, a snowmobile, a boat...classified as "toys" for most people. A car is much more of a tool in comparison. Either can be financed, but it makes more sense to finance something necessary (ie, a tool) vs toys.

I've never personally been a huge fan of financing either toys or cars, opting to buy older stuff instead and pay cash...I don't care about keeping up with the joneses and would rather let other people take the massive deprecation hits.
 
PrivatePilot said:
Basically, If you can barely afford all the payments on all the shiny baubles in your garage/driveway, chances are financing was a bad idea to begin with. ;)
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Personally I think that's the key there.

Financing isn't (or at least shouldn't be) a way around not being able to afford something. If you can't afford it, don't use financing as some kind of crutch to create the illusion that you can. But as I mentioned previously, if you can afford it financing can be a tool to manipulate your cash flow.
 
sevet said:
Financing isn't (or at least shouldn't be) a way around not being able to afford something. If you can't afford it, don't use financing as some kind of crutch to create the illusion that you can. But as I mentioned previously, if you can afford it financing can be a tool to manipulate your cash flow.
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Very true, but that's where a lot of people go off the rails.

There's lots of things I'd love to own, and I could probably finance the bejesus out of them and actually fulfill my desires, but I'm smart enough to know that just because it's now mine...the bank still owns 99.99% of it, with that percentage going down 0.01% every month because of payments that are leaning towards actually affordable vs realistically driving down the loan amount.

Reminds me of when we bought our first "big" RV in 2007. I financed it, yes, but I financed a 5 year old one (that had already lost close to 50% of it's original value, again, let someone else take the depreciation kick) and made sizeable payments to pay it off as quick as possible. The salesperson kept trying to sell me a brand new one stressing over and over again that "the payments are less than what you're going to pay on that old used one!", conveniently forgetting to mention that instead of a 5 year loan on the used one I'd have been looking at a 15 year (!!) loan instead for that shiny new one.

Sadly, a lot of people fall for that kind of BS, and then 5 years later own a toy worth only 50% of what they paid for it while still owing 95% of it's original value on the loan.
 
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Financing toys is ok if you can handle it, but the in the case of the OP probably not. Now they're upside down by the tune of $1500.
 
starboy869 said:
Financing toys is ok if you can handle it, but the in the case of the OP probably not. Now they're upside down by the tune of $1500.
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By definition, financing makes you upside down for most of the term. The bigger problem is that $1500 is an insurmountable obstacle for the OP to overcome. Personally, if I didn't have $1500 that I could lose, I sure as hell wouldn't have a bike (but I'm not normal).
 
statsman said:
Try your bank.
They may be willing to take over the loan you already have at a much lower rate.
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You'd be surprised. I inquired with my bank before, and they told me for such a small size loan I'd be looking at 10%+
 
sevet said:
You'd be surprised. I inquired with my bank before, and they told me for such a small size loan I'd be looking at 10%+
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that is correct, banks aren't interested in small loans unless they are high interest, as a financial institution they don't make money off a 5% or 6% rate on a $1500 loan, the only reason retailers give you these rates is because the cost of borrowing is already included in the price of whatever they are selling, sure you can negotiate the price a little, but there is a certain line they wont go bellow on a low interest car / bike financing deal, whereas if you were to pay cash for the same car / bike you would get a much more attractive deal
 
Ask for a Line of Credit if anything. But then it's on you to make regular sizable payments instead of just the minimums.
 
Go talk to the dealer and maybe they'll give you a deal.

But really you're wasting money and will be losing lots of money no matter what.
 
Your 250 is a fine bike. Ride, make the payments and ignore the rest of the noise. Get a shiny new CBR350RA in a couple years.
 
Matt Rain said:
Your 250 is a fine bike. Ride, make the payments and ignore the rest of the noise. Get a shiny new CBR350RA in a couple years.
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This is good advice. It's a mental thing. Love the one you're with. Groovy.
 
Iceman said:
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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I agree, you will not see much if any difference going from a 250 to a 300.

No offence, but if you are having trouble paying off a bike in that price range, you should stick with what you have and pay it off and save for when you get something worth upgrading to.
 
Baggsy said:
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.
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thumbs up
sound advice
 
Matthew.Tremayne said:
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 309 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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Amen.
 
Jesus!

Winter has that kind of affect on riders perusing the Internet and checking out bikes and deals.

Just stick with the bike you have. See how that speeding ticket affects your insurance and affordability to continue riding.

Paid off the an loan and enjoy the ride you have.

In another winter or two you can make another bad decision. Get married or something like that.

Kidding.

Folks got you covered. Use the Internet for porn and lay off the motorcycle sites.




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You mean it's not normal to browse kijiji everyday...?
 
I think we're all talking to ourselves, the OP hasn't been on since the evening he posted the thread.
 
sevet said:
You mean it's not normal to browse kijiji everyday...?
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Yes it is. Three or four times a day. Its normal.

It's normal.


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