A Motorcycle Financing MISTAKE

Todays video is about a motorcycle financing mistake that I receive a lot of questions about! First time buyer programs, motorcycle finance programs for people with bad credit, or motorcycle finance programs for people with no credit history often come with very high interest. It is often better to wait to pay cash, or wait until your situation improves!

[@ardalla535]

I remember many years ago when my credit was not bad as such, but I had no credit history. I needed transportation to get to work. Basically, the salesman treated me like a dog: no respect, condescending as hell, not willing to move an inch on the price; AND I ended up paying 23% interest. Not saying you will be treated that way, but it's possible. I was in San Diego at the time, and that was generally my experience with LOTS of people living there at the time. San Diego was not a friendly place by any means. Your local dealership in the hometown you have been in all your life may very well treat you much better. Today my credit score is 802, but then I never actually buy anything on credit because I've learned to just pay cash for everything and pay off credit cards every month. The old saying, I have all the credit I need as long as I don't need credit is sort of true.

[@CaptainFeathersword]

A bad credit rating means that you are a higher risk borrower. Lenders compensate for this higher level of risk by charging a higher interest rate. This is a universal rule that you cannot escape. My suggestion to those with higher income levels is to horde some cash, then finance over a very short time period ie max 12 months.

[@erich.4305]

great advice and this same advice can be applied to financing other things as well. I like the saying "Nobody's credit is as good as their cash"

[@dante2307]

If I ever need to finance a vehicle, I make sure I have 3-6 times the minimum down payment. Ill take the offer for the lowest down payment n then drop the rest of the money on the first month's payment. Keeps me ahead of the water by about six months or so

[@scottyspliffen7421]

Smart move! 💪

[@marcowens3522]

, , I want a 2022 yamaha yz250 it's around $8700 I want to put a down payment of $3000 on it i don't have good credit I did go bankrupt about 5 or 6 years ago think they will approve me? When you say 6 times the minimum down payment can you explain help me?

[@dante2307]

@@marcowens3522 ehhh, not sure. Not well versed when it comes to bankruptcy, but I just threw 6 out there as an overestimate - 3-6x times the 10% down payment required If you have $3000 to put down, put down $1000 n then when the first bill comes drop the $2000 on it. If your monthly payment is $500, you'll be ahead in payments, n have a cushion, by at least 4 months. Chances are payments would probably be around $250 giving you an 8 month cushion

[@kurthedgecock6313]

Great advice! I have received under 7% when financing motorcycles. I have financed through Honda and Kawasaki and 1 credit union.

[@unknownmember99]

Which one was best? Getting a Honda still looking for best options

[@Ishbikes]

Yea I’d rather get the check from my credit union

[@larslarsman]

2 words - Credit Unions - Banks have been dead to me for over 30 years. A good credit union will be a welcome home. If you finally get tired of banks service charges for everything they offer, find a good credit union. Interest rates ??? No one that I know of will beat a credit union on finance charges.

[@johnmartin7158]

Merry Xmas to you and your loved ones ! Paid cash for my T120 Bonneville 2019 and my Xmax 2018 Yamaha scooter. Saved for them. Can only hope people will listen to that advice and be patient in this consumer world we live in. Auckland. NZ

[@turtle19dad]

Honda Financial also has a program for previous customers which may lower your APR/payment depending on how your last financing went.

[@Merv_in_revolt]

But what if I also want to finance to build credit?

[@Joseph-wh5of]

Credit is really irritating. I have a good credit score but a short credit history. I'm a young guy and I have always paid my credit card on time. I have a good credit score above 700, but my credit history is short. So no one wants to finance me. How am I supposed to get a longer credit history if no one wants to finance me.

[@justinsavedra7633]

I always go in telling the dealer that I'm going to finance through them this way they think they are going to make the most money on interest. Let's me have them bring down the price. After haggling to a lower price I want to pay and them thinking they will still make a profit off interest so they don't mind. I then pay I cash or my own credit card that has its own low air interest and they don't charge interest for a year. The dealer always gets so pissed when I do that. I get a good sale and have. O interest for a year.

[@jochenschrey2909]

I would never borrow to buy anything fancier than a used Grom or maybe (with a huge stretch) some tame 250ccm. Feeling unable to afford your next crash kills the fun and spoils riding.

[@dznuttzonyachin7499]

Also if you apply for loan and get high interest rate pay it off early

[@jellybrain7207]

Woohoo I’m at 25% and underwater…but haven’t missed a payment in 3 years. Still sucks though

[@KidDreezy]

Hello Alex I’m 21 years old with 1 credit history since I was 18 credit is close to being excellent now this would be my first ever bike later on I would like to buy myself a house I heard you mention financing will help with that but in order to finance would I be able to get one without money down or just always have something down I’m planning to go with Yamaha Forsure if that doesn’t work out then it’ll be Honda

[@Pipes61874]

My suggestion is fix your credit first ,it will help you throughout your entire life .The bike is just an extra bill .It amazes me people are willing to spend thousands of dollars on a bike but when you tell them to pay someone to fix there credit they think it's crazy .

[@derrickjohnston7181]

Florida what if madw payments on a friends bike he gave me and i gave him 1000.oo fir his det and all equity in cycle and title is to be put in my name after lien release..from a court order to add name to future title. After made 4 payments threw credit union and insurance in my name for last 4 months..70 to 80% chance they release lien right? Then go bond threw harley Davidson the title threw HD insurance ..should reusable..guy gave bike didnt sell cause we we all knw it jas to be payed off first..i think it will be a 11000.oo bike for 1000 to guy that got the loan for me surrender cycle if miss two payments..

[@apollosport2895]

I want to finance a vintage bike, I couldn't get a loan bc the bike was too old Halp

[@jeanroy3658]

Hi Alex ,in my part of the world (Quebec ) in Canada some motorcycle shop will ask you for more money if you pay cash for the bike and less if you use there finacing program. There could be 1000$ deference or more. Have you ever heard about this.

[@lo-rez]

Wow that sounds crooked

[@knowone6214]

dont walk away......RUN......the bastards are ripoffs

[@Stacieanderson1]

would i need a co-signer if i put 1500 down on a 2023 yamaha R3

[@davidhill90034]

Great video, important info, thx!

[@reycharon5617]

Hey I have a question I paid 270 for my hd $$182 to hd in interest and the rest for principal What I can’t do to paid more to the principal

[@1DumbSquirrel]

What is a fair interest rate for 49,000 a year 629 credit 1yr 2 month at work for company 2yr at previous @ 23,000 a year

[@rakeshpatpalli6666]

Thanks for info man!

[@shaggyfotog]

Would I be able to pay the dealer fees and taxes upfront so it’s not rolled into the financing? I don’t want to pay interest on them.

[@scottoconnor4111]

Where did you go Alex? I miss your content

[@adarrishendricks3953]

Can you still buy a motorcycle with negative items on your credit report such as repose n phone bills??

[@Fishtankenjoyer97]

How about if I want to get a bike under 7K and I have 50% of the price for a down payment?

[@leobardolopez83]

Thank you, sir.

[@stevensonpericles262]

Thank you!

[@ghostblade500]

Hey Alex. Instead of going through the hassle of getting a motorcycle financed, would it be worth getting a personal loan and buying a motrocycle outright then paying back the personal loan?

[@sscbkr48]

Cash is always best.. it means you can afford it!

[@Joseph-wh5of]

@@sscbkr48 Not on a motorcycle that cost $22000. With that logic you wouldn't be able to afford a house unless you could drop the money cash or a car. Nowadays things are too expensive in order to pay cash.

[@sethmolenaar1801]

You can go that route. It all comes down to interest rates and what kind of personal loan you’re taking out. Get an idea of how much $ you want to take on as a loan and shop around before buying the bike. Then compare that to what the dealer offers

[@Ishbikes]

UNLESS you can get the check from the credit union to take the the dealership. Paying your credit union is better than paying the dealership.

[@1DumbSquirrel]

2:28

[@newsnowadirondacksredux360]

Go to your credit union and have 30% to put down. Don’t get financing if you have bad credit.

[@GUAPSTARYT]

How to not pay ADM? these dealers crazy asking 1800+ for dealer prep 🤬

[@GUAPSTARYT]

@Orbital Cooker damn what about a 450?

[@sebastianavelar1882]

I want to finance a motorcycle it cost about 12,000 I can put down 2000 down payment and have bad credit Will I get a approvefor it.

[@lilman02140]

I don’t even know how to choose a motorcycle 😭😭😭 I want a rebel or cb but I was told not to get a 300

[@AlexSimmons11c]

If you are a beginner then a 300 is a fine choice! My first motorcycle was a Ninja 250, and I loved it, rode it for over a year! Don't let someone tell you something is too small, try it for yourself, and if you feel you need bigger then get something bigger! You can always get a bigger motorcycle, but you can't replace the experience you gain on a small one!

[@naenre21]

My first was a rebel 250 and it's the perfect size to learn on but no one will give you what it's worth even in pristine condition lol

[@RoxasEarnshaw]

Don't finance your first motorcycle. Buy a cheap one you will out grow it in few months. You won't loose money if you do it this way.

[@lclalit40]

We appreciate your comment.

[@dznuttzonyachin7499]

dont even bother applying directly to Honda .. go to stealership and figure it out there

[@ezingles698]

What about excellent credit but no proof of income 😊😅😮

[@RetNavyChiefBTC]

Motorcycle financing, Huge mistake, but I repeat myself!

[@JustWatch0821]

What’s a good rate with 729 credit score

[@derrickjohnston7181]

Plus 4 payments of 229.oo per month

[@flyluffy643]

just bought "finance" new motorcycle this year and i dont want it anymore what should I do? any suggestion guys? can i return it?

[@gooblegobble78]

You can surrender it but it will hit your credit negatively. You can find someone to take over the loan I.e. someone that wants the motorcycle and willing to take over the loan or pay you in cash the remainder of the loan.

[@knowone6214]

patience is key....DON'T FINANCE....Period....find a dealer that is having turnover problems...they will be more than happy to deal

[@classicuniquegifts9704]

I financed a 2021 iron 883 I pay about 324 a month but I noticed on my credit report it said 7 years for 84 months did I make a mistake and if so is there a way out?

[@wudaa2524]

You financed It for 7 years and are still paying 324 a month??

[@classicuniquegifts9704]

@@wudaa2524 Yes. Was considering refinancing.

[@wudaa2524]

@@classicuniquegifts9704 just making sure I understand. Not judging you at all. Interest rates are kind of bad right now even for prime credit but based off your situation, you’re paying 27k for a iron 883. That’s a bike that retails for around 10k on a good day and gets sold with VERY low miles used -all day for 3-6k. 27k is assuming 0% interest which probably is not your case so essentially you’re probably paying well into the 30k range for that bike. Again, idk all the specifics of your situation but that bike is a terrible liability to own if your interest rate is double digits and you are able, It needs to be refinanced.

[@classicuniquegifts9704]

@Wudaa definitely gonna be refinancing. Looking ironhorse funding.

[@trevormoore6161]

Who asked these questions?10yr Olds?

[@johnr1897]

could i finance a 5k bike?

[@djerry11226]

Yea

[@lucastherexcat]

Do not finance a bike, save your cash, buy off season, buy used, shop hard.

[@ZenoSol_]

Eh, I have the money to buy, but I wanna finance just to build my credit. Gotta play the game

[@Flybrain-z3d]

Harleys are to expensive bro to just buy cash. I mean I make good money and I don’t just have 25k cash to throw around on a bike. 😂

[@lucastherexcat]

@@Flybrain-z3d HD are over priced. They can be found reasonable used. I have owned 2.5 HDs. Now I ride Yamaha.

[@sethmolenaar1801]

Financing is not a bad thing given the right terms. You’d be silly to pass up on a 0% interest rate financing deal for x amount of months.

[@oswaldoaguilar9933]

No I feel bad. Indian try and get me to pay 8 APR and I walk out piss.

[@CaliDad619]

Roadrunner 22% loan $5000 Duke 200 2023 Robbing me

[@1DumbSquirrel]

Keep it shorter

[@1DumbSquirrel]

There's a bunch of no shit Sir