Down Payment vs. Trade-in

[jh2586]

I think if your bike is only worth $1000-1500 private party, then trade in will be like $500 if you're lucky.

 

[bambamb43]

With no credit history you may not be able to finance anyway, I had same problem, turned out my wife got all credit rating for everything we financed so when we separated I had no credit history, I started out with a small capitol 1 card and within a year I had an 800 credit score and with that I didn't even need a down payment, I walked into BMW and walked out with a S1000R and got to keep my Zrx1200r

 

[SirSkankin DBA]

I think if your bike is only worth $1000-1500 private party, then trade in will be like $500 if you're lucky.

I didn't say my bike was only worth 1000 -1500 private party. That amount is the estimated different between private party and trade in value.

With no credit history you may not be able to finance anyway, I had same problem, turned out my wife got all credit rating for everything we financed so when we separated I had no credit history, I started out with a small capitol 1 card and within a year I had an 800 credit score and with that I didn't even need a down payment, I walked into BMW and walked out with a S1000R and got to keep my Zrx1200r

I do have credit history. I do not have a credit score. If you do not have any open lines of credit that are being reported to the bureaus for the past 6 months, a score cannot be calculated.

 

[scootergmc]

I doubt any motorcycle finance company would use some sort of manual underwriting, which is probably what you'll need since you have no credit score and wish to finance. Otherwise, it may be better to hit up your local credit union/bank.

In your scenario, I'd sit on the bike for a couple of months, save some additional cash, don't dip into your emergency fund, sell some other stuff, sell your bike privately in the spring, pay cash for next bike. That's what I would do.

 

[SirSkankin DBA]

I doubt any motorcycle finance company would use some sort of manual underwriting, which is probably what you'll need since you have no credit score and wish to finance. Otherwise, it may be better to hit up your local credit union/bank.

In your scenario, I'd sit on the bike for a couple of months, save some additional cash, don't dip into your emergency fund, sell some other stuff, sell your bike privately in the spring, pay cash for next bike. That's what I would do.

Just out of curiosity, though the credit history on my credit report is perfect, because I do not have active credit in the past 6 months, I cannot get financed unless it is under a "manual underwriting" condition?

 

[ThumperX]

Are you a credit union member? If not, become one. Speak with a loan officer and see what you can do.

 

[scootergmc]

Just out of curiosity, though the credit history on my credit report is perfect, because I do not have active credit in the past 6 months, I cannot get financed unless it is under a "manual underwriting" condition?

I don't know. It would depend on the lender. But if you have no FICO score, that will eliminate most lenders. Manual underwriting can still be found, but for small motorcycle loans through dealer lenders, I imagine they don't exist or they won't waste their time. Hence the suggestion of sitting down with your bank or credit union and seeing what they'll underwrite for you.

 

[scootergmc]

How much are you trying to finance and on what?

 

[SirSkankin DBA]

Are you a credit union member? If not, become one. Speak with a loan officer and see what you can do.

I am a member of USAA. Am going to be checking with them (as well, they were my last active loan)

I don't know. It would depend on the lender. But if you have no FICO score, that will eliminate most lenders. Manual underwriting can still be found, but for small motorcycle loans through dealer lenders, I imagine they don't exist or they won't waste their time. Hence the suggestion of sitting down with your bank or credit union and seeing what they'll underwrite for you.

Oh gotcha. I had never heard of Manual Underwriting, that was why I asked. But, will be checking with USAA

How much are you trying to finance and on what?

I think we are getting a little off track here. My question is down payment vs trade in not the financing portion. But, to answer your question, I will be putting 40% to 50% down on a Ducati Scrambler. (so around 6500 or so, financed)

 

[Snapping Twig]

Typically, never a good idea to pay interest on a depreciating asset.

That said, sometimes it's necessary.

Avoid it if you can.

 

[scootergmc]

I am a member of USAA. Am going to be checking with them (as well, they were my last active loan)


Oh gotcha. I had never heard of Manual Underwriting, that was why I asked. But, will be checking with USAA


I think we are getting a little off track here. My question is down payment vs trade in not the financing portion. But, to answer your question, I will be putting 40% to 50% down on a Ducati Scrambler. (so around 6500 or so, financed)

The reason I ask the amount is because it will make a difference. You're more apt to be approved (if underwritten) with more $ down. The bike is just my curiosity.

However, since you're a USAA member, I'd just give them a call and ask to speak to a loan rep. They'll tell you if they use and can bypass FICO. I would assume they can and do, especially since many military members return from the sandbox having not used credit since prior to their deployment.

 

[SirSkankin DBA]

Typically, never a good idea to pay interest on a depreciating asset.

That said, sometimes it's necessary.

Avoid it if you can.

Agreed. I have been debating that as well.

The reason I ask the amount is because it will make a difference. You're more apt to be approved (if underwritten) with more $ down. The bike is just my curiosity.

However, since you're a USAA member, I'd just give them a call and ask to speak to a loan rep. They'll tell you if they use and can bypass FICO. I would assume they can and do, especially since many military members return from the sandbox having not used credit since prior to their deployment.

Oh gotcha. I will probably call them on Monday to see what they say, and just continue to work on the private sale and exercise some patience. haha.

I do appreciate the info and input you have provided. Thanks!

 

[jh2586]

I didn't say my bike was only worth 1000 -1500 private party. That amount is the estimated different between private party and trade in value.

I'll sell your bike for you. Just give me half of the difference

In all seriousness, it doesn't take much to sell a bike. Just clean it up and take some really good pics.

 

[SirSkankin DBA]

I'll sell your bike for you. Just give me half of the difference

In all seriousness, it doesn't take much to sell a bike. Just clean it up and take some really good pics.

Oh, there is an idea. haha

I think for now, I am just going to let the postings expire or fade away until the weather clears some, at least. I have a strange hunch that my bike may not have that high demand as well. So, that may be something I have to try to factor for as well.

 

[bambamb43]

I never worry about interest or depreciation on toys , I do what I got to do to get what I want and just add that to the fun factor cost, good luck, I hope you get your bike soon, sounds like a fun bike,

 

[SirSkankin DBA]

I never worry about interest or depreciation on toys , I do what I got to do to get what I want and just add that to the fun factor cost, good luck, I hope you get your bike soon, sounds like a fun bike,

Thanks, bambamb. In thinking more, I am guessing it will all depend on when my bike sells. Then, I will be off to the races. Will keep saving in the meantime, and be able to put more down.

 

[jh2586]

I never worry about interest or depreciation on toys , I do what I got to do to get what I want and just add that to the fun factor cost, good luck, I hope you get your bike soon, sounds like a fun bike,

I disagree. I think fun can be had while minimizing the loss should you decide to sell/upgrade. The extra monies can be used for mods or track day tickets. Of course, if you can afford it, then why not. But then again, OP wouldn't have even started this thread if he can just throw money at it like that now would he?

 

[SirSkankin DBA]

I disagree. I think fun can be had while minimizing the loss should you decide to sell/upgrade. The extra monies can be used for mods or track day tickets. Of course, if you can afford it, then why not. But then again, OP wouldn't have even started this thread if he can just throw money at it like that now would he?

I think he was more meaning that if you have the means to do it, it doesn't make much a difference how you do it. At least, that was my impression but I could be wrong, because honestly, at this time, the only difference that trading in vs. down payment would make for me, is if I got a new helmet to go with it. Accessories and upgrades are already factored in.

 

[FXCLM5]

Just to be clear on two points, as I do respect what you are saying and it is what I already try to do.

A) I do not live off of credit. I have credit history, yet no credit score. I have not had any credit cards in over 15 years and have not had any open lines of credit in two years. As I am sure you know, without a credit score or at least some active line of credit, it can hinder your attempts at many things, like purchasing a home, or renting a new apartment, and the like

B) There is a void that the bike I am considering can fill that the paid off bike I have can't...That is being able to ride regularly again and commute regularly again. Due to some recently discovered physical ailments, I am unable to ride my current bike as I once did.

you need to talk to a personal accountant - just walk into your bank and ask some questions,

your missing out on everything credit cards give out for free, in addition to building your credit,

every credit card i have ever opened - gave me at least 100 - 200- 300 dollars in statement credit or points towards 1% cashback etc, I can show you multiple cards started since 2002 that have over 100k each in points in them, that is 1000 statement credit or a 1000 cash check - just for paying my credit cards on time and using "their elusive system"

its simple, use your credit card for every transaction possible - reap all the benefits, just control yourself and never spend beyond what you can possible afford in 1 statement.

listening to ppl who want to use cash for everything, they dont understand how our credit world works, its actually VERY VERY VERY beneficial to use the credit card, everything ive ever paid for since 2002, ive gotten easily 1-2% cash back on the purchases. Some cards even give you 5% cash back for certain months @ certain shops etc. Gas stations, groceries centers, etc....

only a small % really understand the benefits of a credit card, hope you wakeup and use the credit card system to your advantage, or fall into the 95% that abuse the credit cards and ruin it for themselves.

 

[dravnx]

you need to talk to a personal accountant - just walk into your bank and ask some questions,

your missing out on everything credit cards give out for free, in addition to building your credit,

every credit card i have ever opened - gave me at least 100 - 200- 300 dollars in statement credit or points towards 1% cashback etc, I can show you multiple cards started since 2002 that have over 100k each in points in them, that is 1000 statement credit or a 1000 cash check - just for paying my credit cards on time and using "their elusive system"

its simple, use your credit card for every transaction possible - reap all the benefits, just control yourself and never spend beyond what you can possible afford in 1 statement.

listening to ppl who want to use cash for everything, they dont understand how our credit world works, its actually VERY VERY VERY beneficial to use the credit card, everything ive ever paid for since 2002, ive gotten easily 1-2% cash back on the purchases. Some cards even give you 5% cash back for certain months @ certain shops etc. Gas stations, groceries centers, etc....

only a small % really understand the benefits of a credit card, hope you wakeup and use the credit card system to your advantage, or fall into the 95% that abuse the credit cards and ruin it for themselves.

You pretty much explained the benefits of using credit cards. I do the same, pay as much as possible using my cards, business and personal. To buy my Vstrom, I used $2700 that I had in points, yes that's 2,700 dollars not points, and the rest on a 2% back credit card. Paid off the balance at the end of the month so the purchase was discounted by close to $200.