If you’ve ever financed a motorcycle (sport/supersport) this Is a question for you. I just want to know your experience, your personal situation, why you made your decision, why not cash? I do realize buying anything with straight cash is always the better way out, but in my situation (trying to build/better my credit, get some good insurance under my belt) I’m thinking that a finance can actually benefit me. I’m not looking for advice on whether or not to finance but why – you did. Please keep the rants and credit speeches out of this. Just looking for either a “good” or “bad” experience. Be detailed, thank you.
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Obtained a Secured loan through a bank or credit union. This is giving the bank 1% of what you want to borrow (it was $60 in my case), they put that money in a CD and then write you a loan using that CD as a security. Doing this dropped my total paid interest to under 1% (lower interest on a secured loan, plus CD’s had decent interest at that time). Everything works the same as a normal financing at that point until you sell the vehicle or decide to pay it off. Then the CD is released, any money still owed the bank is collected (from you or the CD) and you’re paid the rest. poof, instant good credit.
Doing the above was the start for getting me out of a hole where I had Terrible credit. There was never any worry about making payments/being able to afford my toy because I’d already obtained the money. It also gave me the option of skipping out on full coverage insurance (I almost Never buy collision, just too expensive for what it offers) which you won’t have with a traditional finance. It was a great experience… I bought a Porsche with that money instead of a motorcycle but a toy is a toy is a toy (and my motorcycles were my main form of transportation, coming off 8 years as motorcycle-only). It was a great experience and I’m glad my mother-in-law mentioned it to me (I was only dating her daughter back then).
Not sure what you mean by “getting some good insurance under your belt” ~ there’s zero prerequisite for that (other than life experience). I’ll give you my experience for that ~ those insurance companies you know of, that advertise a lot ~ that advertising costs Lots of money, and that money comes from more expensive premiums. Find a person, local to you, who you can meet face to face (and whom you like/feel like you can trust) and buy insurance through them. Right now I’m paying half of what Progressive/Geico/Dairyland/State Farm/Farmers/etc… wanted for Minimum coverage and have just shy of Maximum coverage through a company called Foremost. Foremost, like most insurance companies, isn’t open to the direct customer, doesn’t advertise, but offers the same (and often better) service. The second tidbit of information is to Always play with the numbers. I remember a past bike I insured through my dad (he sold insurance for 35 years), when we sat down and started at state minimum for liability only it was $84/year. I ended up with maximum coverage levels and minimum deductibles for $93/year. That was an oddball, normally I don’t get to maximum coverage without a big jump, but I *ALWAYS* get much more coverage than minimums for either no extra charge, or a very small increase in charge.
I imagine the answer as to why people finance is going to be “because they don’t have the money” about 95% of the time.
It can be a good way to build credit, but even new bikes usually have a higher interest rate than a new car, so it’s a bit of an expensive way to build credit. Sometimes the manufacturer will offer incentive interest rates which can be good, otherwise mostly a sucker bet.
As for the good/bad experience… why would it be either? It’s a contract with someone and if you hold up your end, they’ll hold up theirs. When it’s paid, you’re done. The only bad experiences arise when you don’t hold up your end.