Recommendation on Purchasing a Bike - Kawasaki Ninja 250R Forum
 
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post #1 of 9 (permalink) Old 04-15-2011, 11:45 AM Thread Starter
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Recommendation on Purchasing a Bike

Hello Everyone,
I don't post very often on here because I have not bought my bike yet but I just wanted to share my plan for that purchase with all of you and maybe help you save some money and stay out of debt at least for your bike.

I am a huge fan of Dave Ramsey if you haven't heard of him look him up you can learn a lot. I don't have a bike yet because a few months ago I decided that I was not going to go into debt for my motorcycle. So here is my plan. Most dealers like you to finance for about a year or 2 figure out what your payment will be and PAY YOURSELF that amount for either that year or two. If you want to invest the money into a mutual fund every month which will allow it to grow even more by about 12%( stock market Average) per year. If you do it this way you will be able to show the dealer cash and talk the price down a couple hundred due to them not having to worry about finance. You will save money. If you purchase a ninja 250R at $3,999 you will pay $239.94 in interest figured at 6% (which is probably the best you will get). If you pay with cash and you talk the dealer down 200 bucks that's a savings of $439.94. If you pay yourself you gain the interest instead of them. Not to mention you can save on insurance because you are not forced to buy full coverage and when you take your bike home it's yours completely and cannot be repoed if your job situation changes. It's simple guys and it will save you. Please be mature and patient when purchasing your motorcycle. Another positive about saving for your bike over time it gives you time to purchase your gear over time and watch for deals and whatnot. Any other questions about this let me know.

Feel free to comment

I enjoy reading all your guys' comments.

clergyrider
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post #2 of 9 (permalink) Old 04-15-2011, 03:52 PM
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Ah that's too late haha. I had 4k to buy my bike but with taxes and all it came out to 5k so I had to finance. I only put 3k down though. I'll pay the rest over the period of the next 4 months or so. I didn't feel good in putting 4k down and having no money in case of emergencies.

Didn't purchase full coverage either lol hoping the leinholder won't notice until after I've paid off.
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post #3 of 9 (permalink) Old 04-15-2011, 04:51 PM Thread Starter
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At least you paid the vast majority of it up front you won't have as much interest anyway. It will feel good when you get it paid off I'm sure.
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post #4 of 9 (permalink) Old 04-15-2011, 07:10 PM
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Originally Posted by clergyrider View Post
Hello Everyone,
I don't post very often on here because I have not bought my bike yet but I just wanted to share my plan for that purchase with all of you and maybe help you save some money and stay out of debt at least for your bike.

I am a huge fan of Dave Ramsey if you haven't heard of him look him up you can learn a lot. I don't have a bike yet because a few months ago I decided that I was not going to go into debt for my motorcycle. So here is my plan. Most dealers like you to finance for about a year or 2 figure out what your payment will be and PAY YOURSELF that amount for either that year or two. If you want to invest the money into a mutual fund every month which will allow it to grow even more by about 12%( stock market Average) per year. If you do it this way you will be able to show the dealer cash and talk the price down a couple hundred due to them not having to worry about finance. You will save money. If you purchase a ninja 250R at $3,999 you will pay $239.94 in interest figured at 6% (which is probably the best you will get). If you pay with cash and you talk the dealer down 200 bucks that's a savings of $439.94. If you pay yourself you gain the interest instead of them. Not to mention you can save on insurance because you are not forced to buy full coverage and when you take your bike home it's yours completely and cannot be repoed if your job situation changes. It's simple guys and it will save you. Please be mature and patient when purchasing your motorcycle. Another positive about saving for your bike over time it gives you time to purchase your gear over time and watch for deals and whatnot. Any other questions about this let me know.

Feel free to comment

I enjoy reading all your guys' comments.

clergyrider
Personally I prefer ETFs over mutual funds but anywho. That $239.94 is only the interest due if it is paid off in 1 year. Most moto loans are 24 to 72 months therefore its 6% on the principal annually. The positive side of a small loan like one for the little ninja is credit building. With no money down payments are $4-$5 a day. Much less than that if you throw some down. Easy, low risk, and a relatively small price to pay for positive established credit.

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post #5 of 9 (permalink) Old 04-15-2011, 08:11 PM Thread Starter
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Originally Posted by minichris View Post
Personally I prefer ETFs over mutual funds but anywho. That $239.94 is only the interest due if it is paid off in 1 year. Most moto loans are 24 to 72 months therefore its 6% on the principal annually. The positive side of a small loan like one for the little ninja is credit building. With no money down payments are $4-$5 a day. Much less than that if you throw some down. Easy, low risk, and a relatively small price to pay for positive established credit.

You are right but I'm one that would rather carry no debt. Just my opinion but I don't really care what my credit score is yes it's a little bit harder to get a mortgage but you can get one with no credit (with a great interest rate). I apologize for those that don't believe in the bible but like it says in proverbs "the borrower is slave to the lender." I live by that and I don't want to be a slave to anyone. Just my opinion.
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post #6 of 9 (permalink) Old 04-17-2011, 10:43 PM
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debt is scary...
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post #7 of 9 (permalink) Old 04-26-2011, 01:51 PM
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I went into a ~$5,000 debt in order to purchase my Ninja. I had $1,000 to give as downpayment. The loan is 60 months, so I'm looking at a fair amount of interest charged to me.
The positive thing about this is that I'm 21 years old, and once I pay off my bike, which I know will be shorter than the 60 months because I don't plan on just paying the minimum amount monthly, my credit score will be relatively high. I should be done with college by then, too.
Other than that, I don't like the thought of being in debt, but the bike was definitely worth the purchase!
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post #8 of 9 (permalink) Old 06-27-2011, 12:56 AM
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Can anyone tell me what specific fees and charges are tacked onto msrp? And about how much should I prepare to pay if I'm buying outright with cash? Thanks.
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post #9 of 9 (permalink) Old 06-27-2011, 04:07 PM
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My Bike was 3699 Being an 09 purchased this year, In ohio. I was Charged 250 for freight and other paper work fees and with tax i think it was like 4300 all in all. Good Luck

'09 Ninja 250R Special Edition
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