14 wr450f financing questions

[Bazuka Joe]

Well, The topic says it all.

I'm planing on financing a new wr450 ( a 12 or 13 if I can find one thats not only $500 bucks cheaper) I live in Vermont so there not a whole lot if dealers around especially with leftovers. The 14 will be most likely what I will get.

I'm 20 and I have no credit built up and is the main reason I'm going to finance instead of paying cash, I will also have my old man co sign who has pretty decent credit

I bring home 1800 a month without overtime and I will be putting a $4000 down payment and was wondering what a decent OTD price on a 14 would be and what kind if rates I should expect?

I'm not too worried about the rates as I will be making payments around 600 a month minimum to pay off the bike quick

As it's something I'm going to get anyways ( dual sport or supermoto for commuting to work) and it's seems like a good opportunity to start to build up some credit

I know people say never finance bikes but the bike will be payed off in about 9 months from the day it's purchased

Does this sound like a good way to start some credit? I'm getting the bike either way

Decent OTD price on 13 and 14?

What rates should I expect being a rookie with no credit and a co sigh with a decent credit?

[miweber929]

If the idea is to build credit you'd be better off paying slightly over the minimum but make regular payments over the length if the loan rather than paying it off quickly as that doesn't show a long, good standing payment history which us what builds the credit score. I made that same assumption as well a few years ago when in an attempt to further rebuild my credit after a bad time in my mid 20's to early 30's, I bought a new Polaris snowmobile and paid it off in 4 months then bought a used car and paid it off in 5 months; it didn't hurt my credit but didn't help it either as it wasn't a long payment history. Just food for though, talk to a banker, you'll be surprised what helps and what doesn't. In my 40's the mistakes I made in my 20's money wise still haunt me, can't stress that enough.

Rates will be in the mid to upper single digits, maybe as high as 10 or so depending in you consignors credit score. Don't get too hung up on rates as OTD should be about $8k, if you put $4k down you'll only finance $4k, at 24 months I'd pay it off in 16-20 months you'll pay a couple hundred tops for the higher rate. Just go someplace you plan on banking at where you feel comfortable.

Just another note: the WR isn't street legal so as a DS, commuter and sumo really isn't in the cards without making it licensed. Not impossible but keep that in mind, the maintenance interval if street ridden can get tiresome on this bike and there are better choices made for the street.

Hope this helps.

Mike

[YamaLink]

Adding to the excellent input already given, factor in the cost of making the Yamaha street legal. If it puts a bind on your regular monthly payments and forces you to miss just one I'd reconsider the entire project for now. It's winter and I presume you're not riding the 450 on the snowy icy Vermont streets until late Spring? Maybe gives you time to find one much cheaper out of state even with shipping included.

[Bazuka Joe]

If the idea is to build credit you'd be better off paying slightly over the minimum but make regular payments over the length if the loan rather than paying it off quickly as that doesn't show a long, good standing payment history which us what builds the credit score. I made that same assumption as well a few years ago when in an attempt to further rebuild my credit after a bad time in my mid 20's to early 30's, I bought a new Polaris snowmobile and paid it off in 4 months then bought a used car and paid it off in 5 months; it didn't hurt my credit but didn't help it either as it wasn't a long payment history. Just food for though, talk to a banker, you'll be surprised what helps and what doesn't. In my 40's the mistakes I made in my 20's money wise still haunt me, can't stress that enough.

Rates will be in the mid to upper single digits, maybe as high as 10 or so depending in you consignors credit score. Don't get too hung up on rates as OTD should be about $8k, if you put $4k down you'll only finance $4k, at 24 months I'd pay it off in 16-20 months you'll pay a couple hundred tops for the higher rate. Just go someplace you plan on banking at where you feel comfortable.

Just another note: the WR isn't street legal so as a DS, commuter and sumo really isn't in the cards without making it licensed. Not impossible but keep that in mind, the maintenance interval if street ridden can get tiresome on this bike and there are better choices made for the street.

Hope this helps.

Mike

Yea I thought about that and I could always throw the money aside Into a savings account just so I have it and make only slightly larger payments and plan to pay it off in about 18 months.

Yes I know the wr450 isn't exactly ideal, but I love the bike and I always take good care of the toys I get and am willing to go with a little higher maintenance (compared to a drz 400) not to mention I enjoy wrenching. And I've always regretted selling my last yamaha, and think it's time to bring another one home haha

I've factored in the cost if making a street legal bike and it's really not that much, and I live in Vermont so converting off ride bikes is not a problem

Insurance shouldn't be bad either

Thanks for sharing your experience Mike

[Bazuka Joe]

Adding to the excellent input already given, factor in the cost of making the Yamaha street legal. If it puts a bind on your regular monthly payments and forces you to miss just one I'd reconsider the entire project for now. It's winter and I presume you're not riding the 450 on the snowy icy Vermont streets until late Spring? Maybe gives you time to find one much cheaper out of state even with shipping included.

That's a good point, but I don't know if I can find one for much less than a 14, all the dealers in tv and nh that I have talked to are not really budging on the 13 models much on the price, I will keep looking though. Yes it's pretty damn cold here and has been snowing lately but I figured the sooner I get the bike the sooner I can pay it off

[miweber929]

That's a good point, but I don't know if I can find one for much less than a 14, all the dealers in tv and nh that I have talked to are not really budging on the 13 models much on the price, I will keep looking though. Yes it's pretty damn cold here and has been snowing lately but I figured the sooner I get the bike the sooner I can pay it off

Here's my advice on that: you are thinking pretty clearly so I get it, but play hardball and do NOT be afraid to walk away, buy out of state or simply look at other choices. If you are not willing to do any of that you are stuck paying whatever they charge and will take it in the rear by the dealer. They pray on people who are young, eager and are local and want THAT bike. And they LOVE things that are financed, much easier to convince someone to pay $20/month more than add $1,000 on the spot to the price. Always talk OTD and a cash deal, say no to finance until the end.

 

Plenty of deals out there, and there is ZREO difference between the '12's and the '14's; look and know YOU are in charge becuase:

1) it costs $500 to ship a bike across the country, $15/day to rent a UHaul trailer and whatever gas you use to get there. I've seen '12's go for $6500 OTD lately on here.

2) dealer to dealer can do an inventory exchange; they like to say you can't but they can. If you find a new '12 somewhere get an OTD price and go to your dealer with the numbers, if they won't move walk.

3) a '12 or '13 on the floor costs money to keep there, they want to make room for the '14's, make them find it.

 

Grab a magazine, call smaller cities and major powersports dealers, look online for new '12's; put yourself in the drivers seat on this one, you have months to find the right bike. This past spring I paid well under $9k OTD for a brand new '11 CBR600RR; put two dealers in a bidding war between a couple '12's and found another with this '11 which I liked color wise better in a smaller city outside the metro for a steal. It was spring so prices were higher than they are now and I walked out with a great bike for well under what I was planning on paying int he forst place. But it took me a month or so of looking to find the one, and I feel so much better with the deal than I did when I impulse bought a '14 Honda Grom this fall where I paid about $250 more than I felt I should have just because they had it there right then. Now it sits under a cover with 300 miles on it for another 4 months.

 

Stuff to think about.

 

Mike

Edited December 13, 2013 by miweber929

[beairmo]

Well, The topic says it all.

I'm planing on financing a new wr450 ( a 12 or 13 if I can find one thats not only $500 bucks cheaper) I live in Vermont so there not a whole lot if dealers around especially with leftovers. The 14 will be most likely what I will get.

I'm 20 and I have no credit built up and is the main reason I'm going to finance instead of paying cash, I will also have my old man co sign who has pretty decent credit

I bring home 1800 a month without overtime and I will be putting a $4000 down payment and was wondering what a decent OTD price on a 14 would be and what kind if rates I should expect?

I'm not too worried about the rates as I will be making payments around 600 a month minimum to pay off the bike quick

As it's something I'm going to get anyways ( dual sport or supermoto for commuting to work) and it's seems like a good opportunity to start to build up some credit

I know people say never finance bikes but the bike will be payed off in about 9 months from the day it's purchased

Does this sound like a good way to start some credit? I'm getting the bike either way

Decent OTD price on 13 and 14?

What rates should I expect being a rookie with no credit and a co sigh with a decent credit?

 

I have no idea if this qualifies, but you might want to consider Yamaha financing. I bought a new Yamaha in 2009 and paid it off in less than a year and got zero percent interest and a Yamaha credit card also. 

[Bazuka Joe]

I have no idea if this qualifies, but you might want to consider Yamaha financing. I bought a new Yamaha in 2009 and paid it off in less than a year and got zero percent interest and a Yamaha credit card also.

Yamaha financing as in buying directly from yamaha..?

[beairmo]

Yamaha financing as in buying directly from yamaha..?

 

 

See this:

http://www.yamahamotorsports.com/sport/webpromo/sport.aspx

[Bazuka Joe]

See this:

http://www.yamahamotorsports.com/sport/webpromo/sport.aspx

Hmm wouldn't be a bat idea if I could get a good interest rate, the offer ends on the 26 though and you would have to finance $5000 but I could also always make a lower down payment and set aside the rest toward payments

I still have a few months to search around for a good deal but hopefully they will have something like this around February/march when I plan on purchasing

Thanks for the input though!

[Bazuka Joe]

Here's my advice on that: you are thinking pretty clearly so I get it, but play hardball and do NOT be afraid to walk away, buy out of state or simply look at other choices. If you are not willing to do any of that you are stuck paying whatever they charge and will take it in the rear by the dealer. They pray on people who are young, eager and are local and want THAT bike. And they LOVE things that are financed, much easier to convince someone to pay $20/month more than add $1,000 on the spot to the price. Always talk OTD and a cash deal, say no to finance until the end.

Plenty of deals out there, and there is ZREO difference between the '12's and the '14's; look and know YOU are in charge becuase:

1) it costs $500 to ship a bike across the country, $15/day to rent a UHaul trailer and whatever gas you use to get there. I've seen '12's go for $6500 OTD lately on here.

2) dealer to dealer can do an inventory exchange; they like to say you can't but they can. If you find a new '12 somewhere get an OTD price and go to your dealer with the numbers, if they won't move walk.

3) a '12 or '13 on the floor costs money to keep there, they want to make room for the '14's, make them find it.

Grab a magazine, call smaller cities and major powersports dealers, look online for new '12's; put yourself in the drivers seat on this one, you have months to find the right bike. This past spring I paid well under $9k OTD for a brand new '11 CBR600RR; put two dealers in a bidding war between a couple '12's and found another with this '11 which I liked color wise better in a smaller city outside the metro for a steal. It was spring so prices were higher than they are now and I walked out with a great bike for well under what I was planning on paying int he forst place. But it took me a month or so of looking to find the one, and I feel so much better with the deal than I did when I impulse bought a '14 Honda Grom this fall where I paid about $250 more than I felt I should have just because they had it there right then. Now it sits under a cover with 300 miles on it for another 4 months.

Stuff to think about.

Mike

Well NH diesnt have any sales tax hah won't I have to pay it anyways once I register the bike in vt?

But back to topic, these are VERY valid points, the only difference would be the resale value but the plan is to keep the bike for years and years to come so that is not a concern for me

I would really like to find a 12 or 13 and save some $$$ but I see nothing online around my area I'll have to do some calling around

I'm new to the negotiation game and will take your advice, I've seen way too many threads on eager young guys complaining about how the dealer F'd them, hard lol

I'll make sure to bring my old man with me he'll be the co signer anyways and he's bought a couple new trucks before so he knows how it all works

Impulse buys are always bad news I've been thinking/planning on this for a while now and it's time to start searching for the best deal out there!

[beairmo]

Like was just in Dreyer Yamaha in Indianapolis yesterday and they have a new 2012 WR450 leftover for $5900.

[gscx]

If you get zero percent financing, only make minimum payments. It is free money because of inflation.

[Bazuka Joe]

If you get zero percent financing, only make minimum payments. It is free money because of inflation.

0%? Wouldn't you have to have PERFECT credit for that

[Bazuka Joe]

Like was just in Dreyer Yamaha in Indianapolis yesterday and they have a new 2012 WR450 leftover for $5900.

They have them online for $6299

After dealer fees and prep plus shipping to VT I don't think I would save much money over finding a 13 within driving distance

[gscx]

0%? Wouldn't you have to have PERFECT credit for that

I guess it depends on if they have any promotion or whatever. I can say this though, unless you have pretty good credit no adays you aren't going to get a loan on a dirtbike anyways.

[Bazuka Joe]

I guess it depends on if they have any promotion or whatever. I can say this though, unless you have pretty good credit no adays you aren't going to get a loan on a dirtbike anyways.[quote

And that's where the co signer will hopefully come in to play, on top of almost half down payment I think it will happen

[gscx]

A cosigner is important. Esp if you are young. I was going to do 3000 down and I make good money and have a good score. But I have a short history so it was no go. So I just went and bought a used bike.

[mudguy]

Financing a dirt bike is the dumbest financial decision you can make. Your parents should kick you in the nuts.

Work before play. A concept that is lost on the "right now" generation

[gscx]

Ok, so if you have a chance to get zero down, or just a one or two percent rate you wouldn't finace it? That is stupid. Lrn2economics.

It must be a concept lost on the "old and unintelligent but I'm old so I think I know what I am talking about" generation.