Yamaha's purchase plan sucks!

[125shifter]

using the system to your advantage makes good business sense

Let's face it mikemad61, most, if not all "young" folks out there have no business sense - that's not a bad thing - just a lack of experience. They are, however, bombarded w/ opportunities to spend money they don't have - credit.

I highly doubt any of them will justify a purchase based upon your logic. It's not bad logic, but kids (younger folks) won't go through that process.

Guys like me, well, I'll pass on advancing my "wealth" by $180. Knowing I owe nothing is worth more than that. I'm a free man.

The guy with the 600k got it because he knew how to handle 6k

I doubt he put his $6k into a toy. More likely a tool or something.

Working smart is the other half.

Let's not split hairs. I'm certain you understand what I was implying. Working hard, advancing yourself, saving your $ and making right choices = working smart.

Justifying "tricky" ways to buy toys is not what I would call smart. I've done that and lost.

I won't stir this pot any further.

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[John_Lorenz]

DesertChris

I meant no disrespect, I learned along time ago that Credit cards are a very quick way to get yourself in debt real, real fast. Yes the credit game must be played from time to time to keep your ratings up and good. But what I found is this, that I make a certain amount per year (Not a decent amount) but enough to get by on if I have no debt. All I have debt to is a mortgage and this keeps my Credit plenty happy. I have one major credit card for emergencies and a gas card that I pay off every month. personally I think people live beyond there means and don't have to. It is a issue with I want it now.

We can get into the philosophical debate on credit and what it is doing to the economy or partly doing to the economy but that is a different thread I wont get into.

Here is a little trick I learned along time ago. If you want something like a new car, motorcycle or what ever, pay yourself the payment for the amount of months you would normally pay, 32, 45 or 60 it doesn't matter. But make those payments each month until it would be payed for. Now you have cash to go get it. The first time is hard, but once you get into the momentum, you will find every 3 - 4 years you can pay cash for a new bike or Car, earning interest instead of paying interest. I have payed cash for may last three vehicles this way.

[125shifter]

Actually, I will stir just one more time...

I guess the dad in me is making these comments. One likes to pass along tips/experience in an effort to help others avoid mistakes.

I'm only saying the these things in an effort to perhaps keep someone from making the same errors as myself.

We are free to spend/save our $ anyway we wish. I wish I had done it differently when I was a younger guy. That's all. The only thing I can do to make up for the past it is to help others.

Tuition for the "School of Financial Hard Knocks" is expensive. (hey that's pretty good ?)

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[beezer]

That is assuming that your investments show a profit. Thats not always the case these days.

[Dog58]

I take advantage of their cheap interest deal, then roll it over to my home equity line of credit, 5.25% interest that's tax deductible, so at my income level it works out to about 3% interest with the tax deduction. Plus, I make a large monthly payment on it every month, so purchases are paid off very quickly.

[MOmilkman]

That is assuming that your investments show a profit. Thats not always the case these days.

The only thing I can think of that you can invest your money in and show a profit year after year without fail would be property. Cause they aint makin any more of it. ?

[mikemac61]

Shifter, from a business standpoint I disagree with your logic but from a philosophical viewpoint as a father I would have to say your advice to the youngsters is pretty sound.

See, after attending the same school of hard knocks as yourself, I decided I needed to educate myself further and got an MBA. I learned the downside of the credit equation from your alma mater and the upside from the guru's at the university. I guess that's why I have a different perspective but I had to "work hard" to get the knowledge I needed to make my money work for me.

I guess I'm just trying to do the same as you, provide a little wisdom for the younger folks.

How's this for meeting you half way?:

If you don't know much about finance and you don't care to, pay cash and you won't ever have a problem. ?

[mikemac61]

MOmilkman, You guys are right, there's no garuntee any investment will show a profit unless you pay cash. In which case I garuntee that money won't ever be worth more than it is the day you spend it.

[jwriott]

125Shifter, I'm a lot like you in a very similar situation. I've got 9 1/2 years left and my oldest will be 15 when we are done. I have always paid cash for everything. When I first got out of school, I NEVER used my credit card. Carried $100 cash on me everywhere. My fiance and I both had a house and between us when we got married, owed less than $1000 on credit cards. Everything else was paid for, cars, bikes, etc. Rolled the cash from my house into hers, did some upgrades and paid down the principle.

After I got married, my wife and I have one credit card which we now use for everything. Pay it off every month and get a 2% rebate on new or used vehicles which I have used to get close to $2000 over the last couple of years. Right now, I've got close to $700 waiting to be claimed on my next new bike. ?

The best thing I ever did was buy a house when I was young (just turned 36). I got married when I was 29 so I had plenty of time to get the toys I wanted and reap the benefits of owning a home. I had roommates who basically paid for my bikes throught the rent money I received from them.

I know several friends that keep refinancing their house yearly to pay off credit card debt because they aren't responsible enough to keep their spending in check. Too bad as they don't realize how much it's actually costing them in the long run. One buddy bought his XR650R on his card. Paid on it for a year and then refinanced his house and rolled the money into the refinance which is a 30 year. He has no clue how poor a decision that was. Like someone else mentioned, he is going to pay enough on that bike to probably buy 3-5 bikes in the long run. $6000+ financed over 30 years gets pretty pricy.

Credit is way too easy to get these days. The problem is nobody can wait for anything and the credit card companies key on this. The 0% interest deals sound great but most people don't pay things off before the time limit is up and get nailed in the long run.

[BrandonW]

Funny story:

A buddy was driving a ratty old mid 80's BMW. 635 I think. Anyway, I asked him when he was going to kick that roach down the road!

He replied "What, you referring to my million dollar Bimmer?"

I retorted "Dude, if you think that is worth a million, I got a Trooper that I will sell you for 1/2 of what you think it is worth!" ?

He smiled, and replied "well, I look at it this way: If I still had my MicroSoft stocks that I cashed in to buy that damn thing, I'd have roughly a million more than I currently do. No, I will be driving that car for some time to come..."

Does the story relate?

[125shifter]

That's gotta hurt. ?

Nice chest Brandon.

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[DesertChris]

No disrespect taken, my situation is simple. I can afford to pay the interest but I am aware that there are other ways to not have to. I am not such a youngster (30), I am a home owner, and the car I bought new is paid for. Over the last eight years I have put over $30,000 into my 401k. The equity I build in my home will go towards buying other properties to rent. I am safe if I need money in an emergency situation. We as a society need to spend our money to keep all of us making money, I would just rather see it going to something more useful (to me) than a high interest rate. The bike was a present to myself after purchasing the house and financing it through Yamaha was the easiest at the time (yes, I was over excited about getting a new bike, it had only been 15 years since the last one). I have means to take care of this myself but thought it might be of interest to others and possibly broaden my views if I brought it to the group. It has, thanks to all that spoke up. ?

[jwriott]

That changes things considerably. Since you own a home, you can get a home equity loan at a much lower rate than your credit card. On top of that, you can get some of the interest back on the loan at the end of the year.