Vehicle loan and payment reduction?

Discussion in 'The Club House' started by ShagNasty1001, Jul 14, 2013.

  1. ShagNasty1001

    ShagNasty1001 New Member

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    I have a loan out on my motorcycle for the next 4 years that I've been paying on for a year this September. Now I love my bike but I want to upgrade to a larger one (1000cc). What I have is a 2012 Yamaha FZ6r and I'm wanting a Aprilia RSV4. Ive been thinking of just trading it in as pretty much a down payment plus a little bit. The Aprilia is 14k and I have about 10k left on my bike now. Would it be wise to go ahead and sell it or trade it in or wait a until February/March time frame? I was planning on trading it in this winter if its a decent idea
     
    Last edited: Jul 14, 2013
  2. emo

    emo Lifetime Supporting Member Lifetime Supporter

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    Trading in is the most convenient but you'd probably get more for it selling it.
     

  3. partdeux

    partdeux Well-Known Member

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    you're going to take a huge (percentage wise) financial hit.

    Real important question to ask yourself, do you "need" the new bike?
     
  4. ShagNasty1001

    ShagNasty1001 New Member

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    That's what I was thinking. I was just wanting to know if I'd be able to lower my payment. If I sell it private party, would part of my loan still transfer over?
     
  5. ShagNasty1001

    ShagNasty1001 New Member

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    Yeah I know I'd be taking a hit on my bike if I did it...say tomorrow. Wouldn't what's left of my loan "transfer" over though? Like say I owe 8000 with 3 years left and the one I want is 10,000. I trade it in and get 4000 for mine. I use that as a down payment. Would the other 4,000 I'd owe on my previous bike just move over to the new one to make it whatever the new price of 6k and just get an extension on the loan or whatever that process would be? Is that possible?
     
    Last edited: Jul 14, 2013
  6. grandpubba

    grandpubba Member

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    Unless thus it's your primary means of transport, don't due it.

    Trade in suck, they don't give much, just because you can sell the bike for X doesn't mean they well give you that, secondly, I've seen where they don't actually pay off the first loan they just lower the cost of the new bike and tack on more interest.
     
  7. Overkill0084

    Overkill0084 Active Member

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    Correct me if I'm wrong:
    You still owe $10K on a $7600 bike? Am I reading that correctly?
    You then wish to go deeper in the hole on a $14K bike (+ tax, license & registration.)
    IMHO: If you're upside down on Bike 1 and you don't have the cash to at least get even, then you can't afford bike 2. These are toys. One should not risk creating a deep financial hole over toys.
    Best way forward:
    Sell Bike one in March private party so you can max out the return. Additionally, get up far enough on the loan so you aren't upside down when you do sell it, or trade it (should it come to that.) Get square before going to the Aprilia dealer. Having a cash down payment would be awesome.
    On a side note: Have you checked into maintenance costs? I guarantee that an Aprilia is going to cost noticeably more to get serviced/maintained than a Yamaha. (Italian exotic vs. UJM.) Triumph is bad enough (one dealer in UT), I can't imagine an Aprilia (last I checked, they have 0 UT dealers.) I get it though, I had a thing for Caponords at one point.
     
    Last edited: Jul 14, 2013
  8. tri70

    tri70 New Member

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    Check the insurance on the big bike, it may be a deal breaker. You have a nice already and plenty fast enough. Are you going for more cool points with the buddies?
     
  9. nitestalker

    nitestalker New Member

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    You are under water as they say. A dealer has to be willing to pay off your existing loan if he trades for yours. If you do not understand the delima you are considering get some good financial advise.:(
     
  10. danf_fl

    danf_fl Retired Supporter

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    It is a good feeling to be out of debt.

    The only reason I have a car payment is to keep something on the credit score.

    IMO, (with exception of buying a house) one should not take on debt larger than what is in savings. Unseen circumstances dictate that should one need to liquidate in a hurry, then you could.

    Make another payment (the same as what you are currently paying) to your savings account each month. Then when you need a loan, get the loan from your savings account. I would rather pay interest to myself than a bank or credit union.
     
  11. indy36

    indy36 New Member

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    First question, is there an Ape dealer in your area? I would NEVER buy an Italian exotic without a dealer nearby.

    I own 2 Ducati motorcycles. I can tell you straight away that Italian bikes cost more to own, period, than any other brand. DO NOT stretch to make a payment if you can't put $2,000 in maintenance every 8 to 12 months. Nobody ever bought a Ferrari for its mechanical reliability. Own an Italian bike and you'll go broke buying carbon fiber or getting service done.

    Next, I know a guy that owns the bike you are after. He sold it. Obtaining parts from Italy took forever. Getting good service was difficult.

    My suggestions for bikes, if you want to save a few dollars and still get something cool, would be the KTM Super Duke (a twin with good HP and upright riding posture) or a mid generation Tuono. The Tuono is still an Ape and a twin but it costs less and the engine is pretty much the same as the RSV. The Honda RC45 is a good bullet-proof twin as well. Buy used, let someone else take the financial hit. Lastly, maybe trade your FZ6 for the FZ1. Nothing wrong with the FZ1.
     
  12. ShagNasty1001

    ShagNasty1001 New Member

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    I'm not a huge fan of the FZ1. I sat on it when I was looking at mine and it just wasn't right. I was also looking at the R1 or new BMW S1000rr. The closest dealer is in Texas about 80 miles away from me. And yeah I know about expensive parts, my Audi is stupid have the time...
     
  13. ShagNasty1001

    ShagNasty1001 New Member

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    I never thought of doing that... Once my paychecks bounce back up from tips, I'll have to give that a whirl
     
  14. ShagNasty1001

    ShagNasty1001 New Member

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    Yeah I got kinda hosed to begin with since I didn't have anyone go with me and was 19 at the time trying to be sneaky. And I got the extended warranty and what not so that was tacked on to the price too
     
  15. Overkill0084

    Overkill0084 Active Member

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    I just assumed that you geared up (helmet, jacket, boots, accessories, options & so forth) at the same time. Starting at ground zero with gear can be crazy expensive at the dealer, but they will just pile it on to the loan. A couple hundred here, $400 there, pretty soon your into real money. Nothing like branded gear to run up the price. I forgot about extended warranties.
     
  16. ShagNasty1001

    ShagNasty1001 New Member

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    Yeah I got jacket and helmet too and that was tacked on. Can't complain though, one of my rims cracked and my tire wheel warranty replaced both for free, no questions asked instead of going through insurance
     
  17. emo

    emo Lifetime Supporting Member Lifetime Supporter

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    You should be able to cash out the extended warranty.
     
  18. clr8ter

    clr8ter New Member

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    I think if you have to ask this question, and can't do the math for yourself, the answer you're looking for is *NO*.
     
  19. ShagNasty1001

    ShagNasty1001 New Member

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    I mean, I did the math in an earlier post.... My question was what would happen to my loan.. This was the first vehicle I've bought so I'm not sure what happens to my loan
     
  20. clr8ter

    clr8ter New Member

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    Well, you have to pay it somehow. They're not going to just say "Oh, well, you want another bike? OK, never mind your loan."