I recently looked into getting a brand new bike, but after some serious thought I think I'm going the used route. I'm looking to get a loan from my bank (Chartway FCU) or some other financial place. I feel like I have good credit. I've paid my own cell phone bill since I turned 18, I have two credit cards which I like to keep paid off, I've had a late payment once or twice though. I also just took out a loan to buy the explorer I've been paying for from my mom, so I'm building credit there and through paying insurance I guess.

My question is, what type of loan should I get? I've heard there are like leisure vechicle loans, automobile loans, personal loans and all that. What loan would be best for me if I planned on buying a used bike? Also, if I manage to get approved how do I go about buying the bike if the seller is asking for cash only? Does whoever I get the loan through wire the money to my bank or do they write a check that I then have to cash?

Sorry for all the question.


Jake

 

The main problem for me being 22 is that if i want a newer bike (say '03 and up) is that you have to have full insurance on a financed bike. Well that coverage will rape me, and probably cost more than the bike payment every month.

A way around this I have heard, is to take out a personal loan for the amount, that way there's not lien on the title, allowing you to get whatever coverage you want.

Just something to think about.

 

Thats my whole thing, I don't want to mess with full coverage. I was talking to my mom about a personal loan and she said she's been told the interest rate is a lot higher.

 

The only problem with that is that if you wreck your bike or it gets stolen you still make a payment every month for something you dont have. just my opinoin..I had an 02 gixxer I paid cash for and had full coverage on evey body said I was crazy for paying all that for A bike I did not have to..but when some sorry sack of shit stole it I got my money back. Now I have an 06 it is paid for I carry full coverage on it also. I had a bike with full coverage when I was 19 ya it was not cheap but if you cant afford to pay for insurance and all that other stuff then maybe you dont need a bike ..just my .02 I know of a few people paying for there either wadded up bike or there bike that got stolen. so think about making a payment for a loan on a bike that someone else is riding because they stole it / end rant sorry I work in the insurance field and have seen alot of people get screwed by having liability only

 

Since Langley Federal considers bikes that are less than 5 years old to be collateral worthy, I had to take out a line of credit for the amount I needed. Granted, it's 10% APR, but it got the job taken care of. I withdrew the money I needed, paid the seller in cash, and walked away with a bike.

I wish I had done the same thing with my first bike so I wouldn't have been hard up for cash, nor forced to pay rent with a credit card, but when a good deal opens up, a good deal opens up.

 

What does it mean when you say they condiser it collateral worthy?

 

Basically so you have something to take a loan out against. For example, I have $3000 in savings, and I need $3000 for a different bike. I could use the $3000 I have in savings and lose all the interest the savings account would be making, or I could take out a loan and use the $3000 in savings as collateral. Basically, something you own that's worth the amount of money you want to borrow.

 

So how does that apply if I get a loan for a bike thats say an 04 or something?

 

Have a meeting with the loan officer at the bank............they won't bite and will help explain the different routes you can take. Most likely a used bike loan which normally covers the "wholesale" value of the bike. GL

 

I'll call the bank tomorrow and see if I can set something up. I'm just so damn bad at talking business.