Financial Advice.

[xxtruxx1]

Being a college student, I don't have a whole hell of a lot of money. I've always wanted a bike & here in Gainesville, it would be great for getting around instead of using my car (2001 Toyota Seqouia aka THE TANK!). That thing guzzles gas & is killing me. Plus there is NEVER any parking anywhere for that car. I usually take the bus to school, but it's been on the full side this semester to the point where 4 full busses pass me as I wait to get to class. All these things have been pushing me to get a bike. Now the problem, I don't have $5,700 off hand. I was thinking about putting the bike on my card (10k limit) & paying it off as money came in. I don't know if the interest is going to kill me here. I'm pretty confused as to how the rates work exactly (hence why I'm no business major). The bike costs $5,700 for a 2004 Suzuki GSX-R 600 with 7k miles. Let's just round to $6200 for arguments sake (helmet, jacket, possibly gloves, & shipping). Here is what my percentages on my last statement look like:

Balance Subject to Finance Charge Periodic Rate Nominal APR
PURCHASES
Standard Purch $0.00 0.04997%(D) 18.240% 36.000%
ADVANCES
Standard Adv $0.00 0.06367%(D) 23.240% 23.240%

Would I be paying interest up the ass? I plan on having most of the bike, if not all of it paid off near December. Would I be better off getting an advances than charging it on the card (I won't get flier miles though)? I really don't want to let this deal go by, so help a brother out.

 

[Pfunk47]

those are pretty high interest rates - if you mean you'll have it paid off in 3 months then I wouldn't sweat it as you'll pay about $200 in interest charges but if you mean in 14 months your looking at about $1200 in extra interest.

if this is mainly for campus cruzing etc - get a $700 moped - college = no money and you may need to that full 10K for something really important

 

[xxtruxx1]

those are pretty high interest rates - if you mean you'll have it paid off in 3 months then I wouldn't sweat it as you'll pay about $200 in interest charges but if you mean in 14 months your looking at about $1200 in extra interest.

if this is mainly for campus cruzing etc - get a $700 moped - college = no money and you may need to that full 10K for something really important

How exactly did you figure out those interest charges? Did you divide the APR by 12 & then see what the monthly interest on the balance was?

 

[Ziricote]

Does it have to be a GSXR 600? Couldn't you go for a cheaper 400cc?

 

[Pfunk47]

How exactly did you figure out those interest charges? Did you divide the APR by 12 & then see what the monthly interest on the balance was?

$5700*.19% APR (annual percentage rate) = $1083 yearly interest

$1083/12 = $90.25

the smaller .005 is daily interest - not worth doing the math on unless you want to be exact to the day.

 

[doggzj]

xxtruxx1, when I purchased my first vehicle, I got a 8.7% rate (about 2 months ago). I have limited credit, but no bad marks to my name. I'd be very scared to take anything over 10%.

 

[Pfunk47]

ohh yeah I forgot to mention - check credit unions in your area for used car/motorcycle loans - easy to get and usually about a 4-6% interest rate - credit unions (from what I have seen) have better rates than banks.

 

[xxtruxx1]

Does it have to be a GSXR 600? Couldn't you go for a cheaper 400cc?

That or an R6 .

 

[Ziricote]

That or an R6 .

Heh, okay I gotcha. I'd go for the GSXR myself

 

[The Experiment]

Completely unacceptable interest rates.

 

[xxtruxx1]

Get a loan?

 

[Kam]

when it comes to a bike, and i've only skimmed through, but it looks like this is ur first, i really wouldn't get a new bike for two reasons, one it will go down, in some gravel, doing something stupid, hit some oil, something. It won't stay perfect for ever.

Second INSURANCE IS INSANE even liability is nuts.

My advice and this is what i'm doing, is find a nice early nineties 600-700 or so and work ur way up. You don't need the obscene power a new bike has, yeah the new bikes handle and stop faster but you have to weight until 60 mph+ to really have some fun if it's under a 750. I bought a 87 yamaha fz700 sports bike, where i can tuck and fly through twisties or cruise and sit up right. Bought it for 400, put about 1000 into it, paint tires, that jazz.

If it goes down which it did once in gravel and my foot gave out thank god it was naked at the time i'm not too worried

A bike is a bike, you get the parking and the ladies either way.

start off in ur budget, oh and on new bikes u can usually get 3% financing for the first 2 years then it's like 15%. That's if u use the manufactorers credit card.

My advice spend 2k and get a early nineties bike and learn from there, then upgrade to what u really want, or wait till u get a good job and then treat urself with what i'm doing. So i can split lanes in cali.

GL, and always wear all you gear if u go over 25mph.

and havin a bike in college is awsome, just respect it and keep it to a 2 beer max, park if u r to party.

i had some other advice. oh yeah my insurance is 100 bucks a year liability. that's a nicea.

 

[xxtruxx1]

when it comes to a bike, and i've only skimmed through, but it looks like this is ur first, i really wouldn't get a new bike for two reasons, one it will go down, in some gravel, doing something stupid, hit some oil, something. It won't stay perfect for ever.

Second INSURANCE IS INSANE even liability is nuts.

My advice and this is what i'm doing, is find a nice early nineties 600-700 or so and work ur way up. You don't need the obscene power a new bike has, yeah the new bikes handle and stop faster but you have to weight until 60 mph+ to really have some fun if it's under a 750. I bought a 87 yamaha fz700 sports bike, where i can tuck and fly through twisties or cruise and sit up right. Bought it for 400, put about 1000 into it, paint tires, that jazz.

If it goes down which it did once in gravel and my foot gave out thank god it was naked at the time i'm not too worried

A bike is a bike, you get the parking and the ladies either way.

start off in ur budget, oh and on new bikes u can usually get 3% financing for the first 2 years then it's like 15%. That's if u use the manufactorers credit card.

My advice spend 2k and get a early nineties bike and learn from there, then upgrade to what u really want, or wait till u get a good job and then treat urself with what i'm doing. So i can split lanes in cali.

GL, and always wear all you gear if u go over 25mph.

and havin a bike in college is awsome, just respect it and keep it to a 2 beer max, park if u r to party.

i had some other advice. oh yeah my insurance is 100 bucks a year liability. that's a nicea.

It's my first bike, but I've been around them a while. I was looking at something in the 2004-2005 range with not too many miles. I definitely won't be getting a brand new bike though. I don't drink or smoke (bud) much if at all anymore so dui won't be an issue. I live in FL & insurance is only a must here if you finance a new bike, which I won't be doing. I'm thinking of going to a credit union & seeing what their terms are.

In case you guys are wondering, my credit score is a 750.

 

[drunk]

It's not only your FICO score, but your income. No bank will give you a loan if you don't make enough money. Also when you're calculating interest you need to realize that interest is compounded.