Finance or loan for a quad??

[rzrgade]

Get a "DEAL" on the bike,the money u save will more than pay for the extra interest you will repay on the loan............
You can buy a very nice bike for 8000 ish.......New would be 12 to 14 K. out the door.....
Interest on 8000$ over 5 years is about 1700 ish +/- . I bought my 850 XP for 8500 $ as a demo with 100 k on it, and they through in a 3 year warranty.
2 rides and they all look the same..............anyways.......

 

[KawisakiRider]

Toys are a luxury and should be paid cash IMO, buy used and save.
As for a house first time buyer you can pull from your RRSP's for your down payment, not sure what % you need now a days tho? If you can manage 20% you skip CMA which is like 7%.....
Buy the house instead of the toy, you'll thank yourself in the future.

 

[puddle]

Haha ya I'm 21 so not to much of an old fart. The only loan I ever took was to finish off the truck. My sled,bike,and a whole lot of other crap I've saved for. My current job situation is iffy for steady work but it's good pay when It happens and hopefully ill been in the union soon.If the job looks good ill go in for the loan but if not i can always wait till next year. Oh ya how the hell does a guy come up with a down payment on a house!! I've tried but then deals come and I pull a little money from hear and there and the down payment dwindles. Is it 5% or 20%? I appreciate all the input.

I'd say have a steady job before you finance stuff. Sounds like you have the typical Alberta mentality (no disrespect to all my fellow Albertans). Pay as you go and don't rely on work always being there. Enjoy the feeling of not being a puppet to the bank.

 

[KWIK RACING INC.]

The prime in canada is like 1/2 % but thats not the prime of the banks.. the absoulute lowest you can get out there is 3%.. and thats if you get a line of credit with your house as collateral....

so anything like 3.75 or even 4% is not bad.. after that it get a bit high but it depends on your credit rating too... polaris is offering right now 3.99% but only if you qualifiy.. they can come back to you and give you another rate if your rating is not A one....

shop around.. you can acutually barter sometimes with the banks on interest rate.. they all want you make no mistake if you got good credit

and if you dont have a steady job for at least a year then you will be paying higher interest rates for sure...

 

[neilsleder]

If you are going to make payments on toys make sure it's exactly what you want! As for saving for a house I would do that before taking a loan for a quad. And first time home buyers can get a mortgage for %5

 

[Braddock54]

I believe min down payment on a house is 5% but the amount must insured by CMHC, as a high ratio mortgage. 20% and no insurance is required.

I would make sure you have job security before pursuing financing, etc. If you are between jobs and miss a payment, it will kill your credit score and it takes a long time to build up to a decent rating. Just something to think about.

I would say pursue used...lots of good deals out there. If you can't afford to take the financing and pay it off right away, 7-8% on close to 10K adds up pretty fast. Not many people think of cost of borrowing for these things.

Me myself, would LOVE to be riding a new Pro, XM, etc, but I'm not touching one if requires financing. Sure I could afford the payment, but you have to look a bit beyond what is coming out of your account each month. I am in the same boat, buying a first house in the next 3 years, and have learned to be wary of ANY credit application, and just to save the cash. Riding new is cool, but not the end all be all.

Do yourself a favour and request your credit score and credit report. Get it from Equifax and make sure its accurate. It's free. Hope that helps you out a little.

 

[gordhunt]

Don't finance toys if you have to you can't afford it. Save up and buy used and you'll be better off anyways.

Sent from my Note2

 

[KWIK RACING INC.]

yes ..i know a guy that could only put 5 % down on his house...ya..then they screwed him with mortgage insurance in the amount of somewhere around 25 grand.. high risk= the more you owe...

 

[Braddock54]

yes ..i know a guy that could only put 5 % down on his house...ya..then they screwed him with mortgage insurance in the amount of somewhere around 25 grand.. high risk= the more you owe...

Must have been a pricey house then. To require that much mortgage insurance on a 5% down payment would roughly mean the price was $950,000. On $350,000 its between 9-10 K. My understanding anyway.

 

[Ron H]

Go hard and borrow an extra 5-7k for mods as well. How many opportunities like this will ever pop up in your life?

Unless ya wanna be the richest man in the graveyard......

 

[moyiesledhead]

I've never financed a toy....and I've had a lot of them. I've also rarely bought brand new. Having said all that, in today's economy I'm not sure what I'd do if I was young and starting out. My son has financed all of his, and learned a hard lesson about term of the loan with the 7 year loan on his first sled. My best advice is be carefull. Think long and hard about whether you really need to go brand new, or whether a good used unit will be just as much fun. Also remember.....new equals add the tax!

 

[byronkentgraham]

If you can't afford it don't buy it. May as well go get a used renegade. They aren't as fast and might have a couple scratches but they'll go all the same places.

 

[Mikehunt]

Wow if you took this loan full term that quad would end up costing you $15876
I only pay cash for toys just cause it makes me sick what it costs you in interest and any insurance they talk you into

I say if you can afford the payment DO IT!!!
I financed both my 2008 YFZ 450 from riverside paid it off 2 years early sold it for $7000.. and my Renengade I financed from Coopers, I took a 7 yr loan because alot of places you can get an open loan and pay off as much as you want when you have the money! my payments are about $178 per month and my interest rate was 8-9% that was for a $8000 quad I would finance again if I needed to!! if you cant afford to double the monthly payment then I wouldnt reccomend it. you wouldnt want an ATV loan on your credit for 7 years!! but if you can afford it then HELL YES!!!
Hope that helped!!

 

[KWIK RACING INC.]

Hey Mikehunt...that surely is not your real name is it? i hope not! haha

 

[Assaulter13]

Don't finance toys! Period.

It is great to have the newest and best -- but most of that is for bragging rights - last years toys do just as well as this years toys.

When your house is paid off - take the monthly payments that were mortgage payments and put them in the toy fund and then buy a new sled/quad/sideXside every year.

Never finance a depreciating asset -- it is basic math. The asset will always depreciate faster than your minimum payment. Don't get caught in that spiral of trading it in and re-financing and always owning the newest and bestest.

Buy a beater for cash -- someones old toy that still has great life -- so might not look the shiny'est out of the group -- but who gives a ch!t --- your toys are paid for.

I bought my new sled this year for cash --because I saved for a few years. It will get me through for a few years until I decide I want a new one -- but I will not finance any toy. It makes no fiscal sense.