Finance or loan for a quad??

[Syncustom]

Like the tittle says ladies and gentlemen. Really want a king quad this summer but can't come up with the cash myself :/ Any mature advise is welcome.

 

[maxwell]

most here will tell you not too. but you only live once and when you can actually aford to pay cash for it you might be old and broken. most of these loans are open so after the first 6 months or a year you can throw down whatever you want on it.

if you go with say a 5 year term on a vehicle its no big deal but the only thing that sucks about offroad vehicles is that after 5 years it may be beat up and tired and your still paying for it. so if you do end up doing it throw down some extra on it whenver you can

 

[the_real_wild1]

I have only been able to pay cash for a couple off road toys. Last one was 1400 bucks for dirt bike I picked up a few weeks ago. No problem financing a toy as long as you are not stretching yourself too thin. And the bigger the down payment the better. Also it is wise to shop around for the best rate. Takes some time but can be worth it. You can also look at a line of credit as long as you are disciplined enough to use it and pay it off.

 

[whoDEANie]

As maxwell mentioned, your ATV will likely depreciate faster than you can pay off a 5 year loan. It's not a huge deal, but it can be a little tough down the road knowing that you still owe $5-6k on a machine that may only be work $4k.

You will definately want to see what your bank can do for you before letting the dealerships sign you up with one of those high interest companies. Right now, a secured PLC is probably the cheepest way to go, but accumulating a ton of floating rate credit makes me pretty nerveous becuase interest rates will have to go up eventually - make sure you can afford at least double your interest payments in case the rates do start to skyrocket. If your bank won't finance you it's often for your own good and you may want to consider waiting. ...advice I often give but have never taken myself.

 

[kbrunlees]

How is that new truck you bought anyway Dean? I would also try the dealerships, I know with cars they can give you a better deal than the banks.I just got a load for 3.75 percent and I think prime is around the same.

 

[whoDEANie]

How is that new truck you bought anyway Dean? I would also try the dealerships, I know with cars they can give you a better deal than the banks.I just got a load for 3.75 percent and I think prime is around the same.

Awesome, thanks for asking, especially now that I'm getting used to the taste of dog food.

As far as I know, most motorsports dealerships don't finance the vehicles themselves like some of the car manufacturers do, but it certainly doesn't hurt to ask what kind of rate they can give you.

 

[Bogger]

riverside financed my first quad.... $7300 put $1500 down financed $5800 over 3 years, by the time the loan was paid off the quad was still worth $5500 to the insurance company when it was stolen...

Depreciation is not nearly as bad on the toys as it is on trucks.... a truck can depriciate twice what a quad is worth in one year. Like anything else the bigges depreciation is in the first couple years but in 2011 my 2001 honda forman was still kicking strong as ever... so a 5 year loan on a good machine is not much of a gamble.... it's the repairs that will gettcha not the depreciation...

 

[Bnorth]

For all the same reasons as above I would caution you on a big, long term loan. Save as much as you can and either buy a good used unit or save the biggest downpayment you can and finance the remainder. If you go in with a decent downpayment don't just take a smaller monthly payment, keep the payment somewhat high and own the unit a few years sooner. The bank will probably offer a better rate than financing through the dealer if you have a decent credit rating.

 

[kbrunlees]

Don't think of it as dog food, but as Canine Pate, it sounds better that way!

 

[SlowKrawl]

I'm surprised there hasn't been more big-wigs in here telling everyone how they only pay cash. If you need to finance it, do it.

 

[DRD]

Borrow, not like you are taking the cash and heading to vegas.

 

[mareshow]

Maybe i was raised old school, but where i'm from the only thing you get a loan on is your house (mortgage). Fiscally speaking financing toys is one of the worst decisions you'll ever make. You're paying money for something that's losing money. Yeah sure the latest and greatest is awesome to have but is it worth the financial and emotional drain? Sure i could drone on about this but you get the idea. Everyone makes fiscally poor decisions but I dunno I guess i just live easier knowing I'm not in debt?

Ok one more thing lol Accountants today talk about maintaining your debt ratio and blah blah blah but isnt spending what we dont have what got us into this mess we are in, in the first place? I've heard one definition of Maturity as "The point where a person chooses fiscal stability over fun." Now granted there is a limit, my lifestyle speaks to that, but you have to ask yourself and NOBODY can decide it for you. Is "It" worth it?

 

[Summiteer]

Maybe i was raised old school, but where i'm from the only thing you get a loan on is your house (mortgage). Fiscally speaking financing toys is one of the worst decisions you'll ever make. You're paying money for something that's losing money. Yeah sure the latest and greatest is awesome to have but is it worth the financial and emotional drain? Sure i could drone on about this but you get the idea. Everyone makes fiscally poor decisions but I dunno I guess i just live easier knowing I'm not in debt?

Ok one more thing lol Accountants today talk about maintaining your debt ratio and blah blah blah but isnt spending what we dont have what got us into this mess we are in, in the first place? I've heard one definition of Maturity as "The point where a person chooses fiscal stability over fun." Now granted there is a limit, my lifestyle speaks to that, but you have to ask yourself and NOBODY can decide it for you. Is "It" worth it?

Yup, when it comes to toys, ride what you can afford, not what the bank will afford for you......

 

[DRD]

He's only talking what 10-15K or so? Not like he's speculating on real estate or something. If borrowing 10K puts your finiancial well being in question yeah, maybe it's not a wise decison to borrow. Worse case if you can't swing it, sell the quad and take the few K bath. If you can't afford a few K loss, motorsports aren't for you.

 

[maxwell]

someone else mentioned this in another thread.......


what if you have investments paying 10+% interest and you want a new toy and will get a rate of 6%..........going to pull that money?

 

[canamgirl]

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!!

 

[Syncustom]

Holly cow! Thx for all the quick input guys. I'm kinda leaning towards selling my gsxr and putting that money on somthing litely used....or put that down on a new renegade 1000 cause there nuts! But as far as debt goes I just have about 4grand to pay off for my truck and I'm good to go.

 

[ferniesnow]

I'm old school like mareshow. I don't finance toys. The house yes! If I can't save and pay cash for the toy I go without! It isn't the end of the world and that goes for everything other than the house. Even the credit card is paid in full at the end of the month.

It has been said already, the toy is wore out and you still owe considerable on it. Do you bite the bullet and keep paying for this piece of crap or doo you walk away and carry a bad credit rating with you.

A positive credit rating is hard to maintain and it will affect you big time down the road if it is negative.

Be wise with your hard earned money and you will sleep at night and every night!

 

[0neoldfart]

From your above post, it sounds like you are being financially responsible. There is such a thing as too many toys - I went through that a few years ago. Even though I had paid cash for all of them, at one time I was insuring 3 sleds, 2 quads, a harley, and two dirt bikes - not to mention 5 vehicles, all through different insurance companies, and never gave it a second thought. Then I woke up, and realized we only needed two vehicles, 2 sleds, and something to occupy our time in the summer. Sold the quads, dirt bikes, and three cars - none of them were getting that much use anyway, and my annual insurance costs went down $3000 per year, and I didn't need to maintain stuff I barely rode. It's nice to "have it all", but one has to take a look at what is realistic for your situation. FWIW, I did purchase two new sleds this fall that I had saved cash for ( I usually keep a sled for 4-5 years), but just financed a new bike recently to upgrade my hertiage softail. I put 30% down on it, got an interest rate lower then the bank by 2%, through the dealer too. (most banks look at toys as high risk, so a higher interest rate is charged) I chose not to use my personal line of credit as I intend to pay the bike off before fall, and then will look at a SXS or quad for plowing snow - that one will be a short term loan as well.
Only you can decide what's best for you - most banks are around 8% for a bike / quad, etc. Again, don't stretch yourself too thin, cause sh#t happens, and if you can't make your payments you are in for a world of hurt. I hope this helps you in some way - bear in mind that as 0neoldfart, I tend to approach purchases carefully - what works for me may not for you. Good luck in your decision.

 

[Syncustom]

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.