Profile Motorcycle

0

Posted by admin | Posted in Parts And Stuff | Posted on 15-12-2017

Tags: , , , , , , , , , , ,

Profile Motorcycle

Profile Motorcycle
Should I get a loan or pay cash if I'm able to?

Here's my profile:
-I want a new motorcycle that costs about $7500
-I have a little over $10,000 in my bank account - all liquid
-No debt currently
-No notable expenses currently
-In my early 20s, out of school, looking at houses (been looking for a while and can't find what I want, but I"m in no rush).
-787 credit score - good score, but not a lot of history (mortgage lenders have been telling me that)

Should I get a loan that I know I can pay off easily partly to just establish some credit, and also so that my bank account doesn't take the big blow all at once? Would I be dumb not to pay it all in cash if I'm able to?

Could I pay like $3500 down for the bike, then finance the remaining $4000? I would want high monthly payments to shorten the life of the loan.
Ugh... Is it stupid to say what I've said on the internet? Is that unsafe?

My mom's credit card has had fraudulent charges on it recently.

You're safe with what you have said. As long as you don't divulge credit card numbers or your SSN it will be difficult for any one to get at your personal information.

First, a loan on a depreciating asset is not a good idea. Take your example. If you purchase the motorcycle and pay 9%-12% interest on the loan. If you finance $7500 for 48 months, your payment will be around $197.50. Over the life of the loan you will have paid a total of $9,480. That is a total of $1,980 in interest alone. In three years the asset (motorcycle) will be worth less. Let's say it is worth half of what you paid for it. Then you will have lost $3500 in asset value. If you add the asset value to the interest spent thats a total of $5,480.

Now, if you took the MBA way and purchased the motorcycle with cash and invested the remaining money in an IRA at 9% interest. At the end of the 48 months, the motorcycle would be worth $3500 just as above. But, the remaining $2500 would have been invested at 9% interest and would have grown to $3,578 which is a $1,078 gain that will offset the depreciation loss in your asset. Thus, you would only loose $2,422 (Asset Value + Interest Gain on the Investment).

Comparing the two examples, you would be better off paying cash and investing the remaining money. This is a difference of $3,058 to the good!

It is always NOT a good idea to finance a depreciating asset like a car, washing machine, motorcycle, etc. Anything that looses value over time!

Good Luck!

090525 Low Profile Motorcycle Speakers


Low Profile Motorcycle Wheel Chock USA Designed For Sportbikes Removable Chocks
Low Profile Motorcycle Wheel Chock USA Designed For Sportbikes Removable Chocks
$49.85
End Date: Thursday Dec-21-2017 15:09:00 PST
Buy It Now for only: $49.85

Low Profile Motorcycle Wheel Chock USA Designed For Sportbikes PERMANENT Chocks
Low Profile Motorcycle Wheel Chock USA Designed For Sportbikes PERMANENT Chocks
$44.85
End Date: Thursday Dec-21-2017 15:10:33 PST
Buy It Now for only: $44.85

Low Profile Motorcycle E track Wheel Chock Mfg in USA Designed For Sportbikes
Low Profile Motorcycle E track Wheel Chock Mfg in USA Designed For Sportbikes
$67.45
End Date: Wednesday Dec-27-2017 1:52:06 PST
Buy It Now for only: $67.45

Low Profile Motorcycle E track Wheel Chock Mfg in USA Designed For Sportbikes
Low Profile Motorcycle E track Wheel Chock Mfg in USA Designed For Sportbikes
$67.45
End Date: Wednesday Dec-27-2017 1:53:17 PST
Buy It Now for only: $67.45

Marson USA Low Profile Chock Removable Motorcycle Wheel Chocks Designed for
Marson USA Low Profile Chock Removable Motorcycle Wheel Chocks Designed for
$73.10
End Date: Friday Dec-29-2017 0:26:50 PST
Buy It Now for only: $73.10

1000 Torsion Half Axle LOW PROFILE 22 UP angle Right Side Trailer Motorcycle
1000 Torsion Half Axle LOW PROFILE 22 UP angle Right Side Trailer Motorcycle
$116.99
End Date: Friday Jan-12-2018 7:39:40 PST
Buy It Now for only: $116.99

Originally posted 2010-09-19 01:16:41.

The owner of this website, , is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking The RV Camper to Amazon properties including, but not limited to, amazon.com, endless.com, myhabit.com, smallparts.com, or amazonwireless.com.

This site is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.