ill try to make this as straight forward as possible so there will be less questions and more answeres.

i want to have a bike by the end of june at the latest. i know this is alot to ask for being that i dont have the funds to make it happen in that amount of time. im thinking about getting a loan for 4,000. i know... i have heard way to much talk about loans and bike payments. but this is probably the only way it will work in that amount of time. the good thing is i will be able to pay off that loan in a matter of 5 months or less. i realize the smart thing to do would be to just wait 5 months and then get the bike but then i might as well wait till next summer, and that i will not have as an option.

i guess my question comes down to the loan. i want one for 4,000. i have never taken a loan by myself yet so im not sure of the rules and if they will even give me one right now with the economy. i wont have my parents to cosign because they are not going to be apart of helping me get this bike. where should i go, who should i call, and what should i do.

 

Where abouts are you Super600? Can't realy offer any advice before we know that.

 

For a recreational loan, in most cases you will need to have previous history of credit in good standing, whether it be auto loan, credit cards, etc. Best bet would be a local credit union, as most times they are more lenient and give better rates. If you are younger, however, in 90% of cases you are going to need a cosigner. After all, it is a recreational vehicle.

 

i live in MI, im age 20. i took out a loan for the car i own right now but my dad cosigned for that. however i have made every payment on time each month. does that fall into my line of credit. i just cant have any of this business pass my parents, its not that they dont want me to have one and im going against there will. they just dont want to help me and feel like its their falt if i get hurt.

im not 100% sure how loans work. i wanted to put PLPD insurance on the bike but i have heard it has to be full covered if your making payments on it. which is understandable. but on second thought i will probably only have seasonal insurance on the bike being that i live in MI and wont ride in the winter. so it might be to my best interest to get it covered anyway.

also i will probably be planing on selling the bike in the fall for a new one next spring. in which case if i dont have my loan paid off by then ( which i will ) then the bike sale can cover the rest of my payements.

i feel like i have it all figured out and im confident that i can make this work im just not sure if i will be able to do it on my own because im not old enough and crediable to make a transaction like this. even tho its only 4 grand. im just not sure how it all works.

 

Go to your local credit union, open a savings account and then tell them you want to take out a loan to help build your credit. That's what I did when I was 20 but I didn't tell them it was for a bike. If you can have part of your pay check direct deposited in to that account each pay period and the credit union do a automatic withdraw every month for the repayment of the loan, it should help your intrest rate out.

 

will the credit union look at my job history?

i have only had one real job that i gave me a paycheck every week. but for 3 years i have been working with a lawn, landscaping company. the owner is close to the family and has been around before i was even born. he has been paying me cash every year so it doesnt look like i have made very much of an income becaus theres no paperwork behind it but i have been making a steady $12 an hour cash for a few years now. ofcourse the lender would never know that. this year he has to file taxes on me and all that fun stuff. so it will now show that i have a job but im worried without much work history they will have a hard time just handing over 4 grand.

is this going to have a big effect on my loan?

once again i have a loan out for 13,500 for my car last year that has been payed on time each month. my dad cosigned for this loan but does it still go to my credit? i also have heard you cant, or are not supposed to take out a loan while you are still paying off a previous one.

i cant talk to my dad about this or ask him how he has it set up because i need to do this on my own, and at this age i should probably be learning to do it on my own anyway.

 

I'm not sure how it works in michigan but in ohio if you have a loan directly for a motorcycle, you have to carry full coverage. Alot of times too you will not get the loan for a motorcycle because banks o not like to give loans for motorcycles, especially to young people. I have no cosigners, decent credit and could not get a loan for a motorcycle because I didn't want to carry full coverage either. What I ended up doing was taking out a personal loan and paying for the bike in cash. Personal loans are hard to get too because they are unsecured.

 

You might be out of luck. Not having a recordable income will surely be the downfall on your loan. If you cant prove you have an income, they wont lend you any money. But, if you prove out income this year, that will help. But on the downside, your employer probably didnt take taxes from you. So that means you may be responsible for paying into the IRS.

For the most part, if you can prove your have a steady income, ( not currently laid off), and you have around 20 percent down, you will get your loan.

And yes, you will have to carry full coverage insurance on the bike. If you do not, and the bank finds out, they will find your loan in default. that means you either pay the full amount of the loan, or your bike is repossed at your expense, then you will have to pay the difference when they auction it off. But, if you can truely pay it off in 5 months, then a few months of full coverage insurance shouldnt be that bad.

Depending on what bike you get, State Farm has the best rates for me. You would probably be around 400-450 a year for a 600cc bike for full coverage. Do yourself a favor and call now, before you even buy a bike. Get an idea of what it will be. My insurance runs 450 per year. for an 05 cbr1000RR, but I am 33.

IMHO. I would save the money to buy a bike. If you can honestly buy a bike in 5 months. wait.. Your in Michigan like I am, and you know we have about 3 months before we can even ride anyway. So your only going to wait 2 months to get a bike.

 

thanks squid,

i do recall my boss saying he had to tax me for last years work tho now that i think about it. but he is only taxing me on the checks ( obviously not the cash under the table ) he wrote out. im not sure what the final income was for the year but i would sadly guess it wasn't enough to raise the eyebrows of a lender.

i should make enough to put a good down payment on the loan in my first month of work so hopefully that will raise my odds a bit. as far as insurance i dont mind paying full coverage for the summer, it probably is to my best interest anyway while i have a loan on it. which makes sense why the make you cover it. no one wants to pay for a destroyed bike they cant ride.

not sure if i mentioned this earlyer but im planing to sell the bike at the end of the season or early next year. so if by any chance its not paid off by the end of the season it will be sold anyway and could be used to pay the rest off if needed.

i know how michigan works and i have time to wait. but i get so damn anxious when it gets nice and i start seen the bikes come out. also like stated earlyer, i feel at this age i should be getting some type of credit and experience anyway, i feel like starting with 4 grand and making myself look good is better then if i need financial help down the road when im in my own place or if something comes up ill have some type of credibillity to get help in a worst case scenario.

 

I am reading this thinking if you can make enough to pay off the loan then you should be able to make enough in the next few months to get a cheap bike. I don't think you will be on a bike until late april early may. I know it made it up to almost 36 this weekend but the snow is still here. You can find a cheap rashed up first bike. I see F2's and F3's very reasonable on craigslist all the time.

Taking out a loan and making payments on it for a bike is a bad idea right now. If you get an old bike to learn on then you don't have to have full coverage. Bottom line is if you can't save the $2000 to get a older CBR in 4 months then rethink it then.

Where are you located in MI? I might have an F3 thats rashed up that would be perfect to learn on.