Need help with Honda finance & insurance
 

i recently bought a 2012 cbr1000rr using american honda finaning and the dealer had told me that all that was required was liability insurance. After doing research i found out that that could have been B.S. not sure if i need it or not. my lowest insurance quote from state farm was 450 a month which with the bike payment makes that way to much a month to pay for any bike at all. so my question is can i just get liabililty with them? and if not will the dealer take the bike back since it hasnt been 72 buisness hours since i got it. also in the paper work the dealer signed a document saying they had confirmed i had the proper insurance to leave with the bike and says somthing about reassining the contract to the dealer if it is breached or somthing to that nature please help!!!! thank you ahead of time.

Your dealer was telling you the truth. You don't necessarily need the have full coverage on the bike under Honda finance. However, and this is a big however, if that bike goes down and is totalled and Honda becomes aware of that fact, you'll be required to pay off the rest of the bike right there, AFAIK. Although, I don't get why you would bother getting a brand new bike and not get the full coverage.

I went with my room mate to a couple of local bike dealers, and he was most interested in Honda and Kawasaki. He did the financing paperwork for both. I was with him at the Kawi dealer, and couldnt believe the things the sales person was saying. Apparently, and my guess is to sell more bikes, their loans departments can now process the bike as unsecured debt. Unsecured debt is the exact same thing as a credit card. So by changing the type of debt the loan becomes, they can circumvent the insurance requirement for full coverage on a motorcycle (which lets be honest, no 18-24 year old can afford).


Bottom line - If you total that shiny new bike, no one is going to pay to fix it, or pay off the loan. Now you are stuck with years of payments, for something that may be completely useless. Isnt capitalism great?

well good thing is i deploy to afghanistan in a few months so the bike will be in storage for at least 9 months and will be paid at least half way through in that case. Is it likley for the dealer to take the bike back still and wat really scares me is the paper in there that says i have to maintain comp collision but at the same time the dealer signed saying i had wat was required so idk i just want to aviod getting hit with the dealer adding crazy insurance to it without telling them and if i have to keep it with the liability wat are some safe gaurds that anyone would recomend such as frame sliders some kind of roll cage mabye around it or somthing like that. and if im looking at 450 a month with state farm and i have no accidents and clean driving record will be 22 on oct 5 wat can i do to find cheap insurance bc i see ppl online with similar bikes that only pay like 100 a month thanks again and i no i left out all the periods in this reply one big run on sentence lol.

That's why I personally don't buy new bikes or new cars....or even new house....see the thing about buying new, you are paying for luxury. It's all new!!! But the minute you drive off the lot, it's used and value drop 20%...even if you only have 200 miles on the motor. Dealer won't take it back. In your case, still within cooling down period, try it...if they take it back, do it!!! Get something used, be patience, save up and pay it off.....then get liability insurance. Best to stay within our means....or else you'll put yourself in a tough position to get out of.

ya i really agree with that now. But from what you no will i be forced to get full coverage on it. If so what can i do if the dealer will not take it back. I worked my ass off to get my credit where it is now and can stand to think of it being destroyed bc some saleman lied to me to make a quick sale. I guess its a lesson learned regardless.

No, you won't be forced to get full coverage on it.

I highly doubt you can return the bike. If the dealer did take it back, thank your lucky stars. For them, a sale is a sale.

As for your dilemma, say hi to the Taliban for me! Its been a few years since they tried to shoot me down :)

But seriously, do you have a safe place to store the bike? Parents locked garage? On base storage? Local off base secured storage (make sure you pay 9 months in full ahead of time, dont need them auctioning off your belongings for a late payment!)

Anyway, Id keep the bike, make sure it is locked away in a super safe place (on base is the best! Do you know anyone with base housing?)

As far as insurance, I would get whatever covers theft (comprehensive?) and thats it, and tell them it is in storage and will not be ridden. Dont let them tell you there is no such thing, there is, and I have it. Go with State Farm, they are by far the cheapest on all insurance (home, renters, motorcycle, car).

Cheers.

P.S. What FOB in Trashcanistan will you be calling home?

Somewhere in the south u no that opsec stuff but neways for now can I ride it with liability will Honda freak out bc I'm not supposed to if they do require full coverage on it and ya off base storage prolly I have to ride this bike it's my daily to work

For your sake, I hope it isnt Kandahar... that place is bananas now. They built Leatherneck after I was gone, but its joined to the Brits Camp Bastion from what I understand.. anyway, I hope you get a small FOB somewhere, at least there wont be too much brass around to harass you.

You need to pay heed to what Ray has told you above. W/a new bike, you need full coverage - plain & simple.

Ya I no but right now a yr of insurance is how much I spent for the whole bike if not more not really worth it to me and once I'm back it will be paid off so I'll be able to afford it more but I'm really concerned about Honda telling me I have to have full coverage on the bike until paid off which I cnt pay off if I have to pay that it's impossible right now I no I messed up at dealer but regardless or not the dealer told liability and allowed me to leave with liability even tho they signed a paper that says I need full coverage really confused

The dealer sell you the bike and making a mark up/commission on it. The finance dept. may or may not be in house is separate department. Selling agent really don't care...now depending how much your loan is? But I doubt it is a significant amount borrowed that justify a court order for you to buy full coverage. Therefore, as long as you have insurance, even though just liability, it's good enough. You only risk that fact that bike can be stolen or crashed and you are left with a loan but no bike. Full coverage cost is ridiculous...especially if you are young. If you can afford full coverage, why not just store the bike in your living room and not buy any insurance, but use this amount to pay towards the bike.

In your scenario, it's tricky because you already put yourself in a hole without a rope to pull yourself out.

Try to get rid of the bike first. If you are unable to return the bike, and cannot afford full coverage, then bite the bullet and just buy liability for now. Take extra caution when riding, parking, storage...lock it up. Just be extra careful because you have no full coverage. Now use what ever money you saved from not buying full coverage to pay extra monthly towards the bike. This way you pay off your loan faster...I'm pretty sure if you can pay like $200 extra on top of your minimum payment, you'll pay off bike 1-2 years faster.

BTW: make sure you get the lowest APR on the loan too...you can refi

What state do you live in? There are several insurance carriers that deal specifically with motorcycles. But they tend to be regional. Here on the east coast, we have Riders Insurance, my carrier. Full coverage on Yolie is $520 / year. On Ororo, my old F4i it was $220 a year. And no, my lowside didn't up my rate. I tripled my coverage.

Despite the name, I've heard Pirate Insurance Services LLC is pretty good on the west coast (I think). The final option, one that will prolly kill you, is not to ride it. If the bike is not being ridden, is in storage, you might not be required to have insurance at all.

What everyone said before is true. I've passed up a bunch of deals on good cars in the past because of needing to have full coverage for them.

When you go look at a bike (or car for that matter), always get the VIN and shop around for insurance quotes beforehand. Tough lesson to learn but I guarantee you won't do it again :(.