Wanna buy » Financing question

[gregcurley]

Hiya everybody! Just joined a few days ago... awesome site (for an awesome bike).

I have a question... anyone have knowledge of dealerships willing to "work with" folks with lousy credit (like myself)? Just want to go in prepared... if there are any documents I should bring to prove my "worthiness" like income info, assets, etc...

I've never financed a vehicle, so sorry for the, probably, dumb question...

Thanks!

[DesmoBob 2007 1100 (Red)]

Yeah, they'll be happy to help you... at 21% interest. Your best bet is to secure financing through your bank or credit union, or get a co-signor. The financing rates given by the companies almost all dealerships use are just short of usury.

I was able to pay cash for my '07 Multistrada, but it wasn't like I have that kind of dosh just lying around. Remember that dealerships make several hundred dollars off of every finance deal, sometimes more, and new bike loans are considered inherently high risk...

[gregcurley]

Remember that dealerships make several hundred dollars off of every finance deal, sometimes more, and new bike loans are considered inherently high risk...

Very good points... thanks. My wife has good credit, I was just hoping to avoid doing this jointly. Look like that will be the route I go.

[lotus54 - Moderator]

My dealer in Seattle worked with a local credit union that had great rates (about 4%) when I got mine. The cost was the same if I went direct or not- I don't think the dealer got anything, although perhaps they got some referral cash or something.
There certainly was no extra charges when I did the loan. One of the reasons I bought the bike was the low rate.

Mark

[gregcurley]

thanks mark... glad to hear someone had a good experience too. from the varying reports, i'll just have to find out what my options are with the local dealer. and in the meantime, i'll be cracking away at improving my credit!

thanks all.

greg

[Scrambles 2006 1000 DS (Red)]

As far as documents, they will probably want to see proof of income. A month or two of paystubs may be required.

When running credit, the banks (not the dealer) will be lookng for two things: your debt vs. income ratio & credit score.

Credit score determines the interest rate you can qualify for, and Debt: Income ratio determines loan eligibility. Remember that the dealer wants to sell you a bike, so they probably want to convince the bank to loan you the money. There's only so much they can do, though. Most banks see a bike as a luxury item so they don't take as many risks with those creditors, which can make it harder to get the loan.

Unfortunately, it can take years to improve bad credit, with most estimates I've heard being about 7 years. (sorry, these are all just the facts)

Co-signing or cash are usually the best two ways to overcome credit issues (think: MONEY DOWN). Just remember that a co-signer is the same as an owner in the eyes of the banks and credit bureaus: if you slip on payments, your wife's credit will take a hit too!

Also, I'm not sure if having a co-signer on the loan will affect how your own credit score may improve.

Another possible option might be to have your wife sign for the bike as the sole owner. This will give the best possibility for loan approval and also the best rate. You can then re-build your credit though more accessible means, such as credit cards or smaller lines of credit through a bank.

I hope this helps, Good Luck! Let us know how it works out for you!

[Sevets 2004 1000 DS (Red)]

Co-signing or cash are usually the best two ways to overcome credit issues

Paying cash is not going to help restore a bad rating as it does not leave a paper trail for the credit watchers to see.

[/quote]

[Scrambles 2006 1000 DS (Red)]

Paying cash is not going to help restore a bad rating as it does not leave a paper trail for the credit watchers to see.

You're right. No amount of cash will fix a bad rating. With bad credit, banks are looking for security in case of a default. With money down, that puts equity in the machine, which means security.

Bad credit and 0$ down? Ain't gonna happen. Co-signer or cash, these are usually what the banks will be looking for. The dealer will tell you the terms the bank will accept.

[gregcurley]

I should have mentioned before that I plan on putting 30-35% down. But, now I think I'm going to hold off until I hear back on on my credit reports (don't actually look as bad as I thought, so disputing two items)... that is, unless I find a leftover 2006 1000s for some amazingly great price.

So, I guess for now, if you see a guy in the NYC area ogling your Multistrada while he rides up beside you on his trusty old '75 CB750, that'll be me... heh...

Thanks for all the input!

[tigertim955]

Old CB750's are cool bikes!! I've chased down many old bikes just to drool over them without knowing the person riding IT wants to talk about the Duc!!!

[gregcurley]

Old CB750's are cool bikes!! I've chased down many old bikes just to drool over them without knowing the person riding IT wants to talk about the Duc!!!

cool man, thanks. i like her a lot... never let me down, looks pretty, sounds great (no baffles). i'll probably keep her if i can swing keeping two bikes. somebody else put some funky 70's triple-Z handlebars on mine and i've never bothered changing them... some days i like them, other days...

[bone 2006 1000S DS (Red)]

Old CB750's are cool bikes!! I've chased down many old bikes just to drool over them without knowing the person riding IT wants to talk about the Duc!!!

Yeh, they rock. I had a '79 CB750K as my first bike before 'graduating' to the Multi, and I still miss some things about the CB. But in the end, it wasn't trustworthy enough and I craved modern performance and trustworthiness... and the CB blew itself up so I had no real choice.

Some day I'll buy another though, just to have. I think they're a great example of industrial design.

[wayward - Moderator 2004 1000 DS (Black)]

My dealer in Seattle worked with a local credit union that had great rates (about 4%) when I got mine. The cost was the same if I went direct or not- I don't think the dealer got anything, although perhaps they got some referral cash or something.
There certainly was no extra charges when I did the loan. One of the reasons I bought the bike was the low rate.

Mark

I bought mine at Ducati Seattle and got dealer financing through Seattle Metropolitan. I too got a low rate but not quite that low. Mark must have a better credit score than me.

[Habanero 2006 1000S DS]

.. and the CB blew itself up so I had no real choice.

you didn't notice any signs of depression or anything before it came to this?

Do you harbor any guilt over this loss? How about when you are out enjoying your multistrada?

[lotus54 - Moderator]

I bought mine at Ducati Seattle and got dealer financing through Seattle Metropolitan. I too got a low rate but not quite that low. Mark must have a better credit score than me.

That is who I got mine through also (same dealer too). I think I was just getting it at the right time. The rates went up later, although I got a decent rate on the Lotus a year ago too (not 4.x%)

I have to get the bike out soon! I just haven't done enough riding lately.

mark