Where to get a loan?

[rusty]

If i have no credit and i cannot get a cosigner? Im 20 years old looking to borrow around 10k in a loan for a new bike with a low interest rate. My bank wont approve a personal loan for me because i do not have any credit and the fact that my social is not in the system yet. Some people told me to look online, but im finding alot of sites that charge at least 21% APR over 3 years, but i would like to get a loan for alot less of a rate over a period of 4-5 years. Now before anyone says that i am wasting my time taking out a large sum of money for a motorcycle, I make good money at the job im at right now, and ive owned a few bikes in the past and would like to get a new one. I also wanted to use this loan to build my credit for when i want to purchase a house.

Any ideas?

[Buster]

If you have no credit or co-signer, at your age and that loan amount, you may just have to take a higher APR.

If you do, pay it off ASAP.

You can try a personal (non-vehicle) loan, but they'll probably still be a high % for you and use the bike as collateral.

DO NOT USE A CREDIT CARD TO BUY IT.

Your best bet may be just to save up for it.

[carguy07]

if you are buying from a dealer, they will probably finance on site if you have a good down payment to offer.

but with no credit, expect the worst.

[JenzZx2]

Your social should be in the system already, even at 20.

Do you own any vehicles/bikes now? I wouldn't recommend it, but you could always borrow against your other vehicles as collateral, pay for the new bike or at least a big down payment. Then of course you'll have to repay both loans.

Perhaps you should save up for a while and put a big down payment, then eat the larger interest rate. Unfortunately you gotta start somewhere.

[rusty]

Thanks for the input. I'm going to go to the dealer and see if they can get me financed or not and take it from there. The issue here is, going through the dealer and getting financed through say, yamaha, they dont require full coverage on a new bike, but going through a credit union would. And full coverage on the bike i want is $4500 per year, yet liability is only $1200. I would ultimately like to save the money and not have to pay full coverage if i dont have to, and id perfer to get a new bike so i dont run into problems, and i would be able to have transportation while my car is under the knife.

[random_hero]

Good luck Russ - I'm in a smiliar position...trying to get a CC to build my credit. What kind of bike are you looking at? I paid cash for my Katana and Gixxer (but I sold it and made some profit)

[JenzZx2]

If you total the bike can you afford to fix it? That would suck if it got wrecked or stolen and you had to keep paying on a bike you don't have anymore, AND not have transportation. Sounds to me like you should wait. I certainly wouldn't bypass full coverage just to get a new bike.

[KyleBlueZX2]

This probably isn't the greatest idea but my friend took out a school loan through sallymae.com and got a lot bigger loan than he needed for school so he could buy a camaro. Like I said, may not be the brightest idea but he doesn't have to pay it back until he's out of school. Just an idea i thought i'd throw out there.

[CraZx2ing]

Most bike places around me have a huge limit credit card they offer that you buy it with. This of course probably has a huge rate, but you might get lucky. I was able to qualify for $25,000 car loan @ 9% at 19, but I also worked at the bank so *shrug*. Check out credit unions for the best rates and terms. Don't bother with a big bank.

[JonsZX2SR]

One of the options is to not get a loan and not buy a bike.

Do the financials with an open mind and determine if the benefits outweigh the risks. In particular, find out if buying the bike creates putting you in a severe financial bind in the future.

You don't necessarily need a bike, you could buy one that is two years olod (not exactly what you want) and avoid the big hit of depreciation a new vehicle has...

What happens if you don't buy the bike this year, put all the money you would be paying the loan, insurance gas, service, etc. into savings an buy the bike in 1 year with a larger downpayment ?? Are you disciplined to put the money aside and not spend it on anything else ??

[rusty]

Good luck Russ - I'm in a smiliar position...trying to get a CC to build my credit. What kind of bike are you looking at? I paid cash for my Katana and Gixxer (but I sold it and made some profit)

Im trying to buy the 08 R6 or a CBR600. I Just dont have the cash to buy one right now lol.

[rusty]

If you total the bike can you afford to fix it? That would suck if it got wrecked or stolen and you had to keep paying on a bike you don't have anymore, AND not have transportation. Sounds to me like you should wait. I certainly wouldn't bypass full coverage just to get a new bike.


And miss out on riding around at the beaches this year? I think not.

I agree that it would suck though if i wrecked the bike without coverage, but i gotta do what i gotta do.

[Chuckiec09]

Thanks for the input. I'm going to go to the dealer and see if they can get me financed or not and take it from there. The issue here is, going through the dealer and getting financed through say, yamaha, they dont require full coverage on a new bike, but going through a credit union would. And full coverage on the bike i want is $4500 per year, yet liability is only $1200. I would ultimately like to save the money and not have to pay full coverage if i dont have to, and id perfer to get a new bike so i dont run into problems, and i would be able to have transportation while my car is under the knife.

What kind of driving record do you have to get a quote of $4500 a year???
On a $9K bike? That's excessive. I have an 07 GSXR 600 and pay $1000 per year FULL COVERAGE!!

Also, if you wanna save a couple bucks you can probably still track down some '07 models new at dealerships severely discounted. By me, I saw a brand new '07 ZX-14 for 9500.

[Connal]

I didn't read through all of it. Have you tried going through the dealership?

I know we can get a loan for just about anyone. Not having a cosigner hurts you a little bit. But if you can put a decent down payment on it, it does help.

Say you wanted to get a 10k car from my dealership. That would equate to about $200 a month payment. I don't know many people that couldn't afford that. And when you look at people buying 30-40k cars, it isn't that terrible.

What I would do is put back as much money as I could, get 1k to put down. That should show your commitment. And talk to the dealership about who they can finance through. Alot of places have several ways to go about it. That way you could get decent payment options, and still find a decent loan. Mind you, that $200 a month if for qualified buyers etc and so forth. So it could be 185, could be 300. It all depends. But that is just us, I'm not sure about anyone else.