Financing?

growing_wings · Post by **growing_wings** » Tue Jun 10, 2008 9:18 pm

Did any of you finance your scooter? What sort of rates did you guys get?

I went in yesterday to our bank and applied for two different scooter loans(one for me and one for my husband. ) She spent several minutes and made 2 or 3 phone calls trying to figure out if it would be considered a motorcycle or an other collateral loan. After these phone calls they decided that since it was titled, registered and treated in all other respects like a motorcycle that is how they would do the loan. So I was pre-approved at 6.95%. Today I called to get a letter of pre-approval faxed to my local scooter dealer. I was put on hold for a really long time, then the lady came back and told me I was quoted an incorrect rate.

It has to be an other collateral loan at 11%!!! Unfortunately the lady who pre-approved me is out of the office until Thursday so until then I can't go order my scooter like I was planning . . . I am just really frustrated right now. If it is actually going to be 11% no scooter for me! So just curious if others financed their scooters.

EP_scoot · Post by **EP_scoot** » Tue Jun 10, 2008 9:31 pm

I did not finance, but in reading your post you are missing a point. There is NO QUESTION you are purchasing a motorcycle as far as your state law is concerned.

You can bring the DMV manual to the bank that states anything over 50cc is a motorcycle and it needs to be registered and titled as such. You also need a MC license to ride it.

It is similar to not getting a car loan because you are buying a Smart Fortwo. Dumb!

They should give you the MC loan rates.

If not, here are two more options:
- home equity loan. You might have to get a min. of $10K and you might have to get a min withdrawal of $10K, but you can then put it right back in. You can close out the loan as soon as you are done paying the scooter.

- Low introductory rate credit card. Just make sure to pay the scooter within the promotional period. Depending on the card, I have seen them from 6 to 18 months.

irishtim · Post by **irishtim** » Tue Jun 10, 2008 9:34 pm

Another option: Save your money and pay cash. It costs less this way.

Post by **illnoise** » Tue Jun 10, 2008 9:38 pm

If the number of Vespa GTS250s with big "50cc" stickers over the badges at Amerivespa was any indication, Colorado treats 50cc bikes pretty differently than other states.

There are many other threads about financing, try searching around for lots of commentary. Most people agree it's not a great idea if you can avoid it, and you're almost always better off with a loan from your bank or credit union than financing it through a dealer.

Also, everyone should have comprehensive insurance for something so easy to steal, but it's even more critical (and often required) if you're financing the bike. You don't want to be paying off a loan for two years for a bike that gets stolen a week after you buy it.

Bryan

growing_wings · Post by **growing_wings** » Tue Jun 10, 2008 9:41 pm

Yeah, we were all set with the comprehensive insurance on the scooters and we were trying to go through our bank. I don't know why they won't do it as a motorcycle. I am getting the 150cc Buddy International and my husband wants the Piaggio BV500 (which is definitely a motorcycle!)

I am just frustrated, and was really looking forward to getting a scooter sooner rather then later. As a college student and newly wed, saving is super difficult for us! But $89 which is what I was originally quoted would have been perfect!

twoscoots · Post by **twoscoots** » Tue Jun 10, 2008 9:45 pm

irishtim wrote:Another option: Save your money and pau cash. It costs less this way.

Well, duh.

That's normally what we'd do, too. However, my beloved is at the tail end of his educational journey, so we didn't have the reserves to pay cash right this moment. We financed ours with the intent of paying them both off in about eight months once he has a f/t job again - teaching is the only profession where being a male, even a white one, is an advantage.

I looked at the amortization schedule and decided the interest we'd pay in the interim was tolerable (no early payoff penalty, or course).
We belong to a small credit union, and they're running a special right now for new vehicles. When we were first considering the scooters, I floated the idea of an extra-low rate for fuel-efficient vehicles, and the person I talked to sort of rolled her eyes at me. Then she brought it up at the next board meeting! I didn't know she'd done it, so when I went in to do the paperwork I found out that we'd be getting an even lower loan rate than I expected. There was never any question that it'd be done as a motorcycle loan, though.

Piedmont · Post by **Piedmont** » Tue Jun 10, 2008 9:46 pm

I was able to finance mine as a motorcycle. I'd shop around for another bank.

Post by **illnoise** » Tue Jun 10, 2008 9:48 pm

yeah, ask your dealer (Sportique is one of the best in the country) for advice, they can maybe give you some sort of paperwork that will help you prove that there's no legal difference between a 150cc scooter and a motorcycle.

If that doesn't work out, don't rule out used scooters, or motorcycles, you actually get more for your money these days, and there are some good, cheapish, small-displacement bikes out there.

Bb.

gymnation · Post by **gymnation** » Tue Jun 10, 2008 10:01 pm

I think Sportique has some fairly decent financing available. They mentioned it to me as I whipped out the ole plastic. I would definitely get their opinion - great people to work with.

irishtim · Post by **irishtim** » Tue Jun 10, 2008 10:36 pm

twoscoots wrote:
irishtim wrote:Another option: Save your money and pay cash. It costs less this way.
Well, duh.

I'm glad you said that! You'd be shocked how many people buy things based upon a monthly payment. They never realize that paying $5000 for a $3000 item that depreciates is a bad idea. They never anticipate a job loss, illness, scooter-riding accident, etc. that squeezes their wallet while making those payments.

twoscoots · Post by **twoscoots** » Tue Jun 10, 2008 11:53 pm

Not so shocked. I know plenty of people who've done that "We'll pay off your old car!" thing to get a new car, as if the balance is just going to disappear. I also get daily reminders of how many people bought houses they couldn't afford and apparently neglected to read the loan papers they were signing eight hundred times.

scooterdyke · Post by **scooterdyke** » Wed Jun 11, 2008 12:09 am

I have to agree with Irish Tim on this one. It took me over 2 years to save for my scooter (I started even before the Buddy came out!). My partner gets a great bonus every year, so hers was never a question of saving or having to finance. That being said, even though the wait was long, I can't tell you how good it felt to walk into POC that December day and pay cash for 2 Buddys! As a matter of fact, I'm presently saving for my Kymco Grand Vista. Financing a car or house is one thing, but $3,000 is really not necessary. Jeez, that's a down payment on a car! We'd all be a LOT better off if we only bought what we could afford - what a concept!

Ronin · Post by **Ronin** » Wed Jun 11, 2008 12:45 am

I was lucky with my credit union. They treated my financing as a new car loan and I got a 4.9% interest rate due to a promotion that they had going on. They even offered to extend the loan to 60 months! I decided that I would go with a $100 per month payment with the option to pay more on it when I would like to. 60 months was a little long for a $3,000 loan

Johnny · Post by **Johnny** » Wed Jun 11, 2008 1:45 am

scooterdyke wrote:Financing a car or house is one thing, but $3,000 is really not necessary. Jeez, that's a down payment on a car! We'd all be a LOT better off if we only bought what we could afford - what a concept!

Yeah. I have to agree. Financing a relatively inexpensive item like a scooter always seemed strange to me.

johnre · Post by **johnre** » Wed Jun 11, 2008 4:45 am

Walked into my local dealer, filled out an application for Sheffield Financing and was approved in 15 minutes. Bought a Kymco GrandVista 250 because the Kymco USA site is offering 1.9% for 4 years with excellent credit. It couldn't have been easier. By the way, their stock is going fast. No Buddys, three Kymco People 150s and a handful of Stellas.

7eregrine · Post by **7eregrine** » Wed Jun 11, 2008 1:59 pm

I financed my ghost scooter. (Ghost, cuz I still don't have it).
$1,000 down and 8% I believe?

Finanancing isn't all bad when you finance the way I do. It will be paid off in 6 months.

luckyleighton · Post by **luckyleighton** » Wed Jun 11, 2008 2:24 pm

if you are planning on paying it off in a matter of months, the interest difference in negligible anyways.

&7000@5% for 8 mos is $233

&7000@10% for 8 mos is $466

Paying for it is obviously the best, but f you are looking for a short term loan you are only talking a few hundred dollars more irregardless of your interest rate. maybe this will motivate you to pay it off faster too.

7eregrine · Post by **7eregrine** » Wed Jun 11, 2008 2:28 pm

Right.

BUT, I think saving up for it is NOT the way to go.

Life, and Spring/Summer/Fall, is far to short (for those of us with 4 true seasons). You could miss an entire riding season by saving up!!
hehehe

Guess I am more of an instant graification kind of guy.

Of course, I kid. My wife saved up that $1,000 down payment for me to surprise me on my birthday with a Scooter down payment. But if I would have just finananced one last year when I wanted one I'd now be on season #2. And I wouldn't have had to endure a near 3 week wait (so far) for delivery....

growing_wings · Post by **growing_wings** » Wed Jun 11, 2008 2:45 pm

Yeah it was a series of events that caused us to decide to finance. We have two other loans which are just ending ($250 a month) and the 6.9% would be way less than those two were. We are spending nearly $100 a week on gas as it is so trying to save would get difficult with gas prices rising so rapidly. We weighed the options and financing even with the increased cost of the scooter, we would be doing much better.

I was mostly just frustrated that I was told one thing and now they are backing out. And it is just crazy because in colorado anything above a 50cc must be licensed, registered, taxed, insured as a motorcycle. Plus I have to get the motorcycle endorsement on my license. I am just frustrated, we were all set to go and put a down payment on my scooter and now we have to wait until thursday for them to talk to the girl who gave me the pre-approval.

iinigma7 · Post by **iinigma7** » Wed Jun 11, 2008 2:46 pm

When I got my Buddy last year my tax return covered most of it, so I was fortunate. However, had it not covered I would not have gotten the scoot yet.

That's just me. I don't like giving anyone percentages of my money just because it's temporarily convenient. I'm 29 and have never owned a credit card (yes it can be done...even in today's credit crazy society), and I have always bought used cars with cash. The only money I've ever borrowed was for my house. My dad got into some really bad debt when I was a kid and it taught me a lot about the potential dangers of borrowing money.

Anyway, that's my two pennies on the matter. It's your call. If you do get it at least shop around and try to get the best rate you can.

luckyleighton · Post by **luckyleighton** » Wed Jun 11, 2008 3:02 pm

This is turning into a finance post....I try not to judge people, everyone has different means.

But I am with the last poster. My wife and I decided a few years ago that we were done borrowing money. Just tired of worrying about it, so we pay as we go. It makes us cheap and more careful when purchasing things.

I looked for a scooter for 6 mos before something fell into my lap. It gave me time to look at the market and decide if spending what it would cost would bring back to me the enjoyment I get out of it.

Viva la scoot!

EP_scoot · Post by **EP_scoot** » Wed Jun 11, 2008 3:10 pm

growing wings,

Funny they would finance the Piaggio as the Bv500 IS a scooter.

Maybe you can explain to them the difference between the term scooter and the term motorcycle:
- Scooter being a step THROUGH automatic motorcycle.
- Motorcycle being a step OVER manual shift motorcycle.

Is like your bank not giving out a car loan for a pick up.

My guess is that yours is the first scooter they are dealing with and they really don't know what to do with it. That first gal had it right, though, for all legal purposes it IS a motorcycle.

jim_0068 · Post by **jim_0068** » Thu Jun 12, 2008 1:09 am

Get a credit card with 0% financing on purchases for a year and pay it off in a year. Or if you need another year, when that 0% initial apr percentage is over, balance transfer it to a different credit card for 0% for another year. If you can't pay off a few grand in a couple years at 0% interest i think you have bigger problems LOL.

Financing your way through life can be good or bad, it just depends on how well you handle your money.

MikieTaps · Post by **MikieTaps** » Thu Jun 12, 2008 1:21 am

im with jim

I actually made money off of my student loans.

I got several thousand in subsidized loans, invested in some bomb mutual funds for the duration of college, paid of the loans, and used some of the capital gains each semester to pay off my part of the tuition.

I know I know, it was risky, but it worked out for me...

and yes, I did graduate with a Degree in Finance

Modern Buddy

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