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J

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Found a bike I'm very interested in buying. Thing is, while my savings is quite good, its all in the form of stock for the most part. I have only several hundred dollars in accessible money in my account.

The bike is a 03 500R with 3K miles. Looks like a real nice machine and the price seems solid as well.

So heres the problem. I figure that because I need gear (which I can use my cash for), I will need about a $3000 loan for this bike. However, it seems that most places I've looked have a minimum amount for a used motorcycle loan, and $3000 isn't enough to meet that minimum.

Where can I find the best APR either through a used motorcycle loan or even a personal loan of some sort? Anything over 10% is just ridiculous, I am hoping for 6-8%. Better would be better. It needs to be fixed rate, fixed term loan with no early payback penalties.

Any common banks offer this? How about online places such as e-loan? (e-loan i think has this restriction....) I just haven't done enough financing shopping in my life to know good places to go.

Help is appreciated!
 

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I think for your stipulations, your best (and possibly only) option is a credit union. That's how I'm driving my SV right now. :)
 

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any bank will offer a "personal" loan in virtually any amount.  
If you have savings that will cover it, I'm sure you could even use that as collateral if necessary.  

Beneficial is well known for such loans and is pretty relaxed with who they'll lend money to... the downside is there APR's are extremely high.  I guess you have to weigh your savings on the bike against what you'd pay in interest.  
 

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Also take into account that if there is a lean against the bike title (if your getting a loan out and using the bike as collateral, then there will be a lean against it) then they may require you to get more insurance on it as well, since its their money that bought it.

If you get the bike without a lean against it, you may only need liability insurance on the bike which can save you some $$ too.

just something to consider.

I paid for my bike in cash because i knew if i got a loan with it as collateral, I would be forking out more $$ in insurance as well as a bike payment every month.
 

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Try a credit union...no reason not to do all of your rudamentary banking with them, IMO, if you're eligible. I became eligible for my credit union through a job I worked at about 5 years ago (I dont work there anymore, but my particular credit union never kicks you out once you become a member). I get free checking, savings acct with comparable interest rates, visa check card, online banking...basically everything you can get at a private full service bank except better rates on loans and savings and much lower fees! So ask your employer about whether or not they have a credit union you'd be eligible for...that would almost certainly be your best bet.

If you've got plenty of savings, perhaps you could use some of your savings as colateral and get a better rate? Both of my siblings bought mobile homes with a loan with one of my dad's CD's as colateral. They only pay around 2% interest, IIRC.

Here's an idea, but it will only work if you are buying it from a dealership. Not sure if this would work or not, but it wouldnt hurt to ask. How about a low interest credit card? If you've got good credit, I'm sure you get as many of those "0% for 12 months!" ads in your mailbox every month as I do. You'll want to check with the dealership first to make sure they'll let you do it (I dont see why they wouldnt), and call your credit card company before you make the purchase, as they might deny the charge if they dont hear from you beforehand.
 

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I agree with Dackler. If you get a loan you will have to pay full coverage. When I bought my bike the insurance rate I was quoted for full coverage would have paid for a new bike in a year and a half. By putting it on the credit card and not carrying full coverage, I saved a crapload of money even with a credit card interest rate. If the bike was my primary or only means of transportation, I would probably carry full coverage.

If you do put it on the card, you can do one of those 0% balance transfers and play that game.
 

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gahdzila said:
Here's an idea, but it will only work if you are buying it from a dealership.  Not sure if this would work or not, but it wouldnt hurt to ask.  How about a low interest credit card?  If you've got good credit, I'm sure you get as many of those "0% for 12 months!" ads in your mailbox every month as I do.  You'll want to check with the dealership first to make sure they'll let you do it (I dont see why they wouldnt), and call your credit card company before you make the purchase, as they might deny the charge if they dont hear from you beforehand.
This is like what I did. I found the SV I wanted, but did not have all the money up front. Knowing that I would secure it in a timely fashion (2 months) - I got a credit card (first one ever) with a 2k limit. Used that and now it is paid off in less than two months and only paid ~$40 in fees... Not bad if you ask me. Plus it is helping me build credit...
 

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Jared McDonley said:
...I got a credit card (first one ever) with a 2k limit...
Maybe I have a phenominal credit rating, but I could buy two SV's with the two credit cards in my wallet right now, and I get offers for cards with $10,000 limits in the mail at least weekly. Not trying to brag or anything, I'm certainly not rich, and I have absolutely no reason to have that much credit at my fingertips...just wanted to mention to the starter of the thread that it probably wouldnt be difficult at all for you to get a credit card with a very low rate to pay for your bike in full and all of your gear too, if you wanted. Just dont go crazy with the credit cards, and make big payments to them every month. Credit cards can be intoxicating...I know from experience...I got myself in over my head with them a few years ago when I was just out of college.
 

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Do any of you know if there is a way for the bank to change a current an auto loan (where they are the lein holder) to a personal loan? I'm pretty sick of paying full coverage.
 
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slappermouth said:
Do any of you know if there is a way for the bank to change a current an auto loan (where they are the lein holder) to a personal loan? I'm pretty sick of paying full coverage.
you're probably going to need something else for collateral then. You have full coverage cause your bike is collateral...
 

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I think you are best off getting a 0% apr credit card and buying the bike with a courtesy check or depositing funds into your checking by way of a courtesy check. Many cards have a zero % rate for the first 12 months then some exorbinant rate thereafter. Just try to get it paid off in those 12 months which shouldnt be hard. I work at Bank of America and we offer many initial cards to new customers at the 12 month 0% rate. Plus you can get approved for them in like 20 minutes...usually have a $3 to $5 grand line limit.
 
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