New Bike Dilemma

[NPloysa]

What would you do?



I found a new 2006 KTM 950 Adventure S. The dealer wants $13,800 for it. It should be going out the door for $12,500 max, as the '07s are coming in.



I have a short credit history and now a moderate debt to income ratio.



They approved me, with my current bike on my credit, for 12% and 16% on two different loans.



Now, what I should do is sell my bike and get approved, but then I am out transportation until the new deal goes through, IF they will let it go for the $12,500 or so. (I know a guy who bought the same thing for $13,500 and he had 8% county tax, mine is 3%, so the prices are about the same with tax).



The bike is one of two left, the new 990s are well, new, and a few grand more. Should I put the $500 down, get the bike, THEN sell my current bike, and refinance in a month or two?



Or should I put the money down, have them hold it, and sell my bike and take my chances that a) my bike sells before the 2 weeks they can hold it, and b) they will let it go for $12,500 and make me happy?



My bank will finance me, but the manager/loan officer I know there wouldn't even let me apply with my current bike on there, she said it wasn't worth it, but as soon as it sells she will run it the next day, as long as I provide proof of payoff.



Trading is also an idea but I know they won't give what I owe, and don't want anything rolled over.



No, no, I don't NEED this bike, I want one bad, and would like to snatch one up before they become sold out and the new ones will still be difficult to come by.







Thanks guys!



Nick

 

[mberry]

If it were me and I could handle the two payments until one sells ( I would LOVE to have that BMW bike by the way) then I would put the $500 down and take it. There is someone out there like me, except they have the money, to buy your BMW bike in due time. Just keep in mind that if I were to do that, I would have to plan on keeping both bikes for 6 months on the budget for planning sake.

Most of us don't NEED what we have, but it sure is nice.

 

[NPloysa]

Thanks for your comments! I forgot to add, if I do like you said, mberry, as soon as the Beemer sells, I would refinance the KTM, to drop payments and percentage rates.



Nick

 

[mgoncalves]

I would concentrate on paying off the bike you have. You will like the bike more, when you don't have to make payments on it. I also wouldn't even be thinking about a loan at 12% interest, that's crazy.

 

[HoleshotHolset]

I also wouldn't even be thinking about a loan at 12% interest, that's crazy.

I agree. However, I have been in a few situations where I thought I'd die the next day if I didn't have something like that.



Patience, my friend. I'm a youngin, but I've learned the hard way that paying cash for things is the way to go. The only exceptions are real estate and really spendy items - even then... pay that mortgage off ASAP and then without the payment you can go hog wild buying toys!



Matt

 

[HighRanger]

I paid cash for my last 2 Hayabusa's. I would be torn like you as to what to do. If the 500 is refundable then I would put a hold on the new bike and try aggressivly to seel the current bike.