So I financed a brand new 2007 Suzuki gs500f and did the paper work and everything and it has been a couple of weeks. I have not even payed the first payment yet. I have grown extremley bored with the bike and want a new one, What can I do? Is it to early to trade it in? Will they just credit me the cost towards my new bike or something? I have no idea how this works, thanks.
2007-11-24 18:53:18 · 5 answers · asked by It's me 2 in Business & Finance ➔ Credit
Do I go back to the original dealer or can I go anywhere to trade it in?
2007-11-24 19:17:39 · update #1
I suggest you keep the one you have.
This is an example of how it works.
Let's say the bike cost $5000.
When you financed the total cost of the loan is $8000.
The bike is now used and let's say it is only worth $4000.
You have not yet made a payment, so if you return to the dealer and he gives you $4000 on this bike, you are now in the hole $4000.
Now let's say the new bike costs $6000, and the total cost of the loan is $10,000.
You will leave the dealer owing $14,000 for a $6,000 bike that will depreciate the moment you use it.
2007-11-25 13:52:14 · answer #1 · answered by Seeking 5 · 0⤊ 0⤋
You need to pay off the bike you have. When you find the other bike you want, the dealer will tell you what he is willing to give you for the bike you have now. It will be considerably less than what you payed. You may be out a grand or so. The difference between what the dealer offers you and what you owe is called the payoff. You'll need to have that amount available to payoff your current bike so the dealer can get the title from the finance company that gave you the loan. With cars this could be rolled into the new loan, but with bikes usually the financing is more like a credit card, and they only finance the amount of the new bike. (at least where I live)
If you go through with this, don't skimp on the new bike. Pay a little extra and get something you won't be bored with. If you are an experienced and responsible rider I would recommend the Suzuki gsxr1300. It costs a lot more than what you have now but you wont get bored with it. EVER.
As a side note, I'm not sure how this type of financing shows on your credit report, (where you live) but it may not look good applying for two large lines of credit in such a short period of time. If the financing is like a credit card then you should be ok.
2007-11-24 23:08:16 · answer #2 · answered by Don 3 · 0⤊ 0⤋
You will need to speak with the creditor who is holding the note and the dealer to find out exactly what you need to do to use that bike as a trade in.
Chances are very good that you will end up on the short end of the stick financially.
The bike is considered a used bike the second you drove the bike off the lot, which will affect the trade in value. There is a very good possibility that you will not be offered a trade in amount that will cover what you currently owe.
You will either have to make up the shortage that you owe the loan holder at the time of trade in or roll over the shortage into your new loan.
Since you have very recently applied for credit to purchase the current bike, your credit has taken a hit with the inquiries and the new account reporting. Your new loan will more than likely have a higher interest rate.
I would suggest that you crunch the numbers before you act.
Be certain that you are willing to lose what may be thousands of dollars due to the resale value of the used bike and the higher interest on the new loan.
2007-11-24 23:23:29 · answer #3 · answered by echo 7 · 0⤊ 0⤋
Learn to remain strict to ur decision forgetting about a different one. Small little things teach us many good things which we dont reconize all the time.
2007-11-24 20:01:35 · answer #4 · answered by nazbak 6 · 1⤊ 0⤋
trade it in. u might have to look in to what the tag laws are in your state b/c u might have to pay that first.
2007-11-24 19:08:46 · answer #5 · answered by Philip C 2 · 1⤊ 0⤋