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Discussion Starter · #1 ·
OK, so I'm new to the forums here, I apologize if this is in the wrong section. Anyway, I have been researching the FZ-09 for a little while now and its definitely going to be my next bike. My friend has the FZ-07 and that thing kicks ass, I can't imagine the FZ-09 in person. (The dealer that I went to will not do a test ride..)

So I went to the dealer this morning, I'm only 18 with no credit so I had my mom co-sign. She doesn't have the greatest credit in the world, blah blah blah you know how that goes. We filled out the app for Yamaha and it was denied. They tried another bank that they work with I guess and they denied us as well. So I figured I am pretty much SOL... I am working on selling my Ninja 250 so I can put that towards the bike. Its going to take a solid 6 months at least for me to save up enough to get the bike, and thats going to work, gas money and bills and nothing else lol.


So the question I have, mainly those with shitty credit, what do you think I should do? I can definitely afford the monthly payments for the bike and insurance, I'm not even worried about it. Its just trying to get approved for a loan on the bike. Should I save up like 3 grand and take that into a dealership and see what they can do? Does a down payment help much when trying to get approved? Because 3gs is a pretty good chunk off of the $8000 price tag.

I could just wait until next season but I really don't want to wait that long.
 

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Honestly, banks want to loan money out, that is how they make money, it is what the desire to do. If they say no, that's pretty incredible, and I'd take that as a sign that my situation is not conducive to buying that bike.

Really you need credit, income, or a down payment to make them feel at ease. Right now, per their calculations, you are at risk of a default. Affording a monthly payment, is not affording something. Plenty of people afford monthly payments, but are living hand to mouth, which is not really affording something.

Sell the other bike, save cash, and try again when you have a large down payment. Life is ALL about deferred gratification, and you need to learn this now, when you are 18, instead of being a 30 something man, still making payments on bikes, cars, or your house. Maybe they can tell you exactly what you'd need to show, to be approved. They want to lend money, they want to sell bikes. Maybe you have to wait 6 months to a year, that may seem like a long time, but in life, that's not a big deal, just be patient.

Also, having someone with poor credit co sign, is probably doing very little for you. No credit, is probably better than poor credit. If I am a bank, and your co signer has already shown that they do not pay back their debts, why would they pay back YOUR debt?

Save the cash, do it on your own if possible, and don't drop it before you get frame sliders :)
 

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Been there before, like most of us at 18YO. Go to your bank and ask for a low limit credit card. BOA back in the day gave me one... I had to give them $250.00 deposit and I got a $250.00 CCard limit. Roll that thing for a year and MAKE PAYMENT ON TIME!!! After a certain time you get back your deposit... and slowly built your own credit history. I would put the bike idea aside for this year, aim for next year and get a solid cashdown together. You don't want to pay the whole thing cash... you still want to built credit history. You might get hammered with higher interest rate at the beginning... but you'll get credit. Make sure you make enough $$$ to pay a bit more than minimum payment every month, paying your loan a bit quicker is a good credit score boost.

Yep, if there's one good thing about getting older... easier credit is one of them.
 

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Oh, I think someone out there will give you credit, but at what interest rate? Do you really want to pay 18%, 22% or even worse? Your idea of getting a down payment together is smart; with at least 25 percent down you shouldn't have to settle for an interest rate over 8%, and with any luck it will be a lot lower than that. Good luck.
 

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I wouldn't worry about getting the bike right now if you can't get approved. Id get myself a capital one credit card. Even secured will be fine. Use it responsibly for 6 months and then try again. Some things to remember though... Don't apply for any more credit after getting your capital one card, up until you apply for the bike. Don't allow your balance to be above 30% of the limit. ALWAYS pay on time, however you have 30 days to pay before it shows up on your credit as a late payment so keep that in mind.

In 6 months bring $1500 to the stealership and you will ride home on your new bike.
 

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Here is what I would do. Come in with half down of the out the door price and request a 2 year loan. Do not use any co signers especially ones with bad credit (like Fizzer said no credit is better than bad credit).

You have to look at this from the banks point of view. If you walk in with zero down and decide to default 2 months later you have lost nothing and the bank has the hassle and expense of repossession and resale of a bike they hope is in good condition. If you have 4000 to 5000 invested the chances of you walking away are slim and if you do walk away the bank will have a much easier time financially with repossession and resale. In other words YOU have more to lose then they do. Being a 2 year loan you are going to pay the remaining principal down really fast even with a crappy rate. Dont miss any payments, dont ask for extensions and dont pay that loan off early (normally I would say pay it off as soon as possible but you are trying to build credit).
 

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Check out www.creditkarma.com to see what your credit score looks like, and for other good info on how to make it better. It's all free.
 

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Agreed. I pay cash for everything too. If I can't, then obviously its not the time to buy it. I don't even carry a mortgage. Delayed gratification.
 

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Zach - first off I highly recommend waiting a season and saving a large down payment. Take out smaller loan and use it as a way to build up some credit. Also if I had an fz at age 18 I would give about a 95% chance that I either would of killed myself or would at least have some kind of crash induced deformity. Not going to tell you not to get one but when you do please take it easy and live to ride another day.
 

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Discussion Starter · #13 ·
I wouldn't mind coming up with 4-5000 down and going in to the dealership. Thing is, they will not even work with me since I have no credit. They always want a co-signer everywhere I go. That's what they tell me anyway
 

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I wouldn't mind coming up with 4-5000 down and going in to the dealership. Thing is, they will not even work with me since I have no credit. They always want a co-signer everywhere I go. That's what they tell me anyway
If you go in with 5k on an 8k bike...they should be able to help you out.
 

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Discussion Starter · #15 ·
,

Ok Zach, I am going to zero in on your last sentence. You CAN wait and it is the right thing to do. That is not something you want to hear as an 18 year old but it is something you will hear from most of the older more experienced forum members.

Let me ask a couple of questions:

1. How long have you been riding?
2. How long have you owned the 250 Ninja?
3. Did you buy the Ninja new?
4. Where do you live and how long is your riding season?
5. Is the motorcycle your primary mode of transportation or is it more of a toy?
6. Why do you want to sell the Ninja?

The cold hard reality is that you should not be looking to buy a new bike or, any other bike at this time. Save your money, gain valuable experience on the 250, and try to save up most if not all of the money needed to upgrade. And last but not least, don't buy any bike or take out any loan IF you would need to have someone co-sign the loan for you.

Since you are only 18 you have not been riding long. Insurance is going to be an important factor and you need to check on rates for anything you consider buying.

Used bikes will start showing up and you can likely pick one up for 15 to 20% less than a new one and even less if you wait awhile. There are great deals on used bikes and anyone that is tight on money should be buying used. If and when you do decide to make a change do not buy another bike until you sell your old one. Prospective sellers often overestimate what someone is willing to pay for their old ride. The marketplace will tell you what it is worth when someone shows up with the cash to buy it.

Personally, I pay cash for all my toys and still chose to buy a used one at a discount. The reason I have the cash is because I was very conservative when I was younger and remain so as my savings grew. I don't borrow money to buy anything and if I don't have the cash I don't buy it.

I have only been riding a few months. It's already August and I live in Illinois so I don't know the "riding season" but I would assume when it starts snowing or gets really cold, its time to put your bike away. I think the smartest thing for me to do right now is just save up my money and next year I'll get one. I still think I should get a loan for it so I can build my credit, but then again, there are other ways to build my credit. It just seems like I cannot get a loan anywhere without a co-signer which is annoying. I cannot even open a credit card since nothing is on my credit history.

I bought the Ninja used as a first bike and I'm selling it to upgrade. I don't desperately need a bike, I was just trying to get some opinions on what I could do.

Thanks
 

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While the "niner as a first bike" has been widely debated, I would caution you to ride the 250 for a bit before swapping to a bike like the fz. Especially since it'll be brand new. Plan on spending at least a couple hundred in accessories (frame sliders at a minimum). While 250s are hardly the sexiest bike around, you could also consider a less expensive step up (used honda 500, used fz6r, ktm 390) before jumping up to a big boy. additionally, take a look at what the insurance for a new rider on an FZ will be. sadly I see posts a few times a month on here about someone badly wrecking or totalling their FZ, so I imagine insurance rates will only increase as time goes on. For some of us full covereage is well over 1000 a year already. and if you finance the biike, you will have to have full coverage.
 

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You can get a credit card without credit history. Ask the thousands of college kids who get 10 applications a week... If a credit card company won't give you a card, there is something else at play...
 

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Emtechbali makes a good point about insurance, have you gotten quotes on how much it would be for you to insure an FZ-09? It could be thousands of dollars per year for an 18 year old guy with virtually no riding experience...

And if you search the forum, you'll see that many people would say that someone of your age and lack of riding experience getting an FZ-09 is just an accident (quite possibly fatal) waiting to happen.
 

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Got my first bike at 21. Got my first new Yamaha at 22. No credit except a ridiculous interest rate from a buy here pay here car dealer that somehow got a finance company to back me(29%!). But it helped me build credit. The credit cards that the others spoke of that are secured by your deposit are an excellent way to build credit. But like they said don't max it out and never be late as these things will count against you. I know some of you don't like payments but it's not always a bad thing. I can get 0% on cars and now have multiple houses thanks to a high credit score. Auto insurance companies look at your credit to determine rates also. I never had a parent to cosign for me as my parents were broke and I am currently funding my wife's mother in retirement. Don't overdo it with payments because loss of a job or sudden financial crisis will mess you up. You are young and life is long. When I was your age I didn't have a bike and now the FZ09 is my twentieth bike. You'll get there just be responsible. Good luck on your decisions.
 

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You can get a credit card without credit history. Ask the thousands of college kids who get 10 applications a week... If a credit card company won't give you a card, there is something else at play...
+1 get a cc and put a pack a gum on it or something and month and paying it off. We all started with no credit. You should get the ball rolling.
 
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