How not to get boned at the dealership?

[settlersteven]

Hello,

 

Due to a weird confluence of urban living and living abroad, I am 35 and have gone on several cross country ADV trips in China and want the T7 but I've actually never financed or purchased a new vehicle before, let alone a motorcycle. I live in Seattle. How much did you end up paying at the end of the day, what was your downpayment/monthly/term, insurance, ridiculous extra costs etc? I'm trying not to get boned at the dealership, I can't really buy it outright but I make enough to afford it, just balancing student loans etc. I really appreciate your time and info.

 

Best,

SettlerSteven

[Canzvt]

Sorry to reply off topic, but how did you do ADV trips across China? Would love to know. Been to China a number of times for work, and have a lengthy bucket list, one of which is to ride China. Heard they don't appreciate big bike running around.

 

As for your question, I'm probably the wrong guy to ask as I don't ever finance toys, but my $0.02 would be to find a reputable dealer in your area (and that has a T7 in stock, of course), and pre-arrange financing. Then you can negotiate extras, as it is unlikely you will get a price deal considering how difficult it is to find one of these.

[BMRT7]

Find a credit union you like. 

[mpatch]

If I were in your shoes the first thing I would do is check my credit score with one of the free online places. 

I like Credit Karma. 

If your score is low it's going to be very hard to find financing without paying 10%+ APR and putting some money down. 

 

As for what you should be paying based upon what I've seen if you can get one for sub $11k pre tax you did pretty good. 

I paid less than $10k pre tax but I got a good deal. 

Insurance I have no idea. I pay around $500 a year for three bikes, two with full coverage. 

I would budget $50 a month for insurance. 

There are tons of payment calculators available online. 

Edited May 11, 2021 by mpatch

[Hibobb]

If you were my kid, I would tell you to save up to buy it outright. Ya, that sound harsh but it is a toy, not a necessity.

There are guys like me that have put money down on one in February and have no clue when they will show up.

Plenty of good used bikes out there for cheap...

Edited May 11, 2021 by Hibobb

[mpatch]

1 minute ago, Hibobb said:

If you were my kid, I would tell you to save up to buy it outright. Ya, that sound harsh but it is a toy, not a necessity.

There are guys like me that have put money down on one in February and have no clue when they will show up.

Plenty of good used bikes out there for cheap...

With the way things are looking he could put a deposit down and start saving and might have enough saved to pay cash for it when it shows up. 

[Mark Norris]

1 hour ago, mpatch said:

With the way things are looking he could put a deposit down and start saving and might have enough saved to pay cash for it when it shows up. 

Can you share which dealer you purchased your T7 from In Colorado, thanks!

[mpatch]

1 hour ago, Mark Norris said:

Can you share which dealer you purchased your T7 from In Colorado, thanks!

Freemont Motorsports in Florence CO. 

[Mark Norris]

Just now, mpatch said:

Freemont Motorsports in Florence CO. 

Thank you!

[Brian K.]

I see the folks recommending you save up and pay cash and I can respect that...but here's a different angle; Do you own a home? If not, do you plan to save enough to pay cash for one? My grandfather paid cash for every vehicle and house he ever bought. But the world is a different place, now. Most people will need to borrow money to buy a house. For that, you need a decent credit rating. Nine years ago, I was renting a house for my family and had no credit to speak of. I bought a new 2012 Ural Gear- Up, technically, a toy, although I did use it to commute. I had to put money down and the interest rate was not great. But I paid it off in 5 years. Between the credit score generated from that loan and a VA endorsement, I was able to buy our first house. It was tough to find anything we could afford but after a couple years of diligent hunting, we finally did it. This house, though humble, has gained surprisingly in value, due to its location. We sold it and bought a a place we love in a great location outside of town with a smaller mortgage. Now, of course, I have a longer commute, so I plan to buy a T7 as it will make a better commuter and will also be more capable for off-road rides with the kids. I'll finance it but because of a high credit score, I'll enjoy a low interest rate, get to ride the bike I want and even save some money on fuel while commuting. 

We all pay to play and for most of us, credit is part of the game. Play your cards right and you can come out okay.

  Cheers!

    - Brian

Edited May 11, 2021 by Brian K.

[Cruizin]

It's harder with the T-7 due to it being a hard to find bike right now. Dealers can charge almost whatever they want to.

 

If you can wait, and if you live in a northern state, this is what I do. Wait until the bike is in stock and walk in the dealership on a snowy day. Sales reps and sales managers in northern states are desperate in January on snowy days, unless they also sell snomobiles. Even then, snomobiles dont sell like bikes do.

 

But with the T7, you are at mercy of the dealers.

 

 

[Firebolter]

I paid 11,400 and some change OTD-CASH, no financing for my T7. That was with the taxes, fees and state registration and title. I put a 500 depo down last Aug and got the bike in Nov. I like to pay cash for bikes but if you do finance, either a credit union with the lowest rate or see what the dealer/manufacturer deals may be. If your credit score is south of ~650, you will get a higher interest rate for sure-

Edited May 11, 2021 by Firebolter

[Canzvt]

2 hours ago, Brian K. said:

I see the folks recommending you save up and pay cash and I can respect that...but here's a different angle; Do you own a home? If not, do you plan to save enough to pay cash for one? My grandfather paid cash for every vehicle and house he ever bought. But the world is a different place, now. Most people will need to borrow money to buy a house. For that, you need a decent credit rating. Nine years ago, I was renting a house for my family and had no credit to speak of. I bought a new 2012 Ural Gear- Up, technically, a toy, although I did use it to commute. I had to put money down and the interest rate was not great. But I paid it off in 5 years. Between the credit score generated from that loan and a VA endorsement, I was able to buy our first house. It was tough to find anything we could afford but after a couple years of diligent hunting, we finally did it. This house, though humble, has gained surprisingly in value, due to its location. We sold it and bought a a place we love in a great location outside of town with a smaller mortgage. Now, of course, I have a longer commute, so I plan to buy a T7 as it will make a better commuter and will also be more capable for off-road rides with the kids. I'll finance it but because of a high credit score, I'll enjoy a low interest rate, get to ride the bike I want and even save some money on fuel while commuting. 

We all pay to play and for most of us, credit is part of the game. Play your cards right and you can come out okay.

  Cheers!

    - Brian

Thanks for your explanation and clarification. All great points and a bit of good luck thrown in. Credit rating is king these days for many things.

 

The rule I was taught and I teach my kids is that its OK to finance NEEDS, never wants. The key is to determine in your own situation what is a need and what is a want. It is different for all people. if you say I NEED a T7 for riding in the hills on weekends, clearly it is a want. If you say I NEED a reliable commuter bike that will do everything I want, then this can clearly be an actual need. Prudent decision making could be the difference between riding whatever you want in you older years, and not riding at all.