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Bike Loans for 18yo?

Discussion in 'General Motorcycling Discussion' started by josh_182, Aug 24, 2006.

  1. Hi guys, I go for my bike license next month and by then I will only have maybe a grand saved at most, I have just gotten a new full time job, I turn 18 on the 28 of next month and I go for my bike license the day after ( 29-30 ). I don't wanna have my license and not have a bike for like 4 months because that is about how long it would take for me to save enough and that would be killer knowing I can legally ride a bike but not having a bike. So I just wanna know how many of you took out loans to buy your first bike? I will be earning bout $1600 a month and say $300 of that a month is on crap like food and stuff. Do you think the bank would let a guy who has just turned 18 and has only held his job for bout 2 months take out a loan? I only wanna borrow bout $3000, so I can like repay like $1200 - $1300 a month. Sorry it was so long I just wanna bike :). Josh.

  2. If you think you could repay the loan that quickly (~3months) then you should have waited to get your licence while you saved the money. Then either when you nearly had or did have it go get your licence. That way you aren't sitting around bikeless for so long.

    Also remember to factor in ~$1000 for gear, $600 rego and insurance and then a little bit left over incase something went wrong with the bike and for things like fuel.

    Josh =0)
  3. No chance.

    Doubt even the finance guys from the bike store will take you up on it.
  4. short answer, no. i dont think without a guarantor a bank will lend you money.
    they have certain criteria, like length of employment etc. and 2mths wont be long enough.
  5. Can't you borrow the money off your parents?
  6. As mentioned above, if you can pay $300 off that quick wait.
    Put getting your licence off.
    Maybe buy gear in between (end of season stuff is being sold off now)
    now and getting your licence to keep you in th ebike mood.

    Then go out and get a bike with cash. Getting a loan for 3K IME is silly.
  7. Well,

    I got a loan for about $7k for bike, on roads, gear, etc... for my first bike.

    But I was 25 at the time, and had previous good credit.

    However, at 21, my first job, fresh from uni, i applied for a credit card, and they offered me a $10k limit one. Now I've never gone stupid with it, but its there incase :)

    But I dont like your chances ingetting a loan, but try the bank you hold an account with, they may see you can save, just haven't had the time too...
  8. It doesn't look good as far as loans go, but hey - what's 4 months? Just suck it up and wait, it will be over before you know it and at the end of it you'll have this extra satisfaction of knowing you never gave the bank a dime!
  9. Im sure you an get a loan , just try , go in and apply for a personal loan , they tell you how much you can borrow. If you do get the loan get it over 5 years, your repayments would be around $35+ a week .

    I was in my job 2 months and applied , no savings , just a secure income.
  10. loan, certainly not, it will be a noose around your 18yr old head.

    If you want to get it that badly try and get a credit card, banks will give them to anyone, and if you get a little bit more limit than you need for the bike you can also get your gear. BUT, pay it off as soon as you can! Cr cards sting when they charge you interest, big time, so get rid of the debt quick. If you time your purchase right you will get about 7-8 weeks before you have to make a payment and will have saved a big chunk of cash already.
  11. 5 years... :shock:
    DO NOT take a loan over five years.
    You will more than likely sell the bike before you have finished paying for it.
    The longer the time to pay off, the more it costs in the long run.
    If you MUST take out a loan...take it over the least amount of time possible and put as much of a deposit down as you can.

    Personally, I'd wait 'til I had saved all the money.
    At your age insurance will be high, and I'd hate to be riding a bike I hadn't fully paid for, if I stacked without full comp insurance. Paying off a bike you don't have anymore would be the worst thing I could imagine.
  12. Hey dude,

    if you can manage to spend only 300 a month on food then you must eat bugger all! Of cause i guess your probably still living at home so 300 would be 'bout right i guess in that case.

    I know how exciting it is to be getting your license and first bike, so i hate to be a spoil sport, but seriously man, just go without some stuff and dont go out much for like 6 months and then go pay cash for a bike. In the long run you will be heaps better off that way.

    good luck,
  13. The Commonthief Bank lent me $4500 which I put towards my bike.

    Mind you, I did have the cash in savings to pay the loan off straight away if I wanted. I chose to get a loan because it was only over a year, the interest was negligible next to maintaining cash flow.

    For the love of God don't put it on a credit card.
    A personal loan is a lower interest rate, you can set up a direct debit to pay it off, and make early payments for as much as you like to pay it back early and reduce your interest in the process.

    Keep in mind:

    Personal (unsecured) loan = bike yours, you owe the bank cash.

    Dealership Finance/Lease = bike theirs until it's paid for. You MUST pay to have it fully insured.
  14. agree with above,


    I dont think the bank should be legally allowed to issue them to under 21's they are bad news!!

    Mate if you can save that much a month - do what im doing ,,, have put off actually getting the licence so that im not tempted to buy a bike just cos i can!! save hard but keep interested by buying little bits and pieces and TRYING to get off this fricken forum!!! so far its not working!

    head down and save hard ,, save the cash FIRST -- get the licence then,,, owe the shitty banks nothing!!!!!

    your 18 bro, 4 months might feel like a life sentence with these sunny days atm ( trust me i feel your pain ) but the day you get on that bike debt free you will know you made the right choice! :p
  15. I agree with everyone above, a big no to the loan.

    When I upgrade I will most likely buy the bike new. This is a significant investment, but I will not buy it until I can pay for it and the insurance outright out of my own pocket.

    The best way to get out of debt is to never get into it in the first place.
  16. Well unfortunatley we all want things at time when we dont have money. My advice to you is if you can get yourself a good credit rating it will help you out as you go through life, ie mortgage, personal loans, whatever. I am not telling you that getting loans is the only option or the right thing to do. If you want to try and get a loan go to the RACV, or if you can hang out and save that is going to be the better option. Good luck and remember not everyone pays cash for everything.. :?
  17. Yes and no.

    Borrowing capital to invest has made a lot of people successful.
    Smart management of both capital and debt is necessary these days.
    No-one puts off buying a house or unit until they can pay for it outright, but there are ways to make it much more affordable [negative gearing etc].

    For any vehicle, finance can prevent you settling for something crappier/older/less reliable than if you otherwise saved your pennies for it.
    It can also mean regular tax-deductions or perks for the term of the finance, as well as depreciation - particularly if you use the vehicle for work in any way.
    You can also get the vehicle you want NOW.

    Debt isn't necessarily the 'satan' of financial situations it's made out to be, unless you do not have it under control.
  18. He's only looking for $3000 and he's gonna pay it off at $1000p/m (not taking into account that he will have saved nearly half of it before the first pmt) the loan establishment fee will be more than he pays in interest on the cr card.
  19. Re: Loans?


    While your at it get a house loan :p jokez dude, just forget loans.

    If you deal with your OWN cash and not the banks, you'll naturally want to negotiate on the price better.
  20. :p These days you will only get a loan if you can proof to the bank that you dont need it!!!