financing a quad

[sakirocket28]

Ok, iv got a friend who baught a 06' 450r back in november, and he's been making monthly payments on it. Last night he wrecked his new SRT-4 and now he's debating on whether he will be able to handle the payments or not. I want the quad, and i was thinking about adopting the payments till its paid off. What do you guys think? he's been paying $175 a month and has alittle over 5k to pay off. From anyone who is or has dealed with financing a wheeler, would this be a good idea? sound like a good deal? BTW, it only has like 10 hours on it, practically new.

thanks in advance!

[HB416EX]

I repossess for a living and what 99% of the time happens is the "friend" takes your money and doesn't make the payments.Then the "friend" usually tells the bank where the bike is to save his ***.Since you have no legal rights there is nothing you can do,I've seen it happpen countless times.I think it is always best to get your own financing and build your credit instead of his.

[YZ400EX]

$175 a month is a lot on a loan for a quad:eek: ..He must have really high interest or a very short term on the loan..

[bwamos]

Umm.. not really.

$6000 / 36mo @ 7% APR = $185

$49/mo = a creditcard scam that's gonna slam you at the end of the initial period.


That being said.. your best bet is to get a loan for $5000 (if the quad is worth that much), and you'll probably both have to meet with the creditor to transfer the title / lien information.

[400exrider707]

Originally posted by bwamos
Umm.. not really.

$6000 / 36mo @ 7% APR = $185

$49/mo = a creditcard scam that's gonna slam you at the end of the initial period.


That being said.. your best bet is to get a loan for $5000 (if the quad is worth that much), and you'll probably both have to meet with the creditor to transfer the title / lien information.


Yeah but who buys a $6000 quad and doesn't put anything down?
Thats just dumb

[drzoo2]

Originally posted by bwamos
Umm.. not really.

$6000 / 36mo @ 7% APR = $185

$49/mo = a creditcard scam that's gonna slam you at the end of the initial period.


That being said.. your best bet is to get a loan for $5000 (if the quad is worth that much), and you'll probably both have to meet with the creditor to transfer the title / lien information.

Ya. Money shouldn't be in the middle of friends. You need to be there when the creditor is payed of and the lien release letter is written so he can give it to you.

z

[sakirocket28]

Ok, thanks for all your help on this. would it be possible/legal for him to hand the quad over to me, and have the financing changed so I can make the payments straight to the dealer instead of giving the money to him to make the payments?

thanks to all for the help!

[bwamos]

Originally posted by 400exrider707
Yeah but who buys a $6000 quad and doesn't put anything down?
Thats just dumb

$6000 wouldn't buy a new 450R. There would be a downpayment involved.

Current loan rates are ~8%APR.
450R retail = $6899.00 + setup fee = $7000.00

$1500 downpayment = $5500 loan.

$5500 36mo loan @ 8% APR = $172.35/mo payment.


That being said, I pay cash for toys. ;) That's why I don't own a 450 class quad, yet.

[bwamos]

Originally posted by sakirocket28
Ok, thanks for all your help on this. would it be possible/legal for him to hand the quad over to me, and have the financing changed so I can make the payments straight to the dealer instead of giving the money to him to make the payments?

thanks to all for the help!

It doesn't work that way. You will need to apply for a loan for the remaining balance of his loan. Once that loan is approved, you take the approval letter to his financing company and get a contract written up for them to transfer the lein to your lender. Your lender pays off their lender. His loon is paid off, and now you have your own loan.

The same as selling a used car with an existing loan (lein) on it.

Find a lender (your bank) and get advise from them.

Do NOT, go with the pay through your firend option. If you do, remember you are renting the bike, and he will take it back when he wants, or the lender will reposes it when he doesnt pay the money you give him, and you lose the quad and a friend.

Originally posted by bwamos
.. your best bet is to get a loan for $5000 (if the quad is worth that much), and you'll probably both have to meet with the creditor to transfer the title / lien information.

Yup.

Taking over payments is a good way for a friend to become an EX-friend.

[400exrider707]

Originally posted by bwamos
$6000 wouldn't buy a new 450R. There would be a downpayment involved.

Current loan rates are ~8%APR.
450R retail = $6899.00 + setup fee = $7000.00

$1500 downpayment = $5500 loan.

$5500 36mo loan @ 8% APR = $172.35/mo payment.


That being said, I pay cash for toys. ;) That's why I don't own a 450 class quad, yet.

Ok gotcha, and I too only pay cash for my toys! Makes life much easier.:cool:

[400exrider707]

Originally posted by garandman
Yup.

Taking over payments is a good way for a friend to become an EX-friend.

Definitely.

Heres a little story for you.....

My buddy in the past year or so sold off three of his toys to friends.

An 05 450R
An 04 KLX 110
and A 2000 24' trailer (forget name)

For the quad and the bike, he was supposed to be payed "X" amount of dollars a week. Mind you we are all friends and still remain so for the time being

The kid with the 450... out of work now and pays a few hundred here or there whenever he gets money. (good thing the loan is paid off) yet he manages to buy a lot of stuff for this four wheeler. He also has an 04 that has been blown up and is still making payments to honda on. Who do you think gets the payments first? His buddy or Honda America?

The kid with the pit bike... supposed to be paying $200 a week. Had diminished to $50 a week at best... but he's not saying anything to him because he is in fact making payments and this is enough to keep my buddy happy.

The kid with the trailer.... This was a trade deal... Got a sled, dirt bike and $1000 for the trailer. Got everything except for the money... but he figures aww Ill get it in a few weeks, cause Im eager to ride the sled. Well about 3 months has gone by and so far only has $500 of the $1000. The kid who has the trailer has all brand new bikes, and comes from a healthy chunk of money... no reason he hasn't payed yet. Last we saw him we met him up at the lake, the kid was leaving as we were coming...hops in his truck, honks the horn and waves and then just leaves without saying a word.......


DO NOT LET YOUR FRIENDS MAKE PAYMENTS TO YOU!!!!!!!! ESPECIALLY IF YOU YOURSELF OWE MONEY ON THE ITEM IN QUESTION!