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Discussion Starter · #1 ·
Hey All,
You guys are probably getting tired of me asking all these questions, huh? :p Sorry, but I am just trying to learn a little more about some things ;-) Anyway, my question is this....I have chosen my bike that I will be getting this Summer, which is a '05 Ninja ZX-6R....and now I was wondering about purchasing. Since I am only 17, I have no credit what so ever....and I was wondering how I would purchase a bike myself (with a co-sighner of course), with me having no credit? Would I have to use someone else's credit? If you are 17 and under, how did you purchase your bike? Just wondering if it is possible to by a bike myself since I have no credit. Can the dealer work with you if you have no credit? Please let me know your thoughts if you know anything about this, I am kinda lost. Thanks again everyone, sorry for all the questions! :grin:

~ Mel
 

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If I were you I would save up cash to pay for a used bike, especially if this is your first... Plus insurance might be cheaper with a paid for bike...in Michigan it is anyway.
There are some great used bikes in the 3K range!
 

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Got a job ?
If you are still living with your folks, you can work at a job and save everything for your bike.
You can't get any credit without a source of income to pay it back.
Just don't let this whole bike thing get in the way of real life priorities,
like school, which leads to a good job, which leads to a decent income, which leads to the freedom to buy any bike you want.
I got my first road bike in 1983 and I paid around $2000 for it.
That doesn't sound like much to you now, but back then I was 16 and worked in a kitchen, and it seemed like a lot of money.
Maby, if the whole financing thing doesn't work out for you, you could consider buying a bike that might be a couple years old - they're much cheaper. Most new riders buy used bikes.
As a new rider, you wouldn't notice much difference between a 2 or 3 year old bike and a brand new one.
You could get that brand new dream bike in a couple years when you have become a better rider and are more able to appreciate it.
Anyway, that's just how I approached it.

This is the bike that used to drive me crazy......

Greg
 

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With no credit you will not be able to get any financing. Even if you were 18 and had a little credit, chances are you would not be approved. Supposing you could get the financing at age 18, do you really want to put yourself $10,000 in debt at the fresh age of 18? Do you realize how long it will take to pay off?

Not to put a damper on the mood, but you are really planning in advance. So many things can change from now until the summer.

Like everyone else, save up some cash and buy an old used one. Chances are, you will not be able to buy a brand new 05 ZX-6R this summer. There is a huge demand in my area for those sport bikes, if you walk into a dealer in my area there will be no 600cc sport bikes on the floor. You have to put a deposit on one and order it. Then it usually takes another 4-6 weeks to get it.

You can get an older 250R or 500R for a few grand.

Again, sorry for the mood killer, but just some thoughts.

:neutral:
 

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Well this doesn't help you any but I had a credit card since I was 16 and I paid it off every month. So when I was 18 and bought my bike I had good enough credit to walk in to the bank and say hey I need a load for this and they said ok cool.

Some things they will look at even if you get a co-signer is...

How much money do you make per month or year?

How good is the credit of your co-signer?

How much do you have for expences each month? IE: gas, rent, car payment, utilities.

Even if you have the best credit in the world and they calculate that you have too many expences you won't get the load.

The longest you'll be able to get a loan for a bike will prolly be about 5 years. A brand spanking new 6R will run you about $8,600. Add in tax and all that good stuff and you might as well round up to about $9,500. Then add in the financing over 5 years and that will be about $1,500 more. (keep in mind these are rough estimates, if someone wants to nit pick the 5 second calculations I did in my head with a calculator more power to them)...

So lets say its like $11,000 over 5 years... That would be a little less than $200 a month. Since your only 17 I assume you're still in school. I highly doubt you could make those payments unless you have a better job than I did and work your butt off. If you do that though will you have time to ride?

I know that new bike is awsome looking and you'd love to have and I think you'd probably do great on it... You might wanna consider a lower budget bike for now. Listen to what they are saying here. Unless your parents are willing to float you a loan for a bike (mine wouldn't :p), You should probably look at the $3,000 to $4,000 range. The first bike I bought cost me $3,150. I paid $1,000 down and got a loan for the $2,150. The bike I have now isn't even brand new when I got it. It cost me $5,900 and I got a NICE deal on it cause the guy had a kid and had to get rid of it. Keep in mind though I make $700 a pay check. (which isn't that much compared to a lot of people but hey, I like the money :p)

After you crunch those numbers you'll also have to figure in insurance. I don't know why I get such a good deal on my insurance but my 900 only costs me $65 a month. Most of the people here will say they pay TONS more. Especially if you have a few tickets it will jump right up there.

The best thing for you to do is to figure out a monthly budget. Figure in ALL of your expences and then figure in how much money you make. Anything left over is what you can aford to spend on the bike per month. If you have any questions about figuring the budget just drop me a line. I'd recomend using Excel. You can download a personl monthly budget form from Microsoft. The cool thing about doing this is you can print it out and show it to your bank. They will know you have your head on you shoulders as far as money and will be VERY impressed. I did that for the first bike I got and I know I blew him away hehe. The second one I was shooting the numbers off from memory while the banker lady was trying to figure out the monthly payments on her calculator. She was pretty impressed too. Think of getting a load as almost a job interview. The more you impress them the better chance you have of getting what you want. Be careful though... not all bankers will do what is best for you.
 

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Discussion Starter · #7 ·
Credit..

Ok, well.....for one thing, I am not in school. I am getting my G.E.D., I have already studied for it, and in January I go take my first test. So as for my schooling, that pretty much describes it. As of right now, I have no other bills to pay for. This is why I want to get my bike soon, so it can be my main priority. And yes, I do have a job. I already have $2,000 + saved up. And I will be making more with every paycheck. And yes I will have plenty of time to ride. :wink: As for the credit issue, I may just put it on my dad's credit and I can pay the payments when the bill(s) arrive for the bike. I don't want to get a used bike, even though its my first. I want to break it in myself. So anyway, financially....I will have no problem paying for the bike....the only problem I would have would be credit since I don't have any. But like I said, I can always use my Dad's if all else fails....but I really kinda wanted to build up my own. Is there a way I can build up my own that you know of so I can get the bike with my own credit? Please lemme know what you think. Thanks in advance!

~ Mel
 

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If you decide that you can indeed afford the payments on a new bike, you have a couple of options for financing.

You can get an installment loan through a bank or credit union you have a relationship with. Credit unions will probably give you a better interest rate. With little to no credit you will probably need a co-signer, but you might be able to build enough credit before then to get a credit union that you have built a relationship with to give you the loan. I'll tell you how to build credit in a minute.

The other option is factory financing, which usually offers good promotional terms, and is generally a revolving credit limit (like a credit card). It's alot harder to qualify (I needed a co-signer even though I have excellent credit scores due to being 23 and only have a few years of credit history) and you should really learn about credit reports and scores before financing a bike on revolving credit so as to minimize the negative impact on your score.

Now, about building credit. Believe it or not, at 17 with no credit history you're already better off than more than 1/2 of adult americans. It's pretty easy to build a good credit history, it's alot harder to overcome a negative history. You won't qualify for Kawi financing anytime soon, but we can get you to the point where you could qualify for a credit union loan within a year without a co-signer. Here's how:

(You may need a co-signer for anything you do before the age of 18 )

Rule #1 - Pull your tri-merge credit report with scores at least every 6 months. You should be able to find a local credit counciling agency that can pull your report for around 25 bucks. Check it for errors and dispute any inaccuracies. It's also a good idea to educate yourself on how credit scores are derived (the exact formulas are guarded secrets, but you can get a good idea of how things work).

Rule #2 - Always, always, always pay your bills on time. And never abuse your new found credit by using it to finance things you really can't afford. Remember, just because you can get approved for something doesn't neccassarily mean you can afford it.

1 - If you don't already have one, open a checking and savings account at your favorite local credit union that you are eligible to join. Make sure to place $500 (save if you have to, it's a savings account ;) ) into your savings. Make it a habit to make a regular monthly deposit to savings.

2 - Once you've established an account with the bank and made a few monthly deposits, take out a $500 personal loan that you will repay over 6 months. Immediately place the $500 from the loan into your savings account. Each month, make your payment out of your savings account. You will be repaying the loan with the money from the loan, plus about $25 total in interest.

3 - As soon as you repay the loan, apply for a credit card at your credit union. You now not only have a very positive credit history (albiet short and limited), you also have an established credit relationship with your credit union. Make sure there is no fee associated with either opening or maintaining the account, as you should qualify for a card without fees at this point, if you don't use the card, you should pay nothing. Also make sure you have a grace period for purchases. A lower interest rate is of course desirable, but don't worry too much about this now, as you'll never pay interest anyways. Use the card to make purchases you would normally have paid for with cash, and pay off the entire balance AS SOON AS YOU RECEIVE YOUR STATEMENT. This is the proper way to use credit cards. Make a habit of this now, and follow that simple rule for as long as ye shall live.

4 - At the same time you do this, apply for a store card at your favorite clothing store. These are generally easy to get, as they have insanely high interest rates. But we're not concerned with interest rates, because you've made a lifestyle out of using credit cards the right way, so you're not paying interest anyways. Remember, only use your card for what you were going to pay cash for anyways. Never use your card in the place of money you don't yet have!!! Having 2 recently opened accounts is the max you want to have. On both your cards, never use more than 50% of the available credit on either card. Even though your paying off the entire balance, depending on when the credit card company reports to the credit agencies, your mid-month balance might be reported, and we don't want more than 50% usage to show up.

5 - 6 months after opening these cards, we're ready to explore finacing a motorcycle through your credit union. The first thing to do is not use our cards the last month so that we have 100% available credit. Then it's time to pull your report again (we've been doing this every 6 months, right?) to make sure our scores are up to snuff and there are no suprises waiting in the shadows to crush our dreams. To break down your credit score, generally we want to see 700+, but with your age and very limited history, you may be looking at 600s. As you continue to use your credit wisely, simple credit history length will see your scores skyrocket (the higher the score the better, with 900 being the highest possible). If your scores are looking promising (mid to high 600s or better), it's time to visit your credit union and apply for the loan. With your established and good (although limited) credit history, as well as your history with the credit union itself, you should be able to qualify without a co-signer at a decent APR. Since you know your scores, don't be afraid to negotiate if you've got good numbers. And remember not to abuse your good credit and get in over your head just because you can qualify.

Hope this helps,
Kris
 

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Discussion Starter · #9 ·
Credit...

Wow Kris, thanks for all the info! I just don't know if I'll remember how to do all that, but....one thing is, I really don't want to get involved with credit cards. Plus, don't you have to be 18 to have a credit card? But, if I go through all that, I won't be able to get my bike this Summer. And I really want it this Summer. Would there be any disadvantages using someone else's credit? I would be using my dad's credit, that is....because I want the bike this summer. There is probably no way for me to be approved myself this summer since I have no credit history, unless I try a faster method of building it up. I don't know, I probably am out of luck with using my own credit if I want my bike by summer, huh?

~ Mel
 

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To open a credit card account by yourself, yes, you have to be 18. I guess I should have asked how close you are to turning 18. And I commend you on wanting to stay away from credit cards, but don't. If nothing else, open an account and then put the card somewhere safe and never use it. Unfortunately, it is impossible to build really good credit without revolving accounts.

But more to the point of you purchasing a bike with your own credit this summer, no, it's not going to happen. That's just not enough time to establish enough credit history. So, based on your desires, here is my advice to you, and it's alot simpler.

Take your dad down to said credit union and have him co-sign an installment loan for you. This is very different than buying a bike with his credit. This is buying a bike with your credit, with your dad using his credit to assure the bank that if you should fail to repay the debt, he will. This will show up on both of your credit reports. That's the important part, as it will really help you build credit.

The day you turn 18, get a credit card through your credit union. Use it like a debit card and pay off the balance, or if you're worried you'll overspend, put it away and never use it.

Enjoy your bike and make all your payments on time. Pull your credit report every 6 months to check for errors (this is very important). In 2 years, you'll have insane credit for your age. In 3 - 5 years you'll be able to qualify for just about anything.

If you ever have any questions about how credit scores work, just PM me. It's pretty complicated, but I'd be happy to explain everything I know.
 

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Yeah, yagisha is right. Lots of people say credit cards are bad. I disagree. They are just like the bike you want to get. Its a great tool/toy, but used unwisely can cause lots of problems. A credit card is one of the easyest ways to build credit. I"m only 21 and I have a better credit rating than 90% of the adults out there. Like I said before I paided my credit card I had since 16 (co-signed by my mom) every month. Thats why she got it for me. She wanted me to build up my credit. I've also had 3 vehical loans since then that I've never missed a payment on. I plan on buying a house within the next couple years so this will help A LOT!

Thats great that you can afford the bike. Like I said though, make up a monthly budget. Even if you don't think you pay for anything right now make one anyway. Put in all the little things you pay for, gas, food, cloths etc. Even if there isn't much expence on there it shows the credit instatution that you know what you are doing as far as money goes. I almost never use cash to buy anything anymore. I either use my credit card or my debit card. Its fast, easy, and it builds my credit scores even more. I stress again, a credit card isn't bad, the people who use it unwisely make it bad. Just like a bike. A bike is not dangerous, the bad rider makes it dangerous.

P.S. As he said, having your dad co-sign the loan doesn't mean it won't be on your credit, it means he takes responsability if you default(don't pay) on the loan. Paying off the loan, even with it co-signed, will help you establish a good credit for years to come when you want to buy something else.
 

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Hmm....would be better to get a used bike and pocket the savings. I know you're still young and aren't even in the mindset to think about this. But you should take that extra money you'll save and either bank it, invest, or put it into a retirement account. I don't know what your current employment situation is like but chances are with only a GED the benefits aren't going to be that great if any. Personally, I wished I had started much earlier to save for retirement and I have a very good job with excellent benefits now.
 

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I wouldn't buy a new bike as my first. Most people drop their first bike at least once and although I would hate to drop any bike, I would rather drop an older, less expensive one than a new, shiny, expensive one.

Remember you have to be gentle for the first 600 miles on a new bike while the engine is breaking in and, I believe, you shouldn't go above about 5,000 RPM during this period.

I was adamant on getting a 2004 R1, but saw the light and got something smaller, although still not recommended as an ideal starter bike, a 2001 Ninja ZX-6R. It's plenty powerful and in capable hands can take out 1000s.

It doesn't matter what we say because your mind is set on what you want, but at 17 you have plenty of riding years and time to try different bikes.

The experienced riders on here are just trying to help, as are us less experienced like myself. We'd hate to see anything bad happen to you as usually new riders + sports bikes = fatal. There is so much to think about on the road and when you get to more powerful bikes, they have stopping power to match and grabbing a handful of 4/6 pots can be just as bad as going too fast.

Whatever happens make sure you take the MSF course (we don't have that in the UK, but our bike courses and tests are very comprehensive).

Just be careful and remember we couldn't run before we could walk.
 

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Discussion Starter · #14 ·
Hmmmmm....

You guys are kinda making me think about getting a 2005 for my first bike now. It'll probably be so gergeous, I'll be scared to ride it cause it might get dirty :p LOL. It's kinda funny, because thats kinda the person I am. I am gonna let you all know now, that I am a perfectionist. Sorry, but I have always been one. So when I get something that I pay a lot for, I am very picky. This could be why I want a "new" bike as my first bike, rather than starting on an older one. Could be. But, like I said...now you all are making me think. I will most likley drop it, since I am a new rider. And man, If I were to drop a new 2005 Kawasaki Ninja ZX-6R, it would kill me. I would feel like **** if that happened. Now, IF I decide to go on a little different path and get an older model, I was thinking this is what I could do: I could get oh say, a 2000 to 2003 model(if not older), and pay a few grand for one. Then, I can learn on it, since it will be my first bike....and hey, If I drop it, I DROP IT! I am only learning, right? So, in the mean time I thought....I could take the course, and build up my credit for when I want to go buy my NEW Ninja 6R. By this time...it may even be 2006. Probably will be actually. But anyway, thats what I would do IF I decided to get a used bike from cycle trader(I browse that magazine off and on :p) And in the meantime, I can also put some more money away for my new bike(The bike, leathers, a helmet, insurance, gas, ect...) Like you all said....I am only 17, I have plenty of time to go through new bikes, right? I am just thinking about this now. You guys really make a lot of sense to me, this is why I am changing my mind so much(if you didn't notice), because you guys, well....you guys are right. I am new to this....the majority of you have been riding for years. YOU KNOW what you are talking about, because you've been there. This I know. Anyway, I am not saying no to an older model...but I am not sayiny yes right now either. I am gonna go get a cycle trader magazine and browse at my possibilites :wink: And if I see one that I truley wouldn't mind riding....then I'll be thinking, "Man, maybe getting an older bike wouldn't be so bad afterall!" I can see myself thinking that. Just never really took getting an older bike into consideration I guess. And hey, an older bike is better than no bike at all. And getting an older bike, is better than totalling a new bike...and still having to pay for it. If I did bite on an older model, at least I wouldn't still be paying on it...and at least I only paid $2,000 to $4,000 for it in total rather than $9,000 or something, not to mention the extras :eek: But anyway....those are my thoughts. I still want a Ninja, but if I do get an older bike, I will just have to see what I come across. When I get a new model, it will definently be a Ninja 6R. DEFINENTLY! :grin: Anyway, thanks again for the replies everyone....and thanks for opening my eyes these past couple days. In the long run, you all probably saved my life. You guys are the best! Thankyou sooooo much for all that you did! :wink:

~ Mel
 

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Discussion Starter · #16 ·
Nice Bike!

Wow MJ, thats a NICE ride! May I ask how much you paid for it? I am still just trying to decide what I should do. I will think more on it. Thanks again for your help :wink:

~ Mel
 

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If you look at getting a used bike, and you're set about a 600cc instead of something smaller, I HIGHLY recommend a bike similar to MJs. I ride an 05 ZZR600, which is essentially the same bike, and it is an excellent, excellent machine.
 

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If you want to get an idea of what used bikes go for,
goto ebay motors, click on Kawasaki, then go down the left side of the screen and click on Ninja. You will see lots of bikes still for sale. So go back to the left side of the screen and check off Completed listings and click on Show Items. Now you will be able to look at all of the recent bikes that sold and the ones that didn't because the reserve price was not met.
It might be a good idea to surf ebay for a few months over the winter to get an idea of what you can expect to pay when your time comes to buy.
Read the item description to see if there is any damage, and you will also want to consider the milage and condition of the parts that wear out, like the chain/sprockets, tires, and brake pads.
It doesn't cost anything to look. ;-)
Greg
 

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In some cir***stances you can get a credit card under the age of 18, my daughter was able to get one with a $200.00 limit before she was 18 at the credit union I've belonged to for over 25years. Even with that said, I don't think a dealer can legally sell a motorcycle to a minor. Untill age 18 you can't enter into a legal contract. I'm not trying to discourage you. I hope you eventually get the bike you want, but used aren't all that bad. I don't ride a sport bike, I ride a Vulcan 800A that was a year old when I bought it, only had 600+ miles on it, had the first service done and had new Vance & Hines cruzers installed. I had been looking at the 2004's at the dealer when i came across this 2003. I saved over $2000.00, It still looked like it just rolled out of the showroom.

Good luck and Ride Safe!
 

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NinjaChick said:
Wow MJ, thats a NICE ride! May I ask how much you paid for it? I am still just trying to decide what I should do. I will think more on it. Thanks again for your help :wink:

~ Mel
I got it for £3,895 UK, it had 2/3 previous owners and under 8000 miles on it. It was stock apart form the carbon hugger.

I got it from a local dealer and they did the 8000 mile service, did its first MOT and fitted a new rear tyre for free, and they knocked money off the alarm and gave me 10% off my leathers, gloves, boots and helmet, which I bought at the same time as the bike.

I was expecting my insurance to be around £1,000 and after trying numerous compaines I got it for £964.90 fully comprehensive (covers me for fire, theft and accidental damage), and not only did I get it a bit cheaper than I expected I also got more than I bargained for: my excess is just £100, I am insured to take a pillion and can ride other bikes with third party cover. I am very happy for my first ever bike insurance.

About a month or two since getting my bike and the dealer now has a sale on. D'oh! For example they had two J1 ZX-6s for £,3,195 (£700 less than I paid) and they had a 1999 R1 with 17,000 miles on it also for £3,195. If I knew they were going to have a sale I would've waited. Isn't hindsight wonderful!

I am happy with my bike, but whenever I go into that dealer they always have so much choice and it makes you want to try others. If I could afford to, I would own more than one bike.

My next bike will be one with an undertail exhaust.
 
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