"ok so since i owe around 8,500 on my loan for my bike and i trade it in for the gsxr1000 which is around 10,000 ....your saying all i would owe is the 1,500 differance...its all so confusing to me. im pretty retarded when it comes to this. lol. well i got one of my friends that wants to buy it ( take over payments ) so pretty much he is gonna take a loan out to pay off my loan and he will be making his own payments...then i wont have any at all....at that point i just go to the dealer and finance for a gsxr1000 right....if they let me take out another loan. which i dont know if they will...that bike was my first loan and im only 20 yrs old...it was real hard for me to get that loan for my bike...i needed a co sign and then i got it put in only my name. anyway, i think i got the idea but not 100% sure on the trading part"
Well first, a few basics: if you owe 8300 on your bike, and they give you 8300 for it on trade, you're essentially GIVING them the bike, and you'd owe the full amount for whatever you are trading on. Now, if, say, you owed 8300 on your bike, and they gave yuo 9300 for it (not likely, but it makes things easier to figure) it would be the same as you putting 1000 bucks down on the new bike. For your down payment, you figure in what they're giving you for yours minus what you owe on it. Some folks wind up "upside down" on their trade. where your bike is worth 8 grand, but you owe 8300 on it. in that case, they would ADD 300 dollars to the price if the bike you were trading for. I hope that makes sense. if not, PM me and I'll see what I can do for you to make it easier to get.
As for financing a new bike, well, it's going to depend on your credit. Have you been paying your bills on time? have you defaulted on a credit card payment? had a car repossessed? Not made your bike payment on time a lot of times?
A lender is going to look at your credit rating as well as your income to make a decision as to whether or not they want to extend you credit, and how MUCH they are going to give you. here's an example: if you are 20 years old, making 40 grand a year, have perfect credit, and want to get a loan on a 2 million dollar home, they're going to laugh you right out of the office. Why? because they know you have no means of making the payments.
Another thing they are going to look at is your debt to income ratio. Simply stated, thats going to be a precentage of how much miney you bring home versus how much you have going out on bills. If you're bringing home 3600 bucks a month, but paying out 3000 a month in home, car, credit card, etc, they wont finance you. However, if you're bringing home the same amount, but have no outstanding car loans, a 400 a month rent payment, and 50 bucks a month in credit card payments, they view you as having a lot better ability to pay. Hope none of this was too confusing, and that it helped. again, PM me if you need any more help.
