Any suggestions for financing

[tonyy1]

reading yamahor's post made me think about this also, and I thought there was enough jacking goin on in his thread, so here's a new one

My younger brother who's made ALOT of mistakes in the past(credit wise) is paying for those mistakes now, but can't seem to get away from his past. He's looking for a bike now, me getting the busa in the next few weeks has him looking to get a gxsr600, but has been denied loans. I've told him not to ho out his ssn at dealers that it would actually hurt him moreso. Anyone know of a "high risk" financial institution that specializes in loans to people with less than perfect credit?



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[stkr00]

reading yamahor's post made me think about this also, and I thought there was enough jacking goin on in his thread, so here's a new one

My younger brother who's made ALOT of mistakes in the past(credit wise) is paying for those mistakes now, but can't seem to get away from his past. He's looking for a bike now, me getting the busa in the next few weeks has him looking to get a gxsr600, but has been denied loans. I've told him not to ho out his ssn at dealers that it would actually hurt him moreso. Anyone know of a "high risk" financial institution that specializes in loans to people with less than perfect credit?

Honestly, the best thing your brother can do is to wait until his credit is cleaned up. As hard as that may be, it is the best for him in the long run.

The "high risk" institutions are only there to make money. They make money by charging rediculous interest rates. Most of the payments for the first year are covering the interest, and not the principal. They make money by betting that their "high risk" client will default on the loan, then they can reposses the bike, and auction it off. They haven't lost anything usually. Now...if the buyer actually does pay off the loan, then they have probably paid 3-4 times what their property is actually worth.

Read my post to Yamahor about how to build up credit. Sorry to be short, but I've got to get back to work.

 

[tonyy1]

thanks stkr, but what's the highest interest rate they could go with on a bike that's only like 6 or 7k new? I was figuring he'd pay close to 9 or 10 after everything would be said or done. but thanks for the input.
Work will always be there, get back up here,

 

[Wag]

Probably more in the range of 21 to 24%. stkr is right. Take six months and clean up the credit first. He'll be really glad he did.

--Wag--

 

[stkr00]

Interesrt rates vary, but Wag is probably close

*** It's been a while, so this may have changed ***
When a financial lender goes into business, they have to file paperwork with the state that discloses the "highest" interest rate they will ever charge. They could put down 300% as a maximum, but only charge 24%. If someone is desperate enough, and willing to agree to the terms, then they could legally charge the 300% interest. They are only in violation of the lending laws when they charge OVER that 300% they listed on their paperwork.

So...the interest rate is determined by the lender, so be VERY carefull when applying for a loan. ESPECIALLY if it's a variable rate such as a "no interest for the first year" type of thing. People jump on those, but fail to read the fine print that says they'll be paying 35% every year after that.

Another loan trick is to get a balloon payment at the end of the loan. This keeps payment down but that final payment may be a few grand. When the borrower doesn't have the money because they forgot about saving for the balloon payment, then guess what...repossesion time.

You have to be very carefull with lenders. They are in business to make money, and they honestly don't care about what happens to you or your credit.

 

[Wag]

Do they do balloon payment loans on cars and motorcycles?

--Wag--

 

[stkr00]

Do they do balloon payment loans on cars and motorcycles?

--Wag--

They're usually called a "lease", but the lender can use any terms they want as long the borrower agrees to the terms.

 

[Rhythm]

Your credit is your word, so dont screw it up, Playa. Also dont right a check your azz cant cash. Live with in your means, not your overtime and please dont try to keep up with the Jones !

Follow these golden rules and you should have no problem establishing a hi credit rating.

my .02

Holla
Ty

 

[Wag]

Do they do balloon payment loans on cars and motorcycles?

--Wag--

They're usually called a "lease", but the lender can use any terms they want as long the borrower agrees to the terms.

Oh, yeah. Duh.

--Wag--