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+--- Thread: Low resale value (/showthread.php?tid=1413)
RE: Low resale value - ride4now_imp - 04-05-2018
(04-03-2018, 09:35 AM)obleo_imp Wrote: If you needed to finance it , should have waited and saved enough to pay cash. Don't let the borrower be a slave to the lender. Don't ask how I know that quote?
I know how you know that quote... and agree with you and him.
RE: Low resale value - LikeAfox_imp - 04-05-2018
I kinda stopped reading around page number 4 because everyone keeps giving the same advise. And it's a good advise. Don't buy new unless you ready to either lose money or keep it for a loooong time.
I don't get the "pay cash" mentality here. I chose to finance about $4k of my bike because Honda Financial gave me 1.9% and because other than mortgage I have no credit whatsoever. I'm keeping this bike forever and my credit keeps going up instead of stagnating.
RE: Low resale value - Banned_imp - 04-05-2018
(04-05-2018, 10:54 AM)LikeAfox_imp Wrote: I kinda stopped reading around page number 4 because everyone keeps giving the same advise. And it's a good advise. Don't buy new unless you ready to either lose money or keep it for a loooong time.
I don't get the "pay cash" mentality here. I chose to finance about $4k of my bike because Honda Financial gave me 1.9% and because other than mortgage I have no credit whatsoever. I'm keeping this bike forever and my credit keeps going up instead of stagnating.
The "pay cash mentality" as you put it hit me when I got my first loan for a truck and saw how much I would end paying back over 5 years. It only got worse when I saw the same (only far worse) thing on my mortgage. I decided that money was far better in my pocket than someone else's. So my wife and I decided to always make do with what we had until we could pay cash for something new.
That's why I rode a 1984 Yamaha Virago 1000 (with the gold trim) from '91-02. At 6'1" and change it was terribly uncomfortable and long rides almost crippled me but it was I could afford.
RE: Low resale value - LongRanger_imp - 04-05-2018
If one can borrow at a rate that is less than they can earn, then of course it can make sense to finance. My only issue with financing, aside from the interest, is that the lender has a lien on your asset and can require you to fully insure it, which gets expensive. I prefer to carry liability and uninsured motorist coverage only and not carry property or comp and collision coverage, even with a high deductible. I pay the premiums to myself instead and self-insure.
RE: Low resale value - Banned_imp - 04-05-2018
(04-05-2018, 12:13 PM)LongRanger_imp Wrote: If one can borrow at a rate that is less than they can earn, then of course it can make sense to finance. My only issue with financing, aside from the interest, is that the lender has a lien on your asset and can require you to fully insure it, which gets expensive. I prefer to carry liability and uninsured motorist coverage only and not carry property or comp and collision coverage, even with a high deductible. I pay the premiums to myself instead and self-insure.
I do exactly the same thing! I've never paid for more than basic insurance since that first loan.
RE: Low resale value - Houtman_imp - 04-05-2018
I also only have the basic insurance needed by law, even on brand new bikes.
We have high deductibles on car and house insurance , do not be insurance poor and do not use your house insurance for house maintenance.
RE: Low resale value - emptysea - 04-05-2018
I guess I have to ask what you all define as “basic” insurance.
RE: Low resale value - Banned_imp - 04-05-2018
Here in Canada basic insurance (as I understand it anyway, I am by no means an insurance expert) is public liability only as in if I get sued I'm covered. That's about it, I have no collision, theft or fire protection on any of my 10 vehicles.
If I smash it, burn it or lose it the cost is on me.
My house is different of course.
RE: Low resale value - Houtman_imp - 04-05-2018
(04-05-2018, 09:09 PM)EmptySea_imp Wrote: I guess I have to ask what you all define as “basic” insurance.
I define "basic" insurance as the insurance you HAVE to HAVE in the state you live , every state has some difference in the amounts .
I live in NC and this is different than when we lived in Upstate NY.
I never have theft, fire or comprehensive insurance on any of my bikes , that risk I can take myself.
Have been with Progressive for over 30 years , never put in a claim yet and pay about $ 80 for each of my 3 bikes.
My insurance in New York was much cheaper for the following reasons :
shorter riding season , safer roads than WNC and less tourists
Insurance companies know more about you than you think.
Having good credit also lowers your insurance rates , less likely to put a claim in for something.
One of my farmer customers in Upstate NY always wanted to "break even " on his insurance premiums by putting claims in for something.
I warned him that sooner or later nobody wanted to insure him and that happened after changing companies 5 times in 7 years.
RE: Low resale value - emptysea - 04-06-2018
"Basic" and "Have to have in the state" are not very accurate terms, actually. I believe that all 50 states have mandatory vehicle insurance laws in place. To me, "basic" means the minimum limits of liability allowed in a particular state. Is that what you are saying you do, Houtman and W/R?