I have a friend that is wanting a DS, and he needs to finance the bike. I thought I found him a killer deal on a 2004 DS almost completely stock for $4000. Well he contacts his credit union to get the loan and they say the NADA average retail is only $3560, and that is what they would finance him. Just out of curiosity I looked up a 2004 raptor and the average retail on the rappy is $4100. I found it quite frustrating as did my friend.

 

what's crazy is they will finance up to 72 months or more.......? at least on new ones...

 

I always use NADA as a bargaining tool for a used DS. I've purchased one new from the dealer and three used off of eBay. Some folks will ask $4K for an 01 or 02 out here in Cali and when you whip out the NADA values and they are below the $2500 mark it's quite the eye opener for the seller.

Killer for me though![img]i/expressions/face-icon-small-wink.gif[/img]

Us DS owners are just too proud for our own good sometimes. By the way, there is no way in Hell that I would sell or would have sold my used ones for what I picked them up for. Just have to be patient for the right deal for you to come along.

 

It's always a good idea to put some money down on anything you buy. . . at least if you have to sell it you won't end up owing the bank. . . hopefully. Tell him to save for a few months then find a quad to buy that he can put something down on. The bank doesn't want to be stuck with a $4000 loan on a $3500 quad if he defaults on the loan so, can't blame anyone for that. . . I will agree, the value does seem a bit low but, your buddy should be putting something down too. Having huge loans on toys isn't a good idea. I've met guys that have rolled their quads down hills the first trip out. . . if he can't come up with the $500 for a down payment how is he going to pay the $1000 repair bill? Sure sucks paying a loan on something that's sitting in the garage because you can't afford to repair it.

He may be better off finding a different quad he can afford to pay cash for then working up to a DS.

Dang. . . I'm really starting to sound old.

 

A friend of mine and his brother went to a suzuki dealer to get their first quads. Brand new 250 beginner quads. One was the sport and the other was the utility version. After 2 months the quads were stolen. Cops dont care at all. The bank says its not thier problem....keep sending the payments. Just imagine paying full retail for NOTHING! Glad I have insurance.

 

I would agree, not the banks problem. You can't get mad at the bank for that. They are not the bad-guy here.

I'm sure the cops cared, they just may have delt with stolen quads before and felt the chance of them ever showing up again was slim.

At least if you own it outright, you aren't making payments on something you don't have around to enjoy.


Now where I don't have any sympathy for the banks is when they let people borrow too much money. . . house down the street is going into forclosure. . . they bought the house for $540k and they owe $540k. The market has probably dropped a little so, let's say it is worth $520k. . . the bank is getting it back (long story from the new owners I've met only a couple times.) Anyways, the pank will eat at least $20k plus any Real Estate Commissions they end up paying. They should have never lent that much money in the first place. I hope the banks lose $40,000 on this. They need a good slap in the face to realize they are letting people get too upside-down on their loans. I'm sure it will cost us in the short-run with extra fees to pay for these defaults but, if they only loaned $432k (80% of $540k) in the first place there would be someone willing to buy the house for at least $432k and pay the bank off. Stick it to the MAN!!!

 

Some may be able to "outright buy" things like quads and other toys. I, however, do not live with such luxuries. In order to have toys, for the most part I have to finance. It is easy for someone who makes a lot of money to make comments like that. I guess you could just tell me to find another job and make more money. I made my bed and I will sleep in it.

 

The cops just told them the quads are probably in mexico already. They know they are GONE. The bank, I agree, they need full payment. I just wish they could work a deal to soften the payment by dropping the interest a bunch "or something".

The housing market is terrible, actually scary but everyone is trying to deny it cuz that means a loss on investment.

Talk about the price of cars and trucks! $800 a month for a 42k new truck and thats an average crew cab F250. Then talk about upside down!!!!!!!

Banks suck......and the dealers make the deal sour from the start.

 

I don't think that banks "suck" really, other than the idea that they charge high interest rates. I do understand that it is all necessary in our economic system. HOwever, i do agree that Dealers suck. I personally have a problem with someone trying to sell something to me that they bought for 4-8 thousand dollars less than their asking price. Some might call that free market, but I call it dishonesty. I prefer to buy from individuals. Just my .02

 

Qball - I hate to have to be the bad guy here but the attitude this post displays will be a huge obstical to overcome if you ever want to be able to go down and just pay for something. I had a couple of guys make similar comments to me awhile back.

To say, "It is easy for someone who makes a lot of money to make comments like that" is a financial death warrant. It indicates that you think that only people with a lot of money can afford to be smart with their money. That will keep you from having money forever. Turn it around and think in these terms...........Be smart with your money when you only have a little and soon you will have a lot.

Regarding book values? They aren't regional. They are based on several factors and formulae but maybe the biggest factor is what "Buyers" who work for brokers and dealerships (they are also called purchasers) are willing to pay for quads. There is a difference between what people advertise their quads for and what professional buyers actually pay for them across the country. Based on what these guys are paying, they formulate a retail value that includes some repairs, overhead and sales cost for a dealer to buy then sell the quad. Most of the private party purchases are overinflated but those cannot be tracked practically so it doesn't really impact book value.............as I understand it.

That doesn't change the fact that quads are selling ahead of book on average in the used market. Even the dealers are selling above book in the used market but that has less effect on book retail than the price a dealer is willing to purchase for.

If you over pay and the quad market starts to go soft, it may get down to where book value is well before book value catches up and starts to drop. I don't see that as being a huge risk.

Ron