Buying an ATV Questions and suggestions about what to buy, financing, insurance, etc.

Anyone a finance manager or know about financing?

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Old 01-19-2005, 02:29 AM
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Default Anyone a finance manager or know about financing?


So, I've been trying to buy a new quad since I was 14, and after many deals with family falling through, when Iturned 16 Ig ot a job, and kept it unitl I was 18. I then quit, but unfortunately had to return to work there due tot he fact that finding a job around here is hard. So anyway, I want to buy myself a quad and I figured if I finance it, I can establish credit so later on things like a new car or house will be esier for me to get. I want to know if you guys think it is even going to be possible for me to finance a quad. so here's the rundown

I just turned 18 and don't have any bills. Gross approximately $1200(bring home $800-$900) a month and have only had one employer my entire working career, the problem is I quit for about a month and a half when I thought I had another(much better) job lined up and things fell through(I know, stupid) But I am currently employed by the same company- since early December. Now, I have no credit, I have tried once before to buy a quad but needed a co-signer, and will have about $1500 for a down payment. Anybody "in the know" think I have a chance at getting financed?

Now, I don't want to hear any "pay cash, blah blah blah stuff". I want to buy a "toy" before I have real bills and can afford to. I've had more than enough time to wiegh the + and - to financing, and I have made the decision that I want to try to. I also plan on paying it off within a year(before I go away to college) SO if you have any advice or input on this subject, I would appreciate it.
 
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Old 01-19-2005, 02:43 AM
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Default Anyone a finance manager or know about financing?

Its possible,
Usually they look at your FICA score, and if its not a certain number , ans you have a max number of adverse accounts (or none), ect. But recreation vehicles are low on the list of priroities. They know what you are going to have to start paying rent/mortgage, get a truck, ect.
Do you have a checking account? A savings account?
If you do, go to your bank first.
If not, ask the finance manager/salesman what credit unions/banks they work with, and go down there and talk to the loan officers in person first. Keep the ball in your court.
 
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Old 01-19-2005, 02:52 AM
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Default Anyone a finance manager or know about financing?


Yes, I do have Checking and savings account. I am afraid though that that will adversely affect my chances because when I opened my account, the gentelmen that opened my account opended 2 checking accounts, closed out one and sent me the checks for the closed account before I realized it and ended up with 2 bad checks because of it(although this was resolved). Also, if I had my $1500 down payment and used my vehicle as collateral, would that help my chances? I appreciate the response.
 
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Old 01-19-2005, 09:57 AM
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Default Anyone a finance manager or know about financing?

Probably your best bet is with your local bank. Having a significant down payment is a great idea.

A loan is all about risk - the bank is assesing how much risk is involved to come up with an interest amount within the current market range. On the minus side - you are young and have no credit history. This will cause the lender to be less interested in making the loan and thus, they will charge you a higher interest rate. What you need to do is to offset this by selling the bank on the positive side of giving you the loan: You will be making a down payment so the ATV should always have a value high enough to pay off the loan, you have a steady income with few expenses - can't hurt to go to the bank with a budget plan. You should be able to get a loan however expect to pay a few points extra in interest or even have a requirement for a co-signer.

I bought my first new car at age 19. I'd been working for years, had saved some of the money and was able to get a competitive loan through my local bank. However, since I had no credit history, they required that I have a co-signer. So basically, my first 'loan application' was to convince my dad that I could afford the car, then with his co-signing I was able to get the loan. That was the first and last time that I needed a co-signer. You may not like the idea of a co-signer, but look at it from the bank's point of view; If you can't convince your parents (or other potential co-signer) that you are good for the loan, why should the bank believe it either.

Also, if you can't work things out with your regular bank, shop around. Bottom line - Getting a loan is just buying money.

Jaybee
 
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Old 01-19-2005, 10:28 AM
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Default Anyone a finance manager or know about financing?

i was 24 when i bought my own quad,i owned my own construction buisness at the time.i had no credit what so ever,i went there thinking if i had half the money i could finance the rest so i could build up some credit.at the time i showed them proof that i was bringing home $2500 on a bad week,i even showed them a few weeks that i brought home $6000,then denied me financing without a co-signer,i said ok whatever then and just paid cash,drove home with the machine in the truck and no sooner than i walked through the door the phone rang,it was the dealer,they said they found a bank to finance me at a low rate.so i ended up getting all my money back and filled out the finance papers.im assuming they are going to want a co-signer before they finance you,but it doesnt hurt to try..good luck..
 
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Old 01-19-2005, 12:28 PM
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Default Anyone a finance manager or know about financing?


Thanks for the info. I had tryed once a month or two ago, and they said I needed a co-signer, or $800 down, which I had but I blew up the tranny in my car so that had to come first. My biggest concern is the fact that I had quit my job, and have only been back for a short period of time.
 
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Old 01-20-2005, 12:34 AM
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Default Anyone a finance manager or know about financing?

what about financing through the manufacter honda,yamaha,or whoever ? u may have a better chance than with a bank
 
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Old 01-20-2005, 05:34 AM
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Default Anyone a finance manager or know about financing?

Originally posted by: pmkhead
what about financing through the manufacter honda,yamaha,or whoever ? u may have a better chance than with a bank
LOL, funniest thing I've ever heard. I'm not trying to dog on ya, but if you do a little research you'll understand why I laughed at that comment. I do appreciate you throwing out idea's though.
 
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Old 01-20-2005, 09:28 AM
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Default Anyone a finance manager or know about financing?

Actually Pendejo, you may want to laugh a little less and check out the manufactures deals. Lord knows, if you search through these forums, you'll find that I'm the first one to rag on the dealer financing deals. However, not all the dealer financing plans are bad. My only complaints are the misleading "buy a quad for $49 a month" types. Many manufactures offer regular term financing at competive interest rates. The big thing about the dealer financing plans is that you need to make sure that you are totally clear as to the terms, conditions and possible penalties of the plan. Just be wary of plans that have low, short term interest rates and above all else, make sure that your finances put you in a position where you know that you can afford whaever payment plan you set up.

One possible advantage for you with the dealer plans is that your age and lack of credit history will be less of a factor. Since the manufactures financing plans have more built-in safeguards (safeguards for the manufacturer - if you fall off the plan then it kicks into a higher interest loan) they have more of a hold over you than a regular bank would. This could mean that you could finance with them without getting a co-signer. I still think it's a better deal to go with a bank or credit union, but as a first time borrower, you are going to have to make a few compromises.

You seem to be approaching this in a smart way so explore all the options and stick to your budget.

Jaybee
 
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Old 01-20-2005, 11:08 AM
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Default Anyone a finance manager or know about financing?

One quick point on security and repayment of certain loans ie recreational property. Atv's, boats, travel trailers, cottages and any other hobby collateral have higher rates of none payment simply due to need vs want, this is why interest rates are higher and approval percentages are lower for these items.

One needs a car to get to work, one needs a house to live in but if you lose your job the first payment to be skiped will be the ATV's and any other hobby asset you have in your garage. This why cottages require a higher down payment of 25% vs 5% for a residential home. The buyer now has incentive to deal with the cottage and not let the bank forclose as the owner could lose $50 grand or so.

Banks are low risk lenders therefore they need to mitigate losses as the shareholders demand this to protect their own investment.

If you are having a hard time obtaining credit try a secondary lender, you will pay 4 times higher interest but you will have history of repayment after the loan has matured. Also, don't pay the loan off early as this does not help you becuase lenders want to see that you can make the payments month after month and most important, on time. I can not stress this enough. Always make your payment on time!

And yes my background is in banking as a SR manager.

Good luck

 

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