ATV financing???
#1
11-01-2002, 10:34 PM
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ATV financing???
I am only 18, have no credit, and no co-signer...what i do have is a job, started about a week ago, and my dad owns a store...so he could always say i worked there for a certain amount of time. I want to finance a new atv whether it be credit card, honda card(yami card, etc.), or the dealer financing...what should i do to be able to get my atv? high interest isnt a problem but my payments have to be no higher then 110 dollers a month
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11-01-2002, 10:38 PM
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11-02-2002, 01:29 PM
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#4
11-02-2002, 02:47 PM
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ATV financing???
TreadHeavily,
If you have no credit you might have to start off with what is called a secured Visa or master credit card.
It goes something like this.
You send the card company $500 dollars, Your max credit limit is $500 dollars, you use the card for a period of time and make purchases on the card and I would then make the full payment for the purchases you have made through out the month.
Since they already have your money and you have no credit history if you default on a payment the money is there.
But anyway you need to make purchases and make the full payments and this will give you a credit history over time when you have none.
Other than that, I don't know what to tell you. Oh you could save up and pay cash.
Chet
If you have no credit you might have to start off with what is called a secured Visa or master credit card.
It goes something like this.
You send the card company $500 dollars, Your max credit limit is $500 dollars, you use the card for a period of time and make purchases on the card and I would then make the full payment for the purchases you have made through out the month.
Since they already have your money and you have no credit history if you default on a payment the money is there.
But anyway you need to make purchases and make the full payments and this will give you a credit history over time when you have none.
Other than that, I don't know what to tell you. Oh you could save up and pay cash.
Chet
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11-02-2002, 11:43 PM
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#6
11-03-2002, 11:45 AM
Pro Rider
Sound advice there. "Hey, watch this........"
Sound advice there. "Hey, watch this........"
ATV financing???
TreadHeavily - There's been a lot of sound advice offered in this and other threads on this topic. Basically, Any method you choose is probably going to take some time. It will take at least 6 months to establish some credit history as suggested by Chet. BTW - This is an excellent suggestion even if you are not in the market for buying a quad. Go and get yourself a credit card - NOW - Either a secured one or one with a very low limit. Start using it right away, but disipline yourself to only use it for things you would have bought anyway and have the money in hand to pay the card off in full each month. Be careful not to buy anything extra that you can "now" afford because you have a credit card or you will soon find yourself carrying a balance and paying interest.
The next thing you can do for the fastest way to get that new quad is to start saving as much as possible from that new job you just got. Your young age and lack of credit history can be offset by a bigger down payment. Plus, in addition to having some more money to pay up front you can swing a little infulence with a bank if you can show an ability to save more per month then you will need for a payment. You mentioned payments of $110/month. If you walk into a bank to get a loan for a $4,500 quad and you show them that you have $2,000 in hand because you were able to save $400 a month, you may be able to work something out, despite your age and non-history.
Lastly, I know you just need the numbers to work but keep in mind that the interest rate is very important. Once again, your lack of credit history is against you so you will be forced to pay a higher rate at first but you can still shop around. That $110 a month payment you want on the Honda card (16.75%) will buy you about $4,500 worth of quad. That same $110 payment at 8% would get you an extra $1,000.
Good luck with it. As you can tell from these posts, most of us have been where you are earlier in our lives. I cannot stress how important it is to establish and keep a good credit history. Do it right and you will soon have the ability to demand the best rates for whatever financing you need. Screw it up and you will pay hundreds of thousands of dollars extra (or more) over your lifetime.
Jaybee
The next thing you can do for the fastest way to get that new quad is to start saving as much as possible from that new job you just got. Your young age and lack of credit history can be offset by a bigger down payment. Plus, in addition to having some more money to pay up front you can swing a little infulence with a bank if you can show an ability to save more per month then you will need for a payment. You mentioned payments of $110/month. If you walk into a bank to get a loan for a $4,500 quad and you show them that you have $2,000 in hand because you were able to save $400 a month, you may be able to work something out, despite your age and non-history.
Lastly, I know you just need the numbers to work but keep in mind that the interest rate is very important. Once again, your lack of credit history is against you so you will be forced to pay a higher rate at first but you can still shop around. That $110 a month payment you want on the Honda card (16.75%) will buy you about $4,500 worth of quad. That same $110 payment at 8% would get you an extra $1,000.
Good luck with it. As you can tell from these posts, most of us have been where you are earlier in our lives. I cannot stress how important it is to establish and keep a good credit history. Do it right and you will soon have the ability to demand the best rates for whatever financing you need. Screw it up and you will pay hundreds of thousands of dollars extra (or more) over your lifetime.
Jaybee
#7
11-05-2002, 05:32 PM
ATV financing???
TreadHeavily, I remember well being in your shoes. 18 and want stuff that you can't afford, so use credit. I'm 26, and I was taught the value of a good credit history by my Dad, I hope that you are learning this as well.
I realize, believe me I realize the temptation. But I just wanted to tell you about my situation. I was 18 when I got my first credit card. By the time I was 23, I had racked up almost $40,000 in debt, and had virtually nothing to show for it. When you buy things on credit, it seems as though it's OK, but what happens is the stuff goes away and you're left with the debt. I bought everything from wheels for my truck (which I sold) to god knows what.
Luckily, I never fell into the hole of not making payments. I may have had a lot of debt, but I always made payments and never fell behind. Some weeks I ate beans and potato buds for breakfast, lunch and dinner, but I made those damn payments. Now my credit cards are paid off, I was able to buy a house last year, I have two cars that are financed, etc. It was hell, but it built me some pretty solid credit.
I just wanted to say something about good credit. Your credit report will truly follow you around for the rest of your life, and it will really suck if you can't buy a car or a house down the road because you get into it now.
As far as your situation, I would bet that there is no way you will be able to get financing without a cosigner right now. You will need to build credit for at least a year before a bank will touch you. The other posters mentioned some good ways to do that. I would not suggest lying on the application about working at your dad's shop. If he's willing to do that, why isn't he willing to cosign?
If maybe you can't save enough right now, maybe buy an older used quad and fix it up, borrow a friend's, or get your dad to cosign.
I hate to be the bringer of bad news, and I hate to sound like I'm preaching, but I just wanted to give you some of the reality. Pay your dues now, and in 10 years you will be able to buy anything you want just by signing.
Good luck with your quad!
Marc
I realize, believe me I realize the temptation. But I just wanted to tell you about my situation. I was 18 when I got my first credit card. By the time I was 23, I had racked up almost $40,000 in debt, and had virtually nothing to show for it. When you buy things on credit, it seems as though it's OK, but what happens is the stuff goes away and you're left with the debt. I bought everything from wheels for my truck (which I sold) to god knows what.
Luckily, I never fell into the hole of not making payments. I may have had a lot of debt, but I always made payments and never fell behind. Some weeks I ate beans and potato buds for breakfast, lunch and dinner, but I made those damn payments. Now my credit cards are paid off, I was able to buy a house last year, I have two cars that are financed, etc. It was hell, but it built me some pretty solid credit.
I just wanted to say something about good credit. Your credit report will truly follow you around for the rest of your life, and it will really suck if you can't buy a car or a house down the road because you get into it now.
As far as your situation, I would bet that there is no way you will be able to get financing without a cosigner right now. You will need to build credit for at least a year before a bank will touch you. The other posters mentioned some good ways to do that. I would not suggest lying on the application about working at your dad's shop. If he's willing to do that, why isn't he willing to cosign?
If maybe you can't save enough right now, maybe buy an older used quad and fix it up, borrow a friend's, or get your dad to cosign.
I hate to be the bringer of bad news, and I hate to sound like I'm preaching, but I just wanted to give you some of the reality. Pay your dues now, and in 10 years you will be able to buy anything you want just by signing.
Good luck with your quad!
Marc
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#8
11-05-2002, 06:23 PM
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#9
11-05-2002, 06:53 PM
Pro Rider
Sound advice there. "Hey, watch this........"
Sound advice there. "Hey, watch this........"
ATV financing???
First off - I don't know who Marc is, but he sure gives good advice. Please re-read his post and follow it.
Second - Your situation is pretty much the same if you buy new or used. If you do not have enough money to buy it outright you will have to finance - with all the problems mentioned above.
What would I do if I were you? - Save, save, save your $$$$$. You've just started a job and your expenses should be low. You've got the incentive of really wanting a quad. Start saving as much as you can and then assess what kind of quad you can realistically get. Like I've said before - Even going in with a big down payment could work. You can finance 1/2 a quad easily within your $110/month payment budget, even at a high interest rate. I really feel that without a co-signer you are going to be stuck with a high interest rate. That's the price you pay for establishing credit. Just make sure you can really afford whatever it is you do. You will not want to believe this, but it is far better to live without a quad than it will be to screw up your credit.
Jaybee
Second - Your situation is pretty much the same if you buy new or used. If you do not have enough money to buy it outright you will have to finance - with all the problems mentioned above.
What would I do if I were you? - Save, save, save your $$$$$. You've just started a job and your expenses should be low. You've got the incentive of really wanting a quad. Start saving as much as you can and then assess what kind of quad you can realistically get. Like I've said before - Even going in with a big down payment could work. You can finance 1/2 a quad easily within your $110/month payment budget, even at a high interest rate. I really feel that without a co-signer you are going to be stuck with a high interest rate. That's the price you pay for establishing credit. Just make sure you can really afford whatever it is you do. You will not want to believe this, but it is far better to live without a quad than it will be to screw up your credit.
Jaybee
#10
11-05-2002, 09:00 PM
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ATV financing???
Originally posted by: Mjollnir
But I just wanted to tell you about my situation. I was 18 when I got my first credit card. By the time I was 23, I had racked up almost $40,000 in debt, and had virtually nothing to show for it. When you buy things on credit, it seems as though it's OKMarc
But I just wanted to tell you about my situation. I was 18 when I got my first credit card. By the time I was 23, I had racked up almost $40,000 in debt, and had virtually nothing to show for it. When you buy things on credit, it seems as though it's OKMarc
You have got to feel good about paying that credit card debt off.[img]i/expressions/face-icon-small-shocked.gif[/img] I would say most people in that situation would have went bankrupt. I mean that was a huge tree to cut down. Way to go.
One of the best feelings in life to be debt free.
Chet
