How much should be put down?

[Greasymechtech]

1 year loan at $100 month

Put whatever down payment needed to get that payment

Will probably need a cosigner too

Age of bike may not be financed by all creditors

Toys should be paid in cash or no more then a year

Credit card should not be used

This will help the kid establish credit

Positive credit history will help the kid in the future when he buys
a car or house, apply for a job, or get insurance discounts

Ninja 250 is a great commuter bike and 50mpg+.

Make sure he wears a helmet.

 

[Al]

Originally Posted By: Bud

You are kidding right. You can go to war at 18. You should be able to ride a motorcycle also.

He'll have a [censored] of a lot higher chance of dying on a bike than going to war..that's fact.
http://www.iihs.org/iihs/topics/t/motorcycles/fatalityfacts/motorcycles
MC riders in general are 26 times more likely to die than a car occupant

A death certificate should accompany a bill of sale when selling one to a kid.

I am an avid biker...that's why I feel the way I do. I am not alone.

 

[Vuflanovsky]

Where is he getting the financing from and how much is being financed??

In one of my previous lives working for a finance company, I doubt we would've financed a "small amount" on a $2500.00 purchase. I'm assuming you're talking something akin to a loan for the difference versus financing the full amount.

 

[bubbatime]

Originally Posted By: renegade_987
. His father wants him to finance a small part of the purchase to teach him about how loans and everything work.


Umm, no. If he has the cash to buy it outright great. Don't go getting a loan just to "teach him about loans". He will learn about that stuff in time. No bank will give him a loan without a cosigner at that age. He could do it himself by putting the balance on a credit card, but that is not very smart, either.

And for a new rider, I would opt for one of the newer bikes that has anti-lock brakes, even if it cost another grand or two. Could save his life.

 

[4wheeldog]

Originally Posted By: Al
Originally Posted By: Oil Changer
If he can't pay cash for such a miniscule expense, he shouldn't be buying it. His father should be teaching him about how bad paying interest is. No 18 y/o should be riding a motorcycle.
This. I rode Motorcycle but never allowed my son to ride. He doesn't now.

Yes he may go to war at 18..you know why?? 18 year olds are more suited for war. They are immortal, they don't know fear. And that's the exact reason they should not ride.

Do what you want. I know I made the right decision.


I was forbiden from riding a motorcycle when I was a kid. Also was not allowed to take up scube diving, and anything else my Mother percieved as being dangerous activities. I rode anyway, starting on the street at 16. Kept my bike elsewhere. Did all those other things she wouldn't let me do, soon after I turned 18 and left the house.

Not allowing a kid to do something because YOU think it is dangerous often has the opposite effect. When my son showed interest, I took the MSF course with him (No one "Taught" me to ride, back in the day). Helped pick a bike, and got him going on it. Best thing that ever happened to his car driving skills.

 

[BubbaFL]

A toy should not be financed - especially not one that will inevitably depreciate.

He'll learn a [censored] of a lot more saving up the $2500 bucks to buy the bike.

 

[jimbrewer]

First year's depreciation.

 

[montero1]

Originally Posted By: Al
Originally Posted By: Bud

You are kidding right. You can go to war at 18. You should be able to ride a motorcycle also.

He'll have a [censored] of a lot higher chance of dying on a bike than going to war..that's fact.
http://www.iihs.org/iihs/topics/t/motorcycles/fatalityfacts/motorcycles
MC riders in general are 26 times more likely to die than a car occupant

A death certificate should accompany a bill of sale when selling one to a kid.

I am an avid biker...that's why I feel the way I do. I am not alone.



These posts are pretty sad. Unless the kid has shown that he is irresponsible, there is no reason he shouldn't be able to ride. Most people that poo-poo on motorcycles have never even ridden one, or they did ride, and they sucked at it. Talk about living life in a bubble. I bet some of the naysayers smoke.

 

[02SE]

Originally Posted By: Oil Changer
If he can't pay cash for such a miniscule expense, he shouldn't be buying it. His father should be teaching him about how bad paying interest is. No 18 y/o should be riding a motorcycle.

Youth is wasted on the young.


How about a 6 year old?

That's when I started riding..

 

[Nyati]

Put down 100%.

Proverbs 22:7 "The rich rule over the poor, and the borrower is slave to the lender."

 

[Quattro Pete]

Originally Posted By: Quattro Pete
Put down as much as possible, so that you don't pay interest charges needlessly. Work it out so that he has a 1-year loan with $50/month payment. Not more than that.

The more I think about it, the less I like the idea of financing anything in this case.

First of all, having a low monthly payment can make it seem in his mind that it only takes so little to buy an otherwise expensive item.

Second, you really should not be financing toys. A better life lesson than how interest loans work would be to teach him how to save for the life's pleasures first and then go out and pay for them with cash.

Third, do you really need to get yourself into an interest-bearing loan to understand how it works? Unless the kid seriously struggles with math, this is something that can be easily explained to an 18-year-old in 15 minutes on a piece of paper or using some ready-made examples on the internet. No need to get yourself tied up in an actual loan.

And god forbid he crashes that bike soon after he gets it - he will not only have medical bills to cover (his portion of the insurance) but he will have to continue making monthly payments even after the bike has been totalled. Not fun, but I guess a valuable lesson on why NOT to get a loan in the first place.

Find some other way to build credit history.

And yes, 18-year-olds and bikes is a very risky proposition in general. That's gotta be the highest risk category of any motorcycle riders out there. I remember when I was 18. I would have loved to own a motorcycle then, but in hind sight, I'm glad I didn't. I thought I was invincible then. I did stupid things in a car then, but cars are a lot more forgiving, regardless if you or all the other inattentive drivers around you are being stupid.

 

[opus1]

On the flip-side, 18-year-old bones bounce better than 38-year-old bones, as I found out when I started my short riding career at age 38...

 

[Al]

Originally Posted By: Quattro Pete

And god forbid he crashes that bike soon after he gets it - he will not only have medical bills to cover (his portion of the insurance) but he will have to continue making monthly payments even after the bike has been totalled.

Everyone practically that starts riding MC's crashes....Raises hand (twice here). Never crashed after those first two times.

 

[Alfred_B]

Originally Posted By: renegade_987
Hey all, looking for a little advice for a family member, as this isn't my area of expertise. 18 Y/O in the family is getting a small motorcycle to practice on so he can ride with his father and others. Current one catching his eye is a 2010 Ninja 250r, which we all recommended as a decent starter (any objections to that that I didn't think about?) Anyway, asking price is $2500. His father wants him to finance a small part of the purchase to teach him about how loans and everything work. He currently has a credit card that can be used only for 'approved purchases;, and a small monthly payment to Snap On for tools (college) He can afford up to $150 per month, roughly. Anyway, what is a good % to put down on a bike for an 18 year old, with limited credit history? He's never missed payments or anything like that, so there shouldn't be anything negative in his report. I could make an educated guess had this been a car loan, but as far as bikes I'm not to familiar. Thanks!


Sane minds will say do not borrow.

However, we live in a capitalist society where inconspicuous consumption is the bedrock of the system. And this consumption is financed largely through credit, i.e. the benefits of consumption today are paid for by future earnings.

So it is important to teach the children how the system works. I would say finance 20% or $500 for a six month loan if possible. At the end, the kid should be shown how much he paid in interest and other costs. It's not going to be a material amount so showing it in the number of hours of work would deliver the message more clearly (use net hourly wage where you take gross wage and deduct the FICA and income taxes to arrive to the net pay taken home).

 

[Quattro Pete]

Originally Posted By: Al
Everyone practically that starts riding MC's crashes....Raises hand (twice here).

This is generally true.

Although I must say I got off easy here. I did drop the bike once in the garage because I forgot to lower the side stand first (doh!), but that's about it. No major damage to either myself or the bike, other than bruised ego. But the more I rode, the more I started noticing just how unpredictable and oblivious to bikers car drivers are and that there are times where you might not be able to get out of their way in time, especially as you get older and your reflexes aren't what they used to be.

Ideally, you'd want to ride where there is no or minimal traffic, but this is not realistic for many of us. And where there is no traffic, there are often animals to look out for.