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A Guide to Motor Scooters
Scooters were first known as a child's push vehicle that dates back to before 1920. Advancements in technology led to the development of small engines, which, when added to the traditional scooter provided for a practical and affordable means of...
For the best in tires, try a Dunlop Motorcycle Tire.
Dunlop motorcycle tires have been long known for their high quality and reliability. Worldwide, motorcyclists of all skill levels depend on Dunlop motorcycle tires. In fact, Dunlop tires are used by more motorcyclists than any other brand. This...
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Two of the most widely used vehicles are cars and motorcycles.
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Wiping the Traces of your Motorcycle's Past
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Welcome To The World Of "Upside Down" Motorcycle Loans!
With the depreciation on motorcycles being so enormous after they are driven off the showroom floor, the potential for a buyer owing more on their motorcycle loan than the bike is worth it quite high. Owing more on your bike than it is worth is often referred to as the world of “up side Down#8221;.
Many people finding themselves in this situation discover that financial lessons are sometimes the hardest and most expensive to learn. Motorcycle loans of more than 48 months (especially without a down payment) put you in the position of owing more than the value of the bike.
Let’s take a look at this phenomenon.
First, the interest calculation your lender uses can make a big difference in your situation, especially in the first 18 months. There are two primary interest calculations, pre-computed (combined with rule of 78) and simple interest.
Pre-computed interest combined with Rule of 78, is typically the worst situation for a buyer because most of the interest is paid in the first 24 months. Therefore, in the first 24 months little of the monthly payment has gone towards paying down principal. If a buyer wishes to sell or trade in the motorcycle within this timeframe they will likely find themselves owing more than the bike is worth. Statistics show that the average owner trades in every 18-24 months.
Simple interest on the other hand, is much more favorable for buyers since interest accrues on the balance of the loan. However, buyers that extend their loans for greater than 48 months can still find themselves up side down with simple interest. This is especially true if a down payment is not made. The reason this occurs is that the
motorcycle depreciates faster than the principal is paid; leaving the balance owed to the lender to be more than the bike can be sold for.
A common view that many people have is that they will just surrender their motorcycle to the lender if they are caught in an “up side Down#8221; position. If you are considering this option don’t! Your worries do not just end after your bike is surrendered or repossessed; in fact they are just beginning. The lender will sell your bike at an auction for much less than it is worth. You will still owe the difference between the amount you owed on your loan and the amount the motorcycle sold for at auction. So if you owe $5000 and the bike sells for $1500, you still are responsible for owing the lender $3500. To make it worse lenders may tack on hefty auction fees which you will owe as well. So the net result is that you are now responsible for making monthly payments on a bike you can no longer ride.
So what steps can you take to prevent from being caught “up side Down#8221;?
1. Find a lender that uses simple interest. Avoid lenders that use pre-computed / Rule of 78 interest calculations.
2. Always try to put money down on your purchase.
3. Try to avoid motorcycle loans that extend past 36 months.
About The Author
Jay Fran is a successful author and publisher for a website that specializes in Motorcycle Loans: Poor Credit Approvals Available. A comprehensive resource on simple interest motorcycle financing, poor credit, new, used and bad credit motorcycle loans.
http://www.motorcycle-financing-guide.com/
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Honda Motorcycles |
Official site of Honda motorcycles, ATVs, scooters and personal watercraft. |
powersports.honda.com |
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Honda Motorcycles - Motocross, Cruiser, Touring, Off-Road Motorcycle |
Honda Motorcycles - Honda's motorcycle line-up is here—and it's waiting for you! Check out awesome all-new models like the race-ready CBR1000RR, ... |
powersports.honda.com |
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American Suzuki Motorcycle & ATV Division |
The official website of American Suzuki's Motorcycle & ATV Division. |
www.suzukicycles.com |
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Motorcycle.com |
Online motorcycling publication featuring new model introductions, motorcycle news, classifieds and online discussion forums. |
www.motorcycle.com |
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Motorcycle - Wikipedia, the free encyclopedia |
Motorcycles are one of the cheapest and most widespread forms of motorised ... The construction of modern motorcycles has mostly standardized on the ... |
en.wikipedia.org |
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Motorcycles Home Page |
THE starting place for exploring Motorcycles. The front page of this site is also a motorcycle blog. The site contains motorcycle articles, forums, ... |
motorcycles.about.com |
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Triumph Motorcycles Limited |
Official site offering information about the company and their range of products. Includes accessories, clothing, dealer locator, and news. |
www.triumph.co.uk |
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Motorcycle USA - Motorcycles and Bike Tests |
Motorcycle USA features motorcycle tests, motorcycle racing and motorcycle news. |
www.motorcycle-usa.com |
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Buell Motorcycles | Country Selector |
Official site of this American made cycle featuring pictures of newest models, dealer locator, upcoming events, products, questions and answers with Erik ... |
www.buell.com |
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Victory : The New American Motorcycle |
All-Terrain Vehicles · Snowmobiles · Polaris RANGER · Victory Motorcycles · Polaris Defense. Buying Tools. Current Offers · Brochures · Financial Services ... |
www.polarisindustries.com |
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Kawasaki Motorcycles, ATV, Jet Ski Watercraft, Utility Vehicles |
Kawasaki Motors Corp, manufacturer of motorcycles, ATVs, utility vehicles and personal watercraft, with premier powersport industry products like the Ninja ... |
www.kawasaki.com |
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BMW Motorcycles: Home |
Introducing new motorcycle concepts with an even higher level of emotion, BMW Motorrad is proudly presenting the new Megamoto: Based on the BMW HP2 Enduro, ... |
www.bmwmotorcycles.com |
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eBay - Motorcycles: Harley-Davidson, Honda, BMW - buy and sell now ... |
Buy and sell motorcycles including Suzuki, Kawasaki, BMW, Honda, Harley-Davidson, and other motorcycles on eBay's online auction. |
pages.ebay.com |
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Big Dog Motorcycles |
Big Dog Motorcycles is the leading producer of custom, American V-twin motorcycles. Five models, each powered by a 117 cubic inch engine, set a new standard ... |
www.bdm.com |
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Discover Today's Motorcycling |
Discover Today's Motorcycling (DTM), the media and consumer outreach program of the Motorcycle Industry Council (MIC), is a source of information about ... |
motorcycles.org |
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Motorcycle and ATV reviews, specifications, prices, used ... |
Motorcycle e-zine catering to the many facets of the motorcycling community. |
www.powersportsnetwork.com |
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Cruisers, Custom Motorcycles & Choppers | Motorcycle Accessories ... |
Motorcycle Cruiser magazine features cruisers, custom Motorcycles and choppers, motorcycle news, road tests, motorcycle accessories and gear reviews, ... |
www.motorcyclecruiser.com |
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Motorcycles in the Yahoo! Directory |
Find a collection of selected sites about motorcycles, including makes and models, clubs and organizations, off-road motorcycling, scooters, ... |
dir.yahoo.com |
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Compare Prices and Read Reviews on Motorcycles at Epinions.com |
Epinions has the best comparison shopping information on Motorcycles. Compare prices from across the web and read reviews from other consumers on ... |
www.epinions.com |
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Confederate Motorcycles |
The official website for Confederate Motorcycles Hellcat and Wraith. |
www.confederate.com |
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