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Suggestions on what to do: buying a bike from a friend.

Started by Watcher, March 15, 2016, 02:31:13 PM

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Watcher

So my friend is selling his 2013 Honda CB500F, it's in amazing shape with lots of goodies and he wants 4 grand for it.
I don't have 4 grand saved up, so I was going to look into a small loan to pay for it.  The loan would require the title as collateral, but HE hasn't finished paying of HIS loan.
So to get his title, he needs the money to finish his loan, and I need a loan to pay him the money.  No go.

We looked into transferring the loan, but essentially the full loan would transfer to me and he would kind of lose out of a lot of credit.  Also, my credit score isn't nearly as good as his so there could be a hassle when adjusting the interest rates.

So then we looked into selling his loan.  Like, have a credit union finish his loan for him and then I owe the credit union the cost of finishing the loan + whatever the difference is.
It's probably the best option, but he's also worried that it might not look as good on his credit score since the loan would be paid not by him but by another credit union.

We talked about some really personal options, like me just taking over his payments, but he doesn't want to take the risk in case I can't be reliable for some reason.

Are there any other options or details I may have overlooked? I'm not about to beg friends and family for help, I've lost a good friend over a money dispute, and it won't happen again.

I dont have a lot of time to just save up, next month I'll be training to be an msf rider coach so I really kind of need a bike by then and don't want a beater bike like I've been getting the last few years...
"The point of a journey is not to arrive..."

-Neil Peart

lucas

That's a good deal but it isn't like quick scrape together every penny you can possibly get your hands on good.

I know you want the bike now, but maybe you need to buy a bike when the time is right for your finances.  My advice is to keep saving and once you have a good chunk saved up it won't be hard to find a clean bike.

Don't let the siren call to your greedy little shiny motorcycle lusting heart.

yamahonkawazuki

this may be a no go in any way shape or form unfortunately :(. but may i ask what he owes to pay out title?, may be options there, but fwiw, probably not.
Aaron
Jan 14 2010 0310 I miss you mom
Vielen dank Patrick. Vielen dank
".
A proud Mormon
"if you come in with the bottom of your cast black,
neither one of us will be happy"- Alan Silverman MD

Janx101

So he wants out of his loan early by selling the bike..., and still wants the full positive credit score too?....

credit score on this amount is not going to break him!!

Its not going to give a negative score at least!

If he "wants it all" score wise... let someone else help him out!... plenty more bikes around!... much easier to come by than good friends!

yamahonkawazuki

Janx has a good point here. at least consider this...
Aaron
Jan 14 2010 0310 I miss you mom
Vielen dank Patrick. Vielen dank
".
A proud Mormon
"if you come in with the bottom of your cast black,
neither one of us will be happy"- Alan Silverman MD

Watcher

He knows he's losing out either way, but he wants to be as positive as he can get in the end since he will be wanting to get a house later this year.

Is not selling to get out of the loan, per say.  He has other bikes and doesn't use this one so much so he wants it gone for more garage space.

Right now we're just exploring options, and I realise it might be a no go in the end.  But I'd like to try.  It's pretty much exactly the bike I want and it has a ton of extras I would have wanted as well.

As far as what he still owes, we haven't really discussed it.
"The point of a journey is not to arrive..."

-Neil Peart

cWj

Join a credit union. Then, you and he go to the loan officer and explain what you're trying to do. Offer them a downpayment you're comfortable with from what you have saved now.

Either it helps you build your credit up or they say no and you're stuck with just having access to their other resources to help improve your credit.

lucas

What cWj said sounds good to me.  That would allow you to make payments.

This situation he is in is common.  Credit unions see this kind of stuff all the time.

Watcher

I was able to work something out!

Got a family member to set me up with an interest free loan, and I'm making a deal with the seller tonight!  Sure, it won't help my credit score any, but it was a loose verbal agreement which gives me flexibility on payment amounts/dates so I won't be living on a diet of cheese-crackers and Ramen while I'm paying it off.  Also, shiney!   :thumb:

Pics later when I get it home!  Seller offered me a trailer ride home (weather looks spotty), a couple of aftermarket things yet to be installed, and all the stock parts that were taken off.
And since I'm taking it home today, but he won't have the title for another couple of weeks, he added me onto the insurance policy so I could start riding immediately.  Good deal!  It's good to be buying off of people you know.
"The point of a journey is not to arrive..."

-Neil Peart

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