Trade-in/Finance?

[Matt06]

Just a quick question.

I was told its possible to trade-in a bike currently under finance, the dealer will settle it and add it to the finance of whatever you were trading in for.

Anyone had any experience doing this or know if its bull?

I know its best to ask the dealer, but I just want to know if im asking a bit of a silly question or not before I go in......

Cheers.
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Current: MT-10, Bandit, Grom, GPZ500
Previous: YBR125, GSXR400, ZXR400, MT-03, NTV650, R6, z750, ZX6R, MT-09

[m0l0t0v]

You bought a bike in finance and now you want to switch to another new bike?

How old are you
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'99 Hornet 600 , VFR 400 NC30 '92 , Kasawamasaki GT 550 , '98 Hornet 600
**\Tarmacsurfer/** said: It's that immaculately manly coiffure of yours isn't it. One glimpse of your virile locks and the punters can't wait to buy whatever it is you suggest, as it might let them be just a little bit like the Adonis that is our very own Molly Doovydoo said: Its not my fault I can't get it up properly, I just wasn't blessed

[SoND]

Guy in work did this on a car he bought, had it for a while and traded it in for a different one still on the finance. He did lose out in the exchange but I haven't a clue by how much.
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Go back to bed - You have no rights - "Streetfighters ~ Mainstream motorcycling's crackwhore sister."

[Matt06]

Yeah, I bought the original bike from them.

Im not looking at getting another new bike. If I were to trade-in, it would be for a used bike I have seen in the shop.
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Current: MT-10, Bandit, Grom, GPZ500
Previous: YBR125, GSXR400, ZXR400, MT-03, NTV650, R6, z750, ZX6R, MT-09

[v8will]

Usually a good way to get stitched twice by a dealer. Sure they are only trying to earn a living but you will pay heavily.

Example

You buy a bike @ £6000 and take finance for 4 years at £146.74 a month. APR is 8.4% and total payable is £7043.50

After 18 months you want to change to a new bike at £6500. You have only paid £2641.32 of your own bike which in the meantime has dropped to £3800 dealer book value. By the time the dealer does his sums you have a deficit of £602.18 to make up on finance on your next bike. You new bike effectively costs you £7102.18 on the forecourt and over £8300 if you keep it until the finance is up.

Its much worse if you are only maybe 6 months into a finance agreement.

These are just random bike prices in my head but the math is sound and usually most dealers will offer you below book price on trade in, more so now with big machines (1000cc etc) due to the credit crunch.

The dealer clears the finance otherwise the outstanding amount shows on the HPI system and the bike is bad news to sell on in any form until that is clean. Don't try and sell on privately and then default on the loan, thats just mean and you'll get caught.

[t121anf]

i'd argue slightly different V8will.

you've used the total finance figure of £7043.50, this shouldn't apply as you are settling early and won't pay interest on what you aren't borrowing.

the 8.4% APR should only be applied up to date of settlement, bring the figure down a bit.

i can't be arsed to to the math but i should be correct in what i am saying.

what the guy really needs to know is, the settlement figure on the finance as of last payment (be it last month or 6 months from now) and how much the dealer will give in part ex.

if the part ex figure is higher you are quids in, if its lower you add this to your finance agreement and start paying the new interest rate on it.

[v8will]

[Matt06]

Thanks for the help.

I'll go get the calculator out .
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Current: MT-10, Bandit, Grom, GPZ500
Previous: YBR125, GSXR400, ZXR400, MT-03, NTV650, R6, z750, ZX6R, MT-09

[Koltu]

you might be better getting a loan from the bank to pay the settlement figure off and then selling the bike privately and then using the money to buy a new bike?
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CBT: DONE! Theory : Passed, DAS - 12/13 Jan, Mod 1 Pass! Mod 2 Pass! Bike Honda Hornet 600

[t121anf]

since dealers are fighting for business if you were to get a 0% or silly low interest rate you could still be quids in

i doubt you'll get this on a 2nd hand bike though.

[_Will_]

Yes you can, i've transferred finance 3 times with the same dealer.
They settle it and take out a new set of finance, check the rates to make sure you don't pay more and you should be fine.

Ideal time to be doing it really, wintertime means bikes wont be shifting and you might be able to get a good deal, they expect to be keeping yours for a while so they aren't that fussed whereas you'd struggle to sell privately this time of year.
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Past -Honda qr50 | 2004 Peugeot Tkr s 50| | 1996 Yamaha XJ600s Diversion|

[Pete.]

What I did years ago was phone the finance company myself for a settlement figure. Be warned that some finance companies don't allow it full-stop unless you pay the total amount payable as if it went to term. Most do though and all the good ones should.

Once you have the settlement figure you should be able to approach any dealer and thrash-out a deal, especially nowadays as no-one is buying.
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a.k.a 'Geri'

132.9mph off and walked away. Gear is good, gear is good, gear is very very good