0% Financing vs. CASH vs. Used??

[Jtjohns56]

Although I've ridden several busas, I've never owned one out of the 3 bikes I've had. I sold my M109r (first cruiser) last year and I'm thinking about buying a busa in the next month or so, but this question has been on my mind a lot lately and I'm curious to what your opinions are.

I have absolutely nothing against purchasing a used bike as long as it's in great shape. With that said, I'm looking to get a Gen II so the going price is likely not going to be lower than $7500 for an 08. Assuming I can find a new left over 2011 for $10500ish and pay 0% whats the benefit of buying used and fronting all of the money at once?

This assumes the money is in the bank, so purchasing new is not out of necessity, but generally just to avoid spending that much at one time.

Here are my pros and cons:

Used Pros
Cheaper and not take the initial depreciation hit
Likely already modded which saves a bit of money

Used Cons
In reality, we don't know how the bike was used and if anything every happened to it to damage the engine if it's showing no signs
May still have to mod it slightly to achieve what you want to achieve
After paying taxes on a $7500 bike, the overall output is not much less than buying a leftover new (assuming a good deal is found)

New Pros
Never ridden, obviously
Confidence in knowing that's it's a much better chance that nothing is wrong with the bike
0% financing offers the ability to invest what we would have initially spent
Warranty

New Cons
More expensive
More money will be spent on mods

I'm sure I'm missing some key points here so feel free to add pros/cons or anything that matters. Thanks for reading a newbs 1st thread and I look forward to reading your input.

Be safe out there!

 

[SKnight]

0% is free money, plus if you put that cash in an interest bearing account it actually pays you while you're riding.

If you finance at 0% and just leave it in savings you'll have a reserve if you need it.

If you finance at 0% you have $7500 for mods.

Plus by taking the in house deal you can usually get them to give you a little better deal, they get kick backs on that stuff. Plus you get a good chip on your credit. Little known negotiating tactic, the general manager and the F&I guy get bonuses that are tiered, the more they sell the more they get. If the GM is good on his GP for the month then he might not mind taking a little more hit in order to make the next tier.

Plus if you intend to keep it I feel the initial depreciation is offset by the fact you know the complete history from the beginning.

 

[jphilipson]

I never buy new. Let someone else take the hit. I picked up my 2008 Busa at the end of 2009 with 9,000 miles on it. It already had about $2000 in after market stuff added, like full Yoshimura system, power commander, BMC filter and dyno tune. The bike had full service records as well. I paid $8300 cash money. If I bought it new, I'd have paid close to $14k after doing the basic performance mods that were already done. Bike is now at 51k and I have no regrets.


And even better - the bike had another year and few months remaining on a service plan. I paid $50 to have that transferred to my name, and got well over $2000 in scheduled maintenance the first year - heck, the valve check maintenance at 16k or whatever was close to $600 alone!

 

[Jtjohns56]

@SKnight, I completely agree that that money can be used to make money by investing it. If I was able to get the GM to give me a break and get an even better deal thats just more money in the bank to do what I please, like you said.

@Jphilipson, It'll be great to find a bike with that many mods for a good price and low miles. However, after you spend $8300 for it, its gonna cost around 9k and that is just shy of what a new bike would cost, minus mods. I didnt realize that there was that much money spent for servicing after purchasing a new bike, which I can see bumping up the overall cost significantly. I guess those are some expenses that I've been able to avoid by purchasing used bikes. If I get lucky enough to find said bike, I may be following in your footseps, but I really have my eye on the Black/Red 2011!!

 

[jphilipson]

@Jphilipson, It'll be great to find a bike with that many mods for a good price and low miles. However, after you spend $8300 for it, its gonna cost around 9k and that is just shy of what a new bike would cost, minus mods. I didnt realize that there was that much money spent for servicing after purchasing a new bike, which I can see bumping up the overall cost significantly. I guess those are some expenses that I've been able to avoid by purchasing used bikes. If I get lucky enough to find said bike, I may be following in your footseps, but I really have my eye on the Black/Red 2011!!

Well, If you do the maint yourself it will be a lot cheaper. I just brought it to the shop since I had the free service - And I put a lot of miles on as well, so the 4500 mile services are not that far apart

 

[ditchdr]

Ok I just have to put my 2 cents in here.

#1 there is no such thing as free money, here let me say that again, THERE IS NO SUCH THING AS FREE MONEY!!!

#2 you always get a bettr deal with cash. After all were here for the bang for the buck right?

#3 You do not need a brand new bike, it is not faster ,it does not hold a line better, it does not do anything a used bike cant.

#4 If you put 7500 on a bike and have the title in your hand you OWE NO ONE ANYTHING. You can get on your PAID for bike and ride. You can get lower insurance rates, and if something were to happen with your job you dont have to sell stuff to make bike payments.

#5 If you think Suzuki does not figure in the cost of 0% into the bike you live in a bubble.

Find some one selling a used one. Take cash, tell him you will only pay x amount and show him the money to prove your willing to buy. I dont give a crap how cool the bike or what ever you want it, do not fall in love with it untill you own it. Do not be scared to walk away. If you show a wad of cash to people it pulls on their heart strings. Many will take less if you show them the green.

 

[Tm@nFL]

Get the new bike. 0% is free money and it will build your credit. I bought my 2009 in 2010 in a closeout with 0% financing. I got the awsome price on it and I did not even have to list the finance company on the insurance because they did not require it. The whole $175 payment that I pay zero interest on is not a big thing. It really costs me nothing in interest because it is 0%. I can use the money I have saved to pay down high interest debt like credit cards to save me money.

Always think of the credit game when you do things. It is very important.

But if you have millions laying around and live life paying cash for everything with zero debt you should pay cash for EVERYTHING. I would still buy the new bike because money does not matter!

Just my 2 cents