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Hello, there are a couple of dealers selling the r3 for 3,800. I'm a first time buyer so I don't know how much I'll need upfront to finance the bike.
 

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Hello, there are a couple of dealers selling the r3 for 3,800. I'm a first time buyer so I don't know how much I'll need upfront to finance the bike.
You will never get the bike out the door for $3,800.

You put down whatever you want to put down. You can probably go ZERO down, but your payments will be higher per month. Financing anything is about 3 things:
1. Total cost of the thing you are buying
2. Interest rate
3. Duration of the loan

A "down-payment", or a "trade-in" will affect the value of #1 .
Your "credit rating" will affect the value of #2 .

That "$3,800" bike, will be $5,000 at the bottom of the sales contract. Maybe more. If you put $1,000 down, you finance $4,000.
With an interest rate of 3.0%, and a duration of 48 months, your payment would be $88 per month.

( Don't forget to factor-in Insurance costs, and riding-gear if you don't already have it! )
 

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Hello, there are a couple of dealers selling the r3 for 3,800. I'm a first time buyer so I don't know how much I'll need upfront to finance the bike.
@CBRpilot covered most of the points, but if you really want to know you should ask the dealer what the terms of financing will be - because the contract will between you and the dealer, not you and us forum guys. For example, to get the minimum rate of 3.99% at 36 months*. you have to finance a minimum of $7000

Current financing info here: https://www.yamahamotorsports.com/s...eet-motorcycle-current-offers-factory-finance

*Monthly payments required. Valid on amount financed of $7,000 or more of new 2012-2016 Motorcycles, Scooters, ATVs and Side x Sides made between 2/1/2016 and 6/30/2016 on your Yamaha Installment loan account. Rate of 3.99%, 6.99%, 9.99% or 13.99% will be assigned. Examples of monthly payments over a 36-month term at a 3.99% rate: $29.52 per $1000 financed; and at a 13.99% rate: $34.17 per $1000 financed. Minimum 0%-10% down payment required. Rate and down payment based on credit approval criteria. Offer is subject to credit approval by Synchrony Bank. Offer good only in the U.S., excluding the state of Hawaii
 

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True Dat!!

We don't want to discourage you from getting a great bike, but you may want to consider some things that others have learned the hard way:

*Do some research into what your full-coverage insurance will cost, which should include provisions to pay outstanding note if you total the bike before paying off the loan.
*Financing through a bank or credit union rather than through the dealership - you might get a better interest rate.
*Pay as much as possible up front (better loan rate, usually).
*Always opt for the shortest term you can afford - you can save significant money over the term of the loan and you will own it free and clear faster. Just paying an extra $25-50/month can make a pretty big difference.
*If you pay cash, you will have a better bargaining position and will usually get a better OTD price - Credit card payment will cost an additional 3% over cash price in addition to the credit card interest rate (don't do this).
*Buy the 2015, rather than a 2016 - likely to get a better price and there is no difference between the two.

Read the contract thoroughly before signing anything.
 

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True Dat!!

We don't want to discourage you from getting a great bike, but you may want to consider some things that others have learned the hard way:

*Do some research into what your full-coverage insurance will cost, which should include provisions to pay outstanding note if you total the bike before paying off the loan.
*Financing through a bank or credit union rather than through the dealership - you might get a better interest rate.
*Pay as much as possible up front (better loan rate, usually).
*Always opt for the shortest term you can afford - you can save significant money over the term of the loan and you will own it free and clear faster. Just paying an extra $25-50/month can make a pretty big difference.
*If you pay cash, you will have a better bargaining position and will usually get a better OTD price - Credit card payment will cost an additional 3% over cash price in addition to the credit card interest rate (don't do this).
*Buy the 2015, rather than a 2016 - likely to get a better price and there is no difference between the two.

Read the contract thoroughly before signing anything.
Lol I don't think I have a single thing to add, I was truly going to say almost all of this stuff. Great list, Stirz! I might note, however, that cash is not as big of a bargaining chip nowadays. It is very situational. The dealer might value having that cash in hand right away, but oftentimes they get some kickbacks from some of the more... lucrative (read: predatory) financing schemes that they offer, and thus they will often pressure people into those contracts.

I will add emphasis to getting the loan through a credit union. My credit union gave me a $2.8k loan for 12 months, 7% interest/month with no early payoff fees and no admin fees or anything. I paid it off about 3 months later and ended up totaling less than $50 total interest.

As far as insurance goes, SHOP AROUND, since you will almost certainly need full coverage if you have a loan. I'm a 22 y/o male and I pay $225/year FULL COVERAGE ($300k/100k) with like $500 deductibles for everything. A lot of people here pay 3x that yearly, but if you shop around enough and call up agencies and pressure them on the fact that its a 300cc bike and NOT a supersport you should be able to get a very low rate.

As CBRpilot said, you will never see $3800 OTD on a new R3. Get a 2015 and haggle down. Get them to drop all of the fees, and if they fight you on it then tell them to have fun paying to keep that bike on the floor and then walk out the door to another dealer. You should easily be able to get a 2015 R3 for $5000 flat OTD, maybe a little less.

If finances are really an issue, though, maybe think on another bike. While the R3 is, IMO, the best 300cc bike out there, you can find used Ninja 250/300s and CBR 300/500s etc. for $2-4k used. They aren't the same bike but they are still good entry bikes and can save you some cash. If you are set on the R3, definitely look around for a used one if possible.

Good luck!
 

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Discussion Starter · #7 ·
Thank you guys soo much. I will take note of what you all said. Getting insurance is going to be a b**** because I'm barely turning 18. So from what I'm getting is that I can more than likely leave without paying much out front?
 

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Depending on what part of the country you live in- now may not be the best time to buy a bike. In all of the cold weather markets, now is the prime selling season when dealers can get top dollar. You might be wise to wait until the off-season when much better deals will be out there and you will have much better bargaining power.

I understand that you probably want a bike "yesterday" but keep in mind that the 2015 and 2016 models will be old news when you reach drinking age. If you can hold off a few months you can save up some money and get yourself in a much better position to buy a new bike. You can also use that time to study options and learn about predatory financing.

That said- I'm sure we all know what you are feeling right now . . . . .
 

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I just went through the process of buying my R3 last Monday - hard to believe it's been a week! I had saved up for a while in advance and ended up paying just over $6100 OTD. I wanted to make sure the bike was mine the moment I rolled off the lot. I did shop around a considerable amount and ended up finding mine at a closeout price that was several hundred less than the other dealers in the area (I'm in Atlanta, GA).

I would also advise to factor in the cost of maintenance: tires, chains, oil, filters, throttle body sync (ugh), and so on. Then there's gear and extras (bike cover if parking outside overnight, center stand if you plan on doing much work yourself, slip-ons, etc). If you're a new rider, you should consider taking the MSF as well; often, they'll give you a discount at local dealers AND on insurance. My MSF course completion ended up paying for itself by way of giving me a coupon to a local dealer for an amount greater than the course cost.

Add to this the boloney the dealer will try to sell you - like pay-for-maintenance-in-advance programs and such. I was shellshocked by how much they wanted to charge me for BASIC maintenance. I left with a beautiful bike and the very sour taste of potential dealership runaround. It wasn't until I got home and started reading the "600 mile service" thread that I realized the communal consensus was to decline these services. But geez, I almost got suckered.

TL:DR - Be proactive in looking for extra costs. They're under every rock.
 

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i just went through the process of buying my r3 last monday - hard to believe it's been a week! I had saved up for a while in advance and ended up paying just over $6100 otd. I wanted to make sure the bike was mine the moment i rolled off the lot. I did shop around a considerable amount and ended up finding mine at a closeout price that was several hundred less than the other dealers in the area (i'm in atlanta, ga).

I would also advise to factor in the cost of maintenance: Tires, chains, oil, filters, throttle body sync (ugh), and so on. Then there's gear and extras (bike cover if parking outside overnight, center stand if you plan on doing much work yourself, slip-ons, etc). If you're a new rider, you should consider taking the msf as well; often, they'll give you a discount at local dealers and on insurance. My msf course completion ended up paying for itself by way of giving me a coupon to a local dealer for an amount greater than the course cost.

Add to this the boloney the dealer will try to sell you - like pay-for-maintenance-in-advance programs and such. I was shellshocked by how much they wanted to charge me for basic maintenance. I left with a beautiful bike and the very sour taste of potential dealership runaround. It wasn't until i got home and started reading the "600 mile service" thread that i realized the communal consensus was to decline these services. But geez, i almost got suckered.

Tl:dr - be proactive in looking for extra costs. They're under every rock.
tldr*
 

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Just to throw out another option, Yamaha offers a 0%apr/6mo financing on both 2016 and 2015 new YZF-R3's (click on "view additional offers"). My total was ~$5700 with a 36-month wheel and tire protection plan, so my monthly payments were basically $1000 per month. If possible I'll never finance something I can pay 100% in cash, the interest is just additional money out of my wallet. But the 0% apr was a good deal and a way to put my foot in the door with credit responsibility
 

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Hello, there are a couple of dealers selling the r3 for 3,800. I'm a first time buyer so I don't know how much I'll need upfront to finance the bike.
What they said. Dealer will have a non-negotiable $900 setup fee. $3.8K is the bait'n'switch price.
 

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Another option that you may have is borrowing surplus money from the bank such as a loan or personal loan, and paying bike in cash, that way if you do miss a payment (for any reason) Yamaha or the dealership won't be able to repossess the bike ??

So for me, (living in Australia, prices are a bit different) I borrowed $10,000,
Bike ~$7,700 OTD
Helmet-$600
Riding gear- 2 jackets (Leather+Textile), 2 pants (Textile+Kevlar), 1 pair of gloves(gauntlet style), 1 pair of boots ~$1700
Which means I used the $10,000 plus another $123 per month for insurance.

The only down fall is, the bank will probably offer you a higher interest rate, but for peace of mind and reassurance of being able to keep your bike, I would definitely be looking down that alley. One tip, RESEARCH THE BANKS, INTEREST RATES AND MINIMUM TERMS (DURATION OF THE LOAN). NEVER TELL THE BANK WHAT THE MONEY IS FOR, they may pressure you into a vehicle loan with security (lower interest rate but bank is able to repossess your bike if payment isn't paid).

Good luck and welcome to the R3 forum!

Edit: Never be too scared to walk out the door if the sales rep isn't budging at all. If they want your money, they'll chase you! ??
 

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Make sure you get the final OTD price.
Make sure you get a good APR.

Woods Cycle Country here in Texas tried to give me a 17% interest rate for 60 months. I laughed at them, then they gave me 4.5%.

I ended up going to a different Woods, $5,700 OTD @ 5.5% interest for 36 months. Zero down, and my payments are something like $170/mo.

So even with nothing down, at the price you are getting, you don't need a down payment to make the monthly payment reasonable.
 
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