Down Payment vs. Trade-in

[SirSkankin DBA]

Since, I like the discussions here and am feeling very conscious of harassing friends (but even when asked, it has been kind of a draw), I figured I would ask here.

I am currently selling my bike to get the rest of a down payment on a new bike. But, it dawned on me, since my bike will probably only get about $1000 to $1500 at most better than trading it in, is it really worth trying to sell it?

Full Scenario options:
- have enough in cash as a down payment (would use sale funds to recoup savings account)
- Could continue to try to sell bike and use sell money for majority of down
- or trade it in, with some cash on top for the approximate percentage down that I want to put.


What do you usually do or have done?

 

[Pierre I am]

It depends on how you view your time vs. money. If you think you're going to be spending more time than the $1500 is worth for you then do the trade in.

 

[phocup]

Yup. Just what your time is worth to you. For me .. $1500 = 15 hrs of work at $100 hr.

Seems to be worth it to continue to try to sell the bike if you're was sure it would be $1500 extra.

 

[SirSkankin DBA]

It depends on how you view your time vs. money. If you think you're going to be spending more time than the $1500 is worth for you then do the trade in.

Oh true...never thought about it that way. Thanks

Yup. Just what your time is worth to you. For me .. $1500 = 15 hrs of work at $100 hr.

Seems to be worth it to continue to try to sell the bike if you're was sure it would be $1500 extra.

Yeah, I am not positive it would pan out to be $1500 in difference. I was just figuring about that based on limits. Wouldn't trade my bike in for less than $2k, and right now, have it priced to sell at about $3400

 

[Cookie Monster]

I went through the same situation last week. I decided to keep the bike and sell it myself later. I figured that I didn't need the money from the old bike right away, and have the room and ability to keep two bikes, at least for the short term.

Also, I wanted to keep the old bike just so I have something to commute on while getting used to/breaking in the new bike. The weather has been kind of cold and rainy, and I didn't want to put my shiny new bike in the rain, and also wanted something I was used to riding a lot to get through less-than-good conditions.

Since it's a second bike now, the old bike is costing me like $20/mo in insurance to keep it around so I'm not worried about keeping it a bit longer.

 

[Smash Allen]

I went through the same situation last week. I decided to keep the bike and sell it myself later. I figured that I didn't need the money from the old bike right away, and have the room and ability to keep two bikes, at least for the short term.

Also, I wanted to keep the old bike just so I have something to commute on while getting used to/breaking in the new bike. The weather has been kind of cold and rainy, and I didn't want to put my shiny new bike in the rain, and also wanted something I was used to riding a lot to get through less-than-good conditions.

Since it's a second bike now, the old bike is costing me like $20/mo in insurance to keep it around so I'm not worried about keeping it a bit longer.

That's a good idea. Prices on used motos will go up in spring / summer as well so holding onto it during rainy season makes sense...or cents?

 

[Cincinnatus]

Trading it in will always yield less than selling it yourself. The dealer has to verify condition, make room on the sales floor, invest in paperwork, etc., and that comes out of your value.

 

[NoTraffic]

Since you're up for discussing trade-in versus selling it privately, another good discussion topic is your asking price. I find that if I can shave another $200-300 on my asking price, it's worth more of my time to just sell it quickly instead of having to communicate via emails/text messages and meeting tire kickers. I've done this with all the vehicles I sell, and the last 4 surprisingly have been sold no more than 3 days after I post it. Just something to consider if you're itching to get cash for a down payment. When I look back, I never feel remorseful having given a good deal to another rider, esp. when you're on a wicked bike with all smiles.

 

[ThumperX]

Check what kind of insurance discount you'll get by keeping them both covered.
You may be able to recoup the value of the bike over a few years. :nerd

 

[SirSkankin DBA]

I went through the same situation last week. I decided to keep the bike and sell it myself later. I figured that I didn't need the money from the old bike right away, and have the room and ability to keep two bikes, at least for the short term.

Unfortunately, I do not have the room to have 2. Also, if I paid the down with cash, part of that would be from my "in case shit happens" funding. So, being out a few extra thousand, wouldn't be ideal. I have been trying to figure out if it would be.

Trading it in will always yield less than selling it yourself. The dealer has to verify condition, make room on the sales floor, invest in paperwork, etc., and that comes out of your value.

I realized the yield differences, but was wondering if the difference is worth the "hassle."

Since you're up for discussing trade-in versus selling it privately, another good discussion topic is your asking price. I find that if I can shave another $200-300 on my asking price, it's worth more of my time to just sell it quickly instead of having to communicate via emails/text messages and meeting tire kickers. I've done this with all the vehicles I sell, and the last 4 surprisingly have been sold no more than 3 days after I post it. Just something to consider if you're itching to get cash for a down payment. When I look back, I never feel remorseful having given a good deal to another rider, esp. when you're on a wicked bike with all smiles.

I had knocked it down from my original post price by a $300 in hopes. I did do what the stickied post said about pricing, but seems to have not made much of a difference. Maybe I will knock it down a little more. When I have sold bikes before, it always seems to take a few weeks at least...but maybe my timing is just bad.

 

[Cookie Monster]

Unfortunately, I do not have the room to have 2. Also, if I paid the down with cash, part of that would be from my "in case shit happens" funding. So, being out a few extra thousand, wouldn't be ideal. I have been trying to figure out if it would be.


I realized the yield differences, but was wondering if the difference is worth the "hassle."



I had knocked it down from my original post price by a $300 in hopes. I did do what the stickied post said about pricing, but seems to have not made much of a difference. When I have sold bikes before, it always seems to take a few weeks at least...but maybe my timing is just bad.

It's been super cold and shitty lately... probably not the best time to sell.

 

[SirSkankin DBA]

It's been super cold and shitty lately... probably not the best time to sell.

yeah, that is what I was thinking too...that is also why I had started considering the trade in....

 

[VicTim]

If you post on Craigslist to sell it just know you may get raped.:|

 

[treadtread]

If I was in a similar place, it would be an easy decision for me. If the new bike price isn't discounted, I'd wait till March, sell the old one and buy the new. Without touching emergency fund, put down as large a down payment as you can comfortably.

 

[Climber]

Sell it for $2k-$2,500 to somebody on BARF, it will go really fast and the recipient will be a very happy person. For a couple hours time it will give you an extra $500-$1,000 that the dealership would have pocketed.

 

[SirSkankin DBA]

I dropped the price a little more. The Barf price is lower than I had hoped to go, but still should be a great deal for someone.

If I was in a similar place, it would be an easy decision for me. If the new bike price isn't discounted, I'd wait till March, sell the old one and buy the new. Without touching emergency fund, put down as large a down payment as you can comfortably.

Yeah, I am considering that. The original plan was to probably start at the end of January, but things worked a little better than expect so, the date was able to move up...but I probably will drop back to the original plan if the new price doesn't move it.

Sell it for $2k-$2,500 to somebody on BARF, it will go really fast and the recipient will be a very happy person. For a couple hours time it will give you an extra $500-$1,000 that the dealership would have pocketed.

Honestly, if their trade in was going to be less than $2k, I wouldn't trade it in, unless they were going to give me a compensatory deal on the new one.

 

[FXCLM5]

What do you usually do or have done?

dont finance toys, unless this is 100% your only mode of transportation

i would save $ up till you have enough to pay for the bike outright, sell your old bike and buy a new bike - ive done this same day before, drop off my bike to a cl buyer and meetup with a cl seller same day - on my return route as well.

ive actually sold a bike back to a dealer - took the check to my bank, grabbed a fistfull of cash and drove to the next seller.

do whatever you want, just dont finance toys, the only thing you should be financing ever in your entire life is your:

Home
Tools for your trade/work (car/truck/specialized tools)

everything else should not be financed, but i doubt youll listen like 95% of the population living off credit - still cant wakeup to our disastourous economy from 2008

 

[FXCLM5]

or in other words, why must you take a huge loan out to satisfy a urge of yours when you already have that void filled with a paid off bike?

think about it, $ goes a long ways, say invest $5500 annually in your roth 401k and in 20-30 years it will hopefully sit on close to 1 million dollars - but nobody does this at my work and the entire population is so focused on want and not actual need.

 

[SirSkankin DBA]

or in other words, why must you take a huge loan out to satisfy a urge of yours when you already have that void filled with a paid off bike?

think about it, $ goes a long ways, say invest $5500 annually in your roth 401k and in 20-30 years it will hopefully sit on close to 1 million dollars - but nobody does this at my work and the entire population is so focused on want and not actual need.

Just to be clear on two points, as I do respect what you are saying and it is what I already try to do.

A) I do not live off of credit. I have credit history, yet no credit score. I have not had any credit cards in over 15 years and have not had any open lines of credit in two years. As I am sure you know, without a credit score or at least some active line of credit, it can hinder your attempts at many things, like purchasing a home, or renting a new apartment, and the like

B) There is a void that the bike I am considering can fill that the paid off bike I have can't...That is being able to ride regularly again and commute regularly again. Due to some recently discovered physical ailments, I am unable to ride my current bike as I once did.

 

[Cincinnatus]

invest $5500 annually in your roth 401k and in 20-30 years it will hopefully sit on close to 1 million dollars - at which point it will be worth nothing... Robert A. Heinlein

J/K, definitely invest for the long term as much as possible. Set aside $$ for food/clothing/shelter and 1/2 $ for fun, but invest as much as possible. Max out on your fav investment? Find another investment to fund. :thumbup