Finance Question / Don’t Know What To Do

[Drew Carey]

Hello AllI am taking my DAS in January (Yes I know, silly time of year, but there are reasons for it). Anyway, Once passed I am looking at getting a new SV650S / Sport. I am hoping that I may be able to find a good deal on a remaining K6 (If any left) or a pre-registered K7 prior to the March Reg.My question you may ask??? Well, I have a chequered past financially, which I don’t mind saying, was a result of my own stupidity whilst at Uni ( But it was lots of fun!!!!!!) As a result, I am unable to get credit. I do not have CCJ’s but I have arrears and am currently on a decent debt management program which is clearing everything. I do however earn a very decent wage and have a large amount of spare cash each month allowing me to enjoy life without my debt crippling me.With that in mind, I have a kind partner who I am moving in with in January. She knows how much this all means to me and has said “If there is anyway I can guarantor it or put finance in my name I will". So, the question is…….Is there a way that if I went in to a dealer she cold do the finance etc, but the bike be registered into my name?From my own thinking I could do the following options:1. She does the finance deal with the dealer, but bike registered in my name – Preferred choice if at all possible.2. She takes out a bank loan and we pay cash, job done. But this could mean not getting the 0% option (If available at the time), so could result in having to spend more than need to (APR).3. She buys the bike and has it registered in her name. But, can I then be insured on the bike on my own policy, or would she need to be? (She won’t have a licence, so this would not be possible if that’s the case).Any ideas or advice as to the best option? I know there are some dealers on here…….SVRIDER……please stand up! So would be good to get advice from anyone who has either experienced this predicament (Doubt it) or any dealers that know whether option 1 is possible or have any ideas. I’m not a credit risk, as I don’t have credit cards or loans anymore and I have paid a massive amount of the debt back, but until I have completed all the payments and am off the program it will be near impossible to get finance.Cheers All for any advice you may have.Drew

[Drew Carey]

Apologies for the rubbish formatting, tried correcting it but can;'t.

I don't know the answers but as no-one has ventured a response yet I'll wibble some thoughts.

A finance deal is still effectively a loan and so will be secured against the bike. Therefore I'd have thought the bike's owner would have to be the person who's name was on the finance. That said owner and registered keeper are different things. So whilst you might not own it I think you could be the registered keeper. I don't actually understand the difference though (http://www.dvla.gov.uk/ might be a good starting point).

Insurance companies like you being the "registered owner and keeper" but I wouldn't have though that you would have a problem with not being such, especially as you'll have the same address. I used to insure a car in my name when I wasn't the owner or keeper.

It depends on whether the deal is HP or not. If its a straight loan then the bike can be registered in anyones name IIRC. If HP then the bike is part of the conditions of the loan, i.e. if you default it gets recovered, in this instance any decent bike dealer would insist that it is registered to the person taking out the agreement.


I am sure there are some financial wizards on the forum who can clarify this much better than the above.

This might sound silly but if you have already had trouble with loans then is it really a good idea to get another one? As you say your are fairly well off and have plenty of cash left over each month to have fun with I would suggest that between now and january you try and save up as much money as you can (in the 5 months between now and then a couple of grand could be doable) which would allow you to buy a decent 2nd hand sv as they are going for stupidly cheep. This means you dont loose any money on the instant depreciation that a bike gets as soon as you roll it off the show room floor and you dont have the risk of screwing up and ending up in a worse situation than you started in. I know its a nice idea to own a brand new bike but reallisticaly if you cant afford it dont do it cause its only going to get you into trouble. Hope this doesnt sound like im having a go, im just trying to give you another option that may be better to your needs.

[Drew Carey]

AllThanks for the responses.Fat_Bstrd - At the moment I am cash rich as I am living with my folks. But, in January I am moving in with the misses (Also why can't take the test till then). We have looked at our joint budget etc and paying a bike loan is no problem once we move in.Plus, the money I can save between now and then is all going towards moving in etc, so can't be used to pay for a bike, leaving the only option as finance.She is the most financially astute person I've ever met, so are her parents. If we couldn't afford it when we move in, I wouldn't be doing it.CheersDrew

Drew - you may well be asked for a guarantor. I wouldn't have thought this a problem. Best thing is to go to the dealer and ask now so you can plan accordingly.

Bikes in a showroom look oh so shiny and inviting. I don't want to spoil things for you but don't let heart rule head. January will be very much a buyer's market and you will be spoiled for choice for good machines, so do your homework before you sign up to anything. As someone else has said on here, the depreciation hit is yawning. And don't forget that others have the 0% option too, so a second hand bike, even a few months old, is worth far less than new. I doubt you'll have a problem finding an excellent model with a manufacturer's warranty.

As I was 19 with no credit history, wondered into the bike shop and said I'll have that one thank you very much. They had a few conditions on the 0% finance with me, which in this situation I think may be similar. Firstly, they wanted to know that I had a 3 year work history (part or full time, but without any gaps in employment, this was to prove income.) They then asked for a guarantor, but they were specific that they wanted my dad as a guarantor and wouldn't accept anyone else, relative or not. whether this is due to his credit history, or the fact that they knew he'd beat me senseless* if I didn't pay up.


*he wouldn't really, lol

Can you or your misses get a credit card with 0%?.

Just a plan if you save enough now for a decent deposit and then buy the bike using a non 0% card. All you then do is take out one on 0% for the longest term possible - some do 12mths and transfer the balance over. You set up a monthly direct debit to pay as much as you can each month. Once the term has ended you transfer the remainder to another 0% card.

Most have a transfer fee now of about 2% of the balance transfer. Most dealers will also charge a fee of around 1.5% to buy a bike over £1000 on a credit card as thats what they get charged by the card company.

You have to be strict with yourself to do it this way by ensuring the balance is paid off within a reasonable amount of time. Also cap the limit on your card after the transfer so you dont put more onto the card.

IE £500 deposit on a £4299 bike = £3799 on the card.
2% balance transfer fee = £75.98
1.5% for card payment = £56.99
Total on credit = £3931.97

36 x monthly payments by direct debit = £109.22 per month. Remembering if this is the minimum they take per month you can always pay more to it.

Some loan companies will offer you HP against the bike but the rates are very high.

With the card purchase it doesnt matter who pays for the bike.

[Red ones]

3.5% total interest or about an APR of 1%

If you do it this way then mak sure you use a cashback vredit card for the initial purchase!