trade in for a 600
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  1. #1
    Member osheen23's Avatar
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    1 week ago I went to a motorcycle dealership. Those dealerships that have every manufacturer and model available; not just one brand dealership. Anyways, Yamaha was the only manufacturer that approved me and they only approved me for $5000. So I went and picked out a bike for 5000 (2010 tw200) out the door. Now its been 1 week and I want to trade it in for a bigger bike. How will trade in work? I want to give this bike completely back to the dealership and get a bigger bike. My dream bike out the door from this dealership is 6500. Keep in mind yamaha has me approved for 5000. I still owe 5000 on it since I haven't even made my first payment yet.



    Long story short I want an r6, I still owe 5000 on my tw200 since the first payment is on novemeber 17, how will trading this in for an r6 work at the same dealership?



    key notes:



    -First payment is due 11/17/12

    -252/month

    -Yamaha has me approved for $5000

  2. #2
    Senior Member TW-Brian's Avatar
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    Ouch!



    Unless your dealer happens to be very generous, I would expect that you may have to take a pretty big loss on this transaction. Trade in value on a 2010 TW is only $2,275 and retail is $3,340.



    Brian

  3. #3
    Member osheen23's Avatar
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    okay after that how does it work? The 2275 is used as what? Please explain to my extremely detailed since i'm a newbie at this. If im approved for yamaha on a 5000 loan, can I use that 2275 trade in as the down payment for the r6? the r6 out the door is 6500 at this dealership

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  5. #4
    Senior Member pgilles's Avatar
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    You already used your $5000 loan to buy the TW. You don't have $5000 anymore, it's already been spent. That's a debt.



    You trade the bike in and they give you $2275 (that's not a guarantee). You still owe $2725 ($5000 loan - $2275 trade in value of bike = $2725 still owed on loan). Now you have a $2725 loan and have no more bike. You are making monthly payments for nothing in return. That's a tough financial lesson.



    But like Brian said, if you can persuade your dealer to have a little mercy on your mistake they might give you more money with the TW.



    Here's the issue with the R6: you were approved for $5000. You spent the $5000 on the TW. Let's say the dealer says, "we feel bad you bought the wrong bike so we'll allow you to trade it back in for $4500 IF you buy that R6 from us". You think, great I get an R6 and only lose $500 with the TW. Well, you need to come up with $2000 out of pocket to pay the difference between the $4500 value the dealer is giving you on the TW and the $6500 cost of the R6....and you'll need another $500 out of pocket to cover the loss on the TW. Do you have $2000 in your bank account??



    On top of all that, you'll have to deal with releasing the lien on the TW title in order to trade it in. That's another can of worms.
    Sold bike.



    Youtube vids of old TW's acceleration:

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  6. #5
    Member osheen23's Avatar
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    Can the dealership roll the $2000 on the r6 loan?

  7. #6
    Senior Member pgilles's Avatar
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    And sorry to be the bearer of bad news, but $5000 for a 2010 is a fistf*ck. Not trying to kick you while you are down, but remember this transaction for future years to compare and shop around and do your research prior to signing anything. I lived plenty of years in debt and I'm finally clearing it out. It sucks. The best way to protect one's self is to learn from the good and bad experiences and apply those lessons to future transactions.



    I really don't believe your dealer will give you close to what you want for a trade-in value. Why? Because you said you bought it with 256 miles and have already put 1000 miles on it.... https://tw200forum.com/index.php?/top...post__p__59395
    Sold bike.



    Youtube vids of old TW's acceleration:

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  8. #7
    Senior Member pgilles's Avatar
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    Quote Originally Posted by osheen View Post
    Can the dealership roll the $2000 on the r6 loan?


    Here is the lesson on a "lien" and releasing them:



    When you got the loan from Yamaha, they buy the bike and you agree to make payments to them for x amount of months until it's paid off. Up until it's paid off, you don't own the bike. The title to the bike will be in your name but it will have a "lien" on it. That lien means you owe someone else money before you officially own the bike. You can't sell your bike (or trade it in) without releasing that lien, well you could try selling it but no one will want to buy it. How do you release the lien? You have to pay off the loan. So, they may give you $2275 for the bike as a trade-in value but you still need to come up with $2725 to release to lien on that bike.....it's a combo deal, both things need to happen to transfer the title from you back to the dealer (or any other buyer, for that matter). They will NOT give you $2275 if you don't come up with the $2725.



    So, if you don't have $2725 available in your bank account to release the lien, you need to go to your bank and ask for a separate loan for that $2725. You use that to pay off the remaining Yamaha loan and release the lien. You are still out $2725 but now with a loan through your bank.





    The dealer will gladly roll the $2275 on the R6, IF you pay off the whole $5000 loan on the TW. You can't buy a $5000 bike with a loan, trade the bike in, and use it's trade-in value to put towards another bike. Remember, you don't own the bike at this stage so that trade-in value is not for you to keep or apply to a different bike.



    Yamaha has approved you for $5000. You already spent that. Have they approved your for ANOTHER $5000 for the R6?? When you get an approval, it doesn't mean you can spend that amount multiple times. You already spent your Yamaha loan on the TW. You CAN'T spend it on the R6 as well.
    Sold bike.



    Youtube vids of old TW's acceleration:

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  9. #8
    Member cbamarun's Avatar
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    We've all done this before,but you need to stop and take a breath before you make things worse.First realize that the dealer will take you for everything you're worth and it seems likley they already have.

  10. #9
    Senior Member elime's Avatar
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    New is nice but if you are patient and willing to shop around excellent deals can be found in used motorcycles. Check Craigslist daily, several times a day, for what you want.



    Why did you buy a TW when you really wanted an R6? Different animals all together.



    Keep the TW, pay it off, then move on to something else.



    How long before it is paid off?
    Long live the internal combustion engine!

  11. #10
    Senior Member Skyking's Avatar
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    Whoa! Hard lesson young friend. Why don't you just keep the bike and ride it till you pay off the loan? I assume there's something you really liked about it; other than it's price. You can make extra payments on the back side of the loan, and get it paid off quicker. Then; you can sell it outright for more than what the dealer will offer you right now. These are great bikes for a lot of reasons, and you'll probably live longer on it than you will the R6; albeit you won't be doing 100MPH wheelies down the interstate. By the way; where did you buy it, so we will all know to avoid this dealership(or at least go in with some experienced bargaining tools).

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