Is getting a loan a good way to purchase a motorcycle?

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Is getting a loan a good way to purchase a motorcycle?

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Remember this when you’re going to take a loan. The bank creates new money for every loan issued based on a fractional reserve system. So you borrow $2,200 from them (and let’s say 800 more for gear, insurance, tax, title, license endorsement, and any repairs that might need to be done) and it ends up being $3,000. Chances are $2,700 of that is new or imaginary money. You end up paying probably 10-30% interest on that amount when you could have just waited and saved up that money. Also consider that the bank will want a lien on the title, making the bike theirs until you pay it off completely. Most banks also require full coverage insurance on their bikes until it’s paid as well. So think about all this. Full coverage insurance on a 1000cc sport bike for a male under 25 is over $400 a month. So now you need a $8000 loan for the first year to cover insurance. Well now the interest is an even greater amount and most likely will put you into heavier debt if you can’t afford the minimum pa

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