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Wil needs financial advice...

Discussion in 'Members' Lounge' started by civicious, Apr 12, 2007.

  1. civicious

    civicious FüK-VTEC VIP

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    Ok, I'm in a bit of a pickle...

    I never posted a thread about this, but a few weeks ago my dumbass left the R1 parked outside for about an hour and a half in the evening, and when I got back to my apartment from a chic's house, it was gone. I'm pretty upside down in the payments, and my insurance company is pretty much giving me the shaft. As it sits right now, I'm going to be stuck with owing about $7k after my insurance company cuts me a check for the bike. I've got a lawyer working on it, but it isn't looking very promising...

    Part of my warranty coverage with the bike includes '$5000 theft protection', which isn't too terribly terrific. In order to get the $5k, I have to purchase another bike from the same dealership within 30 days of settling with my insurance company, and the $5k goes directly to the dealership.

    What I'm thinking about doing is going ahead and getting a used bike after my insurance company settles (I figure around $6k or so for the used bike), using the $5k from the warranty towards that, and tacking the remainder of the cost onto what I'm left owing from the R1 (use the same finance company). That would leave me owing around $8k for everything. Then I could turn around and sell the bike for what I paid for it (around $6k or so), and get a loan from my bank (or another financial institution) for the remaining $2k...that way I'd only end up being out $2k for everything, instead of $7k.

    Sound like a good idea? Does anyone have any other ideas? The only other option I can think of right now is to sell the CRX and use the money for that to pay off the difference...and I don't want to get rid of the 'rex.


    and FWIW, I don't want this turning into a 'Damn, you've got bad luck' or 'Don't park your shit outside' thread. I already know both of these, I don't need to be told again. I just need advice on what to do financially.

    Mods, if you would kindly delete any irrelevant posts that are bound to be posted, I would greatly appreciate it.


    Thanks in advance.
     
  2. reckedracing

    reckedracing TTIWWOP VIP

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    can you explain how you're gonna be left with 7K after the insurance company check? something doesn't add up to me
     
  3. civicious

    civicious FüK-VTEC VIP

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    I owe more than the bike is worth...after insurance pays off what they say the bike is worth, I'm still going to owe $7000 on the bike.
     
  4. reckedracing

    reckedracing TTIWWOP VIP

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    can you put the screws to the insurance company a bit?
    i know they like to lowball on values but thats absurd
    are they using trade in value?
    tell them to quit fucking around and use replacement value
    can you check your policy for gap coverage?

    your plan seems sound but of course it has risks
    will the bike warranty give you $5k if you buy used and not new?
    and remember you won't be able to flip it for what you're paying for it
    dealer price> private party price
    and who's gonna be able to buy it
    anyoen that wants it won't have cash, and a private loan through a bank will be harder for them to get than it would be for them to get a loan through a dealer

    just some things to consider
     
  5. civicious

    civicious FüK-VTEC VIP

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    I'm just assuming worst-case scenario, where my insurance company doesn't come up on what they're giving me. I won't have any problems using the warranty on a used bike, the only stipulation is it has to be from the same dealership. As far as selling it, I had planned on putting it on consignment at another bike shop, since I know I could probably sell it for a bit more that way than if I was selling it on my own. Granted, I'd have to pay the shop something, but even still it would be better to be out $3k than $7k.
     
  6. nootrac22

    nootrac22 Well-Known Member VIP

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    next time get gap insurance. gap insurance covers the diffrence between what the item is worth and what you owe on it. it's a great thing to have that is often overlooked.
     
  7. Celerity

    Celerity Well-Known Member

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    I thought you had GAP insurance ?

    Also.. I think it's time to find the bike.
     
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