I am looking at buying an 2024 BMW s1000rr motorcycle. Currently only way to purchase the bike is either borrowing from my 401k or finance. Please skip to the TDLR below if you don't want to read my life story 
My financials:
-Net income $82177 with a possibility of aditional 3.5k bonus depending on performance.
-Net debt: $35,714 in student loans. 0% payed yet. Expected monthly payment next year $190
-Recuring monthly expenses: $858 rent $70 electicity $120 car insurance $262 medical insurance and no student loan payment for this year.
I had few baddies from when i was in univesity. Payed them in the past few month:
1)Amex: had a $1550 charge off, i payed in full and it updated on Ex but not on Tr or Eq., Shouldn't bump scroe since it didn't affect Ex score (utilization isn't calculated).
2)Merrick bank: abosolutely biggest screw up and regret. $971, setteled for less but they wont delete. Updated on Ex and Eq.
3) Barclays: settled for less through collection for delete of collection but barclays remains on account.
4) Credit one bank: 60 days late payment in 2022. Paying as agreed.
screenshot for each account: Credit one Barclays Amex Merrick
TLDR:
Over all utilization: 1% Ex 33% Tu 1% Eq
DTI: 21%
Average age of accounts: 4y 10m
Age of oldest account: 9y 4m
FICO 8: 702 Ex | 665 Tr | 696 Eq
Now if i put financial responsibility to the side.
they currently have 2.9% rate for 36 month which is unbeatable by any other motorcycle manufacturer or bank. What are my odds for an approval for 24.5k motorcycle with 5k down?
@mainscars wrote:I am looking at buying an 2024 BMW s1000rr motorcycle. Currently only way to purchase the bike is either borrowing from my 401k or finance. Please skip to the TDLR below if you don't want to read my life story
My financials:
-Net income $82177 with a possibility of aditional 3.5k bonus depending on performance.
-Net debt: $35,714 in student loans. 0% payed yet. Expected monthly payment next year $190
-Recuring monthly expenses: $858 rent $70 electicity $120 car insurance $262 medical insurance and no student loan payment for this year.
I had few baddies from when i was in univesity. Payed them in the past few month:
1)Amex: had a $1550 charge off, i payed in full and it updated on Ex but not on Tr or Eq., Shouldn't bump scroe since it didn't affect Ex score (utilization isn't calculated).
2)Merrick bank: abosolutely biggest screw up and regret. $971, setteled for less but they wont delete. Updated on Ex and Eq.
3) Barclays: settled for less through collection for delete of collection but barclays remains on account.
4) Credit one bank: 60 days late payment in 2022. Paying as agreed.
screenshot for each account: Credit one Barclays Amex Merrick
TLDR:
Over all utilization: 1% Ex 33% Tu 1% Eq
DTI: 21%
Average age of accounts: 4y 10m
Age of oldest account: 9y 4m
FICO 8: 702 Ex | 665 Tr | 696 Eq
Now if i put financial responsibility to the side.
they currently have 2.9% rate for 36 month which is unbeatable by any other motorcycle manufacturer or bank. What are my odds for an approval for 24.5k motorcycle with 5k down?
Finance = Stealing from yourself in the future with 5-8% compounding interest to pay for something you can't afford now. People sign loans that are worse than this, but that's not an excuse to benchmark yourself by the stupidity of something someone else did. "They did something really stupid, I only did something a little stupid." Two stupids don't make a smart.
Financing something you can't buy or come close to buying is not smart. If you can come up with some serious skin in the game and want a new car or something and the loan is 5-8% and you have a 40-50% down payment, then that's not an outrage, but it's not ideal. People who do like $90,000 sign and drive, no money down, that's really dumb.
But a motorcycle is just kind of a toy, especially if you live up north and can't even drive it half the year, like what happens up here. I would never finance one. Maybe if I had $100,000 from a contest fall into my lap that I wasn't planning on I'd get one, but even then, wouldn't be the first thing.
401(k) = Stealing from your retirement, missing 11% growth per year in an S&P 500 fund, and instead of being a millionaire someday, depending on the government to take care of you, which is famous for managing its own budget, so you can have a motorcycle.
Both bad. But if you have to choose one, at least don't steal from your retirement. Don't eat cat food after they give Social Security a 30% buzz cut ten years from now and you get there and it's all you have because of a motorcycle you don't even have anymore.
Most people steal from their retirement because they have no emergency fund. So they can steal from their retirement, or use a credit card, which turns emergencies into catastrophes. You need an emergency fund of at least $20,000, and it's not an "I want a couch." fund or "I want a bass boat." fund. It's an emergency fund.
Being an adult means paying bills and telling yourself no. If you tell yourself no more often, you'll have less bills.
"Compound Interest is a force of nature. Those who comprehend it, earn it. Those who don't, pay it." -Albert Einstein
It sounds like you haven't been the best with money if you got yourself in trouble with three credit cards and the only one still open is Credit One Bank.
I'd dispute the AmEx if you paid in full and say "I paid this collection in full." or whatever, and it should get investigated and updated.
Merrick and Barclays lied about a pay for delete? Or their collectors did? Because bill collectors lie when their lips are moving. It's how they get money. If you didn't get it in writing that they promise to do the deletion, you got nothing. They lie.
