Potential Motorcycle Purchase

[Anonymous]

Hi all,

Great forum and site!

Quick question for the experts.

Looking at purchasing a new BMW R1200 GS.  Bike with options comes out to around $21000.

My scores....EQ 694  TU  697  EX  697

Debt to income around 31%  Income around $82300 gross

CC utilization around 75%....had to pay for a funeral

No "baddies" on my record.  20 yrs of credit history, including no late pays on auto purchases.

I am planning on putting around 30% to 40% down on the bike.

Do you see me having a problem getting financed for the rest?

Many thanks for any advice you can provide!

[Anonymous]

Paying off the cc debt to lower your utlization may also benefit you in a lower APR on the loan as it will raise your credit scores. Between paying off the high cost CC debt and a lower interest rate on the bike it may be a better move. You can then pay the bike off earlier by paying the extra you would have been on the credit cards. I would not presonally buy an large unnecessary item while running 75% utilization.

[moondog7324]

If you plan paying 40 % thats roughly $8000- what would that $8000 do to your credit card util? And what interest rate are you paying on the cards?  I think its better to pay the cards down first. Enjoy the bike!

[moondog7324]

I'm betting if you get that utilization down to 10% you'll have scores in the 720-730 range- just a guesstimate.

[Ray0040]

At the BMW dealer I dealt with, they pulled TU for BMW FS. Granted this was August '08 so I don't know how things have changed for credit criteria.

My TU score at the time was 625. I has an existing loan with BMW FS for another motorcycle with a balance of about $6K remaining. The loan had a 30-day late in Feb '08.

I was approved with no difficulty. The rate was 13% (ouch, but since refinanced). I purchased an '08 R1200RT with an out the door price after discounts of $16,700. I put down $1700 and did not have to pay off the current motorcycle (Wanted to sell it privately rather than trade).

My discussion with the finance manager made it clear that, at least at the time, BMW FS would reach pretty low on the score and it just became a matter of tier and corresponding rate.

Great choice of motorcycle. The GS was my second choice. Actually the GS Adventure was my first choice but it was just too tall.

[Anonymous]

As far as credit pulls go, there is no guarantee who pulls what.  Alot of places pull all three just so they can see all the accounts and then they will only use the one that works best.  Also, different areas of the country tend to use different credit bureaus more commonly, so a BMW dealer in New England may not pull the same as a BMW dealer in LA.