Decisions have Consequences

In this case, it’s the consequence of financing a motorcycle, with the terrible first-year depreciation that motorcycles have. The NADA Book gives my Sporty a trade-in value of $6,000. I owe 14k. No matter how you cut it, thats bad math for any hope of a trade-in.

There’s a glut of second-hand Sportsters on the market right now. Ordinarily, I wouldn’t care about that, but I went to the local triumph dealer for a look-see at a brand new 2006 Rocket III Classic they have on the floor. because it’s a 2006, they are really motivated to move it.

So, I rode the sporty over and told them that if they could get me a payment at $300 per month or below, and take my Sporty in trade, I’d buy it. Well, they tried. Their first pass, though, came out with a payment $485 per month. That was a no-go, so they went back, slashed another thousand dollars off the Rocket, and offered me $7,000 for my Sportster ($1000 over blue book) and the payment still came out to $404. So, naturally, I declined.

They are willing to go pretty far to get that 2006 Rocket out of their showroom, though.

Still, I’m about $7000 upside down on the loan for my Sporty, so it’s pretty much a no-go on any sort of trade-in. However…

Next month, I’ll have about $3,000 in cash I could put into the deal. If that 2006 R3 Custom is still there at the end of October, I may try to run those numbers again, and, when they get to th lowest payment they can, I’ll ask what the numbers will be if I drop another three grand in cash on the deal. That might ed up being a nice monthly number.

If that 2006 is still there, of course.

Author: Dale Franks

Dale Franks is the former host of The Business Day, ”a daily, four-hour business and financial news program on KMNY Radio in Los Angeles. From 2002-2004, he was a contributor on military and international affairs for Currently, he a publisher and editor of the monthly political journal The New Libertarian, as well as an editor of the popular web log, Q and O. Dale served as a military police officer in the United States Air Force from 1984 to 1993, in variety of assignments both in the United States and Europe, where he also was assigned to the staff of the Headquarters of Allied Forces Central Europe. In addition to broadcasting, writing, and speaking on various topics, Dale has also been a long-time technical training instructor on a variety of computer software and technology subjects. Dale has also long been involved with information technology as an accomplished web designer, programmer, and technologist, serving as the corporate knowledge specialist for Microsoft Outlook at SAIC, the nation's largest employee-owned corporation. Additionally, he is the author of a number of software user guides used for classroom training by one of Southern California’'s premier computer training and consulting firms. His book, SLACKERNOMICS: Basic Economics for People Who Find Economics Boring, is available from Barnes & Noble.