Question re: financing a motorcycle for someone else

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paparoach429
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Question re: financing a motorcycle for someone else

Postby paparoach429 » Thu Sep 04, 2014 11:14 pm

OK guys so I'm in a major quandary. My friend wants me to put a motorcycle in my name for him. He has a revoked license (dont know the exact reasons) and according to him the motorcycle shop won't sell him the bike without a valid license. Anyways, He's willing to pay me in cash for the bike but there's a few different roads I can take and a few questions I have:

1.) I can build my credit up with a second loan ( I already have a car loan) and pay off the motorcycle whenever I want and I'd only be responsible for the interest charges. Me paying a little bit in interest is worth the boost in credit my score is likely to take with having a second long term loan paid and in my name.

2.) I can use the money to pay off my car and then just pay the motorcycle loan out of my own pocket which should be alot lower of an apr than my car. (Me saving money)

3.) Paying off my credit card debt (which is only about $2,500.00) and then using the remainder of the money to place on the motorcycle and then I'd be responsible for the remaining amount which should be alot lower apr than my current credit cards.

Now my questions are, How does this make me responsible for what he does on the motorcycle? The title will be in my name until I pay it off which I could technically pay it off in the first month, or the full term. Can he be on the insurance with his license being revoked? And is the risk worth it for me to do this for my friend? Thanks alot guys, this one if really got me puzzled.


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djrez4
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Postby djrez4 » Fri Sep 05, 2014 10:32 am

I think it's a terrible idea. He has a revoked license and you're helping him break the law? With your name on the title, YOU have to get insurance to cover what might happen to the bike or what might happen to something else if the bike crashes into it. Your bike, your responsibility, even if someone else is riding it.

I first thought that the ONLY way I would even consider it is if I had cash in hand before even applying for financing. On second thought, though, I wouldn't even consider it.

You're a better friend to let your friend deal with the consequences of getting his license revoked.
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Postby nismoZtuner » Fri Sep 05, 2014 1:52 pm

One thing you can do is get the bike with one of your cards for the points and then just pay it all off...

After you have paid off the bike just do a DMV transfer even if his license is revoked he can still register the bike under his name.. and problem solved..
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Postby CarefulBuilder14 » Fri Sep 05, 2014 6:08 pm

I agree with djrez4. Don't do it.

There is no legitimate reason someone with a revoked license needs a new motorcycle.

And I don't think this is a case of 'helping him and then letting him make his own decisions' or anything like that. I'm pretty sure you'd be breaking the law yourself by trying to help him.

Bad idea. Bad, bad idea.

Remember - you'd not just be helping him financially. You'd be helping him get around the legal obstacles that prevent him from driving.
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Postby onion » Fri Sep 05, 2014 6:56 pm

I'd say do it, but you could get in trouble for helping him get a bike on a revoked license. Not a good idea.
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Postby paparoach429 » Sat Sep 06, 2014 12:16 am

Ok guys so I thought about what you guys, as well as my family told me and I decided to not put the bike in my name. I didn't know how all that stuff worked as far as who would be responsible for the bike, the person who owned it or the person that got caught on it. The dealer ended up letting him put the bike in his own name so I didn't have to be involved at all anyways. I knew he was going to buy the bike regardless of what anybody told him or how he was affected by the law. I figured there was a few ways that could benefit me creditwise and I should have taken advantage of them but I guess it was a better idea that I didn't. However, I did end up putting the payment across 3 credit cards, mostly Chase, and he gave me a check for the total plus a little extra. I guess now my question goes back to a thread I posted a few weeks ago asking about a reported high balance. Should I let these high limit/ high balance cards report to show I am using them in their entirety and am capable of paying them off, or should I pay them off the second they post? Thanks alot for all your guys replies, its not that I was trying to be a bad friend for letting him do it, trust me he was going to do it regardless.. I was trying to have it benefit me in a way that would help me boost my credit, after all isn't that why we are all here?

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Postby nismoZtuner » Sun Sep 07, 2014 12:53 am

paparoach429 wrote:Ok guys so I thought about what you guys, as well as my family told me and I decided to not put the bike in my name. I didn't know how all that stuff worked as far as who would be responsible for the bike, the person who owned it or the person that got caught on it. The dealer ended up letting him put the bike in his own name so I didn't have to be involved at all anyways. I knew he was going to buy the bike regardless of what anybody told him or how he was affected by the law. I figured there was a few ways that could benefit me creditwise and I should have taken advantage of them but I guess it was a better idea that I didn't. However, I did end up putting the payment across 3 credit cards, mostly Chase, and he gave me a check for the total plus a little extra. I guess now my question goes back to a thread I posted a few weeks ago asking about a reported high balance. Should I let these high limit/ high balance cards report to show I am using them in their entirety and am capable of paying them off, or should I pay them off the second they post? Thanks alot for all your guys replies, its not that I was trying to be a bad friend for letting him do it, trust me he was going to do it regardless.. I was trying to have it benefit me in a way that would help me boost my credit, after all isn't that why we are all here?


i would pay it off, i hate paying interest..

you can probably let it report one month but then pay it all off by the time the 2nd month comes..
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