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Motorcycle Loan - Grad School

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    Motorcycle Loan - Grad School

    Hello all,

    I'll be starting grad school in a couple of months and will be unable to work. I purchased a motorcycle for $8100 approximately one year ago, now worth $6000. I owe about $4100, payment is $100 a month.

    Would you sell it prior to school, save the $100 a month plus insurance ($600 yearly), and take a $2000 loss and learn from the mistake or hang on to the bike and sell it after school likely losing less money.

    Two year cost to hang onto it would be $3900. I'm thinking sell and stop the bleeding now but I'm open to suggestions.


    Thanks,

    Tyler

    #2
    I would sell it if you don't need a car/motorcycle at school. I'm assuming you won't. Luckily, you owe less than it's worth.
    Rock climber, ultrarunner, and credit expert at Creditnet.com

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      #3
      What will you drive?

      Comment


        #4
        Originally posted by tkell View Post
        I purchased a motorcycle for $8100 approximately one year ago, now worth $6000. I owe about $4100

        Would you sell it prior to school, save the $100 a month plus insurance ($600 yearly), and take a $2000 loss
        The bike is worth $2,000 more than you owe, so you wouldn't be losing any money. What you've already paid in is irrelevant.

        If you sell the bike, how will you get around? Do you have another vehicle? If so, yes, sell the bike.

        If you keep the bike, how will you make the payments if you have no income? And why can't you work while in school?
        Steve

        * Despite the high cost of living, it remains very popular.
        * Why should I pay for my daughter's education when she already knows everything?
        * There are no shortcuts to anywhere worth going.

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          #5
          Originally posted by disneysteve View Post
          The bike is worth $2,000 more than you owe, so you wouldn't be losing any money. What you've already paid in is irrelevant.

          If you sell the bike, how will you get around? Do you have another vehicle? If so, yes, sell the bike.

          If you keep the bike, how will you make the payments if you have no income? And why can't you work while in school?
          True, not losing any money at this moment, I was just thinking over the past year. Can't change that moving forward I suppose and better to quit losing money for something I don't/wont be using.

          Basically the motorcycle was an impulse buy and never really rode it much. It has less than 500 miles on it a year later. I have a 2009 Toyota Tacoma that's the daily driver and will be until the day it dies. Bought it brand new; I'm a fair bit ahead on the loan.

          I'll be starting PA school full time this summer. Working is highly discouraged (I'm sure you can imagine having attended medical school) although coming from a previous medical background I might be fine with some part-time work. I may have some time to work during didactic, but doubtful during the clinical year and at least nothing to compare to my current income.

          I have 10k cash saved up and another 10k in a Roth IRA (won't be touched, but could be if the world was ending). I'll have to take out some loans like most do but I'm attempting to minimize my debts in preparation.



          Tyler

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            #6
            Originally posted by tkell View Post
            the motorcycle was an impulse buy and never really rode it much.
            In that case, sell it. Anything else is irrelevant to the discussion. You shouldn't have bought it in the first place.
            Steve

            * Despite the high cost of living, it remains very popular.
            * Why should I pay for my daughter's education when she already knows everything?
            * There are no shortcuts to anywhere worth going.

            Comment


              #7
              Originally posted by disneysteve View Post
              In that case, sell it. Anything else is irrelevant to the discussion. You shouldn't have bought it in the first place.
              Agreed with this.

              And put the excess you get from it towards your car loan (about $2k), along with the old $100/month motorcycle payment and $600/year insurance.


              And if you paid on the 6 month billing cycle, you should even be able to get a portion of your motorcycle insurance back if you sell it before your coverage runs out. If you had about 2 months of your 6 months left, you should get about $100 back from the insurer.

              Put that towards the car loan too.

              Comment


                #8
                I'd keep the bike.

                Girls like guys with motorcycles more than they do guys with an education.

                I'm joking.

                Sounds like you should sell the bike, bite the bullet on the loss, and focus on your schooling.
                Brian

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                  #9
                  IN my opinion, I would sell the bike and use the money for school living expenses. Maybe you could get a non-electric bicycle to commute to campus, as I successfully did? Hope this helps.

                  Comment


                    #10
                    Definitely you should sell it since you have an alternative means of transport and have not been using it anywhere.

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