What is the best way to finance a motorcycle and insurance using an enlistment bonus?

Question

I am looking into buying a motorcycle (and insurance) in the coming year. I will be recieving $10,000 along with my daily pay check (and the same amount yearly for four years) after finishing my basic training for the Army. I find the motorcycles, while using caution and saftey, can be fun and very effecient on gas. The NEW bike I am looking into (by new, I mean the more expensive, I might buy a used version, depending on the year) is a Kawasaki Ninja ZX 14. I will either buy a 2006 or 2008 model. Insurance is also high because of my young age. Now, would it be better to keep enough to pay off the bike and insurance in cash right away (making sure to mention I will pay cash after a little negotiating) or take out a loan? I have never used a credit card nor taken out a loan. Also, I should mention I was planning on setting aside anywhere from $0 to a max of $3000 to buy a used motorcycle to get experience in. Any information would be great! Thank you for your time.

Answer 1

buy it out right. DOnt take a loan for it if you can avoid it. People might say to take a loan out to establish credit, but you are building credit by working. By the time you go to get a house, you will have great credit.

After 4 years you will be ok, just dont go hog wild on the credit cards. My best friend has never had a credit card and has the best credit i have ever seen. And owns everything except his house. He was able to get a high priced house with low interest and payments and only having a $12 an hour job. So if you do this right, you will be just fine in years to come.