Everyone dreams of buying a new car or motorcycle and driving it off the lot knowing they officially own it.
If you recently saw your childhood dream realized and purchased a Harley Davidson, it’s time to celebrate! But before you start dancing, you might have to postpone the celebration until you’ve paid off the loan.
Like with any luxury item purchase, such as a boat, ATV or recreational vehicle, it’s important to prioritize where it fits into your budget. So let’s dive into how to pay off your Harley Davidson loan quickly and easily, so you can get to celebrating!
Tally Up the Total Loan Balance
The first step to take once you’ve purchased a Harley Davidson is determine the final sale price. With the added sales tax, and any additional accessories or add-ons, the sticker price may be a bit different from the money you ultimately borrow.
Ask the sales associate to give you a copy of all the paperwork, including the sales receipt and any loan documents.
Now you can thoroughly check the bottom line to calculate where you stand. Hopefully, you were able to stay on budget with your purchase and not spend more than you should, but in case you were caught up in the moment, now’s the time to crunch some numbers.
Purchasing a Harley Davidson may have been a dream, but the numbers will quickly bring you down to reality.
Create a Simple Repayment Plan
How much can you afford to pay towards the loan every month? Ideally you would have figured this up before shopping for a Harley Davidson. But either way it’s time to get a firm grasp on the numbers.
Inside ReadyForZero’s program you can play with the numbers and the intensity to which you can repay the loan, to see your payoff date. Otherwise you can use a simple spreadsheet to calculate your payments each month, in relation to your income and other expenses.
Like with any financial goal, if you don’t know where you’re going, you’re likely to never get there. So having a plan in black and white will keep you on track to paying off your loan.
Put Any “Found Money” Towards the Loan
Since a Harley Davidson is considered a fun purchase and not a necessity like paying your mortgage, the sooner you can pay off the loan the better. Any time you come across “found money” you should put it towards the balance.
What exactly is found money?
It’s any extra money you find, or some type of bonus that you weren’t expecting. For example, if you cash in all the coins you’ve saved over the past year, or you get a big tax refund, or birthday money, can all be considered found money.
And since it’s money you didn’t realize you’d be getting it can go straight towards the repayment of your motorcycle loan.
Find Ways to Make More Money
Aside from finding extra money lying around, you might want to actively increase your income through overtime at work, or taking on a weekend project.
There are lots of ways to make extra money in your spare time, and some of them can be done without ever leaving your house.
If you need a little motivation to work more, just think about how nice it will feel when you can drive your motorcycle around completely free and clear of any loans. No more payments — that will be an awesome feeling!
Enjoy Your Purchase
Once you’ve worked hard to pay off your Harley Davidson loan, it’s time to enjoy your purchase for all it’s worth. There aren’t a lot of things we buy today that can be used to fuel our fun and creativity, so it’s important to let loose.
Rewarding yourself for all the hard work you’ve put into paying off your loan is worth celebrating and will help enforce positive financial habits going forward.
Additionally, you’ll have a better appreciation of what making an impulse purchase means next time you’re tempted to buy another luxury item.
Why? Because you’ve seen first hand the time and discipline it takes to pay off a Harley Davidson loan.
The Bottom Line
After you’ve tallied up the cost of your Harley Davidson purchase, it’s time to create a game plan to pay it off. That combined with throwing any extra money you find towards the loan balance, you’ll be well on your way to enjoying your purchase that much sooner.
Image Credit ross_hawkes