I am already financing a car (Honda Accord- $18k) paying $309/month and insurance $113/month. I am single, my office is near by and I feel that this car is little big for me for now.

I wish to buy a bike (Honda Shadow Phantom) ~$4000. Is it feasible to buy this bike and downgrade my car to something ~$7K -8K, that way I can own both Bike and Car ?

Please let me know your opinions. Appreciate your help!

  • 2
    "feasible" is a pretty low bar. What exactly are you concerned about?
    – D Stanley
    Feb 4, 2019 at 19:07
  • I wish to buy a bike but, my car payment is already high and i can't have both so, is it a right decision to buy a bike now. If not, is there a way that I set it under the budget around ~$450 and can have both Car and Bike. Feb 4, 2019 at 19:10
  • 1
    This is probably going to hinge a lot on the rules in your state related to registering, titling and taxing new vehicles. If you're in a place like CA, you'll be paying the better part of 10% for sales tax related to the $4,000 bike and $8,000 car, for $1,200 that disappears in to the abyss (plus the tax that already went out the window on your current Accord) plus license and registration fees. With that in mind it might not really be worth downgrading the existing Accord. The particulars are important here, whats the loan rate, what would insurance be on the $8k car, etc.
    – quid
    Feb 4, 2019 at 19:12
  • 2
    You may find that your insurance cost is higher for two vehicles, even though both would potentially be lower mileage.
    – xirt
    Feb 4, 2019 at 19:16
  • 1
    Is there a reason you need a $4000 bike for commuting?
    – chepner
    Feb 4, 2019 at 20:43

3 Answers 3


I wouldn't finance both. Depending on how much you can get for your car, you could sell it, buy a cheap (3-4k) car with the balance, then save up to buy a bike (or upgrade your car). If you can afford a $450/month payment you can save up for a 4k bike in 9 months. A cheaper car that's not financed will also be cheaper on insurance.


Financial Expert Dave Ramsey says you should never buy toys with motors in them that total more than half your annual income. He also states, you should save up and pay cash for your vehicle as paying interest on a deprecating asset is double dumb. You'll never win with money giving it all away to car loans.

Resource: https://www.daveramsey.com/blog/the-truth-about-car-payments

It's a great idea to downsize your current car and reduce your debt. As for the bike, if you save up and pay cash for it, and the value of all your vehicles is less than half your annual income, go for it.


Depending on your answer to D Stanley, you want to put your option below 450 bucks.

If i'm not wrong, you are going for a used one. For your budget of 4000 bucks, you might get a bike that may be 8-10 years old.

You're also trying to downgrade your car to a $8000 option and it might be a 6,7 years old one. There is also a possibility of losing money in trading your current car.

Adding insurance costs and the cost to own for such old vehicles, it may be feasible but wouldn't be a clever option given that they might not have much of a life left in them.

If I were you, I would keep the accord as it is about 100 bucks under your 450 budget. I personally don't feel all this is worth.


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