Woah... slow down. First, rotating debt is a very ugly game and never ends up in your favor in the long run. That being said, the debt you currently owe has to be your first priority before you start piling up additional debt. How much do you currently owe on your current bike at the soon to be astronomical APR? I agree you need to get that debt paid off or rolled over ASAP as it is going to kill you at 17.8%. However, that may not be quite as easy to roll over as you may think.

Are you sure that when you trade your current bike in for the 08 model you can roll your existing debt with HSBC over to the new finance company? If so, are you sure you can handle the additional debt, even at the lower interest rate? Also, are you positive the new interest rate is only 1.99% for the duration of the loan, and if so, how long is that duration and what are your minimum monthly payments? If it is a two year loan and the monthly payments are $800, it doesn't matter how low the interest rate is as the game will be to get you to miss one payment, so they can then blast you with late fees, penalties, and increased interest rates.

If you feel confident that you know all the answers to these questions and they are all in your favor, then you still have to ask yourself if there isn't a better way to get out from under your soon to be astronomical interest debt without adding additional principle. In other words, you are a starving college student that can barely afford minimum payments in your own words. So why do you think it is a good idea to trade the '07 you still don't own for an '08 and burry yourself in that much more debt? I am guessing you have student loans and such too, right?

Finally, one last word of caution. I found myself in a very similar situation right out of college. I "knew" I was going to make a ton of money with my degree, so I went out and bought a brand new toy at a high interest rate because I was going to pay it off so quickly it wasn't going to matter. Well, the money doesn't always start flowing right off the bat like you think it should, and looking back on it, I would have been MUCH better off if I had delayed my purchase another year. In any case, don't think the money you can reasonably expect to earn after college is a sure thing. There is a possibility it will take a year or two or three after you are out of college to really start earning anything substantial, and even longer than that if you are burried in student loan and toy debt.