I bought a 98 v star 650. The bike was bought from a Yamaha dealership. I only put about 50 miles on the bike since I got it. 25 miles was riding from the dealership. I noticed that the front suspension kinda bottoms out easily. I also notice that when I'm in 1st gear with the clutch all the way in I hear a slight grinding noise. Yesterday I tried to start the bike with the clutch all the way in and the bike in 1st gear. When I hit the ignition switch the bike kinda lunged forward. Today I took the bike for a quick ride and when I pulled into my driveway I put the bike into neutral. When I tried to put the bike into first gear I had quite a bit of trouble.
What do you think could be causing these problems? The bike was sold without a warranty but I think the dealer should fix the bike if anything is wrong. What do you guys think?

Since Ive gotten quite a few miles on a 650 VStar I will chime in....one question at a time.

The front suspension on these bikes DOES bottom out easily. There just isnt much travel in the front. LOTS of guys put spacers in, different springs or tube extensions. Ive found out how to ride mine while minimizing the bottoming out. I weigh 300lbs and Ive found if Im on the front brake when I hit a decent bump....its gonna clunk. So providing I see the bump I just get off the front brake....no problem. Again, this is common and a problem almost everyone has.....your bike is likely not defective here.

The lunging forward is another common thing with lots of bikes. When a bike sets sometimes the clutch plates stick together....this is more common in colder weather but it can happen anytime. When you hit the starter it lunges forward until the clutch plates free. You can rock the bike back and forth to un-stick the plates before starting.....or put it in neutral to start it and then snick it into gear after a short warm up. I ride in 30 degree temps and every bike I have will do this in cold weather.....and occasionally in warmer weather.

If you have trouble going into neutral move the bike forward or backward a bit....common problem.