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Motorcycle financing and our current economy
- Thread starter Spinakr
- Start date
Artiee
R1200RT
Even if your credit is good, it might still be hit or miss as to who will and who won't agree to financing. Just last month, my wife and I purchased a new (used) car. Of the four financial agencies approached, three quickly agreed to finance while the fourth said....sorry, no can do 
.... this inspite of a Credit Score over 700.
We ended up with a 60 month loan at 6.5%.
.... this inspite of a Credit Score over 700.We ended up with a 60 month loan at 6.5%.
globalrider
Alps Adventurer
I pay cash for my toys.
I don't have much use for financial institutions; why make them richer.
I don't have much use for financial institutions; why make them richer.
R
rocketman
Guest
In the past year I've bought both a new bike and new car and financing was lowest I've gotten in a long time. Plus both were willing to negotiate the price more so than last time I bought a new car (though I've never financed a bike before and only one new car 9 years ago). got over 2000 off the car and nearly 1000 off the bike and that was off only a 10K sticker price. With good credit the financing officers at car and bike shops will work pretty hard since sales are down overall. I'd say go for it, you're not obligated to take any offer they come up with, until the price and terms are spelled out completely you can still walk away.
While some folks say never finance, sometimes it makes more sense to invest the cash and get low payment rates on some big ticket items, the investment interest can help to offset the financing interest and keeps the cash more readily available, something to consider even more than ever these days.
RM
While some folks say never finance, sometimes it makes more sense to invest the cash and get low payment rates on some big ticket items, the investment interest can help to offset the financing interest and keeps the cash more readily available, something to consider even more than ever these days.
RM
rbertalotto
New member
First of all I can't believe anyone would finance a depreciating asset and a "toy".......But that is just me.......I like Zero Debt!
But be careful of dealership low finance deals. In many cases the dealer is required to pay a percent of the sale back to the finance company for the ability to advertise a low rate.
In the last business I was involved in we paid upwards of 12% for zero interest, no payments for 12 months........
And a simple 1% finance deal cost us 4% of the sale.
You might want to see what a cash price would be before you discuss finance.......And then a 1/4 point or more at your local bank or CU might be a better deal.
Now the inverse of this is a rate that is higher than prime. In some cases a dealer will actually get a few dollars "finders fee" for financing the purchase and therefore they will push the finance.
Do the math, see what a $20K note will cost you after 4-5 years. Like I tell my kids, if you have to finance it, you can't afford it!
But be careful of dealership low finance deals. In many cases the dealer is required to pay a percent of the sale back to the finance company for the ability to advertise a low rate.
In the last business I was involved in we paid upwards of 12% for zero interest, no payments for 12 months........
And a simple 1% finance deal cost us 4% of the sale.
You might want to see what a cash price would be before you discuss finance.......And then a 1/4 point or more at your local bank or CU might be a better deal.
Now the inverse of this is a rate that is higher than prime. In some cases a dealer will actually get a few dollars "finders fee" for financing the purchase and therefore they will push the finance.
Do the math, see what a $20K note will cost you after 4-5 years. Like I tell my kids, if you have to finance it, you can't afford it!
R
rocketman
Guest
Not every one (in fact I would bet Most) simply can not just put down $10-$20K for transportation and not everyone sees motorcycles as "toys" some actually use it as primary (and only) transportation. And I intend to have both long after the loans are paid off.
And yes I wouldn't (and don't) talk financing until a bottom line price is figured out. As far as they knew I was going to be paying cash.
That way any loan costs they incurred they would have to swallow and I know exactly what the financing is going to cost over the life of the loan. One of the nice things about the many apps available for smart phones and such is being able to calculate the entire cost up front, even as they are trying to add all the extra packages,(which is where they make most of their profit) so you don't need to take anyone's word on what it will cost form the dealer. Being knowledgeable going into such negotiations easily prevents getting taken. Its not that hard to do, really. I shopped around for nearly 6 months before buying the car and almost that long before getting the bike. Plus I got the financing thru my credit union for the car because I asked the credit union if they worked with dealers and if so which ones so even though the dealer filled out the paperwork, my credit union has the loan and they get paid directly, dealers completely out of the picture now. Financing is some evil entry some would make it out to be, it just means you have to be smart about it. You can just as easily get ripped off buying with cash if you don't do your research first.
As for the "if you have to finance it, you can't afford it" that sounds nice and all but if that were really the case then only about 1% of people would be home owners, which as we have seen recently, can also be a depreciating asset!
RM
And yes I wouldn't (and don't) talk financing until a bottom line price is figured out. As far as they knew I was going to be paying cash.
That way any loan costs they incurred they would have to swallow and I know exactly what the financing is going to cost over the life of the loan. One of the nice things about the many apps available for smart phones and such is being able to calculate the entire cost up front, even as they are trying to add all the extra packages,(which is where they make most of their profit) so you don't need to take anyone's word on what it will cost form the dealer. Being knowledgeable going into such negotiations easily prevents getting taken. Its not that hard to do, really. I shopped around for nearly 6 months before buying the car and almost that long before getting the bike. Plus I got the financing thru my credit union for the car because I asked the credit union if they worked with dealers and if so which ones so even though the dealer filled out the paperwork, my credit union has the loan and they get paid directly, dealers completely out of the picture now. Financing is some evil entry some would make it out to be, it just means you have to be smart about it. You can just as easily get ripped off buying with cash if you don't do your research first.
As for the "if you have to finance it, you can't afford it" that sounds nice and all but if that were really the case then only about 1% of people would be home owners, which as we have seen recently, can also be a depreciating asset!
RM
Visian
look out!!!
Do the math, see what a $20K note will cost you after 4-5 years. Like I tell my kids, if you have to finance it, you can't afford it!
if you discipline yourself to this goal, it is not as hard as it sounds. plus, in addition to not enriching the bank, you save a LOT of money in interest, especially if you do this for your whole life.
it helps to start small, buy used and then work your way up. the hard part is making "payments" to yourself to save for that first cash purchase. well, the hard part is not spending it on something else.
it also helps to take very good care of your vehicle and keep it for a long time.
salespeople call people like this "check writers".... it's a lot less hassle on them to make a sale and sometimes that is reflected in the sum total of any deal you make.
ian
