Did you finance your bike?

[MikeyRocks]

first off, don't go to a m/c dealer to find out your credit score...

go to your bank/credit union to find out your credit score and history.....see if the banks like you at all...

Funny you said that, when I was in the market for a bike, I was shopping at Golden Gate Cycles, and inquired about their financing. They had supposedly ran the credit report, and according to them the credit was subpar, and they were trying to sell a high interest loan. I checked my credit score when I got to work, and it was in the high 700's as I knew it would be.

Your best bet is to have a credit union finance your bike, DO NOT use the ones that the dealerships recommend. They will offer low payments to entice you, like $99 for 5 years, but think about it... If you are financing a $10k bike, there is no way in hell you'll pay it off in 5 years if you're sending them $99 a month.

Oh, and stay away from Golden Gate Cycles!

 

[V4]

Funny you said that, when I was in the market for a bike, I was shopping at Golden Gate Cycles, and inquired about their financing. They had supposedly ran the credit report, and according to them the credit was subpar, and they were trying to sell a high interest loan. I checked my credit score when I got to work, and it was in the high 700's as I knew it would be.

that's another dirty trick m/c dealers love to pull...

even if you have excellent credit, they'll try to get you on a higher interest rate so they make commission...

 

[SpikeVFR]

If you did, who is your lender (bank, credit union, etc.) and what's your interest rate? Are there any lenders that specialize in motorcycle loans?

Thanks!

I did not finance my current ride, but have in the past. Greentree, Honda, BMW, E-Loan amongst others. With Greentree it was a high rate, but I didn't know better. Honda and BMW were promotional rates, I want to say like 3.99% or so. E-Loan was like 6.5% percent or so.
With the current credit crunch the options are greatly reduced.

 

[silverbelt]

They had supposedly ran the credit report, and according to them the credit was subpar, and they were trying to sell a high interest loan...

..DO NOT use the ones that the dealerships recommend. They will offer low payments to entice you, like $99 for 5 years..

..Oh, and stay away from Golden Gate Cycles!

GGC is probably an aberration. The 2 dealers I financed bikes from did no such thing.

They may say $99 for 5 years, but if you know basic math, ask them "ok, 99 5 years, then what?". Finally, read the finance contract, those details will be inside. Your choice on whether or not to sign it.

Yes, I agree, stay away from Golden Gate Cycles.

 

[Burning1]

OEM financing can be good, or bad. Japanese financing tends to be a special sort of 'trap' credit card, that will charge a low interest rate for 24 or 36 months... But if it's not paid off by the end of the loan term, the interest rate shoots up, and the interest for the entire term of the card may become due (E.g. they retroactively jack up your rate to %20+ and bill you all the interest you would have paid.)

Some of the European dealers are better. I financed my GT through CalBMW and got 2.9% interest on a 5 year loan. The interest rate was low enough that the depreciation hit I took was absorbed, compared to buying a used bike financed by a credit union or bank.

Know your credit score before you talk to anybody. Every time a bank or dealer pulls your credit, it's a ding on your record. Requesting your own record from one of the major credit reporting agencies does not ding you.

 

[Burning1]

Yeah... Major thing with the Japanese credit card financing... Ignore the minimum payment. What you need to know is how much your payment will be to pay off the entire financed amount during the low interest portion of the loan term.

 

[mysaferide]

Help with Insurance

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Yes.. I worked for 6 weeks.. saved $600 and purchased my motorcycle outright.

Don't just think about the purchase price.. think about what it costs for insurance and tires and maintence.. it's not cheap..

Tires will run you about $300 a set.. Insurance will be another ~$150 a month for full coverage.. A service? ~$500.. (after 1500 miles) it adds up fast..

 

[Mr. White]

OEM financing can be good, or bad. Japanese financing tends to be a special sort of 'trap' credit card, that will charge a low interest rate for 24 or 36 months... But if it's not paid off by the end of the loan term, the interest rate shoots up, and the interest for the entire term of the card may become due (E.g. they retroactively jack up your rate to %20+ and bill you all the interest you would have paid.)

Some of the European dealers are better. I financed my GT through CalBMW and got 2.9% interest on a 5 year loan. The interest rate was low enough that the depreciation hit I took was absorbed, compared to buying a used bike financed by a credit union or bank.

Know your credit score before you talk to anybody. Every time a bank or dealer pulls your credit, it's a ding on your record. Requesting your own record from one of the major credit reporting agencies does not ding you.

Thanks. I test rode the Triple at Cal BMW/Triumph, so I'll have to see what they can offer. 2.9% is pretty good. Was this a promo they were having or just what they offered you?

I already know my credit score is good so I'm not worried about that.

 

[V4]

bmw has their own rate and triumph may offer another...

they may have their own neutral financing too...

check the dealer & manufacturer website for the promotions..

 

[Wormwood]

+1 on the credit union. Dont finance, take personal loan from credit union at lower rate and pay cash.

 

[TheNibbler]

6.9% @ 1stUSCU

 

[Burning1]

Thanks. I test rode the Triple at Cal BMW/Triumph, so I'll have to see what they can offer. 2.9% is pretty good. Was this a promo they were having or just what they offered you?

I already know my credit score is good so I'm not worried about that.

It was an end of year promotional rate on a bunch of different 09 models. Actually, I might have gotten 3.9%. I don't recall, other than that I wasn't paying very much for financing.

 

[CoolBDPhenom03]

I only went with the dealer financing because they shaved off another $1k and were able to approve me for 3.99% in addition to other discounts on any gear I bought there. Plus, like someone else said, I didn't want to dump all my cash into one purchase as cash-on-hand these days is invaluable.

 

[fast4d]

if you can't pay off the loan within a year....don't finance a motorcycle. I just don't see most of you riding the same bike 4 years later and still forking over the monthly payments.

I've taken advantage of KTM's 6month no interest deal....twice. pay it off within the alloted time period or you'll eat the interest for the 6 months. ouch.

tryin to figure out what to do about my upcoming RC8R. I would take a 25% apr loan out if they'll give me a bigger discount. then pay the loan off within a week.

 

[Archimedes]

I've never financed a single bike I've owned, including the first street bike I bought when I was 17. Save money, pay cash.

 

[Mr. White]

I've never financed a single bike I've owned, including the first street bike I bought when I was 17. Save money, pay cash.

I usually think the exact same way, but at this time, cash in my bank account is better than cash tied up in my motorcycle. Also, just to add, I don't have to finance the bike.

 

[Aluisious]

GGC is probably an aberration. The 2 dealers I financed bikes from did no such thing.

I had a car dealer "run my credit" and come back into the room suggesting something like 13.9% or 17.9%. I looked at the paper and said "what the fuck is this?" and he got all embarrassed and said "oh, it's just, uh, an example of what a finance paper looks like" and went back to wherever he came from. Came back with 4.9%

Anyone who has to make a living trying to sell something for more than it's worth will try anything to do it.

 

[Aluisious]

I usually think the exact same way, but at this time, cash in my bank account is better than cash tied up in my motorcycle. Also, just to add, I don't have to finance the bike.

This is the thing the credit lecturers don't understand. As long as you have your obligations covered financing is just a tool, corporations use it all the time. If rates are very low it can be better to borrow and hold your cash in reserve for contingencies than spend the cash and end up with an asset you might be forced to sell under duress.

I look at the interest as the cost of flexibility.

Of course if you have a boatload of money it's not an issue. I don't finance a Big Mac I wonder how many of the "I only buy with cash" people are just trying to flex their epeen.

 

[Aluisious]

Thanks. I test rode the Triple at Cal BMW/Triumph, so I'll have to see what they can offer. 2.9% is pretty good. Was this a promo they were having or just what they offered you?

I already know my credit score is good so I'm not worried about that.

PM me what they offer you on the S3R. Personally I got tired of dealing with them and the other local dealers. If I wanted to haggle for a week I'd go to Istanbul.

 

[Mr. White]

One more option that a coworker just brought up is a 401K loan. I still have to check the details, but they way it's explained to me is I borrow $XX from my 401K @ X% interest for, say, 5 years. The loan & interest is repayed to my own 401K account. Pretty intersting option that I didn't think about.

The downside is my 401K will have less $$ in it to invest. The upside is i'm paying myself the interest. So at some point in my life I'll still have that $$. Also, no credit check and turn around time is fast.

I'm really going to have to think this one through...