I'm going to go in to get myself a bike... thinking a Wide Glide but have a few more test rides to get through before that decision is finalized....

I was wondering about financing. I have pretty good credit, but was wondering what a typical rate might be? What's a good rate and what's an outrageous rate? Is a motorcycle loan usually 3 yrs, 4 yrs or 5 yrs?

I'm sorry for such a newbie question, but first time financing a bike...

PS I know some are going to say that you should never finance a bike but I'm going to anyway. I make enough to easily make payments, but impatient enough to wait to save up 15 grand and buy cash next year. I will have a Harley by mid April. And that is that....

Anyway, thanks for the info!

J

 

Best advice is finance it through a local credit union. You will get the best rate you can get from them for sure.

 

Definitely shop for a rate. Harley's first quote to me was pretty high but when they saw the rates I could get from my bank and local credit union, they came back with a new rate that even the banks said they couldn't beat.

 

Ok, so if I said I got pre-approved for a 5 year loan at 3.49%.... (from a credit union)

I don't know if this is a good rate for a motorcycle loan... Obviously I know if it will be better or worse than what HD might offer, but I'm looking for input on what a high rate is...

 

In the summer, a member of my family with a score of 830 got 3.99% with 10% down on a sportster superlow. I believe they said that is the lowest rate that HD offers.

 

I went credit union. HD's rate was pretty comparable, but I like the automatic withdraw.

Yeah, it's crazy wasting good riding time sticking money under your mattress until you finally have enough to pay cash.

 

Just remember, everything, including the rate is negotiable.

Of course the rate you obtain will be dependent upon your credit score. Money is basically free to institutions right now, so any rate above 1% is most likely profit (institution dependent).

The Prime Rate charged by banks and lending institutions to their most credit worthy customers is currently 3.25% (and has been since 1/1/2009). If you score over 800, I'd ask for a 2% loan and settle on a 2.5% Simple Interest loan with no prepayment penalty clause. And, by all means, let the lending institution know you are shopping around and talking to other institutions for the best rate. If you can't score above 750, your options may be limited.

Here is the FED's data, as of yesterday...
http://www.federalreserve.gov/releases/h15/update/

As you can see, the FED is still offering free money to institutions. So pick your lending institution wisely and negotiate. See how bad they want your business, and, your money.

The lender (whether a bank or HD) will try to lock you in at the highest rate for the longest duration possible, you are going to be a cash cow for them. The finance guy just loves the buyer who walks in a states, "I want that scooter over there and I can only make a $150/month payment...what can you do for me?"

 

If the rate is the same from local credit union and HD finacial , there maybe incentives to go through HD...ask the financing person at dealership....i would surely check.

 

It really doesn't matter who fiances your scooter, the paper is sold in the secondary market regardless. Ask the finance guy what his percentage is for the sale on the secondary. That will turn his head. Remember, everybody involved in the financing process is taking money out of your wallet. Just like buying your scooter, you are also buying a loan. Both are distinct and very different purchases. You got to remember that.

Back to my original premise...EVERYTHING is negotiable. If HD MoCo isn't offering incentives, ask the dealer for $1000 gift certificate. Ask for the moon and settle for something slightly less.

 

If you can get 4% or lower GRAB IT!!! Frankly I dont believe its possible, more like 6% or more.....but nobody is willing to admit to that.