10 year financing
#12
10-25-2008, 11:07 PM
I was at the dealer today picking up a few things and while I was there I had a long conversation with one of the parts guys. He said times are really tough for Harley dealers right now. Maybe some dealers are doing well but most are hurting. He told me about the latest incentive to try to entice buyers. You can now finance a new Harley for 10 years!! I would never finance anything for 10 years (except a house). I wonder if offering 10 year financing will get more people to buy bikes. I wonder what the interest rate is.
The dealer I was at isn’t openly advertising 120 month financing but a quick Google search shows there are dealers that are actively pushing 10 year financing.
http://www.toledohd.com/eagle_financeapp2.asp
Would you finance a motorcycle for 120 months if that was the only way you could afford a bike? Personally I would save my money until I could afford a shorter term loan.
The dealer I was at isn’t openly advertising 120 month financing but a quick Google search shows there are dealers that are actively pushing 10 year financing.
http://www.toledohd.com/eagle_financeapp2.asp
Would you finance a motorcycle for 120 months if that was the only way you could afford a bike? Personally I would save my money until I could afford a shorter term loan.
I agree...This is doing more harm than good. The car business thought they were doing everybody a favor with 72 and 84 month financing. Guess what? People don't keep their cars that long and owe so much that it was hard to get them out. Just think of all these truck and SUV buyers that did the long term loans...They are stuck! Harley Financial isn't in the best of shape to begin with...Let alone doing something stupid like this.
#14
10-25-2008, 11:28 PM
You can count on people to take advantage of these kinds of financing, because if the payment fits they'll live with it. They've had 10-15 year financing on motorhomes and other RV's for some time.
True, the interest on these kinds of loans is nearly doubling the value of the initial transaction, but some folks don't care about that. Problem is, within the ten year span, a lot of people will have an interruption in income, and that will doom the loan.
Personally, I believe in 20% down to cover the first year's depreciation, and a a maximum of 4 years of payments. Even then, it adds 10-15% to the cost of the motorcycle in the beginning. 10 years is a financial no-no.
Cash is always best, though the dealer doesn't profit as much as if he can package a loan. But it is also important to get a bike sold, because of the additional business the dealer picks up in the shop and accessories.
True, the interest on these kinds of loans is nearly doubling the value of the initial transaction, but some folks don't care about that. Problem is, within the ten year span, a lot of people will have an interruption in income, and that will doom the loan.
Personally, I believe in 20% down to cover the first year's depreciation, and a a maximum of 4 years of payments. Even then, it adds 10-15% to the cost of the motorcycle in the beginning. 10 years is a financial no-no.
Cash is always best, though the dealer doesn't profit as much as if he can package a loan. But it is also important to get a bike sold, because of the additional business the dealer picks up in the shop and accessories.
#15
10-25-2008, 11:34 PM
Road Warrior
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you could not have said it any better
#16
10-25-2008, 11:46 PM
I pay cash for my vehicles. But if they offered 10 year financing at a lower rate than I could make in secure investments, then I would be making money on the deal. Simple math. I'd be better off investing my cash and making the payments on a Harley. It's all about the interest rate. If you can invest at a rate that is better than you borrow then you're better off financially to finance your investments.
#18
10-26-2008, 12:15 AM
That's funny, But the sad part is a lot of people think that way. Imagine this, the first 6 years of payments are just intrest.
#19
10-26-2008, 12:23 AM
With the surplus of used bikes on the market, and the MOCO wanting to charge outrageous prices for motorcycles, this is something we should have seen coming.
Folks will do this, and this is a necessary step for the MOCO to keep it's doors open and keep all of their people employed. If it all goes to crap, the Gov't will bail them out, you know that!
'ol Uncle Sugar can't say no.
~Joe
Folks will do this, and this is a necessary step for the MOCO to keep it's doors open and keep all of their people employed. If it all goes to crap, the Gov't will bail them out, you know that!
'ol Uncle Sugar can't say no.
~Joe
#20
10-26-2008, 12:25 AM
Road Warrior
Oh yeah.People are addicted to the minimum payment like it's crack!
Red Devil,You watching the Phillies game?My hands are getting really sweaty.........
Red Devil,You watching the Phillies game?My hands are getting really sweaty.........