Do the math. You should be able to get 4% or less. Interest is so very cheap right now. Not worth haggling over 1% or so.

 

3.9 in NJ ,HD credit

 

I got 2.89% back in october through HD. Having good credit does pay off!

 

I've never bought a brand new bike, always figured it was better to by 2-3 yrs old and let someone else eat the initial depreciation. Always a lot of good used late model bikes available which I pay cash for. That 3-5% interest rate is just money flowing out.

 

I just went over my 3 credit reports and was concerned that TD Bank showed up on them (long since paid off ahead of time). I called and found out that it was the loan that I took thru HD financing back in '05. So, when you finance thru HD apparently they are either a middle man or they then sell the loan to TD Bank.

Just shop around, go to your credit union (or TD Bank lol).

 

Go to your bank or credit union and get pre approved for the amount that you are looking to spend.. then go to the dealer and work out the price of the bike you want and order them see what their financial department can do and take the better of the two..I have really good credit and got 4.9% from my credit union, Harley financial was 24.9%.. when I initially about to my credit union they told me it would probably be around 8% ,that was without running a credit report.

 

Hahaha, 24%?? I would have at least wrapped him on the face for even suggeseting that rate. And then walked out and made sure anyone I knew would never return to that disaster of a dealer. At this point I think I will skip the new bike and put some money into the bikes I already have.

 

I simple way to pay almost 0 is make a large payment your first month say 15-2000 then your next statement will show nothing due BUT go ahead and make your reagular payment every month after and you will pay it off way early and with very little paid in intrest.

 

I'm not a financial genius, but isn't a bike loan "front-loaded" interest, meaning the ratio of interest vs. principal starts early in the loan paying almost all interest, then gradually reversing over the life of the loan until at the end of the loan paying almost all principal? If so then your first payment is almost all interest, so of course you wouldn't see as much interest over the rest of the loan? Just wondering...

By the way I don't know the details, but one local dealer is advertising 1.9% on new bikes for a winter special.

 

No. The interest is just the annual interest rate applied to the outstanding balance. At the beginning of the loan, the outstanding principal is greater, so the portion of your flat payment amount (all loan payments are calculated so you pay the same amount each month over the life of the loan) that is applied to interest will be greater. If you make an additional principal payment, the amount of your flat payment applied to interest will be less and you will pay off the loan earlier.