Refinance options???
#21
01-07-2017, 07:34 PM
Seasoned HDF Member
Rates for finance companies do vary Ohio specifically is one of those states they you will find some rate changes.
While I live in Michigan now, I use to work and live in Ohio. back then (not sure now since I have been retired for so long) many financial services companies that operated in Ohio has a separate financing company.
While I live in Michigan now, I use to work and live in Ohio. back then (not sure now since I have been retired for so long) many financial services companies that operated in Ohio has a separate financing company.
#22
01-07-2017, 08:06 PM
It appears that you have been given some advise that might well help you.
My background in financial education and I simply want to add just a little. First, someone mentioned borrowing from your 401K - while tempting, please don't do this - especially for any sort of a toy.
Next, try to get a better understanding of your overall credit and your credit score. You'd be surprised how many folks pay a high interest rate because someone says they have a low credit score.
Before trying to refinance, review how much you owe on the bike and compare that to the bike value. It may be difficult to refinance if you are upside down. That may have also contributed to the excessive finance rate.
Position yourself to refinance it yourself. By that I mean, look at your contract and from the original date, run an amortization schedule. That schedule will help you determine how much principal vs interest is paid each month (I tell folks to do the same thing for mortgages). By using the amort schedule, you can prepay the principal thereby automatically reducing the interest. Perhaps you have heard of ways to reduce a 30 year mortgage to 17 years - this is the most used method (by the way, I never recommend a 30 year mortgage).
Finally, and perhaps more important, determine how you got on that low track and what you can do to reverse the adverse trend. One way is to make sure you establish and follow a budget. Within that budget, always "pay yourself first".
Married or single - which of you is the better with money. The better should take the lead on this.
Sorry I went on so much - I enjoy sharing ways to help in the financial arena.
Good luck
My background in financial education and I simply want to add just a little. First, someone mentioned borrowing from your 401K - while tempting, please don't do this - especially for any sort of a toy.
Next, try to get a better understanding of your overall credit and your credit score. You'd be surprised how many folks pay a high interest rate because someone says they have a low credit score.
Before trying to refinance, review how much you owe on the bike and compare that to the bike value. It may be difficult to refinance if you are upside down. That may have also contributed to the excessive finance rate.
Position yourself to refinance it yourself. By that I mean, look at your contract and from the original date, run an amortization schedule. That schedule will help you determine how much principal vs interest is paid each month (I tell folks to do the same thing for mortgages). By using the amort schedule, you can prepay the principal thereby automatically reducing the interest. Perhaps you have heard of ways to reduce a 30 year mortgage to 17 years - this is the most used method (by the way, I never recommend a 30 year mortgage).
Finally, and perhaps more important, determine how you got on that low track and what you can do to reverse the adverse trend. One way is to make sure you establish and follow a budget. Within that budget, always "pay yourself first".
Married or single - which of you is the better with money. The better should take the lead on this.
Sorry I went on so much - I enjoy sharing ways to help in the financial arena.
Good luck
#23
01-07-2017, 08:15 PM
Seasoned HDF Member
#24
01-08-2017, 12:27 AM
Stellar HDF Member
Im not sure how you guys are getting rates below 4 percent on bikes these days. I checked with USAA, Navyfed, and a bunch of local credit unions and the best rate right now is about 5.99 for new. Some local credit unions near me have rates starting at 10%. Good luck getting it refinanced. Most banks dont even have that option. Most of the time you have to call and see.
#25
01-08-2017, 12:37 AM
Outstanding HDF Member
Im not sure how you guys are getting rates below 4 percent on bikes these days. I checked with USAA, Navyfed, and a bunch of local credit unions and the best rate right now is about 5.99 for new. Some local credit unions near me have rates starting at 10%. Good luck getting it refinanced. Most banks dont even have that option. Most of the time you have to call and see.
I have tier 1 credit and it is the 2nd bike that I've financed through HD Eaglemark. I went to my credit union and the best they ever offered me on a motorcycle was 6.9 on a new bike and 8 or 9% on a used bike.
#26
01-08-2017, 08:59 AM
If your credit score is around 800-850 HD was giving less than 1% . When I purchased my 2017 passed on it because I was retiring and wanted no outstanding payments. And rule of this house in no financing. However there are times it is smart. If you take money out of an invest that is earning more you lose. Credit union is 1.99 %.
As others have said doing a refinance on something like a bike is hard.
Wife help me learn along time ago make payments to your self then buy cash. The day The 2017 was purchased set it up to start paying my self back for the next one.
Think about if do it right you only have to wait once after that you never have to again.
It is also a lot hard to take the difference in a trade and a new bike out of your account and hand it over than it is to just sign and ride. Trust me on this the first time you pull 20K out of your funds and hand it over you think about it a bit. After you get the system working for you. You trade or sell write a check and out the door in under 15 minutes.
Good luck learn from this.
As others have said doing a refinance on something like a bike is hard.
Wife help me learn along time ago make payments to your self then buy cash. The day The 2017 was purchased set it up to start paying my self back for the next one.
Think about if do it right you only have to wait once after that you never have to again.
It is also a lot hard to take the difference in a trade and a new bike out of your account and hand it over than it is to just sign and ride. Trust me on this the first time you pull 20K out of your funds and hand it over you think about it a bit. After you get the system working for you. You trade or sell write a check and out the door in under 15 minutes.
Good luck learn from this.
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mastergunnera8 (01-08-2017)
#27
01-08-2017, 01:12 PM
Seasoned HDF Member
Smitty901 - you indeed have a very smart wife. I have been riding motorcycles since 1972 - and never financed one. Our rule has been to never finance a toy.
Still, there are a lot of mart ways to do things - example (and you mentioned this) - GM sometimes have a 0% rate. When that option was available, I would have the money to pay for the vehicle - but would finance it at 0% and take payments from myself monthly.
I also use credit cars a bit - use it as a way to capture hotel points. So, most of my summer travels are on points
Still, there are a lot of mart ways to do things - example (and you mentioned this) - GM sometimes have a 0% rate. When that option was available, I would have the money to pay for the vehicle - but would finance it at 0% and take payments from myself monthly.
I also use credit cars a bit - use it as a way to capture hotel points. So, most of my summer travels are on points
#28
01-08-2017, 02:19 PM
Road Master
Im not sure how you guys are getting rates below 4 percent on bikes these days. I checked with USAA, Navyfed, and a bunch of local credit unions and the best rate right now is about 5.99 for new. Some local credit unions near me have rates starting at 10%. Good luck getting it refinanced. Most banks dont even have that option. Most of the time you have to call and see.
the HD .99 is a gift if you can qual.....Shop the credit unions..and please dont think about the 401k option..ugh!!
Google "Financial Peace University"...it may help you get on track with everything...helped us..
Good Luck!!!
#29
01-08-2017, 02:39 PM
Like others have said - pay through your bank. You can set it up as a recurring payment, or pay every month. Zero processing fee (unless your bank charges one). Pretty much every major bank offers it. . . can't speak on "First County Bank & Mortgage" in Sallisaw, Oklahoma, etc. . .
#30
01-12-2017, 06:49 AM
Road Warrior
I like my .99 % rate I got on my 15 RGS,, now there is a 3.00 a month "Service fee" Which takes it up more,, didn't know about that till I made my first payment online. Not sure if there is anyway around it or not, I've just paid it and moved on.. 3.00 a month on 60 month loan,, a whopping 180.00 extra,,
You chose to use Harleys website to pay your loan. They can charge whatever they like if you CHOSE to use their site.
You do not have to use the site, you can mail in your payment or you can send payments electronically from your checking account every month OR you can have HD draft the payment every month. (me personally, I never let any company draft from my account but you have that option)
I pay all my bills using my banks free online services... it cost you nothing to pay your bills using your online checking account, if your bank does charge for electronic checking go to a credit union and open an account there.
I agree with others, in most cases HD loan rates can not be beat if you have good credit. I have found many banks advertise auto loans but motorcycle rates are higher. Of course, there is always the exception and sure if you shop you can use HD or a bank/credit union.
Last edited by alarmdoug; 08-09-2017 at 06:30 AM.