Good grief! (financing ad)
#21
05-28-2007, 10:27 AM
RE: Good grief! (financing ad)
I for one dont see how anyone can pay cash outright for a 20K bike. I have a good job and paid cash for the garage I built to sit the bike in, also paid cash for my last pickup, but if I was ever to own the Harley I wanted ,some of it would have to be financed. Otherwise I wouldnt be riding till I was 60 years old. Some of the folks here list multiple bikes they either own or have owned. And you all know how much they cost. Either I'm not getting paid enuf or they have a very, very good job. I dont care that I had to finance, at least I'm riding. And 50 years from now noboby will give a damn. I figure I'm only gonna live once and I'm gonna enjoy life and ride a Harley! my 02
#22
05-28-2007, 11:25 AM
Road Captain
RE: Good grief! (financing ad)
So how many of you paid cash for your bikes? Im mean cash from a savings account, not a home equity loan, 401k loan, etc? My wife and I make a very good income, but I cant afford to pay cash for a new bike (could be because she HAD to have a house on the lake?). I agree 10 years is a pretty scary term for financing a bike, but on a street Glide for example, it would take your payment from about (assuming $0 down) from $436/mo @ 5yrs to $271/mo @ 10yrs so I can see where someone who cant swing the $436 nut couls swing the $271 nut and dont forget insurance and maintenance too. The sales guys at my local dealer push the 10 year becuase "your payment will be low and you can pay it off early" not to mention all the additioanl $$ HD will make and Im sure they get a kickback on it too.
Like anything else an 8 or 10 year term could be used as a tool if you can stick to paying extra each month. On that same SG, paying $544/mo will have it free and clear in 3 years. So if you are commisioned, hourly, have kids or maybe a house that might need some repairs this leaves you the possibility of "finding" and extra $300+ in a month, cash, if any other expenses came up that you werent expecting. But the problem would come in if you got "lazy" and just stuck to minimum pmts, you be paying on that bike until the wheels fell off. Even just making the $544 pmt for 12 months would shrink the loan down to 5.5 years even if you only paid min pmt the last 4.5 years.
Ive talked to my credit union within the past week about a loan on a new bike, they offered me up to 96 months (8yrs) @ 8.65%, the rate is the same whether financing 1yr or 8yr. So its not just HD offereing extended terms to try and get business. I figured the amortization on the 8 year and with $2500 cash down payment you are set to hit trade in value right around the end of year 3. Its to bad that HD's are so expensive, its also to bad we have gotten used to a society of instant gratification and think we need everything today (I know I have been guilty of this at times).
Like anything else an 8 or 10 year term could be used as a tool if you can stick to paying extra each month. On that same SG, paying $544/mo will have it free and clear in 3 years. So if you are commisioned, hourly, have kids or maybe a house that might need some repairs this leaves you the possibility of "finding" and extra $300+ in a month, cash, if any other expenses came up that you werent expecting. But the problem would come in if you got "lazy" and just stuck to minimum pmts, you be paying on that bike until the wheels fell off. Even just making the $544 pmt for 12 months would shrink the loan down to 5.5 years even if you only paid min pmt the last 4.5 years.
Ive talked to my credit union within the past week about a loan on a new bike, they offered me up to 96 months (8yrs) @ 8.65%, the rate is the same whether financing 1yr or 8yr. So its not just HD offereing extended terms to try and get business. I figured the amortization on the 8 year and with $2500 cash down payment you are set to hit trade in value right around the end of year 3. Its to bad that HD's are so expensive, its also to bad we have gotten used to a society of instant gratification and think we need everything today (I know I have been guilty of this at times).
#23
05-28-2007, 11:52 AM
RE: Good grief! (financing ad)
ORIGINAL: Lightngsvt
So how many of you paid cash for your bikes? Im mean cash from a savings account, not a home equity loan, 401k loan, etc? My wife and I make a very good income, but I cant afford to pay cash for a new bike (could be because she HAD to have a house on the lake?). I agree 10 years is a pretty scary term for financing a bike, but on a street Glide for example, it would take your payment from about (assuming $0 down) from $436/mo @ 5yrs to $271/mo @ 10yrs so I can see where someone who cant swing the $436 nut couls swing the $271 nut and dont forget insurance and maintenance too. The sales guys at my local dealer push the 10 year becuase "your payment will be low and you can pay it off early" not to mention all the additioanl $$ HD will make and Im sure they get a kickback on it too.
Like anything else an 8 or 10 year term could be used as a tool if you can stick to paying extra each month. On that same SG, paying $544/mo will have it free and clear in 3 years. So if you are commisioned, hourly, have kids or maybe a house that might need some repairs this leaves you the possibility of "finding" and extra $300+ in a month, cash, if any other expenses came up that you werent expecting. But the problem would come in if you got "lazy" and just stuck to minimum pmts, you be paying on that bike until the wheels fell off. Even just making the $544 pmt for 12 months would shrink the loan down to 5.5 years even if you only paid min pmt the last 4.5 years.
Ive talked to my credit union within the past week about a loan on a new bike, they offered me up to 96 months (8yrs) @ 8.65%, the rate is the same whether financing 1yr or 8yr. So its not just HD offereing extended terms to try and get business. I figured the amortization on the 8 year and with $2500 cash down payment you are set to hit trade in value right around the end of year 3. Its to bad that HD's are so expensive, its also to bad we have gotten used to a society of instant gratification and think we need everything today (I know I have been guilty of this at times).
So how many of you paid cash for your bikes? Im mean cash from a savings account, not a home equity loan, 401k loan, etc? My wife and I make a very good income, but I cant afford to pay cash for a new bike (could be because she HAD to have a house on the lake?). I agree 10 years is a pretty scary term for financing a bike, but on a street Glide for example, it would take your payment from about (assuming $0 down) from $436/mo @ 5yrs to $271/mo @ 10yrs so I can see where someone who cant swing the $436 nut couls swing the $271 nut and dont forget insurance and maintenance too. The sales guys at my local dealer push the 10 year becuase "your payment will be low and you can pay it off early" not to mention all the additioanl $$ HD will make and Im sure they get a kickback on it too.
Like anything else an 8 or 10 year term could be used as a tool if you can stick to paying extra each month. On that same SG, paying $544/mo will have it free and clear in 3 years. So if you are commisioned, hourly, have kids or maybe a house that might need some repairs this leaves you the possibility of "finding" and extra $300+ in a month, cash, if any other expenses came up that you werent expecting. But the problem would come in if you got "lazy" and just stuck to minimum pmts, you be paying on that bike until the wheels fell off. Even just making the $544 pmt for 12 months would shrink the loan down to 5.5 years even if you only paid min pmt the last 4.5 years.
Ive talked to my credit union within the past week about a loan on a new bike, they offered me up to 96 months (8yrs) @ 8.65%, the rate is the same whether financing 1yr or 8yr. So its not just HD offereing extended terms to try and get business. I figured the amortization on the 8 year and with $2500 cash down payment you are set to hit trade in value right around the end of year 3. Its to bad that HD's are so expensive, its also to bad we have gotten used to a society of instant gratification and think we need everything today (I know I have been guilty of this at times).
In my view, companies who make their living off lending money should exercise more responsibilty on the front end. As it is, they'll do whatever they can to sell a loan without regard to the individual'sability to pay it back. Then they'll turn around to bitch and complain aboutborrowers who file bankrupcy after getting upside-down with their home, car(s),toys and credit cards.Even to the point of lobbyingfor legislation to changebankrupcy laws!
Well, credit companiesare actually creating themarket forloans that guarantee the client will will be upside-down (owe more than the product is worth) at some point in the term of the loan. This is what I consider irresponsible lending, and back years ago that just wouldn't have been allowed to happen.
#24
05-28-2007, 12:23 PM
RE: Good grief! (financing ad)
I agree some restraint is needed by loan institutions. When I bought my last bike, I bought with no intention of keeping it till the wheels fell off (although it is tempting). Love the ride. How many people actually do that? Alot of posters tell of how they traded this for that and so on. Dont think many have actually made any money on trading up. All any of us are really doing is paying for the priviledge to ride a Harley. Just some of us have to pay a little more than others. Probably keep the one I have for three or four years and trade for something else and unless I hit the lotto will still be making a payment. I always try to pay extra on it when I can and will probably break even when I trade. I keep everything I own or pay for in tip top shape and dont just ride it till it falls apart. That being said, I will not take it to the stealer for service, I can do that myself. Financing is a double edged sword and you can work it to your advantage.
#25
05-28-2007, 12:39 PM
Tourer
RE: Good grief! (financing ad)
If you don't mind paying nearly $30K for a $20K harley and end up with an upside down loan if you want to sell it, it's a great deal!!
#26
05-28-2007, 12:39 PM
RE: Good grief! (financing ad)
I would doubt that there is anyone out there who hasn't bought something on time, and likely it wasn't really something that we flat out needed or had to have, it was something that we "wanted". Financing boats and such for over 10 years isn't uncommon, but a motorcycle, man, that's really stretching it.
Here are the estimated payments/total cost of an $18,000.00 loan figuring $3,000.00 down. Total loan payments are $24,829.46, making the cost of the bike over $27,000.00. Yes, the payments are cheap at about $180.00 a month, but that can't justify a 10-year term, at least to me.
Purchase price $18,000
Down payment $3,000
Trade-in value $0
Interest rate 7.99%
Length of loan (in months) 120
Monthly payment ($181.91)
Total cost $24,829.46
#27
05-28-2007, 06:27 PM
Road Captain
RE: Good grief! (financing ad)
I completely agree that 120 month financing is a very bad idea if you only intend to make minimum payments. That can only lead to a ton of trouble. But if you have the income and the will to pay extra each month then it could be a good tool.
#28
05-29-2007, 02:20 AM
RE: Good grief! (financing ad)
I have paid cash for all of but one of the Harley's I have bought, and I paid that one off in less than a year. I have had three, two of them new, at one time. Almost every financial adviser I have heard says that if you have to finance a vehicle for more than 36 months you can not afford it. This goes for motorcycles too. To many people get so deep in debt for things they can't afford. I know, I was one of them for a long time.
#30
05-29-2007, 03:26 AM
Road Master
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RE: Good grief! (financing ad)
I paid cash for my HD but bought it 1 year old & saved $5500 over the new 1 the next year.