Financing
Seasoned HDF Member
Joined: Oct 2012
Posts: 13,097
Likes: 13,029
From: Texas, USA
Hey all, new member, first post and all
Was wondering if Harley has its own financing company or not? Or do they go through a bank to get financing?
What i mean is something akin to honda, or yamaha(or even bmw)..they have their own financing company so they dont have to deal with a bank to get you approved and financed, and are also therefore then much more likely to approve you.....
I asked several harley sales people in the dealership and could not get a straight answer....sometimes even got a conflicting answer....
I currently ride a honda sport bike but after the demo day on the Lowrider S i think i might get a harley...
I ask because several years ago when i went into to get my first bike...I wanted a Kawi but the bank denied me(even though i had a great score, and no debt) but honda approved me(and probably yamaha would have too)
Thanks
Was wondering if Harley has its own financing company or not? Or do they go through a bank to get financing?
What i mean is something akin to honda, or yamaha(or even bmw)..they have their own financing company so they dont have to deal with a bank to get you approved and financed, and are also therefore then much more likely to approve you.....
I asked several harley sales people in the dealership and could not get a straight answer....sometimes even got a conflicting answer....
I currently ride a honda sport bike but after the demo day on the Lowrider S i think i might get a harley...
I ask because several years ago when i went into to get my first bike...I wanted a Kawi but the bank denied me(even though i had a great score, and no debt) but honda approved me(and probably yamaha would have too)
Thanks
What reason did Kawasaki give you for denying you credit? There has to be a reason. If your credit is that good great and everyone else would approve you, they would also. The devil's advocate in me says you have questionable credit.
Nonetheless, someone will approve you. Good luck.
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5th Gear
Joined: Jul 2017
Posts: 9
Likes: 0
From: Canada
I'm guessing your credit isn't as good as you think it is and you are worried whether you'll be approved?
What reason did Kawasaki give you for denying you credit? There has to be a reason. If your credit is that good great and everyone else would approve you, they would also. The devil's advocate in me says you have questionable credit.
Nonetheless, someone will approve you. Good luck.
What reason did Kawasaki give you for denying you credit? There has to be a reason. If your credit is that good great and everyone else would approve you, they would also. The devil's advocate in me says you have questionable credit.
Nonetheless, someone will approve you. Good luck.
My score was 720, and i had no debt(zero) that was the issue with the bank, they see bikes as toys, and are therefore less likely to lend money for them
Having no debt, or too much is the issue with banks, they want you to have just enough....so that they can loan you money.
At the time i only had a little student credit card and they said because i didnt have any 'real' credit cards i didnt have a 'credit history' and they didnt want to finance me, now i have a bunch of them, and all are paid up
I have seen guys who cant get a 5000$ bike financed, but the same bank will be happy to finance a 50k Cadillac for them
HDF Community Team
Joined: Mar 2017
Posts: 7,860
Likes: 4,420
From: Texas
Tourer
Joined: Sep 2015
Posts: 481
Likes: 111
From: Albuquerque New Mexico
Honda did approve me,
My score was 720, and i had no debt(zero) that was the issue with the bank, they see bikes as toys, and are therefore less likely to lend money for them
Having no debt, or too much is the issue with banks, they want you to have just enough....so that they can loan you money.
At the time i only had a little student credit card and they said because i didnt have any 'real' credit cards i didnt have a 'credit history' and they didnt want to finance me, now i have a bunch of them, and all are paid up
I have seen guys who cant get a 5000$ bike financed, but the same bank will be happy to finance a 50k Cadillac for them
My score was 720, and i had no debt(zero) that was the issue with the bank, they see bikes as toys, and are therefore less likely to lend money for them
Having no debt, or too much is the issue with banks, they want you to have just enough....so that they can loan you money.
At the time i only had a little student credit card and they said because i didnt have any 'real' credit cards i didnt have a 'credit history' and they didnt want to finance me, now i have a bunch of them, and all are paid up
I have seen guys who cant get a 5000$ bike financed, but the same bank will be happy to finance a 50k Cadillac for them
You have to understand how a bank thinks about these things. 1st, in rough times what is the first bill you are likely to give up on. rent/mortgage? Car? Water and Power? or the motorcycle? Chances are it s the bike.
Secondly, the loan you take out on a motorcycle, statistically, is much more risky than a car to them, because motorcycles are much more unforgiving in an accident, so there loss ratio increases on all of that.
Finally, There is much more to a credit profile than just a credit score, how is a lender suppose to know that you pay loans back if there is no history of you paying loans back? luxury items are hard to finance, as they should be, its even harder if you haven't had any loans in the past.
Cruiser
Joined: Mar 2017
Posts: 159
Likes: 24
From: Philadelphia,PA
You have to understand how a bank thinks about these things. 1st, in rough times what is the first bill you are likely to give up on. rent/mortgage? Car? Water and Power? or the motorcycle? Chances are it s the bike.
Secondly, the loan you take out on a motorcycle, statistically, is much more risky than a car to them, because motorcycles are much more unforgiving in an accident, so there loss ratio increases on all of that.
Finally, There is much more to a credit profile than just a credit score, how is a lender suppose to know that you pay loans back if there is no history of you paying loans back? luxury items are hard to finance, as they should be, its even harder if you haven't had any loans in the past.
Secondly, the loan you take out on a motorcycle, statistically, is much more risky than a car to them, because motorcycles are much more unforgiving in an accident, so there loss ratio increases on all of that.
Finally, There is much more to a credit profile than just a credit score, how is a lender suppose to know that you pay loans back if there is no history of you paying loans back? luxury items are hard to finance, as they should be, its even harder if you haven't had any loans in the past.
Road Warrior
Joined: Dec 2012
Posts: 1,255
Likes: 585
From: Arkansas
Kind of off this particular subject about motorcycle financing but I've got a nephew who only wants to pay in cash for everything. I told him that's commendable but he needs to establish credit in today's world.
Grand HDF Member
Joined: Jul 2013
Posts: 4,752
Likes: 3,271
From: West Central Florida
My first Harley I had bad credit. 30% down Harley Davidson Financing Service loaned me the money and I was riding. The interest was very high but that's what I had to do to get my credit righted. Traded that bike in on another in 18 months and the interest dropped quite a bit. Traded that bike in in 2 years gave nothing down and rode out on a brand new bike with even better interest. Went to the credit union paid off the brand new bike and the interest is very low.
When the interest dropped so did the payments. I kept my payments high every time which pays it off quicker. It took years but now all is good. Harley will finance anyone but the interest might be sky high.
When the interest dropped so did the payments. I kept my payments high every time which pays it off quicker. It took years but now all is good. Harley will finance anyone but the interest might be sky high.
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5th Gear
Joined: Jul 2017
Posts: 9
Likes: 0
From: Canada
You have to understand how a bank thinks about these things. 1st, in rough times what is the first bill you are likely to give up on. rent/mortgage? Car? Water and Power? or the motorcycle? Chances are it s the bike.
Secondly, the loan you take out on a motorcycle, statistically, is much more risky than a car to them, because motorcycles are much more unforgiving in an accident, so there loss ratio increases on all of that.
Finally, There is much more to a credit profile than just a credit score, how is a lender suppose to know that you pay loans back if there is no history of you paying loans back? luxury items are hard to finance, as they should be, its even harder if you haven't had any loans in the past.
Secondly, the loan you take out on a motorcycle, statistically, is much more risky than a car to them, because motorcycles are much more unforgiving in an accident, so there loss ratio increases on all of that.
Finally, There is much more to a credit profile than just a credit score, how is a lender suppose to know that you pay loans back if there is no history of you paying loans back? luxury items are hard to finance, as they should be, its even harder if you haven't had any loans in the past.
so there was SOME history, but yes banks in general are less likely to finance even ideal candidates, one thing you missed in an otherwise concise post was the fact that banks dont consider bikes assets and are therefore less likely to finance, whereas a house or a car they will finance practically anyone, because if you cant pay them off, they just take the asset from you very EASILY and sell it themselves(foreclosures, repos etc)
whereas on a bike thats harder to do, but as you mentioned its also the fact that if things go south the first thing people default on is the toy, as opposed to the home or car
Last edited by Supernova12034; Jul 12, 2017 at 01:18 PM.
Tourer
Joined: Sep 2015
Posts: 481
Likes: 111
From: Albuquerque New Mexico
Precisely, for the record at the time when i didnt have a credit history, i was paying off my student loan and had a small card
so there was SOME history, but yes banks in general are less likely to finance even ideal candidates, one thing you missed in an otherwise concise post was the fact that banks dont consider bikes assets and are therefore less likely to finance, whereas a house or a car they will finance practically anyone, because if you cant pay them off, they just take the asset from you very EASILY and sell it themselves(foreclosures, repos etc)
whereas on a bike thats harder to do, but as you mentioned its also the fact that if things go south the first thing people default on is the toy, as opposed to the home or car
so there was SOME history, but yes banks in general are less likely to finance even ideal candidates, one thing you missed in an otherwise concise post was the fact that banks dont consider bikes assets and are therefore less likely to finance, whereas a house or a car they will finance practically anyone, because if you cant pay them off, they just take the asset from you very EASILY and sell it themselves(foreclosures, repos etc)
whereas on a bike thats harder to do, but as you mentioned its also the fact that if things go south the first thing people default on is the toy, as opposed to the home or car
Almost, you have to understand that during President Clintons administration, both homes and Autos became necessity items. Everyone needs a place to live and everyone needs a car to get to work, or so the government tells us. Therefore cars, trucks and homes are federally monitored in order to maintain that necessity status. As far as an asset, there is only one in these lists and that's your home, mainly because is should increase in value. Auto and bikes depreciate, even though your Harley salesman told you that Harleys hold there value, they don't. In my industry, RV's and boats, we get treated just like motorcycles, as a luxury item, these are the most expensive items you can buy that you have no real need for. That's why loans are harder to get, because they are the most defaulted on and why the interest rates are so much higher than cars and homes, because you and me need to pay for those defaults of others.
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