Financing
Grand HDF Member
Joined: May 2008
Posts: 4,585
Likes: 673
From: Rolla
Road Master
Joined: Nov 2007
Posts: 1,086
Likes: 1
From: St. Johns, Fl
I have been fortunate enough to pay cash for my bikes, but I have a question for those in the know.
Considering this fellow's situation, would it be a positive thing for him (credit wise) to have the cash he is going to spend, sitting in a savings account, take out a loan for the bike and then take that savings account money and pay off the loan within say, 30 days?
Again, I'm not a finance guy, but this would seem to me to be a positive thing to further strengthen his credit rating.
Thoughts?
Considering this fellow's situation, would it be a positive thing for him (credit wise) to have the cash he is going to spend, sitting in a savings account, take out a loan for the bike and then take that savings account money and pay off the loan within say, 30 days?
Again, I'm not a finance guy, but this would seem to me to be a positive thing to further strengthen his credit rating.
Thoughts?
The first thing I would say is if you can pay cash for the bike you want to do that. It doesn't help the credit at all, but I am not a big fan of debt. With that said most folks do need to take out the loan. To help improve your credit you want to keep the loan for a couple of years to show a steady payment history. This will help your credit score. Having the loan for 30 day's wont help your score much, but from a financial planning stand point it is the smartest thing to do. I hope that helped.
Elite HDF Member
Joined: Mar 2008
Posts: 3,906
Likes: 145
From: SE Louisiana
The eligibility rules for credit unions have expanded so much that virtually everyone can join one, and the interest rate available from a CU is almost sure to be more favorable to the borrower. IF I intend to finance a major purchase (which I do usually avoid if possible), I get the loan pre-approved from the CU before negotiating final price with the dealer.
6th Gear
Joined: Jun 2009
Posts: 11
Likes: 0
From: portland oregon
Hey, try all your local credit unions. I did with a cedit score of 660 got 100 percent financing and was able to buy from a private party 7.5% way better than harley and I got a deal from a private party.
Road Warrior
Joined: May 2006
Posts: 1,650
Likes: 539
From: BHC, Arizona
Definately go credit union. Get pre approved and go shopping. When you find the deal you like have them write up a purchase order and fax it over to your credit union.
Then drive to the credit union, give them your down payment money,(this will buy down the note, I usually like to give 5-6k of my money, this usually keeps the note right side up) do all the paperwork and hand carry the check back to the dealership.
I have done this for both cars and bikes.
AP
Then drive to the credit union, give them your down payment money,(this will buy down the note, I usually like to give 5-6k of my money, this usually keeps the note right side up) do all the paperwork and hand carry the check back to the dealership.
I have done this for both cars and bikes.
AP
Intermediate
Joined: Mar 2009
Posts: 26
Likes: 0
From: God's country ---- Wisconsin
I agree you should check around at different banks / credit unions. When I bought my RoadGlide a couple weeks ago the dealer quoted me 10.99% with 10% down for 72 months. I called my local credit union and they said they could give me 6.9% for 60 month or 7.9% for 72 month, I went back to the dealer and told them their rate was too high and I could get 6.9% and suddenly they could give me 6.24% for 63 months with no down.
Seasoned HDF Member
Joined: Apr 2008
Posts: 23,053
Likes: 12,327
From: Arkansas
Normally, (but the current credit crisis may change this) if you can fog a mirror and have at least 10% cash down Harley will finance you with bad credit, BUT you will pay as high as 24.9% interest. I have a friend that his DA self financed a Fatboy for 84 months at 24.9%, $580.00 a month payments. With teh down payment he'll end up having like $50,000 in it when/if he pays it off! CRAZY!
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Elite HDF Member
Joined: Apr 2006
Posts: 3,948
Likes: 54
From: The Burgh
I have been fortunate enough to pay cash for my bikes, but I have a question for those in the know.
Considering this fellow's situation, would it be a positive thing for him (credit wise) to have the cash he is going to spend, sitting in a savings account, take out a loan for the bike and then take that savings account money and pay off the loan within say, 30 days?
Again, I'm not a finance guy, but this would seem to me to be a positive thing to further strengthen his credit rating.
Thoughts?
Considering this fellow's situation, would it be a positive thing for him (credit wise) to have the cash he is going to spend, sitting in a savings account, take out a loan for the bike and then take that savings account money and pay off the loan within say, 30 days?
Again, I'm not a finance guy, but this would seem to me to be a positive thing to further strengthen his credit rating.
Thoughts?
Now if you go with HD Financing, the dealer will get comped only if the loan lasts at least 90 days. If you pay it off in 30 days, the dealer will not be comped and he'll consider you hosed him by financing the bike and paying it off immediately. You might not care what he thinks, but keep in mind that he might be servicing your bike and you might very well need his help with some warranty issue in the future. IMO, iuf you can wait 90 days to pay off the loan, that's better and everyone's happy. 90 days of interest shouldn't cost much anyway.
Tourer
Joined: May 2009
Posts: 405
Likes: 1
From: FTW Texas
After a bankruptcy in 06. Bought a brand new 07 street bob the next year. With no co sign. Traded in my honda shadow for down payment which brought 2500