Anyone understand HD financing in depth?
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Road Master
Joined: Jun 2011
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From: Internet
Anyone understand HD financing in depth?
Im so confused .. i will make some phone calls, but thought maybe im just an idiot and im missing something simple?
purchased in June, 2011
The pmts were like $150, but i have typically made pmts double that.
just got my feb bill .. payoff is nearly what it was when i got the bike 8 months ago.
what the hell? never missed a payment and never paid only minimum.
purchased in June, 2011
The pmts were like $150, but i have typically made pmts double that.
just got my feb bill .. payoff is nearly what it was when i got the bike 8 months ago.
what the hell? never missed a payment and never paid only minimum.
Last edited by rsarno; Feb 5, 2012 at 01:52 AM.
Ultimate HDF Member
Joined: Jul 2008
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From: SW Ohio
Well for one thing. If you put down 3K on a 10K bike that means theres 7K left to pay off. So if you still have 8.2K left that means the stealer put some of it in their pockets. Did you read the loan papers before you sign them.
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Road Master
Joined: Jun 2011
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From: Internet
factor in taxes and all the other nonsense that goes onto the invoice, all of a sudden theres a different number there lol
i should really dig up my original papers before calling, thanks for the tip
They may be taking the added money off the agreed upon interest cost. So even though you are making bigger payments you are still paying what you would pay if you took the loan to term.
I got a loan about 10 years ago for my first mustang. A 93 cobra. Car cost 10 grand and 14% interest(ya I know) plus documentation fees. So my payments were 350 a month.
So I was paying 500 a month(150 extra) but when I got my print out receipt it showed that I paid 200 on the principal and 300 in interest. So it didnt matter if I made a larger payment,I still paid the exact same repayment. Whether I paid it off in 2 years or 4 years,it didn't matter,I still paid the same amount of money back. So I thought to myself why bother paying the extra money when it saves me absolutely nothing.
Could it be that how your loan is structured you have the same bullsh1t I did.
See I assumed that any extra monies I applied to the loan over my regular payment was applied to the principle,thereby saving me some interest. I was wrong.
I got a loan about 10 years ago for my first mustang. A 93 cobra. Car cost 10 grand and 14% interest(ya I know) plus documentation fees. So my payments were 350 a month.
So I was paying 500 a month(150 extra) but when I got my print out receipt it showed that I paid 200 on the principal and 300 in interest. So it didnt matter if I made a larger payment,I still paid the exact same repayment. Whether I paid it off in 2 years or 4 years,it didn't matter,I still paid the same amount of money back. So I thought to myself why bother paying the extra money when it saves me absolutely nothing.
Could it be that how your loan is structured you have the same bullsh1t I did.
See I assumed that any extra monies I applied to the loan over my regular payment was applied to the principle,thereby saving me some interest. I was wrong.
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Road Master
Joined: Jun 2011
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From: Internet
this is a really f*cked up thing to do
Let me see if I understand Harley Financing. You take home a new bike, and they get all your money for at least 6 years. Yep. That pretty much sums it up for me. But I got a real nice bike, lol.
To be honest I would think that Harley would finance to each customer differently based on credit score,employment history and so on. I am thinking that no 2 loans would be the same based on each customers different variable.
The loan I am referring to was from wells Fargo. I just wanted the car and didn't read the contract. I asked a few relevant questions however had I known how it was structured I would have tried to get extra monies applied to the principle. I was high risk due to being in construction and at the time we weren't super busy.
If you are in fact into this type of loan even if you paid the whole thing off in one shot you would still pay the same as if you took the loan to term.
I assume that Harley has someone else finance so that the MOCO gets paid,and they in fact don't carry the note. Whoever Harley has underwrite the loan carries it.
So even though it says Harley finance I would bet that the company that carries the loan isn't a division of the motor company. They might own it but I am guessing not. They just lend the name to facilitate them getting their money.
Now I am not positive about all of this in your case. I have made a few assumptions that led to a few more assumptions.
If this is how your loan is structured don't even bother making the bigger payment. It doesn't save you any money but it will shorten the duration.
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Ultimate HDF Member
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From: So California
Are you specifying the extra goes to the principle only? If not, it's like you are only paying a month in advance with the included interest charge.
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Road Warrior
Joined: Jul 2008
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From: People's Republik of Kalifornia
Harley finance is a wholly owned subsidiary of the MOCO. Losses at this unit did not help Harley at the start of the current recession!
Basically, it's just like any automotive financing. Very dependent on your credit etc etc.
If you credit is really bad they probably wont finance you so your dealer will go to other sources with higher interest rates, prepayment fees and all the bad things I'm reading about above!
Basically, it's just like any automotive financing. Very dependent on your credit etc etc.
If you credit is really bad they probably wont finance you so your dealer will go to other sources with higher interest rates, prepayment fees and all the bad things I'm reading about above!
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From: Formerly Tampa Bay, FL, Currently Western PA
As far as I know, HD loans are simple interest with no prepay penalty. It may be different if you have really bad credit, I don't know.
When I was 19 I took out a car title loan from nations bank (now BoA) that was not simple interest. I forget what that's called, but they took all the interest and added it to the balance when I signed. I got $5k to buy a bike with, but it was like I financed 6500 with no interest.
The best you can do is look at the original value on the loan, maybe the dealer threw some fees on there. Also, sometimes a finance company will apply overages to future payments and not directly to principal. So, if you have $100 payments and send in $200, they'll just assume you made next months payment early, which still helps a bit on interest, but not as much as if it was applied directly to principal. If that's the case, call them and find out what needs to be done to apply to principal.
When I was 19 I took out a car title loan from nations bank (now BoA) that was not simple interest. I forget what that's called, but they took all the interest and added it to the balance when I signed. I got $5k to buy a bike with, but it was like I financed 6500 with no interest.
The best you can do is look at the original value on the loan, maybe the dealer threw some fees on there. Also, sometimes a finance company will apply overages to future payments and not directly to principal. So, if you have $100 payments and send in $200, they'll just assume you made next months payment early, which still helps a bit on interest, but not as much as if it was applied directly to principal. If that's the case, call them and find out what needs to be done to apply to principal.