Eaglemark or conventional bank financing?
#12
12-09-2013, 06:57 PM
Cruiser
Join Date: Nov 2013
Location: Tampa, FL
Posts: 158
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Without a doubt. 3% verses 11% moco offered.
#13
12-09-2013, 07:07 PM
Wow, what credit score resulted in 11% apr from Eaglemark?
#14
12-10-2013, 03:47 AM
A lot of it depends on your location and your credit history. For me eaglemark was by far my best choice. Most credit unions out here won't go over 48 months and the interest rate was higher then eaglemark. I got a 7 year loan through eaglemark which meant I could buy my bike sooner then what I was planning on.
I know to the financial guru's this was a poor decision because I was set up to pay more interest by taking out a longer term loan.
To the financial wizards, I say BS. My bike was paid off after 1 1/2 years, I saved money by not paying for the increase on the new models, and I got to ride my new dyna a year sooner then I had originally planned.
In my area, eaglemark was by far the only financing I considered. I do have a 830 credit rating so that came into play...and I didn't get that high of credit rating by paying cash for everything. I love using banks money and pay very little interest as I pay things off quick...never go full term.
I always find my best financing before I worry about price...that's where you save the most money
I know to the financial guru's this was a poor decision because I was set up to pay more interest by taking out a longer term loan.
To the financial wizards, I say BS. My bike was paid off after 1 1/2 years, I saved money by not paying for the increase on the new models, and I got to ride my new dyna a year sooner then I had originally planned.
In my area, eaglemark was by far the only financing I considered. I do have a 830 credit rating so that came into play...and I didn't get that high of credit rating by paying cash for everything. I love using banks money and pay very little interest as I pay things off quick...never go full term.
I always find my best financing before I worry about price...that's where you save the most money
#15
12-10-2013, 03:46 PM
Outstanding HDF Member
never let the tail wag the dog, or in other words never negotiate a payment.
Before you go in have a chat with your bank, credit union, or other institution and know what they will offer.
Then go in and negotiate the best PRICE on the bike, then see what they will offer for financing.
If you can't put 20% down and pay for it in 4 years then you can't afford it. Look at the total finance charge and you may have a wake up call
Before you go in have a chat with your bank, credit union, or other institution and know what they will offer.
Then go in and negotiate the best PRICE on the bike, then see what they will offer for financing.
If you can't put 20% down and pay for it in 4 years then you can't afford it. Look at the total finance charge and you may have a wake up call
#16
12-10-2013, 05:26 PM
BS on this statement. With 3% or so, it might be better to finance the whole scooter and leave your investments intact. Weigh the finance charges against investment income.
#17
12-10-2013, 05:37 PM
Outstanding HDF Member
If you don't have 5 grand to put down you can't afford the bike.
This is assuming you have followed other sound financial advice like having a 6 month supply of money liquid, I don't care if it is tied up in 6 6 month CD's so that one renews every month so it is earning interest, but it sucks if you crash and are out of work, and you have a bike payment and no money to pay it with.
#18
12-11-2013, 06:17 AM
never have a vehicle financed for more than it's actual cash value, being upside down sucks if you wreck it or have to sell it in a hurry.
If you don't have 5 grand to put down you can't afford the bike.
This is assuming you have followed other sound financial advice like having a 6 month supply of money liquid, I don't care if it is tied up in 6 6 month CD's so that one renews every month so it is earning interest, but it sucks if you crash and are out of work, and you have a bike payment and no money to pay it with.
If you don't have 5 grand to put down you can't afford the bike.
This is assuming you have followed other sound financial advice like having a 6 month supply of money liquid, I don't care if it is tied up in 6 6 month CD's so that one renews every month so it is earning interest, but it sucks if you crash and are out of work, and you have a bike payment and no money to pay it with.
I didn't have 5 grand to put down on my bike (I had nothing to put down) almost 3 years ago, and not only can I afford it, but I am way ahead on my payments.
Following your advice, I still wouldn't be riding. Life's too short.
Yes, I've taken a risk that something could happen where I still owe money after an insurance pay off.
Imagine that, someone who rides everyday taking a risk. LOL
Last edited by mmancuso; 12-11-2013 at 06:21 AM.
#20
12-11-2013, 11:08 AM
Ultimate HDF Member
Do you know your credit score? If not, check out www.myfico.com.
The next question is, what are your financing options. You know that HD is in the finance business. Do you have a relationship with a bank? If so, set down with one of the branch customer service people and run a couple of scenarios. What about a credit union? Most credit unions have pretty liberal membership requirements, and can usually beat bank rates.
I would also recommend that, once you find out a payment that you can make comfortably, get a loan for one year longer. That will allow you the flexibility to make the comfortable payment and end the loan probably 11 months earlier than scheduled, but also allow you to reduce the payment during the month(s) that you have a shortfall in your income/cash flow.
The Missus and I do that with your mortgages. Both mortgages are wrote for 30 years but we make payments as if they were 15 year notes. On the months when we have a hiccup in our finances, like unscheduled vehicle repairs, we drop to the lower payment. Once the cash flow evens out again, we resume the higher payment.
Oh, and if you don't have a retirement account at this point, consider buying a smaller bike and start saving. Retirement comes a lot sooner than you think.
The next question is, what are your financing options. You know that HD is in the finance business. Do you have a relationship with a bank? If so, set down with one of the branch customer service people and run a couple of scenarios. What about a credit union? Most credit unions have pretty liberal membership requirements, and can usually beat bank rates.
I would also recommend that, once you find out a payment that you can make comfortably, get a loan for one year longer. That will allow you the flexibility to make the comfortable payment and end the loan probably 11 months earlier than scheduled, but also allow you to reduce the payment during the month(s) that you have a shortfall in your income/cash flow.
The Missus and I do that with your mortgages. Both mortgages are wrote for 30 years but we make payments as if they were 15 year notes. On the months when we have a hiccup in our finances, like unscheduled vehicle repairs, we drop to the lower payment. Once the cash flow evens out again, we resume the higher payment.
Oh, and if you don't have a retirement account at this point, consider buying a smaller bike and start saving. Retirement comes a lot sooner than you think.
Last edited by Roni; 12-11-2013 at 11:12 AM.