I know, I could or should pay cash but taking a on a bit of debt is good for the credit rating.
My concern with Eaglemark is the dealer has a conflict of interest because Eaglemark is owned by Harley Davidson. I would assume pushing Eaglemark financing on a buyer creates bargaining shenanigans for the dealer. Kickbacks and other incentives means the dealer might not work in the best interest of the buyer. Or do those kickbacks mean a better APR might be offered to the purchaser? How does a dealer sweeten a deal if you agree to Eaglemark financing?
I think a buyer who comes in with their own pre-arranged financing avoids that issue. I reckon a dealer would treat such customers the same as cash customers.
What's your expereince with financing, did you consider both options before buying a new bike?

 

How is the fact the finance firm affiliated with Harley-Davidson a conflict of interest? Shenanigans by the dealer? You've obviously no knowledge of Regulation Z. Yes, the dealer does participate in the finance income, it varies and dealers like you to finance. Cash buyer? Hell, it matters little if it is your check, the bank's check, the finance arm of the motor company, it's all cash to the dealer.
The only options you need to consider are the 'total cost of credit' between lenders. Get your lender's best package, compare to what the dealer offers and make the choice best for you.

 

Nothing wrong with using eaglemark but you need to know what kind of credit you have / what kind of intrest rate you should get up front. This is true of any dealership financing.
You can get decent rates with eaglemark but some dealers will put the screws to you for kickbacks.

 

I was always taught and assumed that you should never enter a dealer until you have financing and insurance per-arranged. This keeps negotiation pure ,clean and simple without confusion. This causes the dealer to reveal the bottom line price without influences such as financing or trade-in value effecting the price.
I also learned to never, ever negotiate based on monthly payments.
But pre-arranged financing could mean the dealer won't be making any money on kickbacks from a lender like Eaglemark. To make up for that loss, will the dealer charge more for a bike purchased with cash or pre-arranged financing?
Would I be more likely to get a better deal with dealer arranged financing if interest rates and loan terms are equal?
Maybe I am over thinking this but that's how us old folks think.

 

Most lenders have, in the past few years, gone to a flat-fee arrangement with the dealer. The amounts vary but most are in the $200-300 range. Those that have not pay the dealer a participation fee based on the contract rate over the dealer's buy rate. For instance, dealer buy rate from lender is 3% and contract rate is 4%. The dealer receives a payment in the form of dealer reserve for the agreed upon split between dealer and lender based on total finance charge. If the loan pays off prior to maturity the dealer is charged back for the unearned amount.

Take my advice, knowing the amount you are paying for it, based on 30 years of owning/managing automobile dealerships.

1. Negotiate the price of the motorcycle.
2. Negotiate the terms of the loan

If neither are to your liking, take your business elsewhere. Purchasing a vehicle need not be a complicated affair. Conduct your business as business (the dealer certainly is) and check your emotions at the door.

 

Forgive the additional post but...think about your purchase this way. You buy the bike and you think you paid $500 too much. You own the bike for 8-10 years that is about 50-75 bucks a year, about 30 cents a day. You finance the bike for say 60 months and think you are paying 10 bucks too much a month. Again, about 30 cents a day. The point is, at what point are you walking by personal enjoyment looking for pennies. Granted, we all want to feel we made a great deal. If you think you did, it is so.
30 years in the car biz taught me 2 things...people always tell you they paid more for their house and less for their car(read motorcycle) to impress you. Funny thing is they never produce the paperwork. Buy your bike and enjoy it, life is too short to worry about the small stuff.

 

Consider opening a credit union account.
Requires very little to open an account..maybe place $50 into a savings account.
Credit unions offer some of the best financing rates available.

 

i negotiated the pricing on my cvo first. then after i had that nailed down to where i was comfortable with it, then and only then, did i let the dealer run my credit. it was actually a good thing. yes, i had already gotten pre-approved for a loan elsewhere, but eaglemark came back with a 1.9% rate. much better than what my credit union was offering.

 

Think of the MOCO as a bank that sells motorcycles on the side.

 

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