? 10% Down ?
Road Warrior
Joined: May 2006
Posts: 1,571
Likes: 0
From: Houston Texas
RE: ? 10% Down ?
ORIGINAL: Neggy ZRXOA 5248
84 month loans no wonder HD is doing so well they are getting top dollar plus for the bikes, and then they are making another 7200 in interest over 7 years @ 7.5%
Personally IMHO if you can't pay it off in 4 years you can't afford it.
If it gets stolen or totaled and you are on a long loan you are still on the hook for thousands of dollars you are upside down on the loan that the insurance company isn't going to pay for. Same for trade in in 4 years.
25K no money down 7 years 7.5% you still owe 12.5K on the bike at the end of year 4, if you are lucky you'll get that on a trade, ans HD has made 5700 in vig. The house wins, you loose. You just spent 18 grand over 4 years and have nothing tangible to show for it.
84 month loans no wonder HD is doing so well they are getting top dollar plus for the bikes, and then they are making another 7200 in interest over 7 years @ 7.5%
Personally IMHO if you can't pay it off in 4 years you can't afford it.
If it gets stolen or totaled and you are on a long loan you are still on the hook for thousands of dollars you are upside down on the loan that the insurance company isn't going to pay for. Same for trade in in 4 years.
25K no money down 7 years 7.5% you still owe 12.5K on the bike at the end of year 4, if you are lucky you'll get that on a trade, ans HD has made 5700 in vig. The house wins, you loose. You just spent 18 grand over 4 years and have nothing tangible to show for it.
I plan on paying off mine this year....
Don't give a Lion, Sheep instructions...
Stellar HDF Member
Joined: Oct 2005
Posts: 2,379
Likes: 226
RE: ? 10% Down ?
Man, I'm completely out of touch. I had no idea that this is what the majority of folks do. I've always bought used bikes forcash and then built them the way I wanted to. Same with my Trucks and cars. Wish I could do it for my house...
6th Gear
Joined: Mar 2007
Posts: 10
Likes: 0
RE: ? 10% Down ?
1. The interest rate you pay any financial institution is negotiable in most cases. Treat it as such!
2. Watch out for "YIELD SPREAD" and tell the F&I guys you only will accept the "PAR RATE" !
Yield Spread is the extra money whoever writes you your loan gets for selling you on a rate higher then the par. IE. You qualified for 7% but because I'm backing into "your payment" I tell you the best I can do is 9% but it comes in right at your desired payment. Then the lender pays be me (with you knowing) an extra $1000 for selling you the higher rate.
Par rate is the best rate you qualify for without anyone marking up or buying down that rate.
Banking is like any other business...its for PROFIT!
And like any other business there are sharks lurking for a feast on some uneducated buyer..........ever met a struggling finance manager?
2. Watch out for "YIELD SPREAD" and tell the F&I guys you only will accept the "PAR RATE" !
Yield Spread is the extra money whoever writes you your loan gets for selling you on a rate higher then the par. IE. You qualified for 7% but because I'm backing into "your payment" I tell you the best I can do is 9% but it comes in right at your desired payment. Then the lender pays be me (with you knowing) an extra $1000 for selling you the higher rate.
Par rate is the best rate you qualify for without anyone marking up or buying down that rate.
Banking is like any other business...its for PROFIT!
And like any other business there are sharks lurking for a feast on some uneducated buyer..........ever met a struggling finance manager?
Road Master
Joined: Dec 2006
Posts: 1,058
Likes: 6
From: Omaha Nebraska
RE: ? 10% Down ?
ORIGINAL: Miklnparker
I say if you can't pay cash, don't buy it! Yeah right!! Think I'll start saving and pay cash when I'm 93. Life's too short and Summer's near. Think of it as reverse motivation. Buy the toy and figure out how to pay for it later....lol. It's working for me, better than expected. Sorry, but I have Mack Truck Syndrome, you are walking out of Wal-Mart and BOOM!. Hit by a Mack Truck, game over, can't take the toys with you. Enjoy life NOW!!!!! I'm sure I'll get alot of criticism, but I get tired of hearing older people saying "one day". If you have the means I say go for it!!!
I say if you can't pay cash, don't buy it! Yeah right!! Think I'll start saving and pay cash when I'm 93. Life's too short and Summer's near. Think of it as reverse motivation. Buy the toy and figure out how to pay for it later....lol. It's working for me, better than expected. Sorry, but I have Mack Truck Syndrome, you are walking out of Wal-Mart and BOOM!. Hit by a Mack Truck, game over, can't take the toys with you. Enjoy life NOW!!!!! I'm sure I'll get alot of criticism, but I get tired of hearing older people saying "one day". If you have the means I say go for it!!!
Advanced
Joined: Jun 2006
Posts: 94
Likes: 0
From:
RE: ? 10% Down ?
There are a lot of really good replies here, so I'm inclined to lean towards the finance guys for the best information. There was one detail I wanted to weigh in on.
It appears one possibility for the "beyond 10%" in your estimate was to cover local sales taxes. That money is due right away, and everyone involved frequently likes to cover that money. I believe some regions require payment of taxes up front. It's possible that the additional money beyond the 10% was a required local tax payment.
It appears one possibility for the "beyond 10%" in your estimate was to cover local sales taxes. That money is due right away, and everyone involved frequently likes to cover that money. I believe some regions require payment of taxes up front. It's possible that the additional money beyond the 10% was a required local tax payment.
Road Captain
Joined: Aug 2006
Posts: 598
Likes: 0
From: Deming, New Mexico
RE: ? 10% Down ?
ORIGINAL: reefteach
Get a home equity loan. Lower interest, and you can write off the interest on your taxes.
Get a home equity loan. Lower interest, and you can write off the interest on your taxes.
Road Warrior
Joined: May 2006
Posts: 1,571
Likes: 0
From: Houston Texas
RE: ? 10% Down ?
ORIGINAL: Fatboy2003
1. The interest rate you pay any financial institution is negotiable in most cases. Treat it as such!
2. Watch out for "YIELD SPREAD" and tell the F&I guys you only will accept the "PAR RATE" !
Yield Spread is the extra money whoever writes you your loan gets for selling you on a rate higher then the par. IE. You qualified for 7% but because I'm backing into "your payment" I tell you the best I can do is 9% but it comes in right at your desired payment. Then the lender pays be me (with you knowing) an extra $1000 for selling you the higher rate.
Par rate is the best rate you qualify for without anyone marking up or buying down that rate.
Banking is like any other business...its for PROFIT!
And like any other business there are sharks lurking for a feast on some uneducated buyer..........ever met a struggling finance manager?
1. The interest rate you pay any financial institution is negotiable in most cases. Treat it as such!
2. Watch out for "YIELD SPREAD" and tell the F&I guys you only will accept the "PAR RATE" !
Yield Spread is the extra money whoever writes you your loan gets for selling you on a rate higher then the par. IE. You qualified for 7% but because I'm backing into "your payment" I tell you the best I can do is 9% but it comes in right at your desired payment. Then the lender pays be me (with you knowing) an extra $1000 for selling you the higher rate.
Par rate is the best rate you qualify for without anyone marking up or buying down that rate.
Banking is like any other business...its for PROFIT!
And like any other business there are sharks lurking for a feast on some uneducated buyer..........ever met a struggling finance manager?
If I found out the salesman did that, I'd be waiting in the parking lot for his ***... and the 1000 would go for hospital bills..
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Road Master
Joined: Jan 2007
Posts: 1,226
Likes: 0
RE: ? 10% Down ?
ORIGINAL: Neggy ZRXOA 5248
If it gets stolen or totaled and you are on a long loan you are still on the hook for thousands of dollars you are upside down on the loan that the insurance company isn't going to pay for. Same for trade in in 4 years.
If it gets stolen or totaled and you are on a long loan you are still on the hook for thousands of dollars you are upside down on the loan that the insurance company isn't going to pay for. Same for trade in in 4 years.
Most of us bought our bikes on pure emotion. And yes, you shouldn't finance a recreational vehicle. Screw it! I saved a hefty down payment as I knew what my credit report would reap. I have a payment I can afford and plenty of time to pay it off, double-up at times when I'm better off and comfortable when I'm not. And YES, I took it up the **** just so I could have the bike I've been dreaming of.
To the guy that started this thread: Next time getyour payoff on the existing loan and research the classifieds fortheprice of thebikecomparable to yours. The dealer will NEVER give you that kind of trade-in price. So now you know that you're upside-downin your current loan. With this knowledgeyou're not going to allow yourself to get screwed by any dealer whichwill save youmore timefor riding your current bike.
I've seen to many friends getting it through the rearendbydealers, just because they had to have the better vehicle. It's great if you have that kind of money to burn.
Cool down, forget about it fornow, make yourmonthly paymentand ride safe! There will always be a new bike atyourlocal dealer, so wait for a better time.
Road Captain
Joined: Sep 2006
Posts: 715
Likes: 0
RE: ? 10% Down ?
ORIGINAL: B dog
Is there a trick to moving your credit score up to the 750's. How is that done ?
Is there a trick to moving your credit score up to the 750's. How is that done ?
This site has a pretty cool credit analyzer that will tell you exactly what you need to do to raise your credit rating.
~John