[2y4life]

Just curious for those of you that have purchased a motorcycle, new or used, with a loan. What was the interest rate (besides those who got the 0% from some of the dealerships depending on the time of year)? Just interested to see what some are.

 

[zx6ixxer]

I got 3.95%/36 Months, I know they also had a 4.5% /60 month (Kawasaki)
Yamaha has 3.99%/36 months right now I believe

All new bikes BTW

 

[40acres]

You know they're all going to be different. Are you not familiar how credit works? If you were, it seems like you wouldn't be asking that question.

 

[XPyrion]

I got 3.99%/60 months through the dealer through a local bank. Check around at local credit unions, they usually have good rates. I saw some from 1.5-2.5% for shorter terms.

I was talking to the finance guy when they fed me a BS rate. I said it needs to go down. About 15 minutes back and forth, dropped to 3.99% and I told him I could still get better locally. He got the sales manager which said I could just take the rate and refinance. I really wanted to leave with the bike so good enough for me.

 

[2y4life]

You know they're all going to be different. Are you not familiar how credit works? If you were, it seems like you wouldn't be asking that question.

Nope, no idea how credit works, care to help:O

Sarcasm aside, we always see stuff like what the price of the bike is etc, it's just nice to see what people have had to pay for interest alone as that sometimes ends up costing alot more than what was "saved" initially. Of course they are all going to be different, much like prices of bikes will differ based on market AND negotiation skills along with patience of the buyer. I know I have seen in older posts guys paying 16% interest, which is absurdly high so I was just interested in seeing numbers.

PS, 2.49% is my interest for 4 years if the loan amount is more than $3500. A good credit score and being fiscally responsible pays off. Currently looking at some '13s and trying to figure out which one to buy

 

[Pcervant136R]

mine was 3%, there was another one for like 7%.

 

[NitrusReigns]

Nope, no idea how credit works, care to help:O

Sarcasm aside, we always see stuff like what the price of the bike is etc, it's just nice to see what people have had to pay for interest alone as that sometimes ends up costing alot more than what was "saved" initially. Of course they are all going to be different, much like prices of bikes will differ based on market AND negotiation skills along with patience of the buyer. I know I have seen in older posts guys paying 16% interest, which is absurdly high so I was just interested in seeing numbers.

PS, 2.49% is my interest for 4 years if the loan amount is more than $3500. A good credit score and being fiscally responsible pays off. Currently looking at some '13s and trying to figure out which one to buy

The argument could be made that "buying" a bike on credit rules you out of the fiscally responsible category...

 

[XPyrion]

The argument could be made that "buying" a bike on credit rules you out of the fiscally responsible category...

I sure hope we don't get started on that again.

 

[2y4life]

The argument could be made that "buying" a bike on credit rules you out of the fiscally responsible category...

Sure I guess. I have always been one that doesn't buy what he cannot afford in cash. I have but two credit cards and the only loans I have had besides school loans were the two loans for my car and my wife's car, both of which were paid off before the 5 year period.

As I have stated in another thread, I could easily pay for it in cash but I don't care for touching my savings for a "toy". At 2.49% interest over 4 years, that $5500 will cost me $284 over a 4 year period or $71 a year. I could dip into my savings for that extra $5500 but I know saving money is more difficult than spending so I can live with the $71 a year in interest.

I do wonder how some guys can do like 16.99% as I saw in another thread. 400 score?

 

[NitrusReigns]

Sure I guess. I have always been one that doesn't buy what he cannot afford in cash. I have but two credit cards and the only loans I have had besides school loans were the two loans for my car and my wife's car, both of which were paid off before the 5 year period.



As I have stated in another thread, I could easily pay for it in cash but I don't care for touching my savings for a "toy". At 2.49% interest over 4 years, that $5500 will cost me $284 over a 4 year period or $71 a year. I could dip into my savings for that extra $5500 but I know saving money is more difficult than spending so I can live with the $71 a year in interest.



I do wonder how some guys can do like 16.99% as I saw in another thread. 400 score?

Fair enough. I tend to have a bit of an all or nothing personality and in my book, debt is bad. So I save ahead of time to buy things I want while making sure I don't have to deplete my emergency funds or other savings at all. Like I said, at least partially just my general outlook. Your reasoning certainly makes some sense tho

 

[zx6ixxer]

..............
As I have stated in another thread, I could easily pay for it in cash but I don't care for touching my savings for a "toy". At 2.49% interest over 4 years, that $5500 will cost me $284 over a 4 year period or $71 a year. I could dip into my savings for that extra $5500 but I know saving money is more difficult than spending so I can live with the $71 a year in interest.

Im with you on this...I could have paid cash on mine too but figured I rather have it in savings and just do a short term (36 months) so I will always be Upside on the loan. If #&(@ hit the fan financially, I can always sell it for what I owe plus some...

I do wonder how some guys can do like 16.99% as I saw in another thread. 400 score?

And THIS :laugh

 

[2y4life]

Im with you on this...I could have paid cash on mine too but figured I rather have it in savings and just do a short term (36 months) so I will always be Upside on the loan. If #&(@ hit the fan financially, I can always sell it for what I owe plus some...



And THIS :laugh

I like longer loans, as long as possible, simply because I like the lower minimum payments. That means on months where money may be tight, I can pay the minimum but as mentioned above, I never do the full term. On my Corolla, I paid it off in 2 years, my wife's Forester, it was 3 years.

 

[zx6ixxer]

I like longer loans, as long as possible, simply because I like the lower minimum payments. That means on months where money may be tight, I can pay the minimum but as mentioned above, I never do the full term. On my Corolla, I paid it off in 2 years, my wife's Forester, it was 3 years.

I hear you on that and I can relate....I almost did that but only issue with that strategy is that if for some reason you have to sell the bike you will have to plop down cash ontop of what you can get to pay off the loan. I hate "owing" money lol

For me its piece of mind knowing I have the equity....but obviously my monthly payments are higher.....guess its preference :O

To me the whole "monthly payment" thing is how advertisements get people.....ya know "$99/month!" and your paying it for 7 years and end up shelling out a few k just in interest....

 

[2y4life]

I hear you on that and I can relate....I almost did that but only issue with that strategy is that if for some reason you have to sell the bike you will have to plop down cash ontop of what you can get to pay off the loan. I hate "owing" money lol

For me its piece of mind knowing I have the equity....but obviously my monthly payments are higher.....guess its preference :O

To me the whole "monthly payment" thing is how advertisements get people.....ya know "$99/month!" and your paying it for 7 years and end up shelling out a few k just in interest....

Yup that last part in bold is how people end up paying more in the long run. They go in for a deal (car or bike) and say they can only afford so and so a month, the finance department works it out and it ends up being so many years at a certain percent. Definitely not worth it. If my APR was higher than 5%, I would either pay in cash or move on regardless of the length of the loan. Car loans were 1.99% and 2.5%. The bike loan being 2.49% is the only reason I'd consider. For a used bike, apparently, it's hard to get rates like that.

 

[zx6ixxer]

.................. For a used bike, apparently, it's hard to get rates like that.

When you're talking used your always best paying cash in full.....my opinion. Also on a "new" bike its more "normal" to take out a loan...I know...human psychology is a trip :laugh

 

[XPyrion]

Wow, you guys have this thought out. I was just going with that I could die tomorrow so I want it now.

 

[PowerGroove]

Mine is 5.4% through USAA - 60 months and that was $0 down.

 

[atatata]

8.99%, $7.5K loan, 60 months. Financed through dealer's credit union connection.

Went through same credit union again. I was so happy the loan officer was spitting out these 2%-3% rates until I realized he was jumping the gun, the rates were pendent on credit worthiness of course. I was finally approved for 5.5%, $8K, 48 months. Just looking for a new bike now.

I'm not so worried about the loan itself at this point, much more worried about insurance. The first loan I took out on a bike I forgot to check insurance rates. As it turns out no one would cover me for anything below $2.5K a year for full coverage, and by taking out a loan for 5 years meant I would have spent enough on insurance to pay for the bike itself.

I don't even know how some of these young college kids afford nice super bikes with these rates.

 

[dennisplus]

You know they're all going to be different. Are you not familiar how credit works? If you were, it seems like you wouldn't be asking that question.

Very helpful^^^ NOT :thumbdown:

 

[Jperez]

The argument could be made that "buying" a bike on credit rules you out of the fiscally responsible category...

Soooo.... You don't believe in perhaps establishing credit?