Financing for RE

[McGregor]

Hello, everyone, my first post here:)
Thinking about buying new RE and looking for financing right now. My Credit Union has a motorcycle loans with almost 9% APR wich is rediculous IMHO. Any suggestions where else I can check for the better deal s? I'm in Illinois.
Thank you in advance!
Cheers

[ScooterBob]

Hello, everyone, my first post here:)
Thinking about buying new RE and looking for financing right now. My Credit Union has a motorcycle loans with almost 9% APR wich is rediculous IMHO. Any suggestions where else I can check for the better deal s? I'm in Illinois.
Thank you in advance!
Cheers

Nine percent on a recreational vehicle is pretty darn good THESE days. You could tie it to your house and probably get 5% ...... The going rate that I've seen for such purchases is usually about 11%

[McGregor]

Triumph has 0.9% for 12m and 2.9% for 36-60m Our local HD dealer use to sell RE, but not anymore...

[REpozer]

Forget about all the %% thang. Just save your money, and pay with cash.

[Vince]

     Watch out for those financing specials! Often you  wind up still upside down after 2 or 3 years, or at the end of the "special" period. No matter what the special is, the retail price is adjusted to pay for your "savings". So you are still paying the interest you didn't want to pay, it is just hidden in the sale price.
     Most finance institutions lump motorcycles in with recreational vehicles. This is a higher risk than a car or house, so rates reflect this risk. Any rate sub 10% is pretty good for this kind of purchase.

[McGregor]

Thank you, gentlemen !

[GreenForce82]

Just FYI, 9% to 5% is around 12$ less a month on a $6500 loan for 3 years... if 12 dollars a month is too much for someone, they probably shouldn't be buying a bike.

Interest rates are less important then loan term length in these types of loans...

Check out http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx for a better idea of what interest actually does to a loan.

Cars are a bit more sensitive to interest rates but even then, it may only change it by $20-$50 (or a little more if your talking 0.9% new car good credit rates compared to 12.99% used car bad credit rates) ...this would be for a $20,000 car... and again, if $50 a month is gonna make or break the decision, you should be looking for something cheaper or not buying at all...

$40,000 dollar and up cars interest can make a difference, but yet again, if you can afford a $40,000 car you probably have good enough credit to get the better interest rates anyway...

Now on a home, over 30 years... tenths of a percent can matter, but that's because the overall loan is usually for $100,000 or more so... you get the idea...

[Kevin Mahoney]

I would take the 9%. Vince and others are right about the specials when it comes to motorcycle financing. It is not a big ticket item yet it costs just as much to process and support a small loan as a big one,. As an example a 0% down maybe 5% loan has a high cost to the manufacturer and the dealer. As much as 10% of the retail cost of the bike. Don't you think it is going to come out of your hide somewhere along the line? Some of those deals are good ones, especially if they are offered by the manufacturer and not a finance company. However Vince said a mouthful when he talked about getting upsdie down on these loans.

[mplayle]

Bump to the top with a closely related query.

I've been "lurking" for a bit while researching the RE bikes for purchase.  (I know about many foibles of 'British vehicle design' as my other hobby is classic Minis.)  I recently found a 2012 RE G5 with Inder side car attached and started the purchase process.  My credit union ran into a snag with trying to validate the rig's value as collateral for the loan (was pre-approved for the amount without problems - very good credit score/history).  Seems neither NADA, nor Kelly-Blue-Book have data on the RE bikes, let alone the sidecars as an option. 

Any community effort being made by distributors/dealers to rectify this?

The dealer where I found the rig has arrangements with one bank, but that bank requires almost 1/2 the cost as down and charges double the interest I would get from my credit union.  If NADA and/or KBB had data and proper accessories lists, that would open financing options at other sources.

[Kevin Mahoney]

Both NADA and Kelly have the
RE's listed and have had for almost 15 years. Your credit union may have run into a snag with a used price. The used market is so limited that the two services have no real basis to estimate a price. The sidecar is an aftermarket accessory and is not and never will be listed. Most dealers have some sort of financing options available for used bikes. You also might try talking to a loan officer of your  Credit Union.

[mplayle]

I worked closely with several loan officers at my credit union.  KBB only has values/data for 3 of the C5 models.  NADA lists all the current models, but has limited data on them - only shows "Suggested List".  The "Low Retail" and "Average Retail" categories show "N/A".  This indicates they have either no sales data or insufficient sales data.  Aren't the dealers reporting their sales?

Many (if not most) of the mass market bikes (HD, Honda, etc.) have extensive accessory lists that include many aftermarket only items.  For the RE's, NADA has a catch-all list that is about 1/3 ATV accessories!

[Kevin Mahoney]

Dealers do not report sales to KBB or NADA. What they sell a product for is their own business and is typically closely held. For example we don't know, nor are they required to tell us. If  a manufacturer gets too involved in retail pricing it can become a Federal issue. for example that is why the retail prices you see are always "Manufacturers suggested retail prices". They may get data from the large companies that buy the paper from dealerships.

[mplayle]

That probably explains the lack of data to NADA and KBB.  Most RE financing seems to be through smaller outfits or "cash" sales.

I did learn of several viable options I can exercise when the time comes to be serious about purchasing again.

Thanks for the insights Kevin.

[barenekd]

I got a 48 mo loans at 7% from my Credit Union. While you're looking for loans, a lot of shops use an outfit called GE MoneyBank. Avoid them like the plague. They are horrible to do business with. And good luck on getting your title from them after the bike is paid for. They rush at nothing other than trying to get money out of you. They make big time mistakes, and make your life miserable while they are straightening it out. They're actually based in Latvia. I've gotten stuck with them twice--Never again. Even if you have to pay a bit more somewhere else, take the deal there.
Bare

[mplayle]

I was easily approved at my credit union.  Will probably go with them again when the time comes.  I know what sort of paperwork to obtain from the start to provide them to ensure smooth processing.

I've been doing lots of reading here on this forum to get up to speed on the RE's and have decided is is not a question of "if", but "when".