New Bike Buyers... - Motorcycle-Journal Forums

cjjtulsa · 03-22-2006, 07:26 PM

Beware if you are financing! I have my loan through Suzuki finance, and have been getting raped by the finance charges. Not necessarily a complaint - just a fair warning to all who may be itching to pull the trigger and finance it through Suzuki. I'd find a way to either go through a bank, or immediately transfer the balance to one of the "zero percent" promotional cards ASAP. My finance charges have been anywhere from $60-$65 a month. That is pretty rich folks. I recently sold a vehicle, and as soon as the funds are posted to my checking account they will be getting a check sent priority mail to pay it off in full. And I'm hoping there's no trouble with that transaction either. I wasn't too concerned about the whole thing (except with getting it paid off and ditching those finance charges) until I saw this:

http://householdwatch.com/

I might go warn those on the Kawasaki board as well - Kaw finances through "Retail Services" too. Just be careful.

old&slow · 03-22-2006, 09:03 PM

Kawi has 4.99 % on right now for the first 2 years...fortunately I worked mine off and didnt require a loan!

tlwisner · 03-22-2006, 09:42 PM

E-Loan is pretty good, a simple low flat rate and easy to deal with via the web.

92Notch · 03-23-2006, 11:24 AM

Damn ... $60 / mo in finance charges ... holy crap! .... I only have to pay $139/mo for the bike loan (I pay more).... i'm financed through my credit union @ 4.7% for 5 years on $7400 (i owe less now).

Jerryzuki · 03-23-2006, 03:30 PM

I bought mine under the $79.00 per month deal just for low payments until I could get some things moved around. And you are right about the finance charges. I have since sent them a check for the full ballance. Just waiting on the title now. I hope it works out.

Colorado Cajun · 03-23-2006, 05:16 PM

I did the Credit Union for 4.9 % for 5 years. The salesman at the dealer even told me that using a bank or Credit Union is always a better deal.

spanman · 03-23-2006, 06:58 PM

(finance 101) if you have an 8000 loan at 8% interest you will pay 640(approx) in interest ie about 53+ a month in interest ie finance charge.The lower the interest rate the lower the (finance charge).They are charging you for the use of their money.As long as there is no prepayment penalty you should chase a lower rate with another lender or try to hurry up and get it paid off.When the Suzuki promo rate of 7.9 is up you will really see a finance charge as I assume that rate will approach 20% which will give you 1600 per annum on a 8000 balance ie over 120 a month in finance charge.Good luck

cjjtulsa · 03-23-2006, 07:10 PM

I should have the funds in my account tonight at midnight, and a Priority Mail letter with a check headed for Suzuki Finance (Retail Services) tomorrow morning. Bye-bye, finance charges! It's just that the warm weather is coming, new bikes are out, and a lot of people are getting antsy about new stuff. Wanted to do a little "public service" for those thinking of financing through Suzuki/Kawasaki/Yamaha. Never hurts to be informed.

**Clint** · 03-23-2006, 07:40 PM

I'm confused. Did you not know what the interest rate was before you signed on the dotted line? What exactly is the warning about?

cjjtulsa · 03-23-2006, 09:32 PM

I understood it - but wanted to more or less warn those with dreams of snagging a new bike and "just doing the financing" that, although the $79 a month is tempting, move that loan somewhere else ASAP or persue other finance options. You'll never pay a$7000 to $12000 bike off putting $14 a month towards the principle. The balance after 3 years, plus the 17% or so interest is going to have some folks so upside down that they couldn't give their bike away. And the fact that the finance company Suzuki, etc. use is considered a "predatory lender" isn't comforting.

old-n-slow · 03-24-2006, 06:42 AM

One thing to consider about chasing low rates, if you set up your own financing BEFORE you go to buy the bike, then you'll actually be talking a cash deal with the stealer. With cash, the final sales amount you can hammer him down to will be less than a finance deal and that difference may be more than the spread a lower rate loan would give you.

ps, for the first post about HSBC the direct link to the article is here. http://householdwatch.com/thor/viewtopic.php?t=263

Thanks for the heads up, cjtulsa.

03-22-2006, 07:26 PM	#1 (permalink)
cjjtulsa Third gear and cruising Joined: Jun 2005 Bike: 2004 Marauder 1600 Black Location: Collinsville, Oklahoma Posts: 507	New Bike Buyers... Beware if you are financing! I have my loan through Suzuki finance, and have been getting raped by the finance charges. Not necessarily a complaint - just a fair warning to all who may be itching to pull the trigger and finance it through Suzuki. I'd find a way to either go through a bank, or immediately transfer the balance to one of the "zero percent" promotional cards ASAP. My finance charges have been anywhere from $60-$65 a month. That is pretty rich folks. I recently sold a vehicle, and as soon as the funds are posted to my checking account they will be getting a check sent priority mail to pay it off in full. And I'm hoping there's no trouble with that transaction either. I wasn't too concerned about the whole thing (except with getting it paid off and ditching those finance charges) until I saw this: http://householdwatch.com/ I might go warn those on the Kawasaki board as well - Kaw finances through "Retail Services" too. Just be careful.

03-22-2006, 09:42 PM	#3 (permalink)
tlwisner Throttle Jockey Joined: Apr 2004 Bike: '05 Boulevard C50 Location: Central Kentucky Posts: 3,208	E-Loan is pretty good, a simple low flat rate and easy to deal with via the web. __________________ Tim Wisner AMA, SCRC Happiness is something we create

03-23-2006, 11:24 AM	#4 (permalink)
92Notch Birthday Boy Joined: Aug 2005 Bike: '05½ C50 Limited Location: Baltimore, MD Posts: 860	Damn ... $60 / mo in finance charges ... holy crap! .... I only have to pay $139/mo for the bike loan (I pay more).... i'm financed through my credit union @ 4.7% for 5 years on $7400 (i owe less now). __________________

03-23-2006, 05:16 PM	#6 (permalink)
Colorado Cajun Sprocket Pilot Joined: Nov 2005 Bike: 2006 C50 Silver and Gray Location: Colorado Springs, CO Posts: 851	I did the Credit Union for 4.9 % for 5 years. The salesman at the dealer even told me that using a bank or Credit Union is always a better deal. __________________ 2006 C50 Silver and gray, Cobra Tall Sissy Bar, K&N Air filter, Suzuki bags, Custom Driver's Back Rest, Memphis Fats 19" windshield with lowers, added a 2nd horn, Power Commander PC3 USB, and Cobra Freeway bars. Mitch

03-24-2006, 06:42 AM	#11 (permalink)
old-n-slow Seat Tester Joined: Jan 2006 Bike: 2005 1200/S Bandit Location: West Central Florida Posts: 56	One thing to consider about chasing low rates, if you set up your own financing BEFORE you go to buy the bike, then you'll actually be talking a cash deal with the stealer. With cash, the final sales amount you can hammer him down to will be less than a finance deal and that difference may be more than the spread a lower rate loan would give you. ps, for the first post about HSBC the direct link to the article is here. http://householdwatch.com/thor/viewtopic.php?t=263 Thanks for the heads up, cjtulsa. Last edited by old-n-slow; 03-26-2006 at 10:48 AM.

03-22-2006, 09:03 PM	#2 (permalink)
old&slow Seat Tester Joined: Jan 2006 Bike: Black 04 Marauder 1600 Location: Calgary, Alberta Posts: 79	Kawi has 4.99 % on right now for the first 2 years...fortunately I worked mine off and didnt require a loan!

03-23-2006, 06:58 PM	#7 (permalink)
spanman Where Am I ? Joined: Jan 2006 Posts: 25	(finance 101) if you have an 8000 loan at 8% interest you will pay 640(approx) in interest ie about 53+ a month in interest ie finance charge.The lower the interest rate the lower the (finance charge).They are charging you for the use of their money.As long as there is no prepayment penalty you should chase a lower rate with another lender or try to hurry up and get it paid off.When the Suzuki promo rate of 7.9 is up you will really see a finance charge as I assume that rate will approach 20% which will give you 1600 per annum on a 8000 balance ie over 120 a month in finance charge.Good luck

03-23-2006, 07:10 PM	#8 (permalink)
cjjtulsa Third gear and cruising Joined: Jun 2005 Bike: 2004 Marauder 1600 Black Location: Collinsville, Oklahoma Posts: 507	I should have the funds in my account tonight at midnight, and a Priority Mail letter with a check headed for Suzuki Finance (Retail Services) tomorrow morning. Bye-bye, finance charges! It's just that the warm weather is coming, new bikes are out, and a lot of people are getting antsy about new stuff. Wanted to do a little "public service" for those thinking of financing through Suzuki/Kawasaki/Yamaha. Never hurts to be informed.

03-23-2006, 09:32 PM	#10 (permalink)
cjjtulsa Third gear and cruising Joined: Jun 2005 Bike: 2004 Marauder 1600 Black Location: Collinsville, Oklahoma Posts: 507	I understood it - but wanted to more or less warn those with dreams of snagging a new bike and "just doing the financing" that, although the $79 a month is tempting, move that loan somewhere else ASAP or persue other finance options. You'll never pay a$7000 to $12000 bike off putting $14 a month towards the principle. The balance after 3 years, plus the 17% or so interest is going to have some folks so upside down that they couldn't give their bike away. And the fact that the finance company Suzuki, etc. use is considered a "predatory lender" isn't comforting.

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