Fianance for bikes.

Ok guys here is one, I own a fairly nice bike already and 2 cars I do not
really need anymore vehicles, yep I made a error? and visited a Kawasaki
showroom and feasted my eyes on a brand new ZX10R, after seeing it in the
flesh I like what I see but I noticed now all bikes in the store have a
finance tag and for this particular bike it reads 500 cash down and 115 per
week, I did not get into money talk with salespeople (they were not pushy at
all and gave me brochures I roughly estimated approx 20k for this
machine?

3 Questions.

1. Do all MC shops use the same finance co these days i.e.: GE?
2. With such seemingly low repayments on 20k, what kinda interest rates do
the in-house fiancé co's carry today on sickles?
3. Bank finance is likely better of course however, being safer is it
really that much better today? and do you have any bargaining power with
either?

Sorry if it has been covered before I want to see what peoples opinions are
on "bike shop finance".

regards
olley.

 

Don't ever use the bike shop's finance. In fact, if they're half-way
decent in the first place, they'll probably say the same thing to you
up-front themselves! Even a cursory glance at rates elsewhere will show
how much more you'll pay using the bike company finance.

Get a quote from the bike shop and then go to your own bank/institution
and ask for a new vehicle loan. They market them as "new car loans", but
it applies to bikes as well. You should get something in the vicinity of
9%pa in the current market.

Compare that to the rates being charged by the bike company finance, and
you'll see how much more expensive it is. Bike company finance is only
worth it when they order far too many of a particular model and do a
supercheap deal (eg. 6% finance) just to clear the excess stock.

 

1 + 2 ask a motorcycle shop.
3 probably not. The shop is likely to make more money from the initial
and trailing commissions of finance that you buy from them. So on the
actual price of the bike, there might not be very much difference in
price between paying cash or on finance, but if you buy on finance
they're possibly likely to do you better deals on parts and accessories
you buy at the time of purchase.
Not sure what you mean by "being safer". Aside from the obvious (money)
you can probably get an unsecured loan from a bank, whereas anything you
get from a finance company (or other smaller lenders) will almost
certainly involve the bike being held as security for the loan.

Nev..
'07 XB12X

 

Both Yamaha and Honda do these sorts of low rates on run out models at
end of model year. One of the cheapest ways to buy a bike on finance
actually.


G-S

 

9% are mortgage rates - personal loan rates would be much more than this.

 

finance corporations normally insist but Banks only insist if the loan is a
secured loan ie the bike

normally the unsecured loan is a little bit higher

 

In aus.motorcycles on Tue, 06 May 2008 21:59:44 GMT

8.75% on my current bike loan. Yay credit unions! (they liked me so
much they gave me the secured car loan rate on an unsecured personal
loan. It pays to be a long term CU customer.)

Yes, the rates have climbed, now they charge 10.3 on a secured car
loan.

Zebee

 

Lol. My personal loan is at 10.25% ATM. That's not "much more".

 

Also, legally loan / bike insurance can't be a requirement of the loan
either.

 

It certainly would be. But it's also the only time that company finance
is even competitive, let alone a clear winner. You pay a LOT more than
market averages the rest of the year in most instances.

 

I'm not talking about mortgages, and yes, I certainly did mean 9% when I
said 9%.

I took out a 'new car loan' only two weeks ago to buy my bike, and got
8.95% without a mortgage in sight.

 

But who's going to be dumb enough to take that risk?

For a new bike, if you can't afford the insurance then you can't afford
the bike.

 

Which law says that? and while you're at it, name one institutional
lender who will not require you to comprehensively insure a vehicle held
as security for a loan. Weblinks would be great.

Nev..
'07 XB12X

 

Erm. I've misphrased that.

Legally, loan insurance can't be a requirement of taking finance out.
I see no need for a weblink .. you can type May be different in NSW
to other places too.

 

They might not be able to require you to take out loan insurance, but
they can certainly require you to take out comprehensive insurance on
the vehicle! And quite rightly so.

 

Yes agreed - I wrote something other than what I meant tho.

 

An advertisement in today's Australian by the Service One Credit Union
has fixed rate car loans at 9.5% and Personal Loans at 11.5%. ANZ are
advertising 12% and 14% for the same things, and so are GE Money (for a
$15,000 4-year loan). On that basis big finance companies are no more
expensive (and no cheaper) than big banks.

 

GE are advertising that rate !?

Check the rate you get on your actual loan. I can categorically tell you
they will only give loans at those rates to people like Packer who meets
their "stricter" lending criteria. Mere plebs such as you and I are
likely to get the 'normal' rate of 20-23%.

 

I beg to differ... GE Money were cheaper than ANZ/Esanda 4 weeks ago
(when I was obtaining a loan) although Westpac were slightly cheaper
than both.

All 3 were between 12% and 13%


G-S