Suzook card is still 9.9% I think, with a 99 dollar payment every month.
Lotta of gotchas with that choice ... miss one payment and you are up to 21 to 24%
No going back, plus at the 99 buck monthly, you will have a big balloon payment at the end of 5 years when your bike is worth almost nothing. Too much room for a royal credit card screwing here.
Credit Unions ... my favorite way to go! Since I bought new, you can roll bike and gear into the loan if you have good credit scores. I got 6.45% on that one. Even though I took the loan, I intend to pay it off in six months. Just want to keep my cash reserves floating right now.
Then there is bank financing but only for people with stellar credit scores ... no one else need apply.
PS. You have to make the choice there and then, you can't go with the credit card and then try to get a new vehicle loan. It is one or the other and you then run with it.
I got in at Suzuki's 7.9% deal they had awhile back. The interest was about $45/month I was making payments of $150-$200 each time; I wasn't happy though.
My credit card company (USAA Visa) upped my credit limit to $7k recently and offered a 2.9% rate on all balance transfers. I owed $6900 on the bike so I transferred all that sweet mula and now my interest is only ~$13/month. And my minimum payments are pretty much always $0.
I'd say I'm doing well at making $500 payments on the credit card each month
Rule #1 for buyers is "everything is negotiable." And rule #1 for salesmen is "never let the customer leave."
The last car we bought, Chrysler dealership was going to give me something like 7%...I said, NO WAY, I'm outa here, I'll go check at my bank. They nearly restrained me to keep me from going out the door, and promptly lowered that figure to 5.9%...I bought the car
My Suzuki dealership basically told me "we finance through this bank, interest rate is 9.9%" on my bike. So I'm thinking I'll try the same thing, "nah, you can do better than that." They said "nope, that's it." So, I said I was going to my bank to see if they could do better, and the salesman said "sure, whatever." BAH! I rode to my bank, they were REALLY busy, no time to do the loan app right then, and I wanted my bike NOW, so I went with the 9.9%.
I think it's financed for 4 years (IIRC), so payments are only about $125 per month. Since this bank gives you one of those coupon books with the payment coupons, I've been making 2-3 payments a month.
I probably could do a little better getting it refinanced, but it's just not worth my time.
I didnt realize the interest rate would be nearly so high. Hindsight is 20/20 here. My emotions took over, and I just HAD to have THAT bike THAT day!!!! I'm going to do my best to pay cash for my next one.
If you have perfect credit like myself ;D What you could do is what I did. Put half down cash and call your credit card company and ask for a deal on a blank check for the rest. Citibank gave me a blank check for up to 10g's at 2.9% for the life of the balance transfered. I only put 3g's on it and paid it off in 4 months, but it was nice to know I could have taken forever to pay it at only 2.9%. If your credit is only so, so. Then you can charge it and do a balance transfer to a new credit card that offers 0% for 12 months.
Something to note on the balance transfer rates .... once you transfer a balance all the money you put toward paying the card off goes to the lower interest rate first ... so you have to pay all that off before you get back to the regular charges.
For example. You do a balance transfer of the $5000 cost of the bike .... then later in the week buy a jacket, pants, gloves, and helmet on the card for $500.
The extras ($500) are subject to the regular 24% interest while the bike amount ($5,000) is subject to 2.9% .....
Now if you send in a $200 payment on the card ..... you have $500 @ 24% plus $4,800 @ 2.9% .....
So that $500 is going to increase at 24% until that whole $5,000 is paid off.
Dunno but my bank wouldn't give me a loan for mine because it was too old...its only a 2002! Oh well...I had the cash. I remember them saying that they would do 10% on it. I thought it to be a bit much compared to my car but it is considered a recreational vehicle to my bank.
I personally have had a bad experience w/ suzuki-financing, HSBC namely.
When I purchased my bike I was told my rate would be around 18%.
that was ok. My last 4 payment (over $1000) went only to interest.
not 1 cent to principle. How can that be?? :
also overall paid off $2500 of the loan, but the principle got reduced only w/$1000.
now, thats is a**raping man... feel like someone steals my money.
anyway, next week Im gonna pay of the entire thing.
next time gonna be smarter...
You've got to shop around. Credit is a commodity just like bananas. There is one crucial difference. The better your credit rating the lower the rate you can demand and get.
A couple of years ago I applied for a credit card for myself with a second card for my daughter. The company wanted to kill the deal because I wouldn't accept a $100,000 limit! I wanted more like $5,000 limit. They finally agreed to a puny $10,000 limit. How much trouble could you get into with a $100,000 credit card?