Financing...

I have a question about how exactly the financing works. I know you have the option of getting a yamaha card and buying the bike with that and there is a cheap payment for the first 24 months....

Anyone ever done this before? I just want to make sure that I am not lured in by the low monthly payments and then hurting later on.

go here. http://www.bankrate.com/brm/popcalc...showAmort=Show/Recalculate+Amortization+Table
Type in your loan amount and intrest rate and 24 months.
It will tell you how much intrest your paying, and what the payment needs to be to pay it off.
If you really want to save money add $25 extra to your payment a month. Check out how much you save in intrest.
Or check out how a loan payment goes down by just few dollars a month, but you pay a grand more in intrest by adding a year to the term.
Basicly take short term loans and pay extra every month.
Also if you can pay a 1000 extra on the first payment you can save huge amount of money in intrest over the life of the loan as well.
Steve

also consider

...going to your bank/credit union. If you have a good relationship with a banker they can save you a bunch of money.

Loans from your bank also (generally) upgrade your interest rates & depositor's benefits on checking/savings accounts.

Some banks give a discounted APR on loans/lines for setting up automatic payments or establishing a checking package etc etc.

Those bankers make money by setting up free services & products, take advantage of it!

After negotiating price with the dealer, I talked to their finance ppl. They declined me on the Yamaha card (you don't pay down the balance at all, but I did want a year of $69 payments) and declined me on their standard yamaha financing at 9%.

Talked to my credit union, and got a 6.7% rate on any new bike because I have checking/savings and a car loan there. If only they could have financed my house.

I don't think its worth it to put anything down unless its 2-3000, most loans are for every $1000 financed its $16-20 per month in a 60 month loan. so putting a grand down may save you $20 a month but, it also could pay for your gear & insurance premium for the year.

Unfortunately many people who want bikes are younger and these companies just rape them with high interest rates or simply won't finance because they feel safe the person will find another funding source to obtain what they desperately want. (they won't lose the sale)

I'm glad you got a good deal with your credit union. :thumbup:

My credit union has always given me good deals too.

It took some work but I got the 2 years at 69$ amonth and 8.99. I plan to put some extra in every month to pay down some on the principle and move it to a conventional bank loan when the cheapo payments are over.

I bought mine through Yamaha (Power Finance) which is done through HSBC. I got approved in 5 mins for enough money to buy an R1. No payments for 6 mos. and got an average rate. BUT... the thing that got me was if you wanted to pay more than your minimum amount, it came off the principal and not the interest. Show me a bank that will let that happen. P.S. Picked mine up Mar.28, Has 5300km on it already.

cannonball said:

I bought mine through Yamaha (Power Finance) which is done through HSBC. I got approved in 5 mins for enough money to buy an R1. No payments for 6 mos. and got an average rate. BUT... the thing that got me was if you wanted to pay more than your minimum amount, it came off the principal and not the interest. Show me a bank that will let that happen. P.S. Picked mine up Mar.28, Has 5300km on it already.

Click to expand...

The default question from tellers when I overpay at the bank for any loan is "do you want the surplus applied to the principal or next month's scheduled payment?"

Sounds like you need a new bank...

Yes, any extra is supposed to be applied to principal. Why in the hell would I want to pay intrest early? LOL