Finance rates

[FROG MAN]

Why are motorcycle loan rates higher then car loans. Yamaha is running a 7.9% offer for 72 months but sometimes automakers do a 60 month at 0% to push them out the door. Just seems like motorcycle loans would be cheaper. Just curious NO I'm not looking.

[Redneck]

My guess is they have a higher rate of default. They are also not in a bind to sell them like the auto makers are so they are not doing there own interest free financing to get rid of there overstock.

[BradT]

but sometimes automakers do a 60 month at 0% to push them out the door. .

 

I think Redneck hit it. It is only some auto makers that offer these Deals. A few years back a buddy wanted to buy a Honda and asked why they do not offer specials on financing and the comment was they do not have to.

 

Brad

[FROG MAN]

My guess is they have a higher rate of default.

 

I thought the scoot was the last thing to go. First gen's protected by Smith and Wesson Security.

[Guest tone100]

If you shop around you can still get a good rate. I got 6% on a 72 month in September through my credit union.. I think all of the little punks on their sportbikes jack up the rates when they default or crash them.

[KiteSquid]

I also think that bikes as a general rule have a higher initial depreciation rate than cars.

 

It has to be a higher risk to the bank for the rate to be higher.....

[Blackjack]

The basic economic rule of "supply and demand" is at work here. When auto manufacturers need to move/eliminate inventory they can only do so by providing pricing incentives. There's only two ways to do this: lower the original purchase price and/or lower the interest rate on the financing.

 

Keep in mind that low interest rate offerings are a bit of a marketing ploy. The number of people that will actually obtain incentive rates is quite limited, since your credit score typically needs to be above 700 to qualify.

 

Terry

[ediddy]

There was an interesting article on MSN in May about financing and Harley Davidson. The article stated that in order to keep sales up Harley had lowered the beacon score to qualify for financing with their finance company and as a result they had taken a hit with repos. Also because there are so many used harleys on the market they couldn't get the price they had been getting for used bikes. As a result their stock had dropped from $70.00 per share to $59.00 per share. So much for harleys holding their value.