Yamaha Finance offer.. is this worth it?

[Gemini]

*$0 Down / 0 Payments for 90 Days / 0% APR*For qualified buyers that elect 90-day interest & payment deferral; 60 months at $19.33 per $1,000 financed. 5.99% APR financing (and 90-Day Payment Deferral option and 90-Day No Interest option) for 60 months available to tier A1 qualified buyers through participating Yamaha dealers financing purchase of a new 2017-2020 Yamaha Motorcycle, Scooter, Snowmobile, ATV or Side x Side through Yamaha Financial Services (YFS). Eligible customers who defer first payment to 90 days after signing do not incur finance charges during deferral period; finance charges begin to accrue at stated APR at the end of the 90-day period. Ex: $10,000 financed based on 5.99% APR equals $11,596.89 payable in 60 monthly payments of $193.28. No down payment or trade-in required. Must take delivery from retail stock by 4/30/20. Subject to YFS approval; not all buyers will qualify. See dealer for incentive details.

I know a decent amount about financing, but wanted others opinions. I feel like 5.99% apr is a bit on the high side but isnt terrible. But the 0 down, deferred payments and interest for 90 days, is that just a hook to lure in potential buyers, or do you find that enticing?

 

[HippoDrone]

None of us are qualified to give you financial advice mate.
But, in the last 9 years I have purchased 7 bikes, 6 of those brand new. Of the new ones I got 4 of those on my credit cards on 0% deals using other bikes as part exchange and putting a small cash deposit down.
I don't know what deals you have in your country on credit cards, but it worked well for me as I made sure I paid each off well before the interest free period ended.
I am not a fan of the deals which have a low monthly cost, but have a balloon final payment as they tie you in to limited mileage, and the bike has to be in good condition and fully maintained throughout, which if you have a crash can cause problems.

 

[Skant153]

None of us are qualified to give you financial advice mate.

as a cpa, i'd like to think i am..

*$0 Down / 0 Payments for 90 Days / 0% APR* is a hell of a deal if the 0% is for the life of the loan. you can't beat borrowing money with no interest.
6% for a motorcycle doesn't seem high. i have never financed a motorcycle, but typically the loans have similar interest rates as personal loans with no collateral because a motorcycle is easy to wreck.

"deferred interest" is a tricky term and you need to read the terms carefully. it could mean they're forgiving interest accrued during the first 60 days or it means that after 60 days, they charge you all that interest at once on day 61.

tier 1 credit typically requires a credit score of 740 or above (financial institution dependent). if they're breaking it down to A1, they're being even more restrictive than that. that's a good starting point to see if you qualify for that 6%.

 

[Gemini]

as a cpa, i'd like to think i am..

*$0 Down / 0 Payments for 90 Days / 0% APR* is a hell of a deal if the 0% is for the life of the loan. you can't beat borrowing money with no interest.
6% for a motorcycle doesn't seem high. i have never financed a motorcycle, but typically the loans have similar interest rates as personal loans with no collateral because a motorcycle is easy to wreck.

"deferred interest" is a tricky term and you need to read the terms carefully. it could mean they're forgiving interest accrued during the first 60 days or it means that after 60 days, they charge you all that interest at once on day 61.

tier 1 credit typically requires a credit score of 740 or above (financial institution dependent). if they're breaking it down to A1, they're being even more restrictive than that. that's a good starting point to see if you qualify for that 6%.

Good info. I guess my real question is that the amount financed calculation and the interest rate actually a good deal, or are these numbers average and financing through a credit union a better option?

 

[Skant153]

like i said, 6% is a decent rate for a motorcycle. you may find a financial institution that will give you an auto loan for a motorcycle but they typically don't qualify. through a bank or credit union, you're probably looking at personal loan (unsecured) rates which are around 10%. it doesn't hurt to call your bank and ask what their typical rates are.

 

[HippoDrone]

as a cpa, i'd like to think i am..

AS ADMIN not Hippo-Drones: That is grand, but just putting the forum standing here though: Any advice given here by members, is not on behalf of the fomum, any financial decisions people make is on their own back, and they should do research themselves before taking out any finance etc.

Now posting as a member rather than an admin....
I'd be very wary about taking a finance deal over 5 years for a motorbike, and not knowing the bike details and price vs what you'd actually be paying, it is hard to say if it is a "good deal" on that specific bike!

 

[Gemini]

Now posting as a member rather than an admin....
I'd be very wary about taking a finance deal over 5 years for a motorbike, and not knowing the bike details and price vs what you'd actually be paying, it is hard to say if it is a "good deal" on that specific bike!

Yeah I can openly say I dont hold anybody responsible here for my financial decisions. And I understand your point about the deal on a specific bike. Financing doesn't matter if the OTD is insane. Just discussing peoples opinions about this financing offer from yamaha, and if they see value in it or if it's just a ploy to get buyers in

 

[HippoDrone]

So TLDR in the above deal is:

$10k over 5yrs with total repayment of $11.6k (if I am reading that right?)

Now I know $10k isn't the same as £10k, but in the UK our bikes cost more than yours so possibly evens out. This is an example from the UK on what you could pay on a personal loan:

 

[Skant153]

well you have car selected which makes that a secured loan so the rate will be much cheaper. a lot of financial institutions, at least in america, don't count motorcycles as car loans so you've got to compare the rate to an unsecured loan, which would be any other one of those categories.

i went and checked out the yamaha deals... do they not make the v-star motorcycles anymore?

 

[HippoDrone]

In the UK, bikes are classed the same as cars loans and are not secured.

 

[Gemini]

So TLDR in the above deal is:

$10k over 5yrs with total repayment of $11.6k (if I am reading that right?)

Now I know $10k isn't the same as £10k, but in the UK our bikes cost more than yours so possibly evens out. This is an example from the UK on what you could pay on a personal loan:

View attachment 4854

One other thing is california sales tax. If I borrow 10k on a bike the sales tax is 9.5% so I would have to finance 10,950 or pay the 950 up front. This sales tax in california varies based on zip code as well. So that finance offer of 19.33 per 1,000 is also bogus because it doesnt include sales tax, which varies all over the US as well.

 

[HippoDrone]

"cruisers" are not hugely popular in the UK so not really looked

 

[HippoDrone]

Jeez, that is mad to have to pay more because of your zip code. In the UK, you go in, ask them what the on the road price is, haggle a bit and pay that. If getting a loan, you borrow what you need to pay the bike, and the repayments are what you agreed with the bank/finance company.

 

[Gemini]

Jeez, that is mad to have to pay more because of your zip code. In the UK, you go in, ask them what the on the road price is, haggle a bit and pay that. If getting a loan, you borrow what you need to pay the bike, and the repayments are what you agreed with the bank/finance company.

Yeah just to give you an idea of our ridiculous tax system

 

[HippoDrone]

damn, can you not get PO boxes in cheaper states?

 

[Gemini]

damn, can you not get PO boxes in cheaper states?

You can but you cant claim to live there on your credit application... maybe if you were jimminy Cricket

 

[HippoDrone]

I bet there are a few addresses that have several rich residents that have never even set foot in them!

 

[Gemini]

I bet there are a few addresses that have several rich residents that have never even set foot in them!

No doubt haha

 

[Skant153]

i'd let you use mine but i'm in ny, no help there

 

[Gemini]

i'd let you use mine but i'm in ny, no help there

Yeah you might be the only place worse than here