Finacing Plans

[Undecided]

Im probably gonna get flammed for this but...im trying to get a CRF250 and though about the finacing plan and was wondering if there is a catch(which there always is). The plan on Honda's website for the CRF250R is 6.9 fixed APR for up to 60 months with no money down. I cant call the shop now but i will tomorow to check it out more. I have 2 questions: 1.By up to 60 months do they mean you can choose say like 6.9APR for 12months for example but if its over 60 then the plan changes or does it HAVE to be a 60 month payment? 2. Does with no money down mean its not your choice to put money down as in if you have $1000 to put down you cant? Also if anyone knows any other ways to finance a bike within a year or so and not get screwed over please tell me. I want a CRF250 and need to get financing deals down before im on my own and do something really stupid and end up in debt. I really want this bike and am willing to work for it(partially a christmas present if i get it) but i cant pay it all up front. I have a CR250 to get rid of so that will help a lot. Please dont say im stupid for this i just know theres a catch to just about all plans so i want to know.

[MrShred]

Go for American Honda Finance Cofinancing if you can, they have been very easy to deal with in my experience. I purchased my XR last year through AHFC, 60 months @ 6.9%. You can put down whatever down payment you want. I believe you can also select a payment plan with less than 60 months. They also have electronic payment and automatic withdrawal options to make it easy. If you opt for the 60 month plan you can always pay more than the minimum payment each month to pay it off early,

I bought the bike to do a Calif dual sport registration but ran into trouble with the DMV since I did not hold the title. I called AHFC thinking I would have to pay the bike off to get the necessary title for the DMV. The guy on the phone knew exactly what to do, I faxed him some paperwork & he mailed me a completed CA DMV form for change in title. I finally got through the DMV thanks to AHFC's help. Pretty amazing assistance from a lending institution.

[SRHfmx]

what year is your CR and how much are you selling it for?

[Undecided]

my CR is a 03 and im asking $3500. it has some nice extras on it. i just suck at riding it. i rode my friend's CRF and realized i should have gone to that. i just cant ride my CR to what it is capable of and it kinda slows me on the track because of that. i can handle it and all kinda but just love the way the CRF rides and i already feel more comfortable on it.

oh and how would i get to the AHFC? never heard or seen of it or i didnt know i did. i just went to the current deals on the honda website.

[sireland67]

6.9% financing??????????????

Wait a month or two Honda will give 0% for a limited amount of months just like Suzuki is doing now.

Dont be suckered in.

[MrShred]

Talk to your dealer about AHFC. Short term zero interest plans are fine PROVIDED you can easily make every payment and are never late. If you are late once you will probably end up with a 21% interest rate thereafter.

[Kev_XR]

Well by buying this bike you are going into debt, but you are smart to be concerned.

Always check to make sure the rate does or does not change.

Home loans can have a prepayment clause.

Not sure if this is ever added to a auto/motorcycle loan.

When reviewing the loan, ask if there is such a clause.

Spend the time to read the contract.

It is a good learning experience and you don't want to make a mistake.

If the dealer pushes you, ask if you should not buy the bike.

[Undecided]

can you explain the home loan clause thing? i think i saw something about buying a bike and how your house can help? not sure where it was...wish i had it now even though its up to my dad.

[Valerie Wilson]

I have purchased about 8 bikes already through my Honda dealer. When I bought the first one my Honda dealer offered me one of their Funancing cards. They have changed the name now to just the Honda card. Its an instore Credit card with a set spending limit, But you get the interest rate deals usually 0% interest for 12 months then 12% after that (or whatever special they have). But there is no prepay penalties or any of that. Its just like a credit card. Then when you pay it off and need a new bike you don't have to go through the hassle of worrying about getting another loan.

Also if you don't want the hassle of selling you bike private party, ask the dealer for a trade in price or consignment deal. (be careful with the consignment get EVERYTHING in writing). You'll get less then you would selling it private party but you don't have the hassle either and you can put that as a down payment right away. Just a thought.

[Undecided]

i want to trade my bike but a while back i called just curious how much i could get for it and all they would say is "half of what you paid for it". well i bought the bike used but like new for $4000 a little bit ago and havent ridden it all that much and added a few extras. the bike was basically new when i got it but i didnt buy it new. do i get half of what the bike would be new? there is no way im going down to $2000 for that bike. its a nice bike. if they said $3000 and its ok with my dad then i would maybe do that but $2000 is insanity. ill check out what other finace things they have when i get to the shop.

oh and i tried cycletrader but especially around here 2 strokes are basically dead. i didnt even get one call.250s were still going strong when i got mine i guess but really the only ones selling are the new 250s.most people around here either want a 4 stroke or cant afford a newer 2 stroke.

[Scott_321]

Something else to think about is the possibility of having valve problems with the F. This would be an added expense in addition to making payments on the bike. Not all of them are having problems but it is a possibility.

[Undecided]

well i havent heard of anyone with the problem on a 05 so im just gonna pray it doesnt if i end up getting it. ill make sure to take really good care of it like all my bikes.

[usedtobefast]

i want to trade my bike but a while back i called just curious how much i could get for it and all they would say is "half of what you paid for it". well i bought the bike used but like new for $4000 a little bit ago and havent ridden it all that much and added a few extras. the bike was basically new when i got it but i didnt buy it new. do i get half of what the bike would be new? there is no way im going down to $2000 for that bike. its a nice bike. if they said $3000 and its ok with my dad then i would maybe do that but $2000 is insanity. ill check out what other finace things they have when i get to the shop.

oh and i tried cycletrader but especially around here 2 strokes are basically dead. i didnt even get one call.250s were still going strong when i got mine i guess but really the only ones selling are the new 250s.most people around here either want a 4 stroke or cant afford a newer 2 stroke.

Go to kbb.com and look up the trade-in value for your CR ... that'll give you some idea. You will most likely get a low price from the dealer that you will not be happy with.

As for the reference to home loans ... if you own a home, and have sufficient equity in it, you can get a home equity loan that will be much lower than 6.9%. But I think you mentioned "Dad", so not sure if he'd want to mortgage the house to get you on a new bike! But heck, if you told your Dad you'd pay him 6.9% and he got the home loan at 5% he'd be making a bit each month on ya, and you could trust the deal and not worry about the dealer.

Also, make sure you get a good deal on the bike ... so many guys go in and the dealer will say something like "can you afford $90/month" ... and the excited guy sitting on the new bike, says "Sure, no problem, I can do that!" ... and the next thing you know you have a new bike, a $90/month payment, and no idea that you just paid $7800 for a $6500 bike.

Good luck!

David

[DL126]

I think you're wise beyond your years if you're actually concerned about being in debt for a bike. Kudos to you Undecided.

Here's a thought for you.

You're in the beginning stages of building your credit rating.

How you handle this first loan will have an effect on your credit rating for years to come.

Is there a locally owned & operated bank in your area?

Interest might be a tad higer at the bank, but you will be building relationships with loan officers and bank officials that will server you much better in the coming years. In the future, when you're in the process of paying for your 4th or 5th bike, say you fall onto some hard times .... The big banks, or Honda finance company isn't gonna give a rat's butt why you can't make next month's payment. But if you have built and nurtured a relationship with that local bank and local people, chances are they will. And they'll probably do what they can to work with you during the hard times.

Now this process may not be possible in your area.

Small, locally owned & operated banks are hard to come by these days.

In my area, I'm fortunate enough to have relationships with 2 of the only remaining 3 in this part of the state. And being self employed, it's a VERY secure feeling to be in that situation.

Just some thoughts for ya.

Have fun on that new ride.

[Undecided]

well i dont know about the local bank thing because my dad already opened up an account for me at suntrust(i think) and he uses that one a lot. i know he used the house to by some land that him and his brothers might either sell or build apartments on. ill look into it.

[Undecided]

ok...is this a good deal...we will put a down payment if we get it but if the whole bike was finaced over 2 years(its the minimum) at 6.9% the bike is around $5900OTD plus $437 total interest at $266 a month. This is from $0 to the whole bike but we will most likely put around $1000 down so it will be different.

[jason07]

If you go with American Honda for the 6.9% fixed rate you are doing good. That is one of selling points for me buying 3 Honda products in the past year. This is a simple interest loan at a fixed rate. What that means is that the payment will never go up and the rate will not ever change. Alot of these credit cards (Yamaha, Suzuki, Kawaski, even Honda) are revolving accounts. Yeah they may advertise 3.9% or even 0% but that is for a short period of time (2 years to as low as 6 months.) What happens after that time is the rate will go to 16%-21%. On a revolving account that will take 10 years to pay off if you just pay the minimum payment. The most important part to me about going with American Honda is the rate does not change just because your payment is 1 day late. If you get one of those other cards, even a Honda creidt card, and are one day late you forfeit the good rate and it goes to 16%-20%. (American Honda Finance and the Honda card are 2 different loan places.)

I think you can finance it as short as you can and I think you can put as much down as you want. If I were you I would finance it for 60 months and have a low minimum payment. If you want to pay extra every month that is great. What you need to do is write 2 checks, one for the minimum and one for the extra amount. On that 2nd check write on there principal that way it actually goes to paying off the bike and not paying interest.

Hope this helps, American Honda Finance is the only way to go.

Jason

[Undecided]

well the guy told me its a 2 year minimum or 60month max at 6.9%. so if i say pay it over 60 months but end up doing it in 2years the payments just stop and i dont still have to pay the interest i would have to if it did take 60 months?

is the deal im talkin about the AHF plan?on the honda website its says : 6.9% fixed APR for up to 60 months.

[jason07]

I think I understand your question. If you sign a 60 month contract but you pay extra you can pay it off in 2 years with out having to pay all the interest. Just because you sign a contract agreeing to pay "x" amount of interest doesn't mean you have to pay it all. I just paid my 4 wheeler off that I had financed with AHF for 60 months. I bought this May of 2003. If I remeber I only paid $300 in interest instead of $1000 in interest like the contract said. That is the beauty of a simple interest loan. You don't have to pay all the interest if you pay it off early.

Jason

[jason07]

is the deal im talkin about the AHF plan?on the honda website its says : 6.9% fixed APR for up to 60 months.

yes that is the deal I am talking about