| Author | Message | ||
     Rex_1_mn |
I am just curious about a few financing issues. I have had my eye on a buell for a long time but was in college and could not afford to eat. I am 24 and have a 674 Fico. I am having a terrible time getting financed by anyone. I was approved for a mortgage not long ago at 6.5% but cant get a motorcycle. Do you guys have any advice? Personal experiances? Sorry if this is in the wrong board. (Message edited by rex_1_mn on August 05, 2008) | ||
| Teeps |
Join a credit union. I can't believe you can't get H/D financing. If this is a toy, I suggest saving your money and pay cash. | ||
| Moosestang |
Yep, credit union. Have you paycheck directly deposited and they will finance you anything. | ||
| Xl1200r |
I just read an article about how times are getting tough for financing. Turns out that if you have stellar credit, the banks will want to loan you money because there are getting fewer and fewer folks out there that are truely low risk (with the economy the way it is, all the defaults on mortgages, etc.). The bad part is for people with just okay credit (that's you), are being deemed more risky now, because it was all the "average" folks (credit-wise) that defaulted on the big loans. FYI - I have found the H-D financing is the wrong move unless you have perfect credit. I have a credit score up around 750, and they wanted something like 7.9% 2 years ago. My credit union would have given me 4.99. I ended up just paying cash. Join a credit union, that's my advice as well. I know right now I can get a 5-year loan on a bike for 5.09%. | ||
| Mm128 |
If your IN college DO NOT over extend yourself. TRUST ME I KNOW... I was there and DID that a few years ago... Make sure you have money or SUPRISES... maitanance... etc... If you do... I say go for it... if NOT... hold on till you done with school. Matt. | ||
| Barnyard |
I got my loan with HD and like you i just have ok credit. I was taken to the cleaners on my loan but I am making extra pay-ments to my self so I can Just send them a big fat check and tell the to have a nice day, and take there 22% and shove it. The bike will cost me $1500. more but my credit will be a lot better when it is all said and done. | ||
| Moosestang |
I assumed he was out of school and had a job. I wouldn't finance a college student, or anyone for that matter, a motorcycle if they don't have a job. | ||
| Rex_1_mn |
I am done with college. Went for robotics. Have been employed steadily for 3 years. Have owned and managed a Duplex for a year and a half. Havent missed a payment on anything in over two years. I just really feel like I am getting the shaft. But thanks for the input guys and not just pointing to the door like all the banks. I will probably go join a credit union there is one in town that is supposed to be pretty good. | ||
| Roadkingtrax |
State Farm Bank....Last motorcycle loan was 5%. They are easy... | ||
| Court |
>>>.I just really feel like I am getting the shaft. Use great caution. The "shaft", be mindful, is based on trends and numerical averages, it's not you, nor is it personal. They do however do a good job of predicting. I've found that when any credit agency sends up a flag it's a good time to step back, take stock and look closely at the situation. That being said, HD finance sure seems to use an odd set or underwriting standards. | ||
| Xl1200r |
I assumed he was out of school and had a job. I wouldn't finance a college student, or anyone for that matter, a motorcycle if they don't have a job. I financed my first bike while I was 3 years away from graduating college. I was working more hours then than I am now. Being in college doesn't make a difference. | ||
| Ikeman |
Something else that can give you a middle-of-the-road score is a limited credit history. Something like only a mortgage and a car loan, neither of which are paid off and maybe only open for a couple years. This ends up giving the credit bureaus very little information on which to base your score. You may be making all of your payments but the history just isn't long enough to make the finance companies warm and fuzzy. YMMV | ||
| Court |
Try being 54, a student and have an unemployed wife. . . . .  | ||
| Xl1200r |
Court - Kind of what I was getting at. Credit worthiness is based on what you earn versus your expenses, and how well you manage those expenses. People tend to assume that a "college kid" automatically has no income, or very limited. While folks like this exist, it's not all of them. I busted my ass for a long time through school enough to be able to buy TWO brand new bikes and a brand new car while I was there, all with substantial down payments. In fact, when going to purchase my Firebolt, HD credit deemed me nearly unworthy based on the laughable APR they wanted to charge me. Me, being a college student and having obviously nothing to my name save a few books and a keg, went ahead and bought the bike cash. | ||
| Iamarchangel |
I like the advice on taking stock if you're having trouble getting credit. In a different world, I was upset but looking back, I can see the bank's wisdom. Credit Unions are good. Credit history is important. Here, we have retirement plan loans: you earn a tax break, invest in your future and build credit history all in the same step. | ||
| Michael1 |
The biggest problem with trying to finance anything within 5 years of graduating college is the college loans. Not sure why, but the credit people really kill you on that. It's been 6 years since my wife was in school, but she still has some loans and they really killed us on a car loan a year and a half ago. | ||
| Rex_1_mn |
I understand many of the things everyone has added to this conversation but one thing that gets me is that wells fargo approved me for another duplex at rock bottom intrest then when I decide to wait on a second property and get a motorcycle they deny me. What fool would trust me with 150000 but not 5000. Not sure that it makes sense. I do understand that a house can ussually be a little safer bet because its a little harder to ruin a house, the value should be there if you were to go into default, and people generally will do anything they can to keep there house. Just interesting. Should have been more responsible in the past I guess live and learn right. | ||
| Court |
>>>Not sure that it makes sense. Having sold both used houses and used motorcycles in my lifetime it makes lots of sense. With the exception of a XLCR and a XR-1000 I've ever had many motorcycles appreciate very much. Houses on the other hand have done fine. Credit is funny . . . wait until you get old, your wife doesn't work, you have no credit card debt or mortgage to "show" your creditworthiness . . . . . . life's a bitch. By the way . . . my first "advise" to my kids (they took it but with about as much glee as your kids probably did) for their "first investment" was 6 months gross pay in a savings account. Folks will all carry their own opinions and I'd no sooner play "I'm right, you're wrong" than I would ague over who's SCU is prettier . . . but there is something about savings and the knowledge that if you are out of work for 6 months it's just no big deal. I'm terribly old fashioned. | ||
| Moosestang |
I'm going to go out on a limb here and guess that Rex has already over extended himself. There is only so much a bank will let you borrow based on what you owe and your income. I bet a $5,000 loan on a used motorcycle is risky to a bank. You'd probably have a better chance getting a loan from HD on a new bike. As for thinking a college student doesn't have any income. Of course they have income, unless mom and pop is taking out that second mortgage. They also have tons of debt and tend to spend those student loans on motorcycles, instead of books and tuition. I think my brother is still paying off his student loans and he graduated in 97. Anyway, a credit union and direct deposit is the quickest way to a loan, even when your credit isn't great. That's because they know they'll get their money every week or every other week and on time. | ||
| Lighting |
HD will finance you, however, they will take you to the cleaners(plus). Interest rates are probably the highest in the industry. Credit Union are the way to go. | ||
| Toona |
I don't finance "toys". It was a comforting feeling that when I laid it down soon after I bought it, I didn't have to make a monthly payment while I was trying to get it back on the road. Why not "make monthly payments" to yourself, when the amount matches what you want to spend, then go shopping. I guess my being self employed for 25 years has taught me to pay cash for everything but my house and work truck (even the next work truck will be a cash deal and the house is now paid for ). Not sure where you live but here in PA, it would suck to have to make monthly payments all winter long when you can't ride. Not trying to bust on you, but most things are sweeter when they are earned the "hard way". Today's "I want it all, and I want it now" mind set has gotten more than a few in financial trouble. When I am looking for my next purchase, I just keep reminding myself, they still make them, they will still be available when I have cash in hand. | ||
| Xl_cheese |
Work on increasing your credit score. It can never be too high. NEVER carry a cc balance. Keep them paid in full every month. Have 2-3 cards. No more and no less. Call them often to get your line of credit increased. This will increase your credit score. Pull your own credit and see what can be improved. Part of having good credit is also directly related to what Toona said. | ||
| Svtcali2000 |
I am 23.. I currently have 2 car loans with a credit union and have very good interest rates. I went into Santa Cruz HD about a month ago to check out the 2 buells I heard they were selling at invoice. They ran my credit and I was approved! The interest rate is a little higher than I would like but I plan on paying it off quickly. I figure my cars will be paid off in about a year and I can make bigger payments on my bike and then starting looking to buy a house with my strong credit history. |
