8.9% is high in general terms but most bike,RV,boat bank loans, that is a good rate. Can you get it lower, yes! Do they have promotional rates at different times, yes. But in general, thats a solid rate.
8.49% is the current prime rate at the Federal reserve right now thinking the 8.9 is a high rate is thinking from two years ago.
Sadly it's just not the case today 8.99% is the standard rate.
This is the same interest rate deal i just got from ducati a couple months ago. I said fuck it and financed the whole thing, they even through the gear i got into the loan.
No point in taking money out of the market when you can get an under 2% rate. I think Ducati was even offering 0% for a shorter loan duration. I just didn't want my monthly payment to be any higher.
I got 1.99% for 60 months on my (new) 2023 890 Adventure. It’s likely a legit offer. That said, often times they will offer this instead of more aggressive discounting so make sure that’s not what they are doing since you wanted to pay cash.
I believe that some lenders pay a "finders fee" (or whatever it would be called) for loans. Also, if they are advertising it at a special rate, they cannot just recant.
In 2015, I went to purchase a car. The dealer was already offering a lower rate than any bank or credit union in the area (or via bankrate.com). However, as I was signing the paperwork, their loan guy offered me a lower rate for no apparent reason. I wasn't on the fence about the car. Nothing else changed...just the lower rate. Dealers, or rather their employees, sometimes do weird shit.
My guy says you're buying either a leftover 2023 or a bike that's not selling well but it's quite common to find low rates in these situations as the manufacturers work with the banks to offer promotional rates to increase the sales of leftover vehicles or vehicles that aren't selling well.
2024 Yamaha Ténéré 700. No strings attached 1.9%.
However, I bought another new Yamaha Tracer 9GT in 2023 in cash and the financing person told me that the rate was this low because it was my second Yamaha. Not sure if that's true or not.
It depends on what the dealer’s offering at that point in time. When I bought my bike, I swallowed a 7% interest rate for the goodies that were negotiated (ESP, extended warranty, etc). Mind you, I had a credit score of ~780 at the time of purchase.
I purchased 2 Kawasaki's on 0% interest financing from the dealer. The 3rd one had a around 2% interest so they knocked a few hundred off of the MSRP to compensate, they were good guys.
Definitely check with a credit union or two before you do anything. That zx4rr is kind of a "rare" bike though so I'd still say if you could get 2-3% yould be doing good.
If you’ve got the cash to pay it out then accept the financing and open a bank account just for auto pay on that loan. Build some credit and not worry about it.
I bought a new bike last year and the dealer offered 2% percent so I took that over paying cash. I think they were trying to clear some current model years out for new model years.
I too almost dropped cash on one. Went for the low rate loan to boost my credit rating and have extra cash for gear and the first maintenance hit.
Toy loans do often come in lower. It's more like a simple credit loan, around credit card range.
Lmao I got 9.0% interest on my bike even after paying for half of it upfront. Granted I’m a young guy with not much credit history so that definitely plays a role, but I’ll probably pay off most of the bike next year or so, so I don’t get screwed by the interest
My excellent credit earned me 6.84 APR, so unless incentives are on and they're trying to sell some stock I doubt 1.9 is their standard. Either way you should pay it off early, not worth paying an extra grand for a motorcycle that cost 15 for example after three years. If you can afford it outright it will ALWAYS save you money. You may even get them to drop some of the dealer fees with buying power like that.
I got a 0% loan because my credit is best described after some hard work as "le tits". It's rare but it happens and you should jump on those opportunities when you can, it's basically free money.
Take the payment amount at 1.9% and multiply it times the amount of months in the term, then subtract the amount financed from that number. Whatever that number is, ask yourself if you’re willing to pay that to not have all your cash tied up in the motorcycle.
I personally dont suggest financing a bike. Its a toy that gets damaged in so many ways. Unless youre ACTUALLY going to invest the money youre saving and let it grow, theres no real reason to finance it.
But if youre going to take the rest of the money and have it in the market growing, then its better to finance. Problem is people who think like this, then just spend the money on something else.
I don’t know man, a 1.99 interest is kind of unheard of right now. A HYSA is yielding about 4.4%, you always have to be looking at what else you can be doing with your money at any given time. I don’t think it makes sense to pay it off full price, unless getting the low rate stipulates no discount on the MSRP, then it may offset any gains from a HYSA.
Sorry, I don't understand. You have the money to buy cash but you decided to take a loan instead? Wouldn't it be cheaper to just pay it? I mean, if you can?
This, also one is technically sticking it to the finance company when financing below the rate of inflation as the value of a dollar today is worth much more than that same dollar 4 or 5 years later.
CD rates are over 5%APY. Pay the 1.9%APR and put the cash in a CD at 5%. Lets say the bike was $10,000. The interest you would pay over 36 months at 1.9% APR would be around $296. Cash in a CD at 5%APY would earn $1576. You earned $1280 over 36 months using the banks money to purchase bike then nvesting the cash in a bank that is needing deposits because mortgage rates are so high.
I don't think it's THE standard, but when I bought my gsxs 750 last year Suzuki offered me 1.5% for 36months but I had to pay for an extended warranty as well.
Possibly an incentive to induce you to purchase a leftover last year’s model that still applies even if it was poorly advertised and you didn’t know about it. We had zero percent on our last car loan; a 2018 purchased just before 2019’s hit the dealership.
1.9% is a pretty good rate. What is the total purchase price of the bike? As others have said, if that money can be used in the market or saved in another way it wouldn’t be a bad deal. Although cash>finance for a bike as it’s most likely a toy, just my $0.02.
If it’s not too late, just ask if there’s any sort of pre-payment penalty. If not, and they can give you a better price or something if you finance, then just do the paperwork, get the better price, and in a month mail a check and pay the whole thing off. Best of both worlds.
I would push on them though to make it worth your effort to do the financing. If you were ready to pay cash then they need to do something for you if they want you to finance that badly. Accessories? Gear? Price? Something.
That’s true but the OP could come out financially better off.
Pay 1.9% on the loan. Use the cash to invest or put into a high interest savings account. Not sure where the OP is but where I am the interest paid on a savings account is around 5-6%.
Doing this would actually make the OP some money which could then be used for upgrading protective gear, go on a road trip or just buy a few boxes of beer.
For clarity, this is a 2024 Yamaha Ténéré 700.
For everyone asking why I would take the loan if I have the cash: even some savings accounts pay a higher return than 1.9%. Pretty hard to NOT beat 1.9% right now.
Thanks
The manufacturer is offering cheaper financing instead of a discount on the cash price on the bike. You buy at MSRP and get a cheaper financing rate than what banks would offer otherwise. Fed funds is at 5.33% right now (cheapest borrowing cost for overnight lending between banks)
I financed my bike because the interest is lower than my interest on my savings, so makes more "cents" to pay monthly even though I hate paying monthly.
Make sure it’s a loan and not a line of credit. I was young and dumb, didn’t realize my 2.99% “loan” was actually a maxed out credit card. Sunk my credit score by 50 points because the limit was maxed out. Payed it off in 8 months instead of 3 years. Back to an 800 credit score now. Be wary.
They are doing the financing. If you paid cash it would be less expensive.
For example: I just finished tractor shopping for pieces at 25k to 30k. Both John Deere and Kubota were running 0% financing, but were 3k less if you paid cash. I went used and got 6.8% for 5 years. Not a steal but okay for the times and the tractor was 6-8k less than used.
I would do that and just put the rest in a saving account at 4.5 interest (where i am). Unless insurance costs more if you don't own it? Idk how that works, I just know they ask, so it may affect our premium.
Look at the bill, if there is a line that states something along the lines as "cost of loan," that's the interest tacked on as a lump sum.
Very common to see here in Canada Ontario. You're paying the interest here no matter what the sticker % says.
Why finance for a low rate if you have cash on hand? I bought my 2022 Triumph Bonneville with no financing. Regardless of the rate, it's a payment I didn't want if I didn't need it.
What exactly do you get out of being an asshole to a stranger on the internet. You don't know a ficking thing about me, let alone how much money I make.
It happens. I think Triumph was doing a 0.9 last month on some stuff. Perks of shopping around and being patient.
And having excellent credit, risky buyers are not paying anything lower than 10%.
Mine was only 8.9% with about a 650 credit score.
Only?! 8.9% is high man.. actually that’s not bad considering a 650 credit score.
8.9% is high in general terms but most bike,RV,boat bank loans, that is a good rate. Can you get it lower, yes! Do they have promotional rates at different times, yes. But in general, thats a solid rate.
8.49% is the current prime rate at the Federal reserve right now thinking the 8.9 is a high rate is thinking from two years ago. Sadly it's just not the case today 8.99% is the standard rate.
8.49 is prime rate right now. 3 years ago that would have been high but right now that's the prime rate.
Yeah... I was surprised. Lol I was expecting 10%
BMW are doing 0% in some countries at the moment.
Triumph has 0% on their tiger 1200s or 2000 cash back customer can pick
Is that the very brand new one or the outgoing model?
But both are very similar just a few computer changes on the newest model versus the previous model.
Maybe I’m thinking of an older model then, because the last one I saw was overweight, basic and top-heavy. The competition ran rings around it.
You're probably thinking of the older 1050 tiger
I new one has semi active suspension, 150 horsepower, blindspot radar and is over 50 lb lighter than the previous model
That’s the update I was thinking of - that’s a pretty good deal for the new one.
The 2023 and maybe the 2024 I'd have to double check.
KTM did too
So many bikes to buy! My wife is going to be so pissed off…
Yeah, I also bought one, but I had blessings buying it ;). I am good to go
Noice! What did you get?
Super Duke 1290 R Evo. 2023 model
Oof! Absolutely mental bikes. Enjoy!
Thanks man. I have my throttle under control, luckily;)
And the riding modes/TC/anti-wheelie…
True, but you should never rely on them. It is best to drive like you don't have them. ABS and Turn-ABS are great though.
I was look at that bike, but Dealer was being a dick. And I was paying cash
Why was the dealer a dick? What price did he ask for? New bike or used?
New, he was jerking around on the incentives and additional costs, so I walked. Ended up with a R1250GSA.
Can confirm, in Jordan it's 0%.
Sometimes. Typically with a 36 month payment. If you have the cash I’d toss it in a HYS and make a few dollars.
Yeup then set up monthly auto payments from the HYSA to the lender and forget about it.
Are you forgoing any rebates/merch by taking the financing?
Or maybe OP will be tied to an overly expensive insurance?
... ... ... I got a garbage driving record and my insurance for full coverage on a '24 dr650s was only $550 for the year...
I am not. No strings attached 1.9% on a 2024 Yamaha Ténéré 700
This is the same interest rate deal i just got from ducati a couple months ago. I said fuck it and financed the whole thing, they even through the gear i got into the loan. No point in taking money out of the market when you can get an under 2% rate. I think Ducati was even offering 0% for a shorter loan duration. I just didn't want my monthly payment to be any higher.
I got 1.99% for 60 months on my (new) 2023 890 Adventure. It’s likely a legit offer. That said, often times they will offer this instead of more aggressive discounting so make sure that’s not what they are doing since you wanted to pay cash.
Some dealers will buy down the price of a loan to attract customers.
It doesn’t make sense for a dealer to buy down a loan for someone that was going to pay cash.
I believe that some lenders pay a "finders fee" (or whatever it would be called) for loans. Also, if they are advertising it at a special rate, they cannot just recant. In 2015, I went to purchase a car. The dealer was already offering a lower rate than any bank or credit union in the area (or via bankrate.com). However, as I was signing the paperwork, their loan guy offered me a lower rate for no apparent reason. I wasn't on the fence about the car. Nothing else changed...just the lower rate. Dealers, or rather their employees, sometimes do weird shit.
That's what I got for my FTR, with a rate that low why not.
I wish I could have gotten 1.9% Best I found was 6.9% and at that rate I decided to just pay it in full. At 1.9% I would have taken the loan.
usually nothing below at 5. dealers add 1.5-2% to all rates and pocket the extra cash.
My guy says you're buying either a leftover 2023 or a bike that's not selling well but it's quite common to find low rates in these situations as the manufacturers work with the banks to offer promotional rates to increase the sales of leftover vehicles or vehicles that aren't selling well.
2024 Yamaha Ténéré 700. No strings attached 1.9%. However, I bought another new Yamaha Tracer 9GT in 2023 in cash and the financing person told me that the rate was this low because it was my second Yamaha. Not sure if that's true or not.
It depends on what the dealer’s offering at that point in time. When I bought my bike, I swallowed a 7% interest rate for the goodies that were negotiated (ESP, extended warranty, etc). Mind you, I had a credit score of ~780 at the time of purchase.
I purchased 2 Kawasaki's on 0% interest financing from the dealer. The 3rd one had a around 2% interest so they knocked a few hundred off of the MSRP to compensate, they were good guys.
My credit score is 780 and I could only get 5.9% from Kawasaki. That's a great deal.
Bro, don't buy from that dealer lol
Really? I was probably going to by a zx4rr from them this week. I thought this was the best I could do.
Definitely check with a credit union or two before you do anything. That zx4rr is kind of a "rare" bike though so I'd still say if you could get 2-3% yould be doing good.
Can't hurt to try, thanks.
Oh and obviously go for 36m or less on the loan. That helps too lol
If you’ve got the cash to pay it out then accept the financing and open a bank account just for auto pay on that loan. Build some credit and not worry about it.
I bought a new bike last year and the dealer offered 2% percent so I took that over paying cash. I think they were trying to clear some current model years out for new model years.
VW and Toyota are offering 101% leasing from time to time.
I too almost dropped cash on one. Went for the low rate loan to boost my credit rating and have extra cash for gear and the first maintenance hit. Toy loans do often come in lower. It's more like a simple credit loan, around credit card range.
Not quite true. Harley brags about "simple" interest, but it's daily simple interest so it definitely performs more like a credit card.
Ya, you're definitely right about that.
I got 0 percent years ago, but I’ve seen it as high as 10 percent.
Lmao I got 9.0% interest on my bike even after paying for half of it upfront. Granted I’m a young guy with not much credit history so that definitely plays a role, but I’ll probably pay off most of the bike next year or so, so I don’t get screwed by the interest
My excellent credit earned me 6.84 APR, so unless incentives are on and they're trying to sell some stock I doubt 1.9 is their standard. Either way you should pay it off early, not worth paying an extra grand for a motorcycle that cost 15 for example after three years. If you can afford it outright it will ALWAYS save you money. You may even get them to drop some of the dealer fees with buying power like that.
Not uncommon, I’ve done twice in my life.
I got a 0% loan because my credit is best described after some hard work as "le tits". It's rare but it happens and you should jump on those opportunities when you can, it's basically free money.
Take the payment amount at 1.9% and multiply it times the amount of months in the term, then subtract the amount financed from that number. Whatever that number is, ask yourself if you’re willing to pay that to not have all your cash tied up in the motorcycle.
I personally dont suggest financing a bike. Its a toy that gets damaged in so many ways. Unless youre ACTUALLY going to invest the money youre saving and let it grow, theres no real reason to finance it. But if youre going to take the rest of the money and have it in the market growing, then its better to finance. Problem is people who think like this, then just spend the money on something else.
I don’t know man, a 1.99 interest is kind of unheard of right now. A HYSA is yielding about 4.4%, you always have to be looking at what else you can be doing with your money at any given time. I don’t think it makes sense to pay it off full price, unless getting the low rate stipulates no discount on the MSRP, then it may offset any gains from a HYSA.
Sorry, I don't understand. You have the money to buy cash but you decided to take a loan instead? Wouldn't it be cheaper to just pay it? I mean, if you can?
HYSAs / index funds return more than the loan rate so it would actually be more expensive to pay in cash
Ah, ok, by investing the money elsewhere. Get it.
This, also one is technically sticking it to the finance company when financing below the rate of inflation as the value of a dollar today is worth much more than that same dollar 4 or 5 years later.
Even a standard savings account through CapitalOne or SoFi does over 4%
CD rates are over 5%APY. Pay the 1.9%APR and put the cash in a CD at 5%. Lets say the bike was $10,000. The interest you would pay over 36 months at 1.9% APR would be around $296. Cash in a CD at 5%APY would earn $1576. You earned $1280 over 36 months using the banks money to purchase bike then nvesting the cash in a bank that is needing deposits because mortgage rates are so high.
It's definitely not the standard. But often you can find those deals from places looking to move some stock.
I don't think it's THE standard, but when I bought my gsxs 750 last year Suzuki offered me 1.5% for 36months but I had to pay for an extended warranty as well.
Yeah if you have good credit then they’re willing to incentivize the purchase
Sounds decent. Once had 0% on my old xj6n back in 2013, common yammha give more of those offers I need another bike after 12 years lol
Possibly an incentive to induce you to purchase a leftover last year’s model that still applies even if it was poorly advertised and you didn’t know about it. We had zero percent on our last car loan; a 2018 purchased just before 2019’s hit the dealership.
1.9% is a pretty good rate. What is the total purchase price of the bike? As others have said, if that money can be used in the market or saved in another way it wouldn’t be a bad deal. Although cash>finance for a bike as it’s most likely a toy, just my $0.02.
I got 0.9% on mine
Unless you will be earning interest on your money in excess of 1.9%, then pay cash. Otherwise, yeah, take that deal.
If it’s not too late, just ask if there’s any sort of pre-payment penalty. If not, and they can give you a better price or something if you finance, then just do the paperwork, get the better price, and in a month mail a check and pay the whole thing off. Best of both worlds. I would push on them though to make it worth your effort to do the financing. If you were ready to pay cash then they need to do something for you if they want you to finance that badly. Accessories? Gear? Price? Something.
You have the cash to buy the bike but are toying with the idea of financing at a 1.9% rate? Wheres the logic? You'll end up paying more...
That’s true but the OP could come out financially better off. Pay 1.9% on the loan. Use the cash to invest or put into a high interest savings account. Not sure where the OP is but where I am the interest paid on a savings account is around 5-6%. Doing this would actually make the OP some money which could then be used for upgrading protective gear, go on a road trip or just buy a few boxes of beer.
Yeah not wrong - just depends on risk tolerance. Personally, I hate any debt even if its low interest.
For clarity, this is a 2024 Yamaha Ténéré 700. For everyone asking why I would take the loan if I have the cash: even some savings accounts pay a higher return than 1.9%. Pretty hard to NOT beat 1.9% right now. Thanks
The manufacturer is offering cheaper financing instead of a discount on the cash price on the bike. You buy at MSRP and get a cheaper financing rate than what banks would offer otherwise. Fed funds is at 5.33% right now (cheapest borrowing cost for overnight lending between banks)
It really depends. End of March BMW was doing 0% financing on the outgoing 2023 models just to get rid of them.
Now it's on finance, best not drop it or let it be stolen....you're on the hook for the outstanding amount.
I financed my bike because the interest is lower than my interest on my savings, so makes more "cents" to pay monthly even though I hate paying monthly.
Well if it’s lower than the interest rate you get on your HISA (or wherever else your money is), you might as well take it.
Make sure it’s a loan and not a line of credit. I was young and dumb, didn’t realize my 2.99% “loan” was actually a maxed out credit card. Sunk my credit score by 50 points because the limit was maxed out. Payed it off in 8 months instead of 3 years. Back to an 800 credit score now. Be wary.
They are doing the financing. If you paid cash it would be less expensive. For example: I just finished tractor shopping for pieces at 25k to 30k. Both John Deere and Kubota were running 0% financing, but were 3k less if you paid cash. I went used and got 6.8% for 5 years. Not a steal but okay for the times and the tractor was 6-8k less than used.
Although some won't agree I never recommend financing a toy. Makes them a lot less fun as well.
lmao in my country 1.9 PER MONTH is a low rate
I would do that and just put the rest in a saving account at 4.5 interest (where i am). Unless insurance costs more if you don't own it? Idk how that works, I just know they ask, so it may affect our premium.
1.9% is pretty great. Just know that most insurance companies require full coverage if you finance.
Some will tell you to finance it and take the cash and put it in index funds. It'll grow more interest than your loan costs you
Low interest but most of them have T&C with service charges and minimum durations. So you end up paying $500yr for 5yrs in fees but $1 interest.
Look at the bill, if there is a line that states something along the lines as "cost of loan," that's the interest tacked on as a lump sum. Very common to see here in Canada Ontario. You're paying the interest here no matter what the sticker % says.
If BMW are offering 0% interest in your country as they are in mine, I really suggest you take a look at the bikes they offer.
Dealer here, yes could be promotional rate check length of loan sometimes that rate is only good for 1 year
bikes are not as popular as this sub thinks. any dealer will tell you that. the low rate if you qualify is to move bikes faster.
No, your rate is a discount written up as a low rate to get you into the business office
Why finance for a low rate if you have cash on hand? I bought my 2022 Triumph Bonneville with no financing. Regardless of the rate, it's a payment I didn't want if I didn't need it.
Nobody has the cash to buy new vehicles of any stripe. Manufacturers and dealers are desperate to move stock. Factory rebates to come soon, I expect.
speak for yourself
What exactly do you get out of being an asshole to a stranger on the internet. You don't know a ficking thing about me, let alone how much money I make.
You said “nobody has the cash” u/Onpointandicy just pointed out that’s wrong
triggered much? you are the asshole. making general comments about everyone is probably your MO anyway. asshole.