Does any have any info on the terms of this card? Is it a revolving, installment? Do you repay based on a percentage of the balance? I just got approved Friday. But I didn't ask the dealer about terms. They sent me an e-mail early Saturday that I would be receiving the card in 7-14 days. When you build one on thier web-site they use 84 months in calculating the monthly payment. Also got some financing thru our CU at 8.9% for 60 months. But thats just for 80% of the cost. Thanks![img]i/expressions/face-icon-small-happy.gif[/img]

 

Sounds like it's already too late. If you had not already gotten the card, my advice to you would be to RUN AWAY AS FAR AS YOU CAN. If you are already locked in, then at this point the best thing you can do is to pay off any Starcard balance as quickly as you can. As a further warning, go ahead and Goggle Polaris Starcard - You'll find that all references to it use the words 'fraud' and 'scam' - except for the articles that are promo's for the Starcard.

Basically ANY of the dealer/manufacturer credit cards or financing promotions are a bad deal. The ONLY reason these programs exist are to make sales. In your case, it looks like you bought a new quad even though you had no money at all (since you financed 80% at your CU and the balance on the Starcard). No way is this a good idea. It would have been much better for you to have waited until you could have saved the 20% needed that would not be covered by your CU loan. But now, thanks to Polaris, you are stuck in a bad credit plan.

I know this sounds harsh, but these cheesy credit plans really get to me. It doesn't affect me directly, I've always paid 100% cash for all my quads. But, for someone who is just trying to get into an ATV, these plans can wind up ruining your credit for years. Basically, the only reason to use dealer/manufacturer financing is to take advantage of the initial low financing and only then IF you know that you have the money available to pay off the financing before the rates balloon out of sight.

Here's the problems with what you've got in your financing:

1. No problem with the CU financing - that's a good idea.
2. Since you are 100% financed, you will be upside down from the moment you take delivery of your new (now used) ATV. That means that if it gets wrecked or stolen, even if you are insured, then you are screwed.
3. It also means that if you need to sell your quad that you can only sell it at a loss.
4. Dealer/manufacturer credit cards are set up to keep the old balances untouched if you use the card for other purchases - any payments go towards the more recent purchase. This means that if your card has a low introduction interest rate that will end after 6 months or a year or two years - that there is a better chance that you will still have a long-term balance that will kick over to that new, higher interest rate.
5. These type cards also have no grace for errors. Miss or be late on just one payment, and your low rate is gone - replaced by an astronomical twenty-something percent figure. (or even higher)

So, what to do.

I know this all sounds really harsh, but you did ask. First thing, tear up that StarCard. Whatever you do, do not charge anything else on it. Then, if you can find any way to pay off the StarCard balance then do so ASAP. After that, then you're OK. In the meantime, educate yourself on the terms of the card.

Good luck.

Jaybee

 

All I did was put in a credit application and the next day they e-mail me a card is on the way. The last thing I'm gonna do is get into a something I don't like. You make a few good points but most sound like the counseling I got from the lady at the CU. And she really does care (known us for twenty some years), just like I can see how you do. Thanks for taking the time out to point these facts out to me! I hope I can get a good enough unit I won't ever want to sell it. But if the kids like it that much they will definately have to upgrade in five or six years Thier 6 & 8). I did do a search and I read refences to the contract between HSBC and Polaris. Ya, HSBC. I get your point. I will definately check the terms. I could be more patient. And understand what money pits toys can be (99 SuperDuty lifted 8" on 40's) but there's plenty of disposable income w/ near term rapid growth and a stable long term growth. We don't mind being upside down for a while. We always buy new. And have been fortunate enough to have a need for all our purchases (my SuperDuty, sons 2002 Corolla in college and wife's new Tundra). We are very fortunate to be in the position we are in and do everything in my power to protect my investments (financialy, warranties, and physically). We got 2.9% on the Tundra and the interest over the life of the loan is very nominal. I am trying to do the same for this purchase.

 

I hope it all works out. You've got more experience then I was inferring from your first post. As long as you are aware of the details of the credit card and don't let things get out of hand, you'll be OK. It's the people new to credit that really get screwed with bad credit plans like this - one simple mistake that bumps their interest and they soon find that their payments are beyond their ability to pay.

Jaybee

 

You can get a loan from my credit union for about 6% and save big bucks over any other financing I've seen. Your CU is ripping you off.

 

Thanks! But I've already secured one yesterday. Since they didn't have one in stock they had to go pick it up today 75 miles away still in its crate. Got 6.99%. We've got late payments still in our cedit history so I don't qualify for the Tier 1 level financing. He said I'll be able to pick it up on Saturday. Thanks for everybody's help!