http://yamaha-motor.com/products/atv...Promo-atv.html


is this a good deal? What if I pay the minumum of $39 the first year and then pay $100 a month for or whatever? Maybe pay it off over 5 years? If I end up paying $6300 for a bike ...how much extra will I be paying in the long run? These finance issues are bothering me & I am having a hard time understanding exactly what I am getting into.

Making the payments wont really be an issue, I just dont want to get ripped off.

 

Retail is like $6300 for an LE. Yamaha has a $500 incentive for the Raptor right now...did your dealer tell you that? Or is the $6300 with taxes? You will be much better off going too a nearby back and getting a loan outright....then paying cash for the atv. Why? Because your credit score will determine what your rate is. If you qualify for a 10% rate, then the bank locks you in at that. What people do not realize is that if the stealership gets you too pay a higher rate, then thats more profit for them. If they throw out a 13% rate instead of the 10% you qualified for, then 3% goes into the dealerships pocket. This is why when you buy an atv from a dealership the finance person can drop rates right there on the spot (ever wonder why that is?). Automotive dealerships do the exact same thing.
Gary

 

well, that can be a problem. I am almost forced into going to a stealership, because i owe way too much money on student loands/ paying for a house. So I cannot just go to a bank and get a loan. If I have to, can i get a lower interest rate if I get a cosigner?

 

i did 3.9% for 2 years on mine with no money down and it turned out to be like $400 in interest on $5800 purchase price....something like that....pretty good deal if u ask me[img]i/expressions/face-icon-small-smile.gif[/img]

 

how long did it take you to pay it off though?

 

If you are unable to get a loan at a bank then maybe you shouldn't get one at a dealership. You are just going to dig yourself a huge financial hole that you won't be able to get out from. You should really concentrate on your future and retirement. Or at least staying out of debt.

I'll answer your question now. I "think" I figured this out right.
If you pay $39.00 at 3.9% for 2 years you will pay a total of $936.00. $240.00 of this will go towards the 3.9% interest. You will have paid $696.00 of principal towards a total cost of the $6300.00 you've mentioned. This leaves you owing $5604.00 of principal after 2 years of payments.

In the ad it does not state a specific % you'd be charged after the 2 years. It also does not state the total amount of years for the loan. I went with a total of 5 years and the lowest % of 9.99% for the remaining 3 years.

$5604.00 remaining to pay off within the remaining 3 years at 9.99%. (other rates listed are 13.99, 17.99, and 21.99 with a default rate of 24.99%) At 9.99% the total paid (of the last 3 years) would be $6508.76. The interest would be $904.76 and the monthly payment would be $180.80 each month for the last 3 years. Totals: Finance charges- $1144.76 Grand total for quad after 5 years- $7444.76. Remember that this is at the lowest interest rate for the last 3 years.

Honda offers a better loan. It is more up front and "honest". I think I understand one reason why Honda still sells well compared to other atv's. Better loans.

People just see that $39.00 a month for 2 years and think: "Hey, I can afford that". The only way I would go with this loan is if I could pay off the balance at the end of the first two years.

 

When I type "honest", I mean a loan that's easier to understand and isn't used to lure people in with low payments. Just to pay a lot more per month later.

Normal loan- $6300.00 for 4 years at 6.9% = $927.32 in finance charges and a total cost of 7227.32. The monthly payment would be $150.57 for 4 years.

It may only seem like only a couple hundred difference but there's no guarantee that everyone gets the 9.99% later. Some people pay the 13.99, 17.99 or 21.99% rates at higher cost. If someone does the 4 years instead of 5 the payments would be much higher for the last 2 years of 4.

 

Semo- Just curious- How many credit cards do you have?

 

with my loan, its like 270 a month for 2 years(including taxes, tags, registration) and its done at 3.9%

 

[img]i/expressions/face-icon-small-shocked.gif[/img] Huh? Did you ask for the loan to be over a 2 year period? Or are you trying to pay it off before the higher interest rate kicks in? Was your total price $6480.00?