Ok I've been talking to my dad about getting me a new quad and I came across that I can get a yfz450 for $39 a month. Is this a good idea?
thanks

 

I would look real close at that offer. My guess is that the $39/mo. is for the 1st 6mo. or year. If you do the math:

Assuming 0% interest (big assumption, btw)
YFZ = $6899
6899/39 = 177 approx. months
177 /12 = 14.75 years

Even if that offer is what you think it is, do you really want to make payments for almost 15 years?

RSeb

 

Its 39 bucks a month for 24 months, a buddy of mine is gona do it but pay a bit extra everymonth.

Personally i would finance it through a bank.

 

Read ALL the fine print when considering such loans. I haven't read the current offers but they're probably like the older ones. They don't tell you exactly what the percentage of interest will be. If your credit is bad then the interest rate will be higher. It could probably be anywhere from 9.99% to 21.99%. You'd start out with a low payment for the first 24 months. Say the loan is for 4 years or maybe even 5. You'll pay the $39. amonth for two years at 3.9%. Then the interest rate jumps up for the remaining time. This means that the monthly payment also jumps up a lot. This is where you get in trouble if you can only afford the $39. a month.

Everything that glitters is not gold.

 

In 2002 I bought a Honda at $29/month for the first year. Trouble was, and I misunderstood the deal, the rate even for the first year was like 18%. After the first payment, I paid it off

 

I guess I'm the minority here, but I look at ATVs as a toy. I don't think you should finance a toy. Toys come after all the bills are paid. Toys are bought with "disposable" income. If you can't afford to pay cash for the toy you want, you either buy what you can afford or keep saving.

Just my opinion. Feel free to tell me how wrong I am.

RSeb

 

RSeb, if I waited until I had the cash to pay for a quad up front, I would still be saving for my first quad at age 43 !!! that, or driving 20 year old junk ! While it is a good idea not to tie up a lot of payments into something that is strictly recreational, a lot of us use them for work around the farm and yard as well, but especially with a family, sometimes you need to borrow a little money, I'm not saying go in over your head, but just making sure not to wipe out all the savings on one purchase. I agree with a lot of the posts here, the 39 dollar deal is a big hook used to get young or low income people to buy something they normally couldn't, and end up making payments for a long time, or have the payments go way up after a short while. What would work for most is to get a good down payment ( at least 1/3 or better of the purchase price ) and go to the bank for the rest, I used a home equity line of credit to finance my truck, and part of my son's ATV, that way, the intrest is only 4.25 %, and the intrest is tax deductable, since it is like a mortgage payment. I know that will not work for all, only home owners, but that just illustrates another way to go. I guess the main point in mine and all the other posts is this : DON'T go in with no money in hand and finance completely at the dealer, they are there to make money, and you will pay a LOT more than you think with a " low, easy-pay " plan. Save up, trade in, or check a lot of loan plans at the bank first to see just what it will REALLY cost you per month, and look at a realistic time frame, do you really want to be paying off a wheeler for 5 years ???

 

most of the finance deals that are available at the dealers are through a finance corporation that have partnered up with the manufacture the dealer sells. In Canada Polaris offers deals ( ie $60 per month ) through HFC ( household finance corporation ). These finance companies are ALL bad. they will cost you much more than other payment methods ( bank loans ect. ) in the long run. HFC canada has huge penalties for late fees and the intrest rate is almost double that of credit card companies. after the initial low intrest period is over you WILL GET screwed. The only way this kind of deal can work is if you can pay the quad off before the initial low rate is over. If you can pay for it in 6 months or two years then you should not need their crappy finance plan anyway.....Save up and pay for it...or get a real loan from a bank...The manufactures finance scams will screw you in the long run


PINKMOON

 

I went with the 0 down 0 interest for 1 year and will be paid off or close to it by the end.

 

95wolv - In your case, if you need the ATV for the farm, is not purely a toy. And you make a great point about the home equity loan/line of credit. You just have to do the math and see what works out the best.

I just hate seeing folks get in over their head with debt. And gimmicks like the $39/mo. deal could easily sucker people in to paying a lot more than they realize.

But, if you're going to pay for the thing in 2 or 3 years anyway, all it would take is a little discipline to save the money. Just take the cash you would send into the finance company or the bank and deposit it into your quad account and forget about it. In that same two to three years, you will have more than enough. Plus, not only will you save all that interest, the bank will pay you interest (yeah, I know, rates suck now, but still...).

CO - If I could get a zero interest deal, I would do exactly the same thing. Anytime someone wants to let me use their money for free, I'll take it.

RSeb