dealerships vs private sellers | Page 2 | GTAMotorcycle.com

dealerships vs private sellers

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Lightcycle said:
I mentioned that we only managed to get Neda's bike because the previous buyer's financing fell through because of poor credit.

Guy came back to the store after managing to get alternative financing. The salesguy confided to me what interest rate he was paying.

23% APR.

:oops:
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and probably an 8 year loan...
 
Lightcycle said:
I mentioned that we only managed to get Neda's bike because the previous buyer's financing fell through because of poor credit.

Guy came back to the store after managing to get alternative financing. The salesguy confided to me what interest rate he was paying.

23% APR.

:oops:
Click to expand...

23%?!!
I really don’t understand financing a bike, which for the majority of people in Canada is a toy.
I mean, I could understand if it’s 0% and didn’t cost anything, but with bikes I’ve never seen 0% interest being offered....
 
Katatonic said:
23%?!!
I really don’t understand financing a bike, which for the majority of people in Canada is a toy.
I mean, I could understand if it’s 0% and didn’t cost anything, but with bikes I’ve never seen 0% interest being offered....
Click to expand...

Lowest rates I've seen are ~2%, but that's subvented for NOS models, like 2019s. AND that's with good credit, to boot.

But in this environment where people have too much free time, CERB dollahs rolling in and limited factory production, recreational vehicles don't stay on the floor very long, so the 2% is basically a moot point.
 
Katatonic said:
23%?!!
I really don’t understand financing a bike, which for the majority of people in Canada is a toy.
I mean, I could understand if it’s 0% and didn’t cost anything, but with bikes I’ve never seen 0% interest being offered....
Click to expand...
XR was 3.4% iirc and that was a BMW promo.
 
Lightcycle said:
I mentioned that we only managed to get Neda's bike because the previous buyer's financing fell through because of poor credit.

Guy came back to the store after managing to get alternative financing. The salesguy confided to me what interest rate he was paying.

23% APR.

:oops:
Click to expand...
Sadly there are lots of these types of lenders out there. Loans from high risk lenders run from 20-47% annual interest rates.

Teach your kids to use credit wisely and to never walk from disputed bills. Walking from a cell phone bill, having a credit card cancelled, not paying a dispute with your internet or insurance co can put some folks into this lending category.
 
Mad Mike said:
Sadly there are lots of these types of lenders out there. Loans from high risk lenders run from 20-47% annual interest rates.

Teach your kids to use credit wisely and to never walk from disputed bills. Walking from a cell phone bill, having a credit card cancelled, not paying a dispute with your internet or insurance co can put some folks into this lending category.
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I know an accountant that branched out into risky auto loans. GPS trackers into all the vehicles he funds. After a short time, he quit his accounting practice and started collecting lamborghini's. It's hard to lose if you have a good system in place and don't care that you are taking advantage of stupid people.
 
GreyGhost said:
I know an accountant that branched out into risky auto loans. GPS trackers into all the vehicles he funds. After a short time, he quit his accounting practice and started collecting lamborghini's. It's hard to lose if you have a good system in place and don't care that you are taking advantage of stupid people.
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Anybody that stupid for a Lamborghini I don’t feel for.
 
GreyGhost said:
He was financing normal people vehicles. The money was flowing in so fast, he had trouble spending it so he started buying lambos.
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that was my takeaway as well.
 
GreyGhost said:
I know an accountant that branched out into risky auto loans. GPS trackers into all the vehicles he funds. After a short time, he quit his accounting practice and started collecting lamborghini's. It's hard to lose if you have a good system in place and don't care that you are taking advantage of stupid people.
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I have thought of this too, the payday loan business is good too. It's a slimy cash cow - almost 400%APR on payday loans. 3% for cheque cashing. There is some risk, but still it's a huge money maker.

These are creepy businesses, lately they are doing a lot of tied selling -- desperate people are wrestled into $20 monthly credit checking subscriptions.
 
GreyGhost said:
He was financing normal people vehicles. The money was flowing in so fast, he had trouble spending it so he started buying lambos.
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This can be good too, when you have secured installment loans returning >20% you can sell the loans at a discount after a few months, let someone else take the risk and worry about collections.
 
Mad Mike said:
This can be good too, when you have secured installment loans returning >20% you can sell the loans at a discount after a few months, let someone else take the risk and worry about collections.
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The other upside to ridiculous rates is you don't have to get very far into the term for you to have all your money back. After that is pure profit (and still a decent chance that you repossess the vehicle and sell it at auction and keep that money as well).
 
GreyGhost said:
The other upside to ridiculous rates is you don't have to get very far into the term for you to have all your money back. After that is pure profit (and still a decent chance that you repossess the vehicle and sell it at auction and keep that money as well).
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The best thing to do is milk the loan for 6 months while the buyer is still enthralled with his purchase - then sell the loan. You still make large, but you don't have the late loan collection hassle and cost of repossessing a trashed security.
 
Personally, I would always buy in a private sale. My first 2 questions are "How many previous owners" and "How long have you had the bike". Getting an idea of the previous owners and rough idea of the bikes history are quite valuable to me. As for financing, I have a tough time with that. Paying interest on a depreciating asset seems completely illogical to me; even on a car. On a toy, it's absolutely mind-boggling.
 
Sebi said:
Paying interest on a depreciating asset seems completely illogical to me; even on a car. On a toy, it's absolutely mind-boggling.
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I agree at 20%. At low single digit rates, there is a decent argument for taking the loan and investing the money to come out ahead in the end. At that point it is up to an individual's risk tolerance and ability to come up with some money if you crash it while underwater.
 
GreyGhost said:
I agree at 20%. At low single digit rates, there is a decent argument for taking the loan and investing the money to come out ahead in the end. At that point it is up to an individual's risk tolerance and ability to come up with some money if you crash it while underwater.
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Yeah, that's what insurance is for. They pay you out and you pay the loan off.

And that's where insurance fraud also comes into play. That's why failing restaurants and businesses sometimes catch on fire and burn to the ground under suspicious circumstances.

And that's why two cops came to my home to interrogate *me*, when it was *MY* truck that was stolen.
 
When my wife bought my t7 earlier this year she had "covid concerns" regarding cash in the bank. Due to covid Yamaha Canada was offering 1.9% on pre-ordered Teneres.
We used the cash from my klr and z1000 as a deposit and financed the balance. It cost next to nothing and I'm not underwater ever in the loan.


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