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Posted by: jaybeecon55
You need to plan out a little further ahead.
BEWARE of most of the dealer financing offers. Most are limited time - deferred interest financing deals. They are designed to get you in the door and into the quad but they are far from "deals" as far as financing goes. Paying $50 a month will not be a high enough payment to pay off the quad before the end of the introductry period and the higher interest kicks in. On many of the deals, if the quad is not paid off in full before the end of the introductory period, you will be stuck with back paying the high interest rate - all the way back to the day you bought the quad.
If you do use the dealer financing:
1. Make sure you make a high enough payment so that the quad will be completely paid off safely within the lower interest timeframe.
2. If you can't make the higher payments, either don't buy the quad or have a rollover source of financing that can be used to pay off the dealer loan.
3. Don't be late on any payments or payoffs - in fact, plan on being at least a few weeks early or you will get stung.
If you are dead set on financing your new quad, check with a bank or credit union first. You may have a point or two higher interest as compared to the dealer intro rate, but when you figure out your total costs, you will pay thousands less.
Jaybee
Posted by: jaybeecon55
All the big name factory financing deals are pretty much the same - be it $39, $49 or $69 a month.
Here's the deal (in rounded out numbers): Say you buy a $6,000 quad. You put $1,000 down and finance the rest - leaving you with $5,000 to pay off. The factory financing "deal" will charge you a low interest rate and payments of only $49 a month for the first two years. After two years you start paying a higher interest rate.
The basic problem with this: After two years of making $49 a month payments, you will have paid about $1,100 off of your $5,000 balance - leaving you with $3,900 still to pay off. At this point your interest jumps into really high levels (17% to 22%), so even less of your $49 bucks each month will go to the principal, most goes to interest. The only reason you may have some equity in your quad is because of the original $1,000 down payment, so it will be difficult to sell the quad to get out of the high interest debt. So now you are stuck with a two year old quad and a really bad financing deal.
And it get's even worse: Many of the 'deals" are set up so the the original low interest is actually a deferred interest. They are actually charging you 21% from the very start, but only making you pay 4.9% of that for the introductory period. Once you pass the deadline and still have a balance, you are charged the high interest rate computed from the origin of the loan. You can get out of the potential trap by having another source of financing lined up to kick in before the end of the low interest introductory period, but frankly, if you have the ability to get alternate financing, you'd be best off just using it from the start.
The bottom line is that you just cannot buy a quad and expect to pay $39 or $49 per month. For a $5,000 quad @ payments of $49 per month, it will take you 8-1/2 years to pay it off even if you pay no interest at all. Many of the factory web pages have a payment calculator that gives a much more realistic set of payment numbers than their advertised financing deal. That will give you a better idea of what you can really expect to make as a payment.
I've ranted about the factory financing deals before. In my view, they are just a legal scam designed to lure in buyers and get them to purchase a quad that they cannot afford.
Posted by: DarkManX
i got $1000 down pawment what do i need to know or do? they say they can get me a 05 raptor for $50 a month?
Posted by: DarkManX
thanks so i have money to put down but who has the best deals? Honda Suzuki or Yamaha o and Kawaskai?
also Yamaha is talking about $39 a month 0 down??? so thats no good?
Posted by: YFZ660R
I got that plan for $39 a month and 0 down and I was pretty happy. Just payed $39 a month until I got bored of paying so I just payed it all fo. Pretty good deal. Also I made I really late payment, had a talk with yamaha and they solved without any charges.
Posted by: pendejo
Also, to get those $0 down deals, you need to have PERFECT credit! You're best bet is to go through a Credit Union or anything other then "Factory Financing". I know several peple who made their payments on time, and still had big problems, at least with Househeld Bank(Kawie). Whew, glad they denied me now, kinda
