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Old 02-17-2012, 10:40 PM   #1
glasswave OP
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0% Financing vs cash...Why not?...

I am thinking about a 2012 wee. The Idea of financing a bike always seemed a little crazy to me, but with 0%, what would be the downside? Say I put $8500 into a cd & then bought the strom on 0% for 60 mo. So I pay about $135 each month for the bike + another $35 in insurance (I'd get full coverage anyways). If I get into a cash bind, I liquidate the cd, pay the loan, plus I could sell the bike. My CR is basically sterling. What could go wrong? Am I missing something here?

The cd would only net about $500 over the life of the bike, but I'd have the liquid cash w/o having to even apply for a loan if I needed it and I'd always be in an equity position on the bike (at least after a year anyways).

Is it true, that I can also add luggage to the 2012 for $200? I don't really want suzuki luggage, but could sell it off for toward the boxes I want, right? Seems a good time to buy. If only I had the cash out of my Honda Falcon in Chile. Maybe I could go get it, sell it off for 4k & use the money for farkles.
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Old 02-17-2012, 10:55 PM   #2
Snowkarver
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There is no downside. As long as you're organized and responsible enough to not run afoul of the fine print regarding late payments and so on, and you actually invest the capital instead of spending it on something else, zero financing is basically free money.

Oh, and the 2012 is nice.
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Old 02-17-2012, 11:36 PM   #3
glasswave OP
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Quote:
Originally Posted by Snowkarver View Post
There is no downside. As long as you're organized and responsible enough to not run afoul of the fine print regarding late payments and so on, and you actually invest the capital instead of spending it on something else, zero financing is basically free money.

Oh, and the 2012 is nice.
I guess the biggest thing would be to get it on auto payments right away, I'm not so go about that kind of stuff. I am better at getting money into my account than I am about paying it out.

The other big question is do I really need an O'12? While the improvments seem enticing, the biggest real world benefit for me would be the metric or US instrument panel. I could just get a low miles 00? for a few thousand less. I think the 0% is a trick to make me think I am being practical by getting an O'12.
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Old 02-17-2012, 11:40 PM   #4
oldtouring B
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Read what happens to your loan if you are late one time!! If you set up your payment through your online banking to automatically make your monthly. Then you are in business. Good luck with your Wee.
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Old 02-17-2012, 11:51 PM   #5
marlboroughlad
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Cant speak for your part of the world, but if you purchase with borrowed money down here, you get far less bargaining power on sale price and extras.

Weigh it up. Best price at 0% and interest on the cash in the bank over that term versus getting best price when you walk in with a pocket full of folding.
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Old 02-18-2012, 12:56 AM   #6
glasswave OP
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Originally Posted by oldtouring B View Post
Read what happens to your loan if you are late one time!! If you set up your payment through your online banking to automatically make your monthly. Then you are in business. Good luck with your Wee.
The biggest scare is not the missed payment. I'll have money in the bank if they jack my rates & I'll just pay em off, but if my bank or they make a mix up and they scar my credit rating, that'd be tragic. I've worked hard to have spotless credit & I don't need some silly 0% strom deal screwing my ability to leverage.

Quote:
Originally Posted by marlboroughlad View Post
Cant speak for your part of the world, but if you purchase with borrowed money down here, you get far less bargaining power on sale price and extras.

Weigh it up. Best price at 0% and interest on the cash in the bank over that term versus getting best price when you walk in with a pocket full of folding.
Here my strategy would be to get the best cash offer before springing any idea of financing on them. I am as entitled to the financing as anyone. They can work with me or I can walk, it's up to them, someone's already advertising $7499 w/0 % on the right coast. I can put some cash out for accessories if that's what they need. If not I'll catch a $150 flight to MD & break her in w/a trip across Saskatchewan/Alberta. Wee shall see.
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Old 02-18-2012, 01:10 AM   #7
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I would make sure that there are no admin costs in the 0% deal, or I would try to rather get a discount on a cash deal
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Old 02-18-2012, 03:00 AM   #8
Wolfgang55
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Last time I checked "cash was still king"........I like good second hand scoots w/ low miles.

Good luck in what ever way you go.
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Old 02-18-2012, 03:15 AM   #9
ohgood
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Quote:
Originally Posted by glasswave View Post
The biggest scare is not the missed payment. I'll have money in the bank if they jack my rates & I'll just pay em off, but if my bank or they make a mix up and they scar my credit rating, that'd be tragic. I've worked hard to have spotless credit & I don't need some silly 0% strom deal screwing my ability to leverage.
If you care about your credit rating (why?), annnnnnd have the cash, why not just buy the bike and sidestep any chance of "tarnishing" the rating ?

The first parenthesied "why" above, why do you care about your cr ? Curious.
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Old 02-18-2012, 05:33 AM   #10
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It is said there is nothing "FREE" in this world. Make sure there is no cash incentive in place of the 0%. Ask your dealer if the factory has dealer only rebates for him if the customer does not choose 0%. Typically there is an incentive in there somewhere for cash buyers. Only rarely can I recommend 0% financing if there is an alternative cash incentive if you don't use it. Most owners will sell or trade before paying off the loan. If the bike gets totaled or stolen, the 0% may work against you there ( you have more to pay off if you didn't take the cash ).

For those wondering about credit rating. If you are not worried about yours, you probably don't care if you are paying more for you insurance, or that you might be looked over for that new job you are applying for. Simply put, credit rating has become a measure of stability, responsibility, and honesty. Just how it is, right or wrong.
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Old 02-18-2012, 06:48 AM   #11
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I am in the process of waiting for a 2012 v 1000 adv to come in, I already got approved for the zero % plus a great otd price & I see no down side at all. Why should I take any cash out of the bank where it is nice to keep it as a reserve for something important, I look at it this way, as long as I can afford the payment the borrowed money cost me nothing, if I get into a bind I sell the bike. It seems like a no brainer if you are ready to buy a new bike, I just wish my wife could fit on a 650.
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Old 02-18-2012, 07:13 AM   #12
ohgood
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Quote:
Originally Posted by realshelby View Post
For those wondering about credit rating.

Simply put, credit rating has become a measure of stability, responsibility, and honesty.
Just how it is, right or wrong.
Its a metric, but only if you play their games.

Damn, I'm paying 10% more on premiums for my shitbox cars.
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Old 02-18-2012, 07:22 AM   #13
high dangler
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there is no such thing as" FREE" when buying cars or motorcycle.
Yeah they'll give you this and jack the price up on that.
People are so gulible.
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Old 02-18-2012, 08:01 AM   #14
bearauto
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Just picked up my new 12 Wee last night. Took advantage of the 0% because it's basically free money. And yes, I can afford to pay it cash, but your logic is perfectly sound.

There were no admin or any other additional fees. I got a fantastic deal on the bike (didn't get any luggage deal), so I ended up splurging on the extended warranty (hey, it's a new version of the Wee - things can go wrong). Best part about it is the price of the warranty was rolled right into my 0% financing for 60 months.

Edit: let me clarify that there WAS a document fee, but I negotiated an OTD price, so they crunched all the numbers together. I don't care what they charge as a document/prep/freight fee, as long as I get my OTD price.

bearauto screwed with this post 02-18-2012 at 08:13 AM
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Old 02-18-2012, 08:24 AM   #15
charliebrown
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[QUOTEIf I get into a cash bind, I liquidate the cd, pay the loan, plus I could sell the bike. My CR is basically sterling. What could go wrong? Am I missing something here?.[/QUOTE]

What is the penalty for liquidating the CD early? You know what they say "substantial penalty for early withdrawal".

Rather than buying a CD, it's probably better to just leave the money in a regular savings account where it is truly liquid.
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