Before I bought my SG I posted asking about EM Bank. Ive now had the bike for 9 days and got 2 letters from EM today, one was a "welcome" letter and the second shocked me a bit. It said that part of Promissory Note was submitted incorrectly, that it should have read "no finance charges will accrue for the first 180 days" (the dealer told me about this) and the 2nd stated "The APR disclosed on your contract was 9.99% when it should be 8.62%".

I need to call and verify tomorrow but this should lower my monthly payments. The dealer first told me my rate was 10.89% and I told them no way. So does this mean Em approved me at 8.62% originally and the dealer tried to bend me over for over 2% additional? Man talk about not even using Vaseline! This kind of pisses me off honestly, but Im glad EM disclosed this fact!

 

It happens everywhere with financing. Thats how all motors build those big sales buildings. Same with Home loans...

 

Autos can work the same way. If the dealer can get more out of you, they make an incentive.

 

That's what dealers call "back end" money. The profit from selling you just the bike was the "front end". Most dealers will try to get 1-2 points off of you if they can.

 

So why would EM "correct" the interest rate?

 

I don't think it would benefit the dealer to jack up the rate.

 

Sounds like the dealer was trying to set themselves up for an easy 2% freebie from you, sans vaseline! EM is bound by law to correct the documentation, payment, etc since it was EM who provided the information to the dealer in the first place.

With all of the ludicrous $h!t going on in Washington D.C. and Wall Street, it would not surprise me in the least that 'many' banks are getting their stuff in one sock so as to avoid going under.

EM is a pretty decent organization, based on my experience with them both during bike ownership and after I had my accident.

Congrats on the SG and a lower % than you originally anticipated.

 

Sales manager tried to screw me over too.
When I asked for their lowest rate he said "8.95%"
When I told him that was too high and I could get it cheaper at my local bank
He said "how about 7.25% ?"

Doesn't that sould like he was trying to d$ck me out of almost 2% ?

 

Had one dealer try the same tactic as this and was going through Eaglemark. Bought from a 2nd dealer for 2 pts. less than first.

Was actually told by 1st dealer "That's how we make our money".

 

my dealer tried to loan me the full price. even with $3000 down, I said are you crazy? I will not pay intrest on money Im not even borrowing, my down payment that is!