Met with local HD finance guy today. Given a quote for finance of 8.64% when I was expecting no more than 7%. Find out I have lower credit score than thought or was given recently when I financed my wifes minivan. Was told and actually did have hi 700 scores, but now 660 and 675 on 2 different credit runs. Finance guy said, "you haven't had a late payment in your life and I don't normally do this," as he shows me what he said was the bank quote sheet for my approved loan for 17k. He says, "we're not adding any points to this cause that would make the % over 9.50% and you should not have that high of a rate." My scores dropped because of 4 credit runs for home refi, a puchase of a minivan, and a medical bill "collection lien that was paid by my employer/union or was charged off. The medical bill for an ambulance transport that my insurance should have covered, but didn't. All those things lowered my score by 80 points at least. Anyhoot, do you think that the HD finance guy is lieing by telling me they are not going to make any money off the finance of the bike? I tend to believe he did bump the % up at least a half point, and my wife agrees as she works as a mortgage/commercial loan officer. The difference in payment is $270 instead of &256, hardly a reason to walk away from the bike. I could always prepay the loan quicker to beat the interest on the back. Anyone have any similar experiences? More importantly, do you think the finance guy is bullshittin me? Any feedback is gratefully welcomed as I am supposed to purchase tomorrow morning. Thanks and will be back later to read responses, dinner with the wife calls for my 37th B-Day!

 

I think you are getting hosed.

Interest should be around 5.9% unless there is something horribly wrong with your finances.

 

Why go through Harley's financing. You could do much better going through your own bank.

 

If you have a bank that you've done business with reguarly go to them and see what they can do. You'll probably get a better deal then through Harley. I have a hard time trusting what any salesman tells me.

 

Do you belong to a credit union? Their rates are usually better than banks.

I got my 05 RK at 3.5 % for seven years, 100 % financed. The loan was for $20,000 and the payment is $268. That loan is through a credit union. Harley wanted over 7 % for the same bike and loan ammount.

 

Credit inquiries will lower your credit score. Also, you now have a higher percentage of your income going towards debt after the purchase of the mini-van. 6-0 months will bring your scores back up, but I know tht doesn't help now.
Are they making miney off of the interest rate? Definitely!
Can you get financing someplace else cheaper? Probably and I would suggest a credit union.
One more point re: credit inquiries. All "hard" inquiries (those made by someone considering granting you credit vs. you requesting your scores or someone requesting them for general ssolicitation purposes) lower your credt score...however, if they are all done in a 30 day period, it only counts as one inquiry, so you will not be lowering your score more by checking at other locations so long as all of the inquiries are within the 30 day period.
One other point. Auto lenders (and I assume that prob. includes all vehicles) receive a specialized score for their industry. Your mini-van purchase may weigh more heavily on their scale than it will at a bank or credit union, so you may actually have higher scores at those places. Finally, some lenders run all 3 and take the middle, but most just run one and they can vary widely, so you could get lucky with someone else pulling your top score while Harley may have pulled your lowest.
Hope that wasn't too confusing. Art

 

One more option would be to take a loan against your 401K if you have one and its avilable. Yes it sux that any hits against your credit report (credit inquries) lower your score. Anytime your going to make a big purchase always clean your report up, start at least 9 to 10 months out so you have a clean report for 6 months prior to the "check" that will set your % of intrest for your new large purchase. I know it don't help now but in the future....

 

Thanks all for the information. Hog Herder, I have nothing wrong with my finances at all, have never made a late payment since owning my own vehicles and houses, student loans, now going on 15 years. You guys are right though, there is nothing I can really do if I want to purchase this bike tomorrow. The alternative is to wait and check around at my bank for interest rates. The only way around it if I take the HD loan thru the bank they ran it through is to pay the loan off quicker, thus beating the interest on the back end.

 

One last resort is to go in and tell the saleman that youve changed your mind about financing with him. Tell him why. Maybe, if he thinks you are walking away from the deal, he can make a better offer to you on rates. Remember, he already is planning on your sale today, and may not want you to walk..... just my opinion. Good luck.

 

Rate seems pretty high but Harley does have higher rates than most banks/credit unions etc. You might try your local bank to see what their rate is.