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Stupid used bike dealers....


Ryan_c_F

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ugh.

find a decent deal on an old Magna, beautiful condition, clean, good maintenance history, etc. talk financing with the guy (note - I'm financing it to raise my credit score... need some installment loan history), he says he MAY not be able to get it done, because that's below the loan amount they usually finance.

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"hey, your financing came through... we can do 6.99% APR, for 36 months, and your payment is 114.99 monthly. glad we can get that approved for you... when did you want to pick it up?"

*does math*

*bike is for 2990*

*loan is for at least 3800*

"I'll give you an answer within 24 hours."

Dumb bastard. Like I'm going to fixate on a monthly payment...

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do you use a bank? look at getting a personal line of credit. Its how I bought several cars and bikes while still getting to hold the title :)

that isn't perhaps J&J is it?

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do you use a bank? look at getting a personal line of credit. Its how I bought several cars and bikes while still getting to hold the title :)

that isn't perhaps J&J is it?

1279052383758.jpg

What if it was...?

Side note - I have two PLOC's - I don't get credit history from paying those back, though.

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I pay cash, then get financed for the title, usually for a one year or two year at lower rates/payments.

Adjusting the amount borrowed to stick with the short term loan.

Only your own bank or credit union would do a deal like that.

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I don't know honestly. I've only been there for parts twice and another time to look at 2 used bikes I wanted. They were overpriced and weren't willing to negotiate for what I wanted so I just left

by first glance of your loan situation I'd say unless you are paying cash and satisfied with the price I wouldn't bother. Then again you'll be hard pressed to see me buy any sort of a vehicle from a dealer

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bike - 2990

loan application fee - 250

loan underwriting fee - 250

loan origination fee - 100

amount borrowed - 3590

payment - approx. 112/mo

You didn't expect them to write the loan for free, did you?

They're not selling the bike at cost to me, either. You don't charge 800 dollars in fees on a $2900 transaction.

Make your money on the front end of the deal. Don't try to snuffle an extra 20% in without me noticing. That's just insulting.

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My J&J story, I bought my first new snowmobile from them 12 years ago. Drove from Columbus to Port Clinton. Looed everything over and drove home with it. Got it home and looked it over again, both shocks on the front end were installed upside down. Guess I was too excited and didn't see it at the shop. Called them about a few other things and they seemed over priced and unorganized.

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Dude, do you even understand how financing a bike, car, house, anything works? Dealers do make good money on the back side of every deal and if they are slick, they can get you with misc fees. But understand that the fact you apparently are starting out financing things to build up credit, you most likely have a possible risk factor that makes it tough to get financed. That being said, they got you approved and with their buying power, relationship with their banks, etc., you may be hard pressed to get approved somewhere else...

Basically, using a loan calculator, I don't see the issue here. There is tax, doc fees, lic fees, etc. Interest in the factor, I cannot see where you are getting that they are trying to steal from you or acting like they are "dumb asses" as you called them. Someone might want to take that comment and look in the mirror and better understand auto based loans. 6.99% on that old of a bike and for that low amount of money is a freakin great deal.

Don't be insulting to a dealer because of preconceived ideas towards them.

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fwi, paying your loan off early hurts your credit score. I found that out the other day. I never knew that. but that's what a bank told a guy at work who bought a van over the weekend. his credit is low (610) and they told him don't try and pay it off too early. it will hurt his score.

Edited by serpentracer
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fwi, paying your loan off early hurts your credit score. I found that out the other day. I never knew that. but that's what a bank told a guy at work who bought a van over the weekend. his credit is low (610) and they told him don't try and pay it off too early. it will hurt his score.

I'm a loan officer.

No, it doesn't.

At least, not in most cases. In your friend's defense, his score is bottom of the barrel. Having a full 3-4 years of payment history is going to help him more than the interest accrued will hurt him.

In my case, I have very little installment loan history. Plenty of monthly and revolving debt history but a little bit of work with a car loan (or in this case, a bike loan) would establish that.

Edited by Ryan_c_F
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They're not selling the bike at cost to me, either. You don't charge 800 dollars in fees on a $2900 transaction.

Make your money on the front end of the deal. Don't try to snuffle an extra 20% in without me noticing. That's just insulting.

The dealer is probably getting an additional couple hundred on the financing, and the bank is making the rest. And yes, they will charge $800 on a $2900 sale if they can get away with it. Taking a three year loan on a less than $3k bike is going to be high risk. They are going to make sure they are making it worth the risk. Don't take it as an insult. It's business, not personal.

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fwi, paying your loan off early hurts your credit score. I found that out the other day. I never knew that. but that's what a bank told a guy at work who bought a van over the weekend. his credit is low (610) and they told him don't try and pay it off too early. it will hurt his score.

I'm not a loan officer and thats the biggest load of bull I've heard in awhile. I paid off a 72 month auto loan in 19 months and it jumped my score 20 points

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The dealer is probably getting an additional couple hundred on the financing, and the bank is making the rest. And yes, they will charge $800 on a $2900 sale if they can get away with it. Taking a three year loan on a less than $3k bike is going to be high risk. They are going to make sure they are making it worth the risk. Don't take it as an insult. It's business, not personal.

Business would be quoting the loan amount, not omitting it in the hopes I wouldn't notice.

Guys, to clarify: I wouldn't have a problem with the fees so long as he told me they were there.

I had to do the math myself to find out what he was actually charging me.

In my industry (home loans) we HAVE to discharge costs and loan amounts, or else we get fined big bucks.

He quoted me an APR of 6.99, and hid fees in the payment. It's unethical how it was approached and that's where my gripe lies.

If he'd come right out and said, we got you approved for a loan amount of x, at y rate, for z payments every month, I wouldn't have been so upset. Still wouldn't take the deal, but I would have applauded them for being straight shooters and most likely would have come back to look at something when my budget supported it.

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fwi, paying your loan off early hurts your credit score. I found that out the other day. I never knew that. but that's what a bank told a guy at work who bought a van over the weekend. his credit is low (610) and they told him don't try and pay it off too early. it will hurt his score.

As Bad said, that's some serious bullshit. It will HELP your score to pay it off early, however if you're looking to (re)build history, then it might be in your best interest to suck it up, deal with the full interest burden, and keep making the standard monthly payments until it's paid off naturally.

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If you do home loans why wouldn't you as the dealer up front what the associated fees are for financing/buying the bike.

That would make you appear a lot smarter and that you can think logically. Instead on jumping online saying "dumbass dealers"

I sell trucks for a living. There is a documentation fee on every single vehicle sold. Been this way in the car business for a long time. So I don't stop and go over every fee.

No if you talked to the finance manager he should of went over all fees associated with the financing (vsi, origination, etc.) did you even think to do that?

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fwi, paying your loan off early hurts your credit score. I found that out the other day. I never knew that. but that's what a bank told a guy at work who bought a van over the weekend. his credit is low (610) and they told him don't try and pay it off too early. it will hurt his score.

It'll also hurt the banks' profit margin on a high interest loan.

There's a sucker born every minute.

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Well at a sale price of

$2990 sale

$210 tax 7 percent not sure what county

250 doc fee

33.50 30 day tag and title fee

@6.99@36. Months Payment is about 108

They probably packed the payment a little bit for a warranty or a something but its close

The 250 is what the state allows a dealer to charge as far as I know we all do it the only way it's lower is if the vehicle is under 2500 then it is 10 percent of the sale price

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It'll also hurt the banks' profit margin on a high interest loan.

There's a sucker born every minute.

The reason we don't like when the loan is paid of early is because the dealer gets charged back, it doesn't hurt your credit paying it off early as much as it may hurt the dealer

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