Honda Credit question.

[AlynB]

Went to a dealer today to buy a new CR80RB for my son. Decided to go with the "no interest/no payment for 30 days" option on the credit card. I was told that there is a $100 processing fee charged by Honda Credit for the application. They also tried to charge $75 just to find out the tax rate in my state, where the bike would be titled. All this after they advertise "no hidden charges or fees". It turns out that their advertised "out the door" price applies to cash deals only.
My question is, does anyone know if the credit card fee is legitimate, or are they just trying to make a few easy bucks?
I know the second charge is bogus, all it takes is a phone call for this.
Thanks,AlynB

 

[LRice85]

There is typically a charge to run a credit report. I think it's closer to $25 per credit report however credit cards such as visa don't charge you that when they issue a card. I think both charges are there to make a few extra bucks on the deal. Come on $75 bucks to find out your tax rate. Why do they need that. If your buying out of state you don't pay your home state taxes on the bike anyway. I live in PA and bought a bike in Ohio. I didn't pay have to pay ohio taxes because I was a PA resident. Furthermore you only have to pay you state tax/local tax when you register or title the bike in your home state. Since it's an offroad vehicle you may not have to register it. I never registered my bike in PA. I have an Ohio title for the bike.

There are title fees. I did have to pay $80 for an Ohio title. That's a legitimate charge. Tell the dealer that you are exempt from their state tax since you are not a resident of the state.

Also how much are you saving with no payment or intrest for 30 days with the Honda card? IF you put it on a credit card you already have you won't have to make a payment for 30 days either and you won't have to put down any cash upfront.

Just my .02. Things may be different in the states you are dealing with. But I definatly did not have to pay out of state sales tax. That's why I bought my bike out of state.

Larry

 

[MikeT]

Tell us how this comes out. It sounds like they are just trying to get more out of you.

 

[Papakeith]

From what I've read on Honda Credit, I'd run. Aren't their interest rates like 20% or so?

 

[WoodsRider]

Having too much credit can be a burden on your credit rating too.

 

[btencate]

I would try a different dealer. Or at least call another honda dealership and ask them if they charge all that crap

 

[AlynB]

The only reason I applied for the Honda card was a matter of convenience. I happened to be in the area, and the place has really good prices ( 02' CR80RB for $2699).
My intentions were to take advantage of the 'no payment/no interest for 30 days', then pay off the Honda Card with a 'no interest for 1 year' credit card that I have. This will save loan costs, interest, and tax(bought out of state) to the tune of about $500.
I went back the next day and bought the bike with a Discover Card check because they would not simply charge it on the card. Something about it being a 'New vehicle' purchase. I've heard this before from another dealer. I didn't bother asking about the fees because I just wanted to get in and out as quickly as possible. I didn't figure I would get a straight answer anyway. The only reason I bought the bike there was that I couldn't find another one anywhere close, and the price.
I haven't had the opportunity to ask anyone else about the fees yet. If I find out they are bogus, I intend to persue the matter further.

 

[dell30rb]

you are getting ripped. I got my cr80 (2002) on the honda card with 3 months no intrest. No fees at all to put it on the honda card. the intrest rate is 16 percent after the 3 month period. I was wating for my old bike to sell, and when It did I paid it off with no intrest.

2600?? I got ripped!!! I paid 3144! ( and I had to argue alot~!)

 

[Sawblade]

Originally posted by LRice85
There is typically a charge to run a credit report. I think it's closer to $25 per credit report however credit cards such as visa don't charge you that when they issue a card.

I've never been charged by any dealer, car, motorcycle, furniture, etc. To run a credit report. Now checking your credit report you typically have to pay a fee, that is unless you know your banker by his/her first name.

 

[mhall]

I've been told by my dealer that credit cards make them pay a service charge from 1 to 3%. I've been turned down on an out of state new bike purchase by a dealer that had really good prices before. They rely on the out of state purchases, but want cash because the discounted price drops more when a service charge by a card company is taken from that price. By the way doesn't using a check from a card company jump the interest rate, usually the same as a cash advance, which is more than the normal card rate.

 

[AlynB]

I spoke with a Honda Credit rep. a couple of days ago. I was informed that there is no fee for applying for the card. The dealer was about to rip me off.
If I had bought the bike that day, they would have charged the $100. I got the card in the mail three days later with no fee.
About the Discover card, I'll pay that off with a no-interest card within 30 days, so no interest there. It's a little complicated, but it will save quite a bit of money in the end.

Does anyone know who I should speak to at Honda to report this bogus fee? This nearly cost them a sale. I seriously considered stopping about a mile down the road and buying a KX100 instead. I'm not cheap, but I don't like to give money away.