Honda payment question

[bonezsz90]

ok i wanna buy a cr125 and i wanna get it a.s.a.p so i was wondering what exactly does this mean.

Straight Deals Financing with the Honda Card


Honda Card – 90 Days No Payment No Interest at as low as 7.9% Fixed APR – All New 2008 & prior models

As low as 7.9% Fixed APR for Tier 1 buyers on loans $10,000 or more, as low as 8.9% on loans under $10,000 for the life of the loan. Higher rates may apply based on credit worthiness. No monthly payment and no interest for 90 days. After 90 days, minimum fixed monthly payments of 2.5% of the original high balance. Offer valid 1/11/08 through 8/31/08 on all new and unregistered 2008 and Prior model year On-Road Motorcycle, Off-Road Motorcycle, Scooter, ATV and PWC (PWC dealers only) models through GE Money Bank on the Honda Card upon approved credit. Check with participating dealers for details.

will i have to pay money when i go to pick up the bike or its really free for 90 days then i have to start a monthly payment or i can buy it right when the 90 days are up. because i dont feel like saving up for a few months to buy the bike i want it now! can someone please help me..

 

[Papakeith]

No money when you go pick it up. But make sure you know the exact rate they plan on charging you. It's a loan.

 

[IndyMX]

A few months???

Hopefully you understand that this will only apply to the purchase of a NEW bike. They may even allow you to use it on a 2007 model year.. But certainly not on a used bike of any year.

And unless you have established a good credit rating, you most likely will not get approved on a loan like this. These are probably the hardest to get.

 

[FruDaddy]

If you have impeccable credit, then you might qualify for this loan from Honda. If you are only 18, then I doubt that you have established enough of a credit history to make the cut.

Higher rates may apply based on credit worthiness.

Is the part that will probably apply to you. If they will give you a loan at all, the interest will probably be between 17.99% and 22.99%.

As low as 7.9% Fixed APR for Tier 1 buyers on loans $10,000 or more, as low as 8.9% on loans under $10,000

This part is the best case scenario, and you will not do better that an 8.9%APR unless you add a lot of accessories.

After 90 days, minimum fixed monthly payments of 2.5% of the original high balance.

means that if you finance $5000 then the least that you will be required to pay is $125.
I hope that I have made this as clear as mud.

 

[oldguy]

we always use the Yamaha no money down, no payment, no interest for 6 or 12 months (depending on the offer at the time) BUT only if the full cost is sitting in the bank ready to pay it off one month before the deadline. I would personally never finance and pay interest on a dirtbike for many reasons number one being it is not a life necessity and they loose value so fast you will never get to a position of owing less then it's true value.

 

[krushnburn]

we always use the Yamaha no money down, no payment, no interest for 6 or 12 months (depending on the offer at the time) BUT only if the full cost is sitting in the bank ready to pay it off one month before the deadline. I would personally never finance and pay interest on a dirtbike for many reasons number one being it is not a life necessity and they loose value so fast you will never get to a position of owing less then it's true value.

This is true.

90 NO PAYMENTS/NO INTERESTS means that they won't bill you for a minimum amount for 3 months. Also means that if you pay your bike off within those 90 days, you won't have to pay interest.
However if you don't make payments on your 90 days, the interest accrues for past months so you will be paying interests on the months you did not make a payment on.

 

[sensei]

This is true.

90 NO PAYMENTS/NO INTERESTS means that they won't bill you for a minimum amount for 3 months. Also means that if you pay your bike off within those 90 days, you won't have to pay interest.
However if you don't make payments on your 90 days, the interest accrues for past months so you will be paying interests on the months you did not make a payment on.

Right, I just went this route for my 08 Yamaha. It's basically, 90 days same as cash as they called it. I expect to have 2/3's of the cash in the next 1.5 months then pay off balance just a few months after that. Interest rate is 12% for those few months. It equtes to only a few huundred dollars which I was willing to eat so I can ride over summer.

I would not have financed it though if it went past a few months.

Good luck.

 

[rmc_olderthandirt]

will i have to pay money when i go to pick up the bike

Be very careful, this kind of credit can be a trap. As others have said, you are unlikely to get the really good interest rates. Phrases like "As low as" usually mean that you won't qualify. You won't know what the rates will be until you have sat down with the salesman and started working a deal. At this point they have you emotionally committed to the purchase and with a little pressure they can get you to agree to something that you might not during a more sane moment.

The three months with no payments is even more of a trap. You want to ride, which means that you will be buying other stuff to enable your riding. When you have to make the choice of "Do I ride this weekend, or save my cash so I can pay off the loan?", which way do you think you will go?

They know this. They don't want you to pay off the loan. The bank makes their money by loaning it out, and they don't make any money if you pay it off right away. If you fall into the trap you may end up paying for this bike for the next 3-1/2 years. If you decide later that you can't afford it you may find that you still owe more on the loan than you can sell the bike for.

Like oldguy said, you shouldn't buy toys on credit. It may get you this toy sooner but when you end up paying the interest it will keep you from enjoying your new toy as often as you would like and/or keep you from buying the next toy.

Find a used bike that you can pay cash for. You will probably enjoy it just as much and it will save you a lot of cash.

Rod