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Finance Deals

Discussion in 'General Motorcycling Discussion' started by sly, Feb 26, 2010.

  1. Just wondering if anyone knows why the bike manufacturers don't do 0% finance deals here like they do in the UK.

    See here for example http://ww1.honda.co.uk/financeoffers/

    I keep seeing this banner ad on MCN for Honda and it infuriates me that they don't do the same here.

    Sure, I've seen the "get a $1000 worth of extras" deals, but nothing related to finance.

    Am in the market for a new bike and can't seem to find any finance lower than 8%.

    Or am I looking in the wrong place???

  2. How does 0% finance work? Do they pay the interest for you, or something? :?
  3. Hardly Normal type 12 months interest free scheme perhaps? Suck you in and then lock you down with a higher rate after the free period. Additionally with the UK, and Europe on a whole, having a higher population there's a liklihood of there being more competition from finance providers and the companies wanting to part you with your newly acquired funds.
  4. doubt they'll do it in Australia as I think you'll find they make more from the finance then they do selling the bikes. Some of these in the UK are self funded though, I had a mate buy his Triumph over there on a 0% interest deal and it was for the life of the 4 year agreement.
  5. 0% Interest for the life of the loan?

    Maybe his account keeping fees were through the roof?
  6. As diomac said, they are likely self funded, much like BMW car loans here, who offer very good value interest rates (not that I would know...) Basically it leads to the manufacturers selling more bike and motorcycling in general becoming more accessible to the masses. The caveat is that they require a 20% -30% deposit, which isn't usually a problem if you are selling another bike.

    J3st3r - you're right, they probably make more money from loans than the actual bike...
  7. You don't really get account keeping fees in the UK. I'd never heard of them until I got here. That's not to say they don't make money though...
  8. There you go!

    There's gotta be something, somewhere to catch you out?
  9. I remember talking to a finance guy once who said that the 0% finance for 12 months worked because there were always enough people that didn't pay it out in time to cover those who did...
  10. Its quite simple. The interest is already included in the price of the bike.
    Most repayments on a bike loan will include ~$2-3K in interest. They just offer the fixed price to you at point of sale and have all included.
  11. zero percent interest = steal the bike
  12. It's because the UK did shit in the GFC and Australia did so very very well, mostly due to our rigorous accounting standards (which affect our banks and how much reserve capital they are required to hold) and our risk averse nature.

    You'll find many places in the US offering 0 - 1% car/bike loans to people with a proven credit history. The GFC has made credit very expensive for the poor, and very very cheap for the rich.
  13. They have been doing the 0% in the UK for years and years ,I wondered the same thing when I read a UK bike magazine.

    From a few adds, I read the fine print ....your given a {for example} a Suzuki credit card and you buy the bike on that....say interest free for 3 years...but then if you havent payed it off then you got the HUGE interest rate.

    The credit card is really like GE money {for example} behind it and they wait for you to not pay it off in time and cash in ,plus it has redraw on it so you keep borrowing back to money you have payed off it , pretty much just a credit card in the end.
    Same a Harvey Norman with their store card is just a GE money credit card ,you buy the big $4000 home TV and once you have payed it off ,you still have an account with redraw and the GE store card which you can use any where even at a ATM.
  14. whoever is providing the money in the UK gets it from the federal reserve equivalent for nothing. They can't manage the same here because the base interest rate the feds charge is > 0%.
  15. I think Yamaha are still doing their 6% finance special on new bikes.
  16. The bank rate in the UK is 0.5% close to 0% but not quite, I assume the AU equivalent is the cash rate which is 3.7% so they should be able to do better than they do...

    By the way there's no federal reserve anything in the UK, it's called The Bank Of England...
  17. You're spot on Transformer.

    Sly, they are not really offering 0% finance at all - what they are doing is marking up the original price of the bike to cover the cost of the finance. If you go into the bike shop with cash you can negotiate a fairly huge discount (back down to the proper price of the bike). Personally I'd rather buy a bike the Oz way, where I know up front what the real price of the bike is, and I can then work out myself which payment method best suits me, rather than having the manufacturer's finance shoved down my throat.
  18. From what I can see even with 0% finance bikes are still cheaper in the UK than here...
  19. @ Stigger - agreed mate. Definitely cheaper than here, but that's another discussion all together (population size, exchange rate, etc.)

    At the moment, I'm swaying towards a credit union, seems to be the cheapest option.

    I'm afraid paying cash for a bike is idealistic and I highly doubt that most people can afford to do so. I bought my last bike on finance, paid it off over 3 years. I've had it for 5 years now, so I consider the cost of purchase relatively cheap considering I'll now sell the bike and have 25 -30% of the amount for the new bike.

    There is no cheap credit, that's a given, but when you compare finance on a bike vs car (people that buy BMW's for 10's of thousands on credit, even cheap credit:jerk:), bikes are relatively cheap.
  20. The fact that they may be cheaper there compared to here doesn't mean that the 0% is built into the price of the bike when compared to a bike bought with cash in the UK.

    Bikes and cars are dearer here because of our taxes.