Welcome to Netrider ... Connecting Riders!

Interested in talking motorbikes with a terrific community of riders?
Signup (it's quick and free) to join the discussions and access the full suite of tools and information that Netrider has to offer.

not happy..

Discussion in 'General Motorcycling Discussion' started by fubarcbr, Oct 4, 2007.

  1. i am really getting sick of all these little things that i wasn't told about when i bought my bike. i called up yamaha motor finance today to get a pay out figure and i have only paid of 1000ish bucks in 8 months on my bike. apparently they are taking about 60% of my repayments and putting it on the interest not the principle (cost of actuall bike). so out of 4k i have paid 3 has gone on interest. are they allowed to do this by the way?

    and looking at the insurance i got when i got the bike i saw in fine print that the dealer gets a 20% commision on my insurance so they didn't even look for a good deal just found the most expensive one they could and stuck me with it.

    not impressed with the stealership, i will never buy any thing from them ever again not because of all that, i could care less but i don't take kindly to not being told this sort of shit.

    well that is the end of my little rant (if you could call it that) i am off to bed for 2 hrs yay
  2. Fine Print FTW - it's not there for filler. Also, never, EVER, sign anything up front

    I love using that to separate the shoddy telemarketers "Just send me out your fine print." Bastards.

    And is it just me, or is it ever possible to get a better deal with dealer finance over a personal/3rd party loan?
  3. Read and understand everything before you sign - a life lesson everyone learns the hard way...
  4. Rule #1 when buying ANY vehicle - NEVER do finance through the dealer
    Rule #2 when insuring ANY vehicle - NEVER do insurance through the dealer

    Despite being assured every time by the dealer that they could do me a great offer, I've entertained their fantasy if only for a laugh to see what their offer was, and have always been able to obtain insurance for around half the cost, and personal loan finance for far less than what they offer.

    Finance and insurance at dealerships is like food and drinks at a cinema. Its the way in which dealers add some icing to their sales cake.
  5. sounds like you went thru ge money via money genie

    they're notorious for that kind of behavior. the last of it was in western australia where, the last time i checked [years ago] it was still legal and on the way out.

    banks and finance are not allowed to put you in a position where you have to sell the bike just to pay off the loan. go to your local ombudsman.

    by the way, dont worry, thats nothing!

    this week alone, i put in legitimate ctp claim for expenses of $2,400 and only got $500 back without explanation, of which, im still pushing for...and thats just this week. oh and i still havent got the $4,000 dollars from the previous claim, or an explanation.

    guys, this october means your next ctp premium is going to cover you if you are at fault. go with an insurance company who isnt a total arse

    i recomend gio

    cheers :cool:
  6. All loans work that way in the early days. As the loan progresses, you will pay a larger percentage off the principle with each payment and the balance will reduce quicker. Not sure, get your calculator out and plug in your interest rate and you should get an interest amount close to your repayment amount.

    Check out what rate they are charging, if its high compared to other places, refinancing may be an option, but you need to watch for exit fees.
    As bonkers says sometime we learn the hard way.

    I'm sure you did homework on buying the bike, to know your getting a good deal, we have to do the same for finance and insurance. A couiple of phone calls can make a huge difference.

  7. Yes. Welcome to the world of compound interest.

    Of my $1900 per month off the homeloan, about $1700 is interest charges alone. AS such, I'm only paying off about $50 per week, and paying off interest at $380 per week. Compared to you, thats about 7:1 interest to repayments so it looks far worse, but thats the consequence of a much higher debt ratio and a longer loan term.

    If you want to get anywhere with a loan you need to pay off far more than the minimums. Otherwise, over the length of my home loan, I will end up paying off about 3 times as much interest as principle.
  8. TEC is correct-omundo; you pay off the interest before you pay of the principal (in principle :p) :LOL:. The only situation in which I have not found this to be the case is in a business equipment rental.

    Flux's two rules should be engraved on the forehead of every new-born child :applause: .
  9. You can't complain. You put yourself into this situation, you didn't read the fine print and evidently do any research. Suck it up and learn from it.
  10. Actually Yamaha motor finance are one of the better dealer finance schemes (although I would always shop around, and normally either pay cash or at least use a broker).

    A 5 year loan for a bike at normal market interest rates will give similar figures to what you quote in the first year. It isn't until the last year that the ratio is reversed.

    If you want to drop that ratio then you need one of three things _:

    A shorter loan term

    Higher repayments

    Lower interest (that's where shopping around or using a broker comes in handy).
  11. A dealer I was going to buy my bike off tried to make me sign the contract pending finance.

    i.e. Here, sign this paper that you've definitely bought the bike and will take out finance as long as we can get you finance (any finance).

    Effectively, that meant they could come back with ANY interest rate, ANY charge, ANY bloody anything, and I'd have to lump it.

    "So mate, what's the interest rate going to be?"

    "It doesnt really make much difference, don't worry about it."

    "Oh, cool. Let's make it 0% then."

    "Umm, we can't do that."

    "I thought it didnt matter?"


    "fcuk off you piece of shit ****, do I look like an idiot? I will buy my bike elsewhere."

    For the record, my brother is a car salesman, and he's one of those arseholes too. No worse than the lottery I guess, just taking money off idiots.
  12. I am sure you will get enough people here telling you to read the fine print... mate, I have 2 masters degrees including one in business, which included law, and I review contracts as part of job.. 10 years doing that shit and they still take me hours to read, digest, understand, and decide what they are like...

    I hate that there is no law that makes the person selling you the contract explain in plain english what it means to you... don't kick yourself for not reading the fine print, I doubt that 90% of the people who say that you should would understand it anyway... talk to someone who knows how they work, and get them to read it for you...

    I guess you won't be caught out with dealer finance (which can be OK if you know how to work the system, and use it to your advantage, and the finance isn't the worst possible for the customer/best possible for the dealer in the first place)....

    Wait until you buy a house, and pay $30K to reduce the principal by $5K...

    Maybe worth talking directly to GE finance (if that is who the finance is through) to see if you can get out more cheaply...

    You should be able to get out of any insurance contract for the cost of the period already covered less some expenses, and start a new policy elsewhere if you can get cover...

  13. One thing everyone has to remeber is that banks and finance companies are not in the risk taking business (contrary to the subprime crisis beliefs). Therefore they will get paid first and you will pay the loan at a greater rate towards the end of the loan period. Yes all banks and finance companies do this which is why anyone making extra payments will actually reduce the princial at a faster rate... and hence reduce the interest component. As such it is generally not advisable to payout finance early into the loan period unless ou expect to pay the majority of the principal.
  14. My dealer beat (by a fair bit) a major advertiser on NR including gear.
    I'll be paying the premium when the my bike is delivered.

    Horses for courses.
  15. Mate,

    Sorry to hear about your experience... Unfortunately as most have agreed, its one of things in life that we all kind of go through...

    When buying something you really want, the last thing you want to do is sit and read a bunch of fine print because your emotions of wanting the new bike, house or whatever gets in the way. Finance is something thats not taught in school and most people have to learn the hard way...

    Im a finance broker and always inform my clients to read the fine print...

    Speak to Steve @ Bike Finance (link here on NR)
    He's been in the bike finance industry for a very long time and knows his stuff... Even though i also do vehicle finance, i put most of my clients through him because i know they're looked after and ALWAYS get the best deal...

    Shoot him an email at: steve@bikefinance.com.au or call him on 0418 478 383

  16. Just a little thing but in Victoria (possibly Australia wide) any agent of an insurance company must disclose any commission they are receiving. So either they told you about the 20% commission and you didn't hear, or they broke the law. Are you in Victoria?

    Motor finance also cuts both ways. As a young man I negotiated a good deal for a new car because I was willing to sign "subject to finance". The dealer thought he would make his profit through the finance deal, as he had a young, naive kid buying a new car. I then went out and got finance through my friendly Credit Union, at a very good rate. The dealer was furious, but he also had signed the contract, and so had to honour it.

    So what do you do now? Take your contract to a finance broker and ask if they can get you out of the deal and into a better one without loosing lots of money. Then never, ever finance through GE, Motor Finance Wizard, or any of them other shonky finance companies again. Make sure you listen to the broker about their commissions.

    EDIT: To clarify, I meant Motor Finance Wizard, not any of the other Wizard finance companies.
  17. RoderickGi is correct with the FSR in Victoria, any commissions from financial products must be disclosed to you before you go ahead with the contract or they are breaking the law. In the past, we have alway done our finances thru our local Credit Union, they always offer the best rates for finance. See what you can do about refinancing, and if you can also cancel your insurance without cancellation fees, ring around for the best premium elsewhere, otherwise when it is up for renewal go elsewhere. With a bike under finance, tho, they will require it to be comprehensively insured, which means there is really no cheap option for a 20 year old unfortunately.
  18. You're kidding, right? It's up to you to make those enquiries and do a little research.

    Did you think the dealer was just going to give you a great deal on everything cause you might be a good bloke? They are a business and the more they can make on add-ons such as finance and insurance, the better for them. It's your job to make it as good a deal as you can get, not theirs.
  19. .........
  20. You are always going to pay an exorbitant amount on finance. Always, always, always. If there's any chance you're able to pay cash I'd do that - I mean my gpx is on the cheaper end, bike on road with a bunch of gear and full comp insurance came to 9 grand - which would have been ~14 grand over the 5 year course of the loan. I had the cash and the only reason I was considering going finance, was to get credit rating - which is a joke, these days banks are falling over each other to give you money. The dealer looked quite despondent when I decided to pay cash :D