Bike on credit card?

Sabs · 12-29-2004, 12:29 AM

I'm looking to buy a bike within the next few months. I plan to have only liability and comp on the bike, as the insurance rates are about 65% more if I add collision coverage.

So far from the local banks I've checked out, my options are:
1) Auto loan, full coverage required - 6.5% interest
2) Title loan using car title, insurance req. - 6.5%
3) Unsecured personal loan - 16-18%

I can't really do a title loan as I don't insure my car in the winter (stored) and may sell it while the loan is being paid off. A personal loan would be good, but the interest is terrible.

I've never had a credit card, but should have good credit as I've paid off 2 car loans and one school loan. I'm looking to borrow about $4000. Would putting the bike on a credit card be worthwhile? I'd probably be able to pay it off in 2 years or less. I'm also not sure where I should go to look for a card with low interest rates, anywhere you recommend applying online?

Spike · 12-29-2004, 12:35 AM

Even if you've got good credit the rate on your credit card would probably still be no better than like 12-14% So think about that before you do anything.

ten31 · 12-29-2004, 02:02 AM

yamaha had a deal where i got my new r6 on their credit card for 9.99% but the first two years i only pay 39 a month. after that im gonna get one of those cards where its 0% on balance transfer. thats how you go with the card.

Spike · 12-29-2004, 02:12 AM

ten does have a good point. My GF gets offers all the damn time for 0% on balance transfers.... seems like a good idea.

N-Ish · 12-29-2004, 02:31 AM

http://www.creditcards.com to find one that fits your needs

lilxboi · 12-29-2004, 02:56 AM

If you can get credit lines for more than 4 grand you should be able to keep transferring balances to new credit cards with 0% apr. My capital one is 8% apr. Thats the lowest I have. I never do payments where I have to pay interest.

If you do keep transferring balances, go for cards that offer the 0% for a year. You can cancel the card after that but if you want a new card from the same bank, it may take awhile.

mike_3sick6 · 12-29-2004, 06:22 AM

I bought my bikes on a CC. Basically, I got a CC and took a cash option for about $4,800. 0% for a year, and currently I am on the second 0% offer for another year.

I think if you can make more than the minimum and trust yourself to try and pay it off ASAP, then its a great idea. Even though I have good credit, a loan is hard to get if you are young.. and saying its for a motorcycle also doesnt help (through my bank atleast).

ZX10 Guy · 12-29-2004, 07:05 AM

A couple of options. I think Kawasaki is still running their 3.99% promo for 3 years. If you keep your purchase under $10k, you are only required to carry liability. Also the minimum payments will only be $39. It's $49 or $79 a month (can't remember now) if you go over $10k. I have my ZX-10 under this plan as I didn't feel like farting around with constantly looking for low rate offers to transfer my bike onto. The rate is low enough where any interest I pay on it isn't going to kill me.

Credit card wise, there are lots of promotions out there. I have two credit cards right now that both offer 0% on both purchases and balance transfers. One of them even waves the balance transfer fee so it is truely a zero cost promotion. I don't know how they expect to make any money off of me as I always pay off these things before they are due. I'm actually thinking about taking some money out of the card to put into some investments.

makerm · 12-29-2004, 08:44 AM

keep in mind that with most loans it is a simple interest loan and the interest is already worked into your payments. with a credit card, your interest accrues daily. if you have a 0% interest rate, most cards will jack up your rate to 18%+ if you default just one time on your payment. as was mentioned before, if you are disciplined enough to make payments every month and can budget yourself to get it payed off ASAP, go for it.

chillwill · 12-29-2004, 09:01 AM

Yeah, if you do get a credit card get one of the big 4 credit cards although the 6.5% interest rate you said earlier doesn't sound like a bad idea but that probably means you're going to have to get full coverage on your insurance.

chesus · 12-29-2004, 12:14 PM

i was told by someone that using a creditcard to buy high dollar item like a bike is a bad idea because it has compound interest. i cant even get one of the big4's creditcard deals because i guess i dont have enough credit history... 1 creditcard, $20000 car loan (paid off), student loan... i hate money

Drifter · 12-29-2004, 12:26 PM

Make sure you read the fine print on whatever credit line you choose. If you go with a credit card you should be aware that there are many tricks the credit company can perform on you. Don't take this for gospel because it was over the Thanksgiving holiday when I watched it, but there was a 60-Minutes presentation on credit card debt and one of the folks interviewed noted that credit card companies can automatically jack up your interest rate to obscene levels if they find out that you defaulted on or were late with a/any type of loan payment in your past - up to 5 or 7 years in your past, I believe. According to the individual, this can be done well after you've signed up for the card and made all of your payments on or ahead of time and for the value of the required monthly payment or more. The guy cited past credit card payments, mortgage payments, tuition payments, etc as fair game for the credit company to raise your interest rate. Just make sure you read the fine print -

lilxboi · 12-29-2004, 03:14 PM

BTW, some credit cards offer either 0% or 3.9% apr for the life of the balance transfer.

fz6rider04 · 12-29-2004, 10:29 PM

Check with the dealers of the bike of your choice. They all have promotions going most of the time. They finance you through companies like retail services which is just another credit card company. Once the promotional period is over the balance just transfers to a traditional credit agreement with a higher rate. But like the other guys said, you can transfer balances at that point for lower rate cards. Also be aware that in order to get the promotional rate bumped up to the higher default rate you don't have to miss a payment you only have to be late one time and they can bump it up. So if you are going to do it this way make sure you can pay on time.

Sabs · 12-30-2004, 01:03 AM

I checked with another bank today and they'd do either a 2 or 3 year loan at 7.5% using the title of my car, even though it's stored and not insured during winters. They said it's a bit higher interest since it's for a motorcycle, but doesn't sound bad to me. I think I'll go this route... even the better credit cards seem to have a lot of stipulations. I'd hate to have a payment problem such as a check lost in the mail result in extra-high rates.