Whats up guys,
I recently purchased a motorcycle from a large dealer here in chicago (chicago cycle). The finance guy set me up with this "revolving account" , and he told me that if i made a 200 dollar payment on my "loan", that the bike would be paid off in 5 years (prinicpal amount is 11,800). I just got my billing statment for this monh, after having made the first payment of $200, and i was suprised to see my new balance was $11920.50 .... ????? So i call HSBC, the "loan company', and the representative explaines to me that my account has intrest applied to it monthly, based on the "daily average account balance". this 30 day biling cycle's finance charges amount ...... $156.00!!! i asked the lady if this was right, and she explained to me this amount will stay pretty much the same till i drop the account balance signifigantly. So i will pretty much be stuck paying these astrinomical intrest rates for the remainder of this "laon", to wich there seems to be no end. If i make $200 payments everymonth, i have estimated the bike wont be paid off for about 14 years. My question to you all is : do i have any recource i can take with the dealership? Although I was verbally explained that this bike would be paid off in 5 years, im sure the paperwork was all valid. What would you all suggest? Sorry for the longwinded post, but i am a little upset that if i really make the 200 dollar payment, my new gsxr will cost me 20k+

 

I don't think there is anything you can do.
I was going to finance a bike through the dealer with HSBC and they were going to do the same to me.
The dealer said my bike payments would only be $149 a month for 60months. They were not including the interest in it, thank god I realized that before I signed anything.

Sorry to hear, best thing is put as much as possible to the principal as soon as you pay the interest anything over that for the month knocks the principal down

maybe you can take a personal loan out for that amount to pay it off

 

If you had read the fine print, you would have realized that you bought your bike on what amounts to a credit card.

 

hahahaha... Revolving debt Owns

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Jasper_db1 &raquo;</TD></TR><TR><TD CLASS="quote">If you had read the fine print, you would have realized that you bought your bike on what amounts to a credit card.</TD></TR></TABLE>

That's funny you mention that, I went through a financial application and qualified, I wasn't planning on buying a bike, just seeing how much I would get approved for. They ended up sending me an actual credit card worth that amount to buy the bike with, with 17.9% interest...I'm glad I'm no sucker

But sorry OP, that is a shitty situation...you wouldn't happen to still be in school would you? It'd be great if you could take out a deferred school loan and pay all or most of it off

 

you might be better off trying to get a personal loan from your bank to pay the off then just make payment on the personal loan. i got f'ed over like that and thats how i did it although youd have to put your car down on the laon or your house if you own it

 

LMAO, sucks you got pwn3d. Go to your bank and try to get a line of credit or something to pay off that "loan." Sounds like they bent you over without any lube when you turned around. Be more careful about what you sign in the future.

 

HSBC is the worst! I had a friend get screwed when he bought a Kawasaki. I had problems with them with a Credit Card I used to have.

I would get a loan and pay off that account sooner than later.

This is why I paid for the Duc' in cash....I just really I could do it for my house!

Even with a low interest, the banks are still making an absolute killing over the 30 years!

 

Don't finance with the intent of making minimum payments on toys... yea HSBC is shitty but either pay cash or make a huge down payment + huge monthly payments so interest doesn't matter. If you can't manage that then you should look at cheaper used bikes.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Chris y0! &raquo;</TD></TR><TR><TD CLASS="quote">should look at cheaper used bikes.</TD></TR></TABLE>

in reality, getting a loan on anything that will only depreciate is a bad idea. house, school loans, business loans, these are examples of good credit. cars, bikes, cash advances are all bad credit. if you want to build credit, buy stuff with your credit card and pay for it imediatly before any interest builds on it. hope you get out of this ok and learn from it, as well as others learning from it. for anyone thinking of getting a loan for a bike, remember just because you can afford the payments doesnt mean it will be good for you in the long run, you will end up spending a few thousand over the value of your bike.

 

refinance

 

I bought my VFR through the Honda dealership financing place, which was through HSBC. They totally were trying to screw me on interest(20%), etc...I didn't care because the next day I had my credit union refinance and had them take over the loan. Dropped interest to 6.5%, 50 bucks less a month, and a year off of payments!!!

Just go to your credit union and refinance. Get the 10 day payoff amount from HSBC and your lender will do the rest. NEVER finance through a dealership!

 

It may not be as hopeless as you think. If you cannot refinance with a bank or otherwise, go to bankrate.com, and try the amortization calculator. This will show what payment to make to effectively beat out the interest rate and assure you will pay off the bike in whatever number of years you'd like and with minimum finance charges.

I bought my bike through HSBC, only because I have a credit card with them and have had a good run with them. You just need to realize that it will take a little more money in monthly payments to stay smart and prevent you from paying too much in the end.

Hope this helps.

 

I was in the same shithole as you before. HSBC is worts. I transferd all my loan to my personal bank credit. i went to 17.9 % to 4.0%. just do that if you can or see if you can get a personal loan. good luck

 

To banks and credit unions, bikes are seen as a luxury item and so the interest is always higher than a personal loan. The dealership I bought my bike from required that I have a credit score of above 750 before they could approve me for any type of financing???

So instead of dealing with all that crap, I used my equity line of credit and paid it off in a year.

I would try to lower the interest and pay as much as you can afford every month until its paid.

 

So... you're complaining because you didnt read the financing terms before you signed on the bike?

Good joaerb.

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by NathanielH &raquo;</TD></TR><TR><TD CLASS="quote">my new gsxr</TD></TR></TABLE>

Heh.

 

Like others have said, you're going to have to get a new loan to pay off the credit card the dealer gave you. For the future, revolving credit lines are a bad idea, unless you make a decent paycheck and/or are a responsible spender.

 

If none of that works he could always sell the bike

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by leeminho86 &raquo;</TD></TR><TR><TD CLASS="quote">If none of that works he could always sell the bike </TD></TR></TABLE>

He'd be out a few grand. That would suck.

Try to get a different loan.

 

I'm sorry dude, but you just got owned.

 

Thankyou mike5809, evs-one, pheonix 1, and eclipsom 66 for your helpfull posts. sorry if i forgot anyone else. I will defnitly look into your sugestions. I am also going to go over to the dealership and see if they can work with me at all. Ill keep you guys posted on what i end up doing
<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by .RJ &raquo;</TD></TR><TR><TD CLASS="quote">So... you're complaining because you didnt read the financing terms before you signed on the bike?

Good joaerb.

Heh.

</TD></TR></TABLE>
No ********, Im asking for peoples help with the crappy situation im in. Although i could have definitly prevented this by reading the contract more thoroughly, i didnt. I trusted that this huge dealership would be straight up and honest with me, and i was obvisously completley wrong, i was flatout lied to. I guess these days you cant trust people as much. And im sorry, but im not quite sure what is funny about the fact I chose to get a gsx-r. Because it is the "squid bike" of choice? well im not a squid, i weat proper protective gear, and I ride responcibly.

 

Unfortunately, dealerships are always on commission, including the finance guys, the more they rape you the more they make. They only give good deals to repeat customers and their friends.