I financed my Harley because I couldn't afford to pay cash at the time, but I made sure I paid 5 times the payment each month so I paid off a 7 year loan in 2. I know I'm going to want another Harley down the road so I'm being patient and putting money in my "new Harley" fund every paycheck. 5 years from now I'll pay cash for my new ride😎.
Inflation will hit you like a brick in 5 years. Be careful
2 года назад+8
I'm Portuguese and my parents taught me from a young age that THE ONLY THING that is worth financing is real estate and that's because we couldn't just outright buy a property.
Real estate also tends to appreciate in value, while motor vehicles always depreciate. I financed my house in 1995 for 30 years. I paid it off in 2010, in 15 years. It is now worth about 5 times what I paid for it.
I bought a 2011 SG CVO with 13k miles, MINT, Vance and Hines full exhaust, a few nice accessories for $13k late fall last year. It's got brand new tires, all fresh fluids, I did the 10K service. It came with a Harley cover which it's sitting under waiting for me for a few more months. Somone else took the $20k plus hit.
Very nice! I can't believe that price! The picture of the $15000 Sportster I used in the video was literally the first one I saw on the classified page. You paid that for a CVO.
@@DifferentSpokesTV Yep, black pearl with red flake stripes. 110 Engine and lots of chrome. I wasn't really looking to buy but when you find a "divorce special", you have to jump on it. I only got 3 days of riding before the salt trucks started and I had to put her in storage. 6 months of winter...
Nice deal, but... when something goes to hell with it (and it will, because it IS a Harley) you also have no warranty, and a bike for which many parts are obsolete. Your only saving grace is that Harleys break so often they have the most extensive after-market parts supply chain in the world... but it won't be cheap.
@@dalekidd420 BS...you're spewing a bunch of garbage...this isn't my first Harley and I've had nothing but great reliablity from them. Most people don't pay for their PM, they think an oil change is all that's needed. Anyhoo...I do all my own work, Harley's don't scare me. It's the Simps that need to worry.
@@naps3386 exactly. I see this a lot and it’s it’s just ignorance sprouted from what they heard other people say about HD or from someone who’s never even owned one. It comes from their AMF days but that was 50 years ago. Modern HDs are extremely reliable especially if you do regular maintenance (which all vehicles need) and it’ll last forever. There’s a guy who bought a 2021 HD and road 100 thousand miles last year around the US for a charity run and the bike was rock solid on his journey.
Excellent video my friend. I just love your channel because you always tell it like it is. I was lucky in life because I had parent's that preached all the thing's that you talked about regarding finance's. And today @ 70y.o., I want for nothing. Keep those video's rolling & many thank's for giving of your time to us. Have a great day!!
I needed this video…I wanna buy a new bike so bad but I know I don’t really need it..I am a year and a half ahead on my payments on my heritage and know I can pay it off at least a year early. Thanks
Subscribing to this channel was one of the best things I ever did as a biker. Boy, if this excellent video doesn't open some eyes, nothing will. Bravo brother on presenting the facts in an easy-to-understand and truthful manner.
Just bought a Indian Chieftain with cash . Saved for 5 years. It takes extreme discipline and it is not for everybody but how I see it is, if you ready want it you will work hard to get it and you appreciate that much more when you succeed. Added benefit is you wont find yourself 3 or 4 years down the road paying $600 a month for something that is out of date.
Great video!! Thanks for making all this so crystal clear. It would be nice to see a comparison between different motorcycle dealers/brands to find out if it is only H-D which charges 6.9% or if this is a general rule when buying a brandnew motorbike at an official dealer. As a comparison, my wife and I bought a new car some time ago and financed a part of its cost with a loan from the dealer at 3.45%. Although this is not nothing, it is half of what H-D charges.
@ja la Shorter term financing through Yamaha (and I assume the rest of the big 4) is typically 2%, 3%, 4% over 2-4 years. My Tenere 700 is financed at 4%, for example, with a decent down payment so $10k CAD financed. In the end the financing is costing me some $2500 over the purchase price. I accept this, as there really wasn't a good option short of just not having the bike (or any comparable bike really, as the used market is absurd here). Yeah, it's still debt, and yeah, it's costing me $2500 more. But it's TONS of fun, and gets ridden daily as primary transportation. One can definitely make better choices when financing than a 30000+ bike at 7%!!
I financed a new car this past September from Kia. It was $35,000 after tax, but I paid $20,000 upfront, so only financed $15,000. They gave me a 1% finance deal over 60 months. I really lucked out on that one. Even though I have now saved up enough money that I can now pay off the remaining amount, I won't, as the total cost to borrow over the 5 years is only $370. I'd rather just hold on to my money at that point. I have seen some motorcycle companies also offer lower financing rates for shorter terms also, some even as low as 1% also if you do a 1 or 2 year term.
First bike I had was an Iron 833 and as a 20 year old at the time couldn’t afford to pay all cash but I wanted something new. I live in the US and my Credit was around 745 at the time so maybe that’s why but I financed it for 4 years at 3.45% APR and paid it off in 3 years. Granted I also had an extremely good relationship with the people who sold me the bike. I think if they try to sell you a new bike over 5% either save up for a bigger down payment or just go somewhere else as there are places who’ll give you a good deal. I know some people like to avoid dealerships but having a good relationship with at least one means you’ll always have a reliable place that’ll treat you like family and not as another customer.
Here in the UK most people PCP bikes - ie. they never own them just rent them then give them back after 3 years. This makes the payments lower and traps even more people into getting bikes they don’t need with money they don’t have to impress people they don’t know.
I only finance with fixed interest my car was 18% that way the number the dealership give you is what you pay no compounding. It’s still more expensive then just paying it full but no surprise pay more and your interest doesn’t go to the dealership or manufacture it goes to the financier
2 года назад
Bought a 2014 FLHTK used with 11000 miles for 12 grand with true duals and stage 1 ..through the credit union at 2 percent
I always tell people save up enough for a down payment around 20% and especially never go over 400 dollars (US) a month in a loan for more than 60 months if you can. If it takes a long time to save then be patient. When it’s time to buy you’ll thank yourself for waiting especially if you financed it for only 3-4 years for less than 5% APR.
everyone should know borrowing money costs a lot of extra money... but life is short, and you don't take money with you. If you want to enjoy yourself now, do what you want and have fun.
Just bought, and financed a new HD Street Glide thru HD. I’m in the states. I got .99% @ 60 months. I traded in a bike, so I had some equity. But my payment over 5 years is $406 a month. By my math and googles auto loan calculator, I’ll be paying just over $600 over the 60 months. To me - that’s basically free money. Free’s up my liquid funds for other things. Just my two cents. Love the videos. Keep ‘em coming.
Lots of money for a bike that can only be used on asphalt and can't even split lanes, has braking distance of a train and not cheap to maintain either.
Don’t forget to add in the depreciation after the 6 years of payments are done. Harley resell is pretty good but their are thousands out their other people are selling also.
The dealer really tries to put the screws to you when you choose to buy. I made the decision to trade in my 2007 Softail Standard Custom for a 2016 Road Glide Special in 2017. My Softail had been paid off a few years before and it was just time for an upgrade. The Road Glide only had 1,000 miles on it and someone had obviously just traded it in on a new Milwaukee Eight when they first came out. I rode it, liked it, and agreed to trade in my Softail. They tried to push a leftover 2016 with the silly ghost flames on the fairing and tank because "it really helps us to sell new bikes, we can requsition more!" I said "those flames are the reason it's a leftover." They agreed with me. I then said I was only willing to buy the bike I test rode. They offered me $6,500 for my Softail. I said can't you give me $7,500 for it? They agreed. I then broke out my check book and was poised to write them a check for the Road Glide. They weren't used to that. They said "it would really help us if you financed it! It helps us get more new bikes in the inventory!" I said fine, but I was just going to make the first payment and pay it off in full. That's exactly what I did. It's the last Harley I'll buy. Buying outright, gave me the overhead to customize it the way I want over the years that I've owned it.
Harley sold motorcycles basically to anybody with a pulse. They are drowning in repossessions and are trying to sell off $10, 000 Lots of loans to investors. They don't want to get stuck with these motorcycles when the owner decides a month to play Boom Boom at bike night once a month is it worth it anymore. I know Banks and credit unions that 30 years ago stopped making loans for Harleys. The credit union I used to use had nine beautiful brand new Harleys in their Lobby. They looked almost like a motorcycle shop in the old days.
Hmmm... You should finance it for the lowest purchase price that INCLUDES their "special financing" as part of the deal. This may include 0% and/or tax paid by the dealer. WHY SHOULD YOU USE FINANCE as part of your deal? It's because you have the BEST POSSIBLE leverage on the deal IF the dealer gets a back-end deal from the bank on closing your loan!!! Thus, leaving you the best leverage at negotiation. The dealer gets kickback from the banking too, and you should not wipe that off the table. You're more than welcome to pay off the bike with cash after you secure the financing deal and/or refi with a credit union for lower payments and THEN add as much as you want towards principal to pay off faster. USE CREDIT to YOUR ADVANTAGE. I believe Kiyosaki preaches buying using credit (aka other peoples' money)! I paid $23,608 OTD for a brand new HD Street Glide Special w/RDS using this tactic. My bike sells for $31k+. Play THEIR game to your advantage. I did it for a Ford Ranger with $9k off sticker price doing the same technique. But what I know... i'm just a chick.
I almost made the mistake in my early 20’s when I walked into the HD dealership. Before I knew it I was sitting at the desk having my credit ran. The saleswoman clearly knew a poor college kid couldn’t afford a new Fat Bob, but she didn’t care. Super glad I walked out on my feet and not on two wheels.
@Adrian T you think its her responsibility to not sell you something you want because it may cause financial stress on you? its not her responsibility, its yours, she is doing her job
4 years ago I bought a '17 883. It was my first new vehicle. I was charged with 17% interest rate. I had no idea what I was doing. Still got the bike 4 years later and 50k miles on the odom. Piston just blew though which sucks a lot and I still am making payments cause im a poor son of a bitch.
this is the idea of all loans and it started with home loans and when a model works.... better than that i love that people have insurance on their f$%kin toaster. that said im paying a bike off on a loan but i bought the bike second handat the right price so even when im done with the note the bike will still be worth the price plus interest i paid.. ill never recoupe the insurance.but thisvis what keeps us at our shity jobs for 40 years.
Hear me out please. I think it depends on your age and the price of the bike. I'm 64 and decided it's time to ride (again); I have a paid for car, no bike, a $20k fixed income (no revolving debt) but I don't have time to save for years to pay cash. I'm also not buying a $45K bike, just 7K and for about 36 months max (24 is ideal). So, I don't mind paying a few bucks a month in interest, because I get to ride today. I might not live long enough to save 7K cash, let's just be real about this. So I ride, or I don't. Those are the choices. If I wait till I'm 70 to pay cash, then I have robbed myself of 6 years of riding, if I even live that long. I am super fit and a gym rat, but I will age faster in my years now, no matter how long I spend in the gym. I am also not disciplined enough to save that kind of cash without dipping into it here and there. On the other hand, if I have a payment obligation, I will not miss it and I will over pay it every month as well, like I did with my car (6.25% interest for 6 years, but paid early). Even though interest rates have soared since this video, even a 10% loan today would be acceptable. Even at 36 months, financing 6K (1K down), I'd be paying less $200 a month, less than $1,000 in total interest, and for me to be able to ride those 3 financing years is worth $40 a month or whatever that interest averages out to be. I realize I am not including all the non-disclosed fees in my calculations, so that will eat my down payment. Also, I'm more of a forever type guy. I bought my car new, have kept it looking new for 7 years (I'm also an auto detailer), it has less than 65K miles and I'm keeping it forever. I don't want to buy Rebel 300 and upgrade later. I want a Kawasaki S 650, I don't want anything smaller or larger (I'm 5,11, 150#). I will keep it as my forever bike and I will not change my mind, just as I have not with my little 2017 Nissan Sentra. Why should I change my car? It goes from 0-60 in about 6 months, I had to change out the AM/FM with a head unit, Nissan replaced the transmission under warranty, now I'm installing USB ports all over. Why would I want to replace it? I own it; it's free! My car is not impressive, nor do I need it to be (although it does look new). Same with my future bike; once it's mine, I'm keeping it. So, like my car, I must finance a bike, but also like my car, I'm going to buy the bike I want and I'm going to stick with it. If I were younger, all of this would be moot; of course I would upgrade it. But that's not my situation and I just want to ride it around town mostly and not for work. Financing for me, is in my case, the only logical option, if I want to ride while I still can. For the hypothetical guy buying the $45K bike, I wouldn't know how cash could be an option; I was never financially comfortable.There are houses that sell in my town for that. People generally pay twice the price (and more) for their homes when they finance them. At least financing a Vulcan 650 for a few years doesn't remotely compare to that and given inflation, if I do sell it in 10 or 15 years when I can't ride anymore, I'll probably get back every dollar I paid for it including the interest! I'm debt free because I pay cash for everything; the same reason I don't have cash laying around for a bike, although I do have typical expenses like everyone else. Houses, cars and bikes are a little different. People usually save for down payments, rather than the entire amount, which is irrelevant how much that is if you can't buy it now. Financing is a trap, but sometimes is a life-line as well. Since you've financed yourself, no one need know why you did, because we are all mostly the same. I have enough monthly income to pay for a bike, but only barely, so buying a new bike is more expensive at first, but at least during the warranty period, I should not have any unexpected problems that I might have if I spent less money and bought a used one that could potentially cost more in the long run. The video does give us a moment to take a breath and think hard about things. Without repeating myself, I have given great thought to financing a bike. My reasons are, in my opinion justified, logical and solid for my situation. I will pay a little more, but it is not a surprise, I'm not being screwed, and is a mandatory condition of owning a bike now, rather than maybe never, and a responsibility I accept.
Completely off topic, thumbnail on this video is so similar to the last one (HD launch...) it made me skip this one while scrolling down my feed thinking I've already seen it... 😐
I've got a new bike sitting at the dealership now I haven't picked up and am in no hurry with 2' of snow on the ground but been debating on paying for it in whole or leaving that $ in savings and financing apr% at my credit Union is just 2-2.49%% yes you pay interest but there is more to it you can invest the cash instead or just the safety net of it sitting in the bank ?? I would never ride or drive a newer vehicle worth decent $$ without full coverage insurance either way
Facts. I financed my last new bike in 2007, paid it off early but I will never make that mistake again. It really helps to have a life partner on board that supports smart money decisions.
I went with Option 1, myself. I saved my shekels and went without, put down the deposit, and paid off my bike the day it arrived in the shop. Is it a Harley? No, it's a Honda. But, it's MY Honda (there are many like it, but this one is mine).
Touchy subject. I agree with you though. Took me 4 years to save the needed money for a Street Triple R. But finally pulled the trigger and reserved one to be delivered in August this year. (Supply issues and all that buzz) Would have been easier to take a loan, but took me years to clean my debt, even with the banks bothering constantly to re finance the whole ordeal. That was a solid test of endurance. Shit's hard yo.
Digging the content! And it’s nice seeing you! I got to say from a long time listener I kind of had the radio personality made up look thing going on with you. You know they always say that people look different than you think they sound not bad not good I don’t care but Lol anyway it’s good seeing you and please keep up the greatness!
I don't care who makes it. A bike should not cost $36k, $43k, $56k and definitely not $77k. This is ridiculous. Last year, I got me a $7k brand new Honda because that was the most I could afford in cash. You should also do a video on the cost of repairs. For example, I had a minor accident with that $7k Honda, and it cost me $2.2k to fix the front wheel rim and replace the forks. I can't imagine what the cost would be for a Harley.
I'm in Canada as well (Winnipeg). Just purchased a new Yamaha 2021 MT-09 SP. No upselling from the dealer but I already knew the accessories I wanted and ordered them. Financed through Yamaha Canada was only 2.99% over 36 moths, I think that's a reasonable rate. Interest for the 3 years about $750. or $250 per year.
Financing isn’t something I think people should always avoid but it’s definitely not something to abuse. That’s an awesome rate honestly and if you can afford it comfortably then that’s great. It’s when people abuse it like an old coworker of mine who wanted a brand new Ram TRX no matter what so he took out an 84month loan at 12.5% for 1,300 US dollars a month!! Like that’s just insane. Yes he made the payments but I would never touch that if it was on a different planet.
There are so many reasons I did not buy a Harley as and older rider (57) when I finally decided to buy a bike. As a person who lives in the state of the vaunted Sturgis Motorcycle rally there has always been a desire to own one until the day when I actually decided to pull the metaphorical trigger. First, I travel a lot for my job and have watched every late July into and through the month of August when the folks from around the world would descend upon our lovely state. What occurred to me over the years that the rally had devolved from real bikers wanting to have a big ole party to the wealthy and wealthier coming to our humble state to measure their (insert your own adjective here) against their neighbors and flex the size of their motor coach for a week or so. In the last 10 years the bikers are more and more wealthy and their hair is whiter and whiter. More and more Harleys bikes became trikes and it started to feel kind of pathetic to be honest. I always asked myself as a returning rider ( hadn't ridden since high school) what the heck do I want with a 700 lb+ behemoth when I can have something light and flickable that won't get me killed trying to make the curves of of the beautiful Black HIlls of South Dakota. But I digress. I bought a Triumph Speed Twin which was one of the best decisions I made. Sturgis is reinventing itself and you are starting to see younger bikers on lighter, less costly rides. Its been a slow transition but Harley and Indian are begrudgingly starting to produce bikes that don't weigh more than a bus and don't cost $30 G (well at least Indian has - Harley has not gotten that memo yet). Sorry for the long rant but your video resonated with me. I too have made every financial mistake a person could make when I was young. I wasn't about to make the same mistake again just to measure my (insert your own adjectives here). Peace.
I am a returning rider too. I owned duel sport bikes as a teen and am trading up to one in a month or so. I rode a 1970 Yamaha CT175 and later a 1984 XR350R. At 65 and retired i'm looking forward to trading this CB300F for a dual sport. I would not want anything i would not be able to pick up when dropped.
Yeah, the sad reality is that shifting demographics will eventually really limit cruiser sales. Meanwhile you have a sweet looking standard that looks classic, sounds awesome and can slay the twisties.
Good video. All true. I worked at a dealership. Dealer fees can go between 700-1200 and all they do is unload the bike, attach mirrors and put it in the showroom. In my opinion paying 20k and up for two wheels is crazy. Again, good video. About time someone lays this out.
$50K for a fucking motorcycle!! Harley has turned into another American myth-and Indian too. Actually so has GM, Ford and Chrysler-whatever. It's all become too surreal. Bikes used to be just fun, if they don't have the latest TFT, ABS, Traction control or any other electronic devices they're obsolete. My "old" 2003 Z1000 was the last of the "honest" motorcycles. Or the early Hayabusas. If it's supposed to be a "working man's motorcycle" It doesn't need to be much bigger than any Japanese 350. And it'll be just fun to ride. However, if you think to go touring, you need a Goldwing sized bike, watch Itchy Boots to see how tough you are.
I agree with every damn thing you said. BUT... Answer me this: if you had followed your own advice, would you even be RIDING motorcycles today? (Much less making RUclips videos about them?) Chances are you financed every bike you've owned with the possible exception of your first (most likely a pretty cheap used bike), and MAYBE your most recent (now that you can afford to pay up front). So you KNOW that, in order to progress as a motorcyclist, if you HADN'T borrowed, you'd have stagnated... because by the time you managed, over maybe six or seven years, to actually save up the money to buy the bike you really wanted (which would have been discontinued the same year you were finally ready to buy it anyway!), you'd have probably already given up riding because that Rebel 250 starter bike just wasn't keeping you interested anymore! THAT is why the middle class so willingly take on the debt load that strangles them. Saving up for the things we want (or even NEED) simply takes too long. And most of us... ESPECIALLY those over 50... recognize that none of us are guaranteed even TOMORROW, much less another six years. If I want a new bike, I'd kinda like to have it BEFORE it becomes something that I'll be leaving to someone in my will. Besides, let's be honest... if we DIDN'T finance things, not only would most of us own damn little, but most of the companies actually making the things we want so much would be OUT OF BUSINESS. Without the profits from financing, coupled with the drop in demand, Harley-Davidson would have been DEAD years ago, and so would most, if not ALL, motorcycle companies, boat companies, camper companies, and hell, probably even the big three auto manufacturers!!! None of them can afford to sell only to the rich, to businesses, and to governments; it's just not a big enough market to be sustainable.
So far, I've only financed one bike and the experience was... enlightening. Thanks for the video. Like you said, it's the kind of information that was hard to come by some years ago, and even today you can hardly find anyone being so enfatic about how much of a bad deal it is to finance this kind of assets. Keep up the good work!
I financed a motorcycle years ago..I paid it off in 12 months..i saw what I paid in Interest..NEVER again it's not worth it..plus you can find tonnes of Used motorcycles for sale and save Thousands.... Motorcycles are way too expensive and not worth a Investment..oh..Harley Davidson is not a good brand in my opinion..oh hey great channel keep it up
That's a really ugly bike. All of those cruiser bikes are in so ugly. Anything with dual saddlebags. Harley's, Honda Goldwings, etc... No bike should weigh a thousand pounds. And look like a recliner on wheels.
Thank you smart person, i love this channel because it is one of the very little channels that are straight forward!! I bought in 2019 XL1200T because i could not afford the Road King, unfortunately i did not study enough to become a dentist and finance it with my bank, it cost me 600 euro over the purchase price. Harley gave me 950 euro discount + backrest after a good fight. So it was fair financing even interesting one. However financing is not that bad if done smartly. One should not get caught in financing everything and all what he wishes. It goes like everything in life when done with exaggeration it turn bad.
I needed to finance my bike.... I probably could have just bought it, but I needed a recent bit of credit for other, more important purchases (property, home, etc.) I hadn't had anything on my credit report in 25 years lol
You are correct about some stuff but incorrect about some other things when it comes to financing. Just because people have the money to buy it outright doesn’t mean it’s smart to do so! If my money is in a money management fund I can earn up to 10% interest a year on my money. Currently interest rates on new bikes could be under 2% which means I’m earning 8% on the money I didn’t use to buy the bike. So you’re wrong that it’s better to buy the bike outright if interest rates are low. It’s also dumb to pay off your house if you have a low interest mortgage and can instead put that money in your funds! The caveat is that if you do not have the discipline to invest that money then you should pay off your debt!
Grandslam! It's true what you're saying and noting. If you can afford it get but if it's gonna put a dent in your budget don't. Peace of mind is also peace in the wallet. Great video! Hasta luego!
Wife and i did just this last Saturday at Zips Harley Davidson. Also with a softail trade in and a sportster trade in. Payment still at just under $500.00 We didnt go with it. gonna wait until we have the cash plus going to buy it used and save 10k right off the bat. dont need a free shirt
I was a salesmanager of a BMW and Triumph shop for a couple years. Yes many customers did pay cash but more often than not most financed at 3 to 4% but they surprise for many how lousy some doctors and lawyers credit histories were. Quite a few did not qualify for credit at all.
This shouldn’t be anything new to people but it’s great that you’re throwing it out there. I read Roberts book when I was in college because here in the US they don’t teach personal finance in school. Not a conspiracy guy but the rich get richer by keeping us dumb. As an engineer and no kids I probably am in a better financial position than most but it would be tough for me to justify and pay for a 30k bike….so I don’t. Personally, I’d never buy a new Harley. There are tons of used Harleys that these drs and accountants bought that have been washed more times than ridden. Bonus, they also bought every after market accessory that translate to pennies on the dollar in an asking price for a used bike. Pretty amazing stat that 40% of HD income comes from interest!
Have owned over 25 motorcycles paid cash for all of them, only way to go, as my mates old dad would say there are too many people shitting above their arshole
Tried to give you a bunch of thumbs up for this video but it only allowed me to give one . . . LOL. I always had some common sense awareness of all this and in fact never financed anything in my entire life precisely because of it. But I had never actually done the number crunching. Thank you for sharing the 'devil in the details' ! I've always bought bikes used and cash . . . including once from a multi brand reseller just East of Toronto (hint hint) for a price that bested all the private sellers' prices I had looked at in the preceding several months . . . and with all the benefits that come from that to boot ! Sure, buying used privately takes more time and it's more leg work but the savings can be huge and you actually have a better chance of finding a really special, unique machine. A hundred thumbs up from me !
Great video! Truthful and yes a little painful. You are quickly becoming my fav MC channel on youtube. You have a good channel going here and I appreciate your efforts.
Been riding for over 45 years. I always bought inexpensive new bikes. Never worried about keeping up with the Joneses since I will never be in that snack bracket. Current bike is a Honda VTX 1300S and it’s 15 years old with only 20, 000 Kliks on the clock. Broken in nicely. At that price point, all the bugs in your face sting the same. The same dust accumulates in your hair. It’s all good! Now get out and ride!! Oh poop, it’s winter….ha ha ha keep trickle charging your battery. Ha hahaha Peace Be The Journey!
Option 4. Don’t buy a motorcycle. Motorcycles in general are luxury items and not a necessity. Buying a lesser expensive motorcycle and then spending thousands on accessories and even more valuable than money your time in accessorizing your machine. Financial advice. Don’t spend money on expensive things that don’t make money or aren’t a necessity.
Don't buy a car, most people could ride a 150cc scooter for most of their trips. Most of my friends stay poor buying cars that they cannot afford through finance. I ride a honda vfr800 and a 150cc scooter
I thought if I ever come to a dealer and say "I pay cash" I would be warmly welcome! Apparently I was wrong. Thank you for this video, I was not aware of many of those things.
Dealers don't want rich people, cash or excellent credit because the sale of the bike makes them little to no money. They are looking for idiots with an empty wallet and shitty credit. That's where the money is. Same goes for car dealerships.
Great video, but I'll say: there's a lot of grey in between the black and white here. Financing a $30000+ bike at 7% is pretty insane, but you can make much better choices. I mean, I financed (also CAD) $10k of my Tenere 700 through Yamaha at 4%, which will end up costing me roughly $2500 extra. Yeah, that's a big chunk of cash, but there where ZERO good middleweight adv bikes available used here, and even 20 year old KLR's and DR650s listed at $5000 when you could find them. This got me into offroad riding when I hadn't before. Sure, I could wait 4 years and save the money, and thus save $2500, but I'm in my mid-40's. I don't have a lot of good riding years left in me, particularly not for offroad riding. This is to say, financing isnt always the wrong choice, but if you are doing it, do it eyes wide open. Make them tell you the total cost of borrowing, make sure you know what you're paying. It's really easy to get rushed into a terrible contract where you're going to pay WAY more than a bike is worth, *and not even know*. I once spent $24,000 for a 2 year old offhlease Hyundai Accent that was listed at $9000 :(
I purchased a new 1976 FLH 1200 when I was 19 years old. I was working on an off shore oil platform in the Gulf of Mexico. The New Orleans Harley Davidson dealership refused to finance it so I paid cash for it. That was a mistake because whoever built the engine didn't shim the crankshaft and the engine destroyed itself in short order. The head mechanic as well as the dealership manager said I would get a new engine after Harley Davidson did an investigation so the engine was shipped off to the factory. A month later the Manager called me to tell me Harley Davidson was not going to warranty the bike because I paid cash for the bike so it wasn't coming back on them. I talked to a Lawyer and he informed me it was up to Harley Davidson to make good and if they didn't want to there was nothing that could be done and I would loose in court. I called the Manager and asked what could be done. He said not to pay cash for a Harley Davidson motorcycle. It's different today with the government forcing companies to make good on their warranty's. Personally, I never purchased, owned, or rode another Harley Davidson motorcycle. I'm 65 years old and have been purchasing and riding motorcycles my entire life. I don't feel like I missed anything by not buying and riding Harley Davidson motorcycles for all my riding year's. As for that 1976 FLH 1200, a friend found a wrecked bike with low mileage and sold me the engine out of it. I put a little over 500 miles on it just to make sure it was good and then sold the bike, and good riddance to Harley Davidson.
Yup, that´s the way the world works. Took me a while to figure out. Bought my current bike, a used Kawasaki 750 in 2012 for 20.000sek. That is 2.758 of your canadian dollars today. I´ve maintained the bike well and it was in mint condition when I bought it so I would propably get slightly more for it if I sold it today, with the way the market is right now. It has served me well for ten years now and as I´m an old geezer it will see me out as a rider. I´m turning 64 next month so the end is near. Propably still buying another bike, and selling the Kawa. But that will also be something that I can easily afford. I live in Sweden, the season is short and I don´t need a bike so I have no need of an expensive one. And I´m old enough to not give a hoot what anybody else thinks. The bike is for my pleasure, I get a kick out of riding and that is why I have a bike. And almost any bike is able to do that, deliver that kick. No need for it to be expensive. Thanks for the rant, hope it gets noticed by younger people. Wish I knew all of that earlier in life. Agree wholeheartedly with your views!
As a rule take the US price and add 25% , because of the exchange rate, to it to get the rough Canadian price. Follow the following rule. If you can't pay for it in cash you can't afford it, and if its not worth saving for you don't need it!!
So the big disclosure here is that by multiplying [actual monthly cost] by [length of loan in months], you get the real cost? If that actually needs to be pointed out, I, I, I... don't know what to say. Anyway love our channel. Keep up the good work!
Well that was brilliant! I’m a big fan of tone, and the mild self-reproach, sardonic, matter-of-fact tone here was perfectly suited to your subject matter. Liked the partial bleeps, too!
If I thought the Screaming Eagle exhaust was a better deal, I wouldn’t have bought a TBR exhaust. Never going to finance another bike; I got burned on my current bike through my own stupidity.
Here's another kick in the nuts. When you trade a vehicle in to buy a new vehicle, they make more margin or profit off your trade than they do off the new motorcycle. In many cases, they make more actual dollars from selling your trade.
Great video. I went to college for accounting and knew most of this in my early 20s. You would think that would have help me in the future, but I guess I'm the type that needs to learn from my own mistakes. After living beyond my means for many years I paid the price and am now living within my means. There are times I would like that better bike since it's my primary year round transportation, so not just a toy. I still haven't found it worth financing.
Its nice but why spend that much anyways. I mean yes of course the bikes are amazing and have so much but damn. I would rether get something that i can pay off cash or quickly then have something with all the bells and whistles and oay forevwr and so much.
I financed my Harley because I couldn't afford to pay cash at the time, but I made sure I paid 5 times the payment each month so I paid off a 7 year loan in 2. I know I'm going to want another Harley down the road so I'm being patient and putting money in my "new Harley" fund every paycheck. 5 years from now I'll pay cash for my new ride😎.
Yep use credit as a tool, and pay it off ahead of time!
Nice! That's the way to do it.
That's the best way to do it
Also, you should do it like a house... look for financing first so you know what your rates are.. I always do credit unions
Inflation will hit you like a brick in 5 years. Be careful
I'm Portuguese and my parents taught me from a young age that THE ONLY THING that is worth financing is real estate and that's because we couldn't just outright buy a property.
Real estate also tends to appreciate in value, while motor vehicles always depreciate. I financed my house in 1995 for 30 years. I paid it off in 2010, in 15 years. It is now worth about 5 times what I paid for it.
Freedom comes with a pricetag
Glad I financed my shadow.! 50 yrs old. First bike. Done paying years ago, years of riding left. 😃
I bought a 2011 SG CVO with 13k miles, MINT, Vance and Hines full exhaust, a few nice accessories for $13k late fall last year. It's got brand new tires, all fresh fluids, I did the 10K service. It came with a Harley cover which it's sitting under waiting for me for a few more months. Somone else took the $20k plus hit.
Very nice! I can't believe that price! The picture of the $15000 Sportster I used in the video was literally the first one I saw on the classified page. You paid that for a CVO.
@@DifferentSpokesTV Yep, black pearl with red flake stripes. 110 Engine and lots of chrome. I wasn't really looking to buy but when you find a "divorce special", you have to jump on it. I only got 3 days of riding before the salt trucks started and I had to put her in storage. 6 months of winter...
Nice deal, but... when something goes to hell with it (and it will, because it IS a Harley) you also have no warranty, and a bike for which many parts are obsolete. Your only saving grace is that Harleys break so often they have the most extensive after-market parts supply chain in the world... but it won't be cheap.
@@dalekidd420 BS...you're spewing a bunch of garbage...this isn't my first Harley and I've had nothing but great reliablity from them. Most people don't pay for their PM, they think an oil change is all that's needed. Anyhoo...I do all my own work, Harley's don't scare me. It's the Simps that need to worry.
@@naps3386 exactly. I see this a lot and it’s it’s just ignorance sprouted from what they heard other people say about HD or from someone who’s never even owned one. It comes from their AMF days but that was 50 years ago. Modern HDs are extremely reliable especially if you do regular maintenance (which all vehicles need) and it’ll last forever. There’s a guy who bought a 2021 HD and road 100 thousand miles last year around the US for a charity run and the bike was rock solid on his journey.
The money from the laid off workers goes to paying off interest Harley has on their own loans... smart money
Excellent video my friend. I just love your channel because you always tell it like it is. I was lucky in life because I had parent's that preached all the thing's that you talked about regarding finance's. And today @ 70y.o., I want for nothing. Keep those video's rolling & many thank's for giving of your time to us. Have a great day!!
I needed this video…I wanna buy a new bike so bad but I know I don’t really need it..I am a year and a half ahead on my payments on my heritage and know I can pay it off at least a year early. Thanks
Subscribing to this channel was one of the best things I ever did as a biker.
Boy, if this excellent video doesn't open some eyes, nothing will.
Bravo brother on presenting the facts in an easy-to-understand and truthful manner.
Excellent vidéo, those topics most be teach to everyone before the end of the high school.
So true! personal finance should a mandatory class. It'll never happen though because then big businesses won't make nearly as much money.
Spot on mate
Just bought a Indian Chieftain with cash . Saved for 5 years. It takes extreme discipline and it is not for everybody but how I see it is, if you ready want it you will work hard to get it and you appreciate that much more when you succeed. Added benefit is you wont find yourself 3 or 4 years down the road paying $600 a month for something that is out of date.
Great video!! Thanks for making all this so crystal clear.
It would be nice to see a comparison between different motorcycle dealers/brands to find out if it is only H-D which charges 6.9% or if this is a general rule when buying a brandnew motorbike at an official dealer. As a comparison, my wife and I bought a new car some time ago and financed a part of its cost with a loan from the dealer at 3.45%. Although this is not nothing, it is half of what H-D charges.
@ja la Shorter term financing through Yamaha (and I assume the rest of the big 4) is typically 2%, 3%, 4% over 2-4 years. My Tenere 700 is financed at 4%, for example, with a decent down payment so $10k CAD financed. In the end the financing is costing me some $2500 over the purchase price.
I accept this, as there really wasn't a good option short of just not having the bike (or any comparable bike really, as the used market is absurd here).
Yeah, it's still debt, and yeah, it's costing me $2500 more. But it's TONS of fun, and gets ridden daily as primary transportation.
One can definitely make better choices when financing than a 30000+ bike at 7%!!
I financed a new car this past September from Kia. It was $35,000 after tax, but I paid $20,000 upfront, so only financed $15,000. They gave me a 1% finance deal over 60 months. I really lucked out on that one. Even though I have now saved up enough money that I can now pay off the remaining amount, I won't, as the total cost to borrow over the 5 years is only $370. I'd rather just hold on to my money at that point.
I have seen some motorcycle companies also offer lower financing rates for shorter terms also, some even as low as 1% also if you do a 1 or 2 year term.
@@Gofr5 I just bought a new car and got it for .99% over 7 years. That's basically an interest free loan. Course, they wouldn't budge on the price.
First bike I had was an Iron 833 and as a 20 year old at the time couldn’t afford to pay all cash but I wanted something new. I live in the US and my Credit was around 745 at the time so maybe that’s why but I financed it for 4 years at 3.45% APR and paid it off in 3 years. Granted I also had an extremely good relationship with the people who sold me the bike. I think if they try to sell you a new bike over 5% either save up for a bigger down payment or just go somewhere else as there are places who’ll give you a good deal. I know some people like to avoid dealerships but having a good relationship with at least one means you’ll always have a reliable place that’ll treat you like family and not as another customer.
BMW practice a better financial model as fas as I know…
Here in the UK most people PCP bikes - ie. they never own them just rent them then give them back after 3 years. This makes the payments lower and traps even more people into getting bikes they don’t need with money they don’t have to impress people they don’t know.
I only finance with fixed interest my car was 18% that way the number the dealership give you is what you pay no compounding. It’s still more expensive then just paying it full but no surprise pay more and your interest doesn’t go to the dealership or manufacture it goes to the financier
Bought a 2014 FLHTK used with 11000 miles for 12 grand with true duals and stage 1 ..through the credit union at 2 percent
Great vid and wise info..I’d never finance a bike
I always tell people save up enough for a down payment around 20% and especially never go over 400 dollars (US) a month in a loan for more than 60 months if you can. If it takes a long time to save then be patient. When it’s time to buy you’ll thank yourself for waiting especially if you financed it for only 3-4 years for less than 5% APR.
everyone should know borrowing money costs a lot of extra money... but life is short, and you don't take money with you. If you want to enjoy yourself now, do what you want and have fun.
Just bought, and financed a new HD Street Glide thru HD. I’m in the states. I got .99% @ 60 months. I traded in a bike, so I had some equity. But my payment over 5 years is $406 a month. By my math and googles auto loan calculator, I’ll be paying just over $600 over the 60 months. To me - that’s basically free money. Free’s up my liquid funds for other things. Just my two cents. Love the videos. Keep ‘em coming.
Great video-
Lots of money for a bike that can only be used on asphalt and can't even split lanes, has braking distance of a train and not cheap to maintain either.
Id rather have a CRF300 Rally.
@@LTLT900 Exactly
My first bike was purchased used and with cash.
Man I wish I'd seen this twenty years ago
Don’t forget to add in the depreciation after the 6 years of payments are done. Harley resell is pretty good but their are thousands out their other people are selling also.
How do you account for the time value of money, i.e. inflation, I know it doesn't justify the 7%, but it softens the blow I'd assume
Gold, this video is gold.
Hope it gets as many views as Fortnine's video on HD. hahahaha
Thanks! Not much hope of that though.
I knew paying cash for my T7 was right:)
The dealer really tries to put the screws to you when you choose to buy. I made the decision to trade in my 2007 Softail Standard Custom for a 2016 Road Glide Special in 2017. My Softail had been paid off a few years before and it was just time for an upgrade. The Road Glide only had 1,000 miles on it and someone had obviously just traded it in on a new Milwaukee Eight when they first came out. I rode it, liked it, and agreed to trade in my Softail. They tried to push a leftover 2016 with the silly ghost flames on the fairing and tank because "it really helps us to sell new bikes, we can requsition more!" I said "those flames are the reason it's a leftover." They agreed with me. I then said I was only willing to buy the bike I test rode. They offered me $6,500 for my Softail. I said can't you give me $7,500 for it? They agreed. I then broke out my check book and was poised to write them a check for the Road Glide. They weren't used to that. They said "it would really help us if you financed it! It helps us get more new bikes in the inventory!" I said fine, but I was just going to make the first payment and pay it off in full. That's exactly what I did. It's the last Harley I'll buy. Buying outright, gave me the overhead to customize it the way I want over the years that I've owned it.
Harley sold motorcycles basically to anybody with a pulse. They are drowning in repossessions and are trying to sell off $10, 000 Lots of loans to investors. They don't want to get stuck with these motorcycles when the owner decides a month to play Boom Boom at bike night once a month is it worth it anymore. I know Banks and credit unions that 30 years ago stopped making loans for Harleys. The credit union I used to use had nine beautiful brand new Harleys in their Lobby. They looked almost like a motorcycle shop in the old days.
Hmmm... You should finance it for the lowest purchase price that INCLUDES their "special financing" as part of the deal. This may include 0% and/or tax paid by the dealer. WHY SHOULD YOU USE FINANCE as part of your deal? It's because you have the BEST POSSIBLE leverage on the deal IF the dealer gets a back-end deal from the bank on closing your loan!!! Thus, leaving you the best leverage at negotiation. The dealer gets kickback from the banking too, and you should not wipe that off the table. You're more than welcome to pay off the bike with cash after you secure the financing deal and/or refi with a credit union for lower payments and THEN add as much as you want towards principal to pay off faster. USE CREDIT to YOUR ADVANTAGE. I believe Kiyosaki preaches buying using credit (aka other peoples' money)! I paid $23,608 OTD for a brand new HD Street Glide Special w/RDS using this tactic. My bike sells for $31k+. Play THEIR game to your advantage. I did it for a Ford Ranger with $9k off sticker price doing the same technique. But what I know... i'm just a chick.
I almost made the mistake in my early 20’s when I walked into the HD dealership. Before I knew it I was sitting at the desk having my credit ran. The saleswoman clearly knew a poor college kid couldn’t afford a new Fat Bob, but she didn’t care. Super glad I walked out on my feet and not on two wheels.
Not her job to care, she is commission and doesnt care if you get it repossessed nor should she.
@Adrian T you think its her responsibility to not sell you something you want because it may cause financial stress on you? its not her responsibility, its yours, she is doing her job
4 years ago I bought a '17 883. It was my first new vehicle. I was charged with 17% interest rate. I had no idea what I was doing. Still got the bike 4 years later and 50k miles on the odom. Piston just blew though which sucks a lot and I still am making payments cause im a poor son of a bitch.
this is the idea of all loans and it started with home loans and when a model works.... better than that i love that people have insurance on their f$%kin toaster. that said im paying a bike off on a loan but i bought the bike second handat the right price so even when im done with the note the bike will still be worth the price plus interest i paid.. ill never recoupe the insurance.but thisvis what keeps us at our shity jobs for 40 years.
13% tax? I wish. We have 25% where I live
Hear me out please. I think it depends on your age and the price of the bike. I'm 64 and decided it's time to ride (again); I have a paid for car, no bike, a $20k fixed income (no revolving debt) but I don't have time to save for years to pay cash. I'm also not buying a $45K bike, just 7K and for about 36 months max (24 is ideal). So, I don't mind paying a few bucks a month in interest, because I get to ride today. I might not live long enough to save 7K cash, let's just be real about this. So I ride, or I don't. Those are the choices.
If I wait till I'm 70 to pay cash, then I have robbed myself of 6 years of riding, if I even live that long. I am super fit and a gym rat, but I will age faster in my years now, no matter how long I spend in the gym. I am also not disciplined enough to save that kind of cash without dipping into it here and there. On the other hand, if I have a payment obligation, I will not miss it and I will over pay it every month as well, like I did with my car (6.25% interest for 6 years, but paid early).
Even though interest rates have soared since this video, even a 10% loan today would be acceptable. Even at 36 months, financing 6K (1K down), I'd be paying less $200 a month, less than $1,000 in total interest, and for me to be able to ride those 3 financing years is worth $40 a month or whatever that interest averages out to be. I realize I am not including all the non-disclosed fees in my calculations, so that will eat my down payment.
Also, I'm more of a forever type guy. I bought my car new, have kept it looking new for 7 years (I'm also an auto detailer), it has less than 65K miles and I'm keeping it forever. I don't want to buy Rebel 300 and upgrade later. I want a Kawasaki S 650, I don't want anything smaller or larger (I'm 5,11, 150#). I will keep it as my forever bike and I will not change my mind, just as I have not with my little 2017 Nissan Sentra. Why should I change my car? It goes from 0-60 in about 6 months, I had to change out the AM/FM with a head unit, Nissan replaced the transmission under warranty, now I'm installing USB ports all over. Why would I want to replace it? I own it; it's free!
My car is not impressive, nor do I need it to be (although it does look new). Same with my future bike; once it's mine, I'm keeping it. So, like my car, I must finance a bike, but also like my car, I'm going to buy the bike I want and I'm going to stick with it. If I were younger, all of this would be moot; of course I would upgrade it. But that's not my situation and I just want to ride it around town mostly and not for work. Financing for me, is in my case, the only logical option, if I want to ride while I still can.
For the hypothetical guy buying the $45K bike, I wouldn't know how cash could be an option; I was never financially comfortable.There are houses that sell in my town for that. People generally pay twice the price (and more) for their homes when they finance them. At least financing a Vulcan 650 for a few years doesn't remotely compare to that and given inflation, if I do sell it in 10 or 15 years when I can't ride anymore, I'll probably get back every dollar I paid for it including the interest!
I'm debt free because I pay cash for everything; the same reason I don't have cash laying around for a bike, although I do have typical expenses like everyone else. Houses, cars and bikes are a little different. People usually save for down payments, rather than the entire amount, which is irrelevant how much that is if you can't buy it now. Financing is a trap, but sometimes is a life-line as well. Since you've financed yourself, no one need know why you did, because we are all mostly the same. I have enough monthly income to pay for a bike, but only barely, so buying a new bike is more expensive at first, but at least during the warranty period, I should not have any unexpected problems that I might have if I spent less money and bought a used one that could potentially cost more in the long run.
The video does give us a moment to take a breath and think hard about things. Without repeating myself, I have given great thought to financing a bike. My reasons are, in my opinion justified, logical and solid for my situation. I will pay a little more, but it is not a surprise, I'm not being screwed, and is a mandatory condition of owning a bike now, rather than maybe never, and a responsibility I accept.
Completely off topic, thumbnail on this video is so similar to the last one (HD launch...) it made me skip this one while scrolling down my feed thinking I've already seen it... 😐
Step one: Don't buy a shitty overpriced Harley.
I've got a new bike sitting at the dealership now I haven't picked up and am in no hurry with 2' of snow on the ground but been debating on paying for it in whole or leaving that $ in savings and financing apr% at my credit Union is just 2-2.49%% yes you pay interest but there is more to it you can invest the cash instead or just the safety net of it sitting in the bank ?? I would never ride or drive a newer vehicle worth decent $$ without full coverage insurance either way
Always read and understand any contract you sign.
I pity all you in debt. I am now retired and debt free. 😃
Facts. I financed my last new bike in 2007, paid it off early but I will never make that mistake again. It really helps to have a life partner on board that supports smart money decisions.
I went with Option 1, myself. I saved my shekels and went without, put down the deposit, and paid off my bike the day it arrived in the shop. Is it a Harley? No, it's a Honda. But, it's MY Honda (there are many like it, but this one is mine).
No toys without cash. That's been the rule since day one with my wife and I. Subsequently, I ride a Honda. lol
Good on you for sharing this.
Touchy subject.
I agree with you though.
Took me 4 years to save the needed money for a Street Triple R.
But finally pulled the trigger and reserved one to be delivered in August this year. (Supply issues and all that buzz)
Would have been easier to take a loan, but took me years to clean my debt, even with the banks bothering constantly to re finance the whole ordeal.
That was a solid test of endurance. Shit's hard yo.
That's awesome to hear. Once you've done that there's no going back to the old ways. You sleep so much better at night. Congrats on your bike!
my local Yamaha dealer now refuses to take full cash settlement on new bikes. He only wants to sell them if you take out a loan.
A Streetbob here in Australia 🇦🇺 costs $26250. A FatBoy is $36250. A RoadGlide is $41995. A RoadGlide ST is $44995. How are those darts 🎯
Digging the content! And it’s nice seeing you! I got to say from a long time listener I kind of had the radio personality made up look thing going on with you. You know they always say that people look different than you think they sound not bad not good I don’t care but Lol anyway it’s good seeing you and please keep up the greatness!
Thanks for watching! Cheers!
I don't care who makes it. A bike should not cost $36k, $43k, $56k and definitely not $77k. This is ridiculous. Last year, I got me a $7k brand new Honda because that was the most I could afford in cash. You should also do a video on the cost of repairs. For example, I had a minor accident with that $7k Honda, and it cost me $2.2k to fix the front wheel rim and replace the forks. I can't imagine what the cost would be for a Harley.
Well said
Probably be totaled by the insurance company.
Facts!!!
If you can't pay cash you can't afford it! I learned that the hard way. Will never finance again
Well done! Thanks for the Canadian view point! EH!Fellow Canadian.
What a magnificent road.
That's Old Barry's Bay road in central Ontario. They're all like that around there. It's awesome.
I'm in Canada as well (Winnipeg). Just purchased a new Yamaha 2021 MT-09 SP. No upselling from the dealer but I already knew the accessories I wanted and ordered them. Financed through Yamaha Canada was only 2.99% over 36 moths, I think that's a reasonable rate. Interest for the 3 years about $750. or $250 per year.
Thats very reasonable interest and you are also buying a bike twice as fast as a Harley in half the time.
Yeah, but an MT09 is the best hp to dollar bike you can buy, and 3% is below current inflation, so you might come out ahead. Congrats on the bike!
Lucky guy, cool bike
Financing isn’t something I think people should always avoid but it’s definitely not something to abuse. That’s an awesome rate honestly and if you can afford it comfortably then that’s great. It’s when people abuse it like an old coworker of mine who wanted a brand new Ram TRX no matter what so he took out an 84month loan at 12.5% for 1,300 US dollars a month!! Like that’s just insane. Yes he made the payments but I would never touch that if it was on a different planet.
@@DifferentSpokesTV the Z900 would like a word with you
There are so many reasons I did not buy a Harley as and older rider (57) when I finally decided to buy a bike. As a person who lives in the state of the vaunted Sturgis Motorcycle rally there has always been a desire to own one until the day when I actually decided to pull the metaphorical trigger. First, I travel a lot for my job and have watched every late July into and through the month of August when the folks from around the world would descend upon our lovely state. What occurred to me over the years that the rally had devolved from real bikers wanting to have a big ole party to the wealthy and wealthier coming to our humble state to measure their (insert your own adjective here) against their neighbors and flex the size of their motor coach for a week or so. In the last 10 years the bikers are more and more wealthy and their hair is whiter and whiter. More and more Harleys bikes became trikes and it started to feel kind of pathetic to be honest. I always asked myself as a returning rider ( hadn't ridden since high school) what the heck do I want with a 700 lb+ behemoth when I can have something light and flickable that won't get me killed trying to make the curves of of the beautiful Black HIlls of South Dakota. But I digress. I bought a Triumph Speed Twin which was one of the best decisions I made. Sturgis is reinventing itself and you are starting to see younger bikers on lighter, less costly rides. Its been a slow transition but Harley and Indian are begrudgingly starting to produce bikes that don't weigh more than a bus and don't cost $30 G (well at least Indian has - Harley has not gotten that memo yet). Sorry for the long rant but your video resonated with me. I too have made every financial mistake a person could make when I was young. I wasn't about to make the same mistake again just to measure my (insert your own adjectives here). Peace.
I am a returning rider too. I owned duel sport bikes as a teen and am trading up to one in a month or so. I rode a 1970 Yamaha CT175 and later a 1984 XR350R. At 65 and retired i'm looking forward to trading this CB300F for a dual sport. I would not want anything i would not be able to pick up when dropped.
Yeah, the sad reality is that shifting demographics will eventually really limit cruiser sales. Meanwhile you have a sweet looking standard that looks classic, sounds awesome and can slay the twisties.
Good video. All true. I worked at a dealership. Dealer fees can go between 700-1200 and all they do is unload the bike, attach mirrors and put it in the showroom. In my opinion paying 20k and up for two wheels is crazy. Again, good video. About time someone lays this out.
"Freedom doesn't come from being burden by debt" sums it up good! Thank you for a great and insightful video.
Lol truth
$50K for a fucking motorcycle!! Harley has turned into another American myth-and Indian too. Actually so has GM, Ford and Chrysler-whatever. It's all become too surreal. Bikes used to be just fun, if they don't have the latest TFT, ABS, Traction control or any other electronic devices they're obsolete. My "old" 2003 Z1000 was the last of the "honest" motorcycles. Or the early Hayabusas. If it's supposed to be a "working man's motorcycle" It doesn't need to be much bigger than any Japanese 350. And it'll be just fun to ride. However, if you think to go touring, you need a Goldwing sized bike, watch Itchy Boots to see how tough you are.
I agree with every damn thing you said.
BUT...
Answer me this: if you had followed your own advice, would you even be RIDING motorcycles today? (Much less making RUclips videos about them?) Chances are you financed every bike you've owned with the possible exception of your first (most likely a pretty cheap used bike), and MAYBE your most recent (now that you can afford to pay up front). So you KNOW that, in order to progress as a motorcyclist, if you HADN'T borrowed, you'd have stagnated... because by the time you managed, over maybe six or seven years, to actually save up the money to buy the bike you really wanted (which would have been discontinued the same year you were finally ready to buy it anyway!), you'd have probably already given up riding because that Rebel 250 starter bike just wasn't keeping you interested anymore!
THAT is why the middle class so willingly take on the debt load that strangles them. Saving up for the things we want (or even NEED) simply takes too long. And most of us... ESPECIALLY those over 50... recognize that none of us are guaranteed even TOMORROW, much less another six years. If I want a new bike, I'd kinda like to have it BEFORE it becomes something that I'll be leaving to someone in my will.
Besides, let's be honest... if we DIDN'T finance things, not only would most of us own damn little, but most of the companies actually making the things we want so much would be OUT OF BUSINESS. Without the profits from financing, coupled with the drop in demand, Harley-Davidson would have been DEAD years ago, and so would most, if not ALL, motorcycle companies, boat companies, camper companies, and hell, probably even the big three auto manufacturers!!! None of them can afford to sell only to the rich, to businesses, and to governments; it's just not a big enough market to be sustainable.
I always say the best bike you can have is the one thats paid off lol love my 2015 vulcan 900! 😁
Hilarious and true!
So far, I've only financed one bike and the experience was... enlightening.
Thanks for the video. Like you said, it's the kind of information that was hard to come by some years ago, and even today you can hardly find anyone being so enfatic about how much of a bad deal it is to finance this kind of assets.
Keep up the good work!
I financed a motorcycle years ago..I paid it off in 12 months..i saw what I paid in Interest..NEVER again it's not worth it..plus you can find tonnes of Used motorcycles for sale and save Thousands.... Motorcycles are way too expensive and not worth a Investment..oh..Harley Davidson is not a good brand in my opinion..oh hey great channel keep it up
That's a really ugly bike. All of those cruiser bikes are in so ugly. Anything with dual saddlebags. Harley's, Honda Goldwings, etc...
No bike should weigh a thousand pounds. And look like a recliner on wheels.
Thank you smart person, i love this channel because it is one of the very little channels that are straight forward!! I bought in 2019 XL1200T because i could not afford the Road King, unfortunately i did not study enough to become a dentist and finance it with my bank, it cost me 600 euro over the purchase price. Harley gave me 950 euro discount + backrest after a good fight. So it was fair financing even interesting one. However financing is not that bad if done smartly. One should not get caught in financing everything and all what he wishes. It goes like everything in life when done with exaggeration it turn bad.
I needed to finance my bike.... I probably could have just bought it, but I needed a recent bit of credit for other, more important purchases (property, home, etc.) I hadn't had anything on my credit report in 25 years lol
Thanks for the video now I will not buy the Triumph Street Scrambler but I would rather go for the Re Interceptor 650
You are correct about some stuff but incorrect about some other things when it comes to financing. Just because people have the money to buy it outright doesn’t mean it’s smart to do so! If my money is in a money management fund I can earn up to 10% interest a year on my money. Currently interest rates on new bikes could be under 2% which means I’m earning 8% on the money I didn’t use to buy the bike. So you’re wrong that it’s better to buy the bike outright if interest rates are low. It’s also dumb to pay off your house if you have a low interest mortgage and can instead put that money in your funds!
The caveat is that if you do not have the discipline to invest that money then you should pay off your debt!
54k dollars no way!!!!! What’s that? Free t-shirt?…….Where do I sign? 🤣🤣🤣
Grandslam! It's true what you're saying and noting. If you can afford it get but if it's gonna put a dent in your budget don't. Peace of mind is also peace in the wallet. Great video! Hasta luego!
When my sister was buying her starter car as a teen, the standard loan term for a basic sedan (Geo Metro) new was 24 or 36 months. Now, it's 72 or 84!
I didn't get a free T-shirt! But then again, I payed cash for mine.
Well played.😎
I payed cash for mine too. You should go back and demand a Tee!
Wife and i did just this last Saturday at Zips Harley Davidson. Also with a softail trade in and a sportster trade in. Payment still at just under $500.00 We didnt go with it. gonna wait until we have the cash plus going to buy it used and save 10k right off the bat. dont need a free shirt
Fuck financing motorcycles. If I ain't have the cash I ain't buying.
I was a salesmanager of a BMW and Triumph shop for a couple years. Yes many customers did pay cash but more often than not most financed at 3 to 4% but they surprise for many how lousy some doctors and lawyers credit histories were. Quite a few did not qualify for credit at all.
Thanks Brother I needed this video. Maybe I can find a wreck 🤔 bike and bring it back to life.
And you make those payments while it's parked in your garage all winter too..
This shouldn’t be anything new to people but it’s great that you’re throwing it out there. I read Roberts book when I was in college because here in the US they don’t teach personal finance in school. Not a conspiracy guy but the rich get richer by keeping us dumb. As an engineer and no kids I probably am in a better financial position than most but it would be tough for me to justify and pay for a 30k bike….so I don’t. Personally, I’d never buy a new Harley. There are tons of used Harleys that these drs and accountants bought that have been washed more times than ridden. Bonus, they also bought every after market accessory that translate to pennies on the dollar in an asking price for a used bike. Pretty amazing stat that 40% of HD income comes from interest!
I'd give you two thumbs up but it won't let me.😁 awesome content, learned a lot and made me a bit wiser.
Have owned over 25 motorcycles paid cash for all of them, only way to go, as my mates old dad would say there are too many people shitting above their arshole
Tried to give you a bunch of thumbs up for this video but it only allowed me to give one . . . LOL. I always had some common sense awareness of all this and in fact never financed anything in my entire life precisely because of it. But I had never actually done the number crunching. Thank you for sharing the 'devil in the details' ! I've always bought bikes used and cash . . . including once from a multi brand reseller just East of Toronto (hint hint) for a price that bested all the private sellers' prices I had looked at in the preceding several months . . . and with all the benefits that come from that to boot ! Sure, buying used privately takes more time and it's more leg work but the savings can be huge and you actually have a better chance of finding a really special, unique machine. A hundred thumbs up from me !
thanks, I'm glad you liked it. I have a feeling that my wife's Honda came from the same dealership, all cash.
so true...
badass video... While keeping it Canadian.
Very useful information. Thanks for sharing.
Great video! Truthful and yes a little painful. You are quickly becoming my fav MC channel on youtube. You have a good channel going here and I appreciate your efforts.
Thanks! Much appreciated and I'm always humbled by comments like that.
Been riding for over 45 years. I always bought inexpensive new bikes. Never worried about keeping up with the Joneses since I will never be in that snack bracket. Current bike is a Honda VTX 1300S and it’s 15 years old with only 20, 000 Kliks on the clock. Broken in nicely. At that price point, all the bugs in your face sting the same. The same dust accumulates in your hair. It’s all good! Now get out and ride!! Oh poop, it’s winter….ha ha ha keep trickle charging your battery. Ha hahaha Peace Be The Journey!
A little painful to hear perhaps but all true and good advice.
Option 4. Don’t buy a motorcycle. Motorcycles in general are luxury items and not a necessity. Buying a lesser expensive motorcycle and then spending thousands on accessories and even more valuable than money your time in accessorizing your machine.
Financial advice. Don’t spend money on expensive things that don’t make money or aren’t a necessity.
Don't buy a car, most people could ride a 150cc scooter for most of their trips. Most of my friends stay poor buying cars that they cannot afford through finance. I ride a honda vfr800 and a 150cc scooter
I thought if I ever come to a dealer and say "I pay cash" I would be warmly welcome! Apparently I was wrong. Thank you for this video, I was not aware of many of those things.
Dealers don't want rich people, cash or excellent credit because the sale of the bike makes them little to no money.
They are looking for idiots with an empty wallet and shitty credit. That's where the money is. Same goes for car dealerships.
Great video, but I'll say: there's a lot of grey in between the black and white here. Financing a $30000+ bike at 7% is pretty insane, but you can make much better choices. I mean, I financed (also CAD) $10k of my Tenere 700 through Yamaha at 4%, which will end up costing me roughly $2500 extra. Yeah, that's a big chunk of cash, but there where ZERO good middleweight adv bikes available used here, and even 20 year old KLR's and DR650s listed at $5000 when you could find them.
This got me into offroad riding when I hadn't before. Sure, I could wait 4 years and save the money, and thus save $2500, but I'm in my mid-40's. I don't have a lot of good riding years left in me, particularly not for offroad riding.
This is to say, financing isnt always the wrong choice, but if you are doing it, do it eyes wide open. Make them tell you the total cost of borrowing, make sure you know what you're paying. It's really easy to get rushed into a terrible contract where you're going to pay WAY more than a bike is worth, *and not even know*. I once spent $24,000 for a 2 year old offhlease Hyundai Accent that was listed at $9000 :(
I purchased a new 1976 FLH 1200 when I was 19 years old. I was working on an off shore oil platform in the Gulf of Mexico. The New Orleans Harley Davidson dealership refused to finance it so I paid cash for it. That was a mistake because whoever built the engine didn't shim the crankshaft and the engine destroyed itself in short order. The head mechanic as well as the dealership manager said I would get a new engine after Harley Davidson did an investigation so the engine was shipped off to the factory. A month later the Manager called me to tell me Harley Davidson was not going to warranty the bike because I paid cash for the bike so it wasn't coming back on them. I talked to a Lawyer and he informed me it was up to Harley Davidson to make good and if they didn't want to there was nothing that could be done and I would loose in court. I called the Manager and asked what could be done. He said not to pay cash for a Harley Davidson motorcycle. It's different today with the government forcing companies to make good on their warranty's. Personally, I never purchased, owned, or rode another Harley Davidson motorcycle. I'm 65 years old and have been purchasing and riding motorcycles my entire life. I don't feel like I missed anything by not buying and riding Harley Davidson motorcycles for all my riding year's. As for that 1976 FLH 1200, a friend found a wrecked bike with low mileage and sold me the engine out of it. I put a little over 500 miles on it just to make sure it was good and then sold the bike, and good riddance to Harley Davidson.
Yup, that´s the way the world works. Took me a while to figure out. Bought my current bike, a used Kawasaki 750 in 2012 for 20.000sek. That is 2.758 of your canadian dollars today. I´ve maintained the bike well and it was in mint condition when I bought it so I would propably get slightly more for it if I sold it today, with the way the market is right now. It has served me well for ten years now and as I´m an old geezer it will see me out as a rider. I´m turning 64 next month so the end is near. Propably still buying another bike, and selling the Kawa. But that will also be something that I can easily afford. I live in Sweden, the season is short and I don´t need a bike so I have no need of an expensive one. And I´m old enough to not give a hoot what anybody else thinks. The bike is for my pleasure, I get a kick out of riding and that is why I have a bike. And almost any bike is able to do that, deliver that kick. No need for it to be expensive. Thanks for the rant, hope it gets noticed by younger people. Wish I knew all of that earlier in life. Agree wholeheartedly with your views!
If you can't pay cash, then you can't afford it!!!
As a rule take the US price and add 25% , because of the exchange rate, to it to get the rough Canadian price. Follow the following rule. If you can't pay for it in cash you can't afford it, and if its not worth saving for you don't need it!!
So the big disclosure here is that by multiplying [actual monthly cost] by [length of loan in months], you get the real cost? If that actually needs to be pointed out, I, I, I... don't know what to say.
Anyway love our channel. Keep up the good work!
Shouldn’t finance anything on wheels.
Well that was brilliant! I’m a big fan of tone, and the mild self-reproach, sardonic, matter-of-fact tone here was perfectly suited to your subject matter. Liked the partial bleeps, too!
Thanks! I don't think RUclips will demonetize a couple of S-Bombs, but no point in taking chances.
If I thought the Screaming Eagle exhaust was a better deal, I wouldn’t have bought a TBR exhaust.
Never going to finance another bike; I got burned on my current bike through my own stupidity.
Gr8 vid. Ride safe, god bless u both.
Here's another kick in the nuts. When you trade a vehicle in to buy a new vehicle, they make more margin or profit off your trade than they do off the new motorcycle. In many cases, they make more actual dollars from selling your trade.
Great video.
I went to college for accounting and knew most of this in my early 20s. You would think that would have help me in the future, but I guess I'm the type that needs to learn from my own mistakes. After living beyond my means for many years I paid the price and am now living within my means. There are times I would like that better bike since it's my primary year round transportation, so not just a toy. I still haven't found it worth financing.
Its nice but why spend that much anyways. I mean yes of course the bikes are amazing and have so much but damn. I would rether get something that i can pay off cash or quickly then have something with all the bells and whistles and oay forevwr and so much.
Well done. Very informative video. Thanks