Talon Honda financing

[JACKAL]

I'll be looking into getting my first SXS soon. The Talon X seems to be right up my alley seeing how I have only owned Honda ATVs in the past. Plus I know the guy who recently took over the local Honda dealership.
So, I'm curious as to how Honda's financing works. In everyone's experience is it a fixed rate or is there room for negotiation. Credit score isn't an issue. I'm just trying to sort things out before I get in there.

Has anyone had any luck as far as getting any bolt-ons at a cut rate as a package? I know in the past occasionally honda has offered specials on a winch for example.

Thanks in advance for any suggestions or assistance. Joe

Like any creditor finance rate depends upon credit score typically anything 700-720 or higher will net you the advertised promotional rate. Below 680 and thing ratchet up, meaning they will approve the loan but at higher rates. Me and a friend got Rincons same day about a decade ago. I got 2.9% they would only approve him at 11% through Honda Financial Services.

Negotiate your price, get preapproved for a loan from another source, then you know if your dealership is being square with you, they get kickbacks on financing and extended warranty, the finance guy is NOT your friend.

You don't know if you're getting a good rate without independent comparison done by you.

 

[Admin]

 

[Smitty335]

Like any creditor finance rate depends upon credit score typically anything 700-720 or higher will net you the advertised promotional rate. Below 680 and thing ratchet up, meaning they will approve the loan but at higher rates. Me and a friend got Rincons same day about a decade ago. I got 2.9% they would only approve him at 11% through Honda Financial Services.

Negotiate your price, get preapproved for a loan from another source, then you know if your dealership is being square with you, they get kickbacks on financing and extended warranty, the finance guy is NOT your friend.

You don't know if you're getting a good rate without independent comparison done by you.

Your smart for an old tubby guy! HA!

 

[Hurakamywo]

Checking in on the Honda financing scene – any tales to share or advice to dish out? Whether it's navigating interest rates or snagging sweet deals, spill the beans! And hey, quick shoutout to the Mortgage Broker in Northampton! Any finance magic you can sprinkle on our Honda conversations?

 

[SLOWPOKE693]

You are going to pay an azz load of intrest at today's rates.....

 

[HBarlow]

https://powersports.honda.com/

From the Honda Powersports website:

"As low as 4.99% for up to 36 months depending on credit rating"

 

[GPS]

Checking in on the Honda financing scene – any tales to share or advice to dish out?

FWIW, fall 2021 a local dealer finally received the 520 I'd put a deposit on about 5 months earlier. Though I did (thankfully) have funds to cover it, I chose the Honda "special rate plan" in effect at that time with a 1.99% rate for 12 months. Regular rate was 21.99% if repayment exceeded 12 months promo period. This Honda Powersports Account is in the form of a credit card through Citibank and they established a credit limit for me. I repaid within the 12-month promo period and total interest was about $110. Wouldn't hesitate to finance similarly again if need arises, which I don't expect since the 520 has been just about ideal for my needs.

Good luck

 

[Scoop]

FWIW, fall 2021 a local dealer finally received the 520 I'd put a deposit on about 5 months earlier. Though I did (thankfully) have funds to cover it, I chose the Honda "special rate plan" in effect at that time with a 1.99% rate for 12 months. Regular rate was 21.99% if repayment exceeded 12 months promo period. This Honda Powersports Account is in the form of a credit card through Citibank and they established a credit limit for me. I repaid within the 12-month promo period and total interest was about $110. Wouldn't hesitate to finance similarly again if need arises, which I don't expect since the 520 has been just about ideal for my needs.

Good luck

Agreed. As long as you have the funds to pay it off just in case something goes south (e.g., job loss, medical emergency, etc.), I would not hesitate to do that.

Along a similar vein ... I've purchased quite a few new trucks & cars over the years. Always put a huge bit down (trade equity + cash + I get AZ Plan employee pricing) but still finance some. My credit union always blows away everyone else for interest rates, especially Ford Motor Credit (my current truck is at 1.89% - almost free money). Anyway, at least 3 or 4 times, I've initially financed through Ford Credit to get an extra $1K off right at the time of sale, even though the Ford Credit interest rates for perfect credit are/were still sky high. Thing is, I would pay the vehicle off completely with the very first payment to Ford Credit, most of the time using proceeds from a new loan I got from the credit union. Free $1,000? Hell yes!

 

[Scoop]

https://powersports.honda.com/

From the Honda Powersports website:

"As low as 4.99% for up to 36 months depending on credit rating"

Pre-2021, that number was much closer to zero. Let's go, Brandon.

 

[GPS]

Agreed. As long as you have the funds to pay it off just in case something goes south (e.g., job loss, medical emergency, etc.), I would not hesitate to do that.

Along a similar vein ... I've purchased quite a few new trucks & cars over the years. Always put a huge bit down (trade equity + cash + I get AZ Plan employee pricing) but still finance some. My credit union always blows away everyone else for interest rates, especially Ford Motor Credit (my current truck is at 1.89% - almost free money). Anyway, at least 3 or 4 times, I've initially financed through Ford Credit to get an extra $1K off right at the time of sale, even though the Ford Credit interest rates for perfect credit are/were still sky high. Thing is, I would pay the vehicle off completely with the very first payment to Ford Credit, most of the time using proceeds from a new loan I got from the credit union. Free $1,000? Hell yes!

Notice you're a CU fan. I worked in CUs for about 3 decades. For the average consumer CUs are generally superior to banks - higher dividends paid, lower interest charged, fewer/lesser fees assessed, etc. Somewhat similarly to you, in the past I've initially financed through dealer or bank for whatever reason (e.g. rebate or promo) then not long thereafter paid off the initial financing via a refi mortgage or home equity for lower rate and tax deductibility of interest (which is no longer permissible, at least not for our tax status).

Always best to make the time/effort to check all options on purchase pricing, interest rates/terms of financing, etc.

 

[Scoop]

Notice you're a CU fan.

Yes. I was taught many, many moons ago:

You bank at a bank (e.g., checking, bill pay, etc.).
You borrow and save at a credit union.

 

[adudes]

https://powersports.honda.com/

From the Honda Powersports website:

"As low as 4.99% for up to 36 months depending on credit rating"

You need a 825 credit score to qualify for that Honda promo. I asked the dealer how they can offer 4.99% when banks are getting almost double that. He says Honda goes through a bank themselves and pays the difference. If a bank wants 7.99%, you pay Honda 4.99% and then they pay the bank 3%. That's why they make it hard to qualify. I was lucky enough to qualify, so that was my deciding factor in buying a new X4.

 

[Scrappapotamus]

Manufacturers offer lower rates and are buying down the rate to do so. A discount in plain sight that most are oblivious to

 

[DRZRon1]

You need a 825 credit score to qualify for that Honda promo. I asked the dealer how they can offer 4.99% when banks are getting almost double that. He says Honda goes through a bank themselves and pays the difference. If a bank wants 7.99%, you pay Honda 4.99% and then they pay the bank 3%. That's why they make it hard to qualify. I was lucky enough to qualify, so that was my deciding factor in buying a new X4.

Interesting - Honda is only making 2% on financing - I smell a little bs maybe, so if you don’t pay - Honda is on the hook for 8% ?

I look at it the other way - cd’s pay 5.5%, why pay Honda anything

 

[HBarlow]

You need a 825 credit score to qualify for that Honda promo. I asked the dealer how they can offer 4.99% when banks are getting almost double that. He says Honda goes through a bank themselves and pays the difference. If a bank wants 7.99%, you pay Honda 4.99% and then they pay the bank 3%. That's why they make it hard to qualify. I was lucky enough to qualify, so that was my deciding factor in buying a new X4.

I'm not interested at any % rate.

 

[Dirtstiffs-1000]

Pre-2021, that number was much closer to zero. Let's go, Brandon.

.99% before JB...

 

[Scrappapotamus]

Interesting - Honda is only making 2% on financing - I smell a little bs maybe, so if you don’t pay - Honda is on the hook for 8% ?

I look at it the other way - cd’s pay 5.5%, why pay Honda anything

Not sure how you're figuring that Honda is making anything on the financing considering Prime? As far as CDs, what happens with the guy who lacks the $$ for the CD? Sometimes the manufacturer requires the dealer to pony up a certain percentage of the amount financed which allows them to get a unit down the road and off their books which again translates to a discount for the consumer. This is called dealer participation. As Prime has escalated, these types of programs have become common. I thinking that Honda uses Citi-Bank for their financing.

 

[Scoop]

Dealer participation involves dealers setting the finance charge above the rate at which a bank or finance company has indicated it might be willing to buy a contract. The dealer keeps a portion or all of the difference. It doesn't cost the dealership money - it makes money for them.

 

[HBarlow]

Checking in on the Honda financing scene – any tales to share or advice to dish out? Whether it's navigating interest rates or snagging sweet deals, spill the beans! And hey, quick shoutout to the Mortgage Broker in Northampton! Any finance magic you can sprinkle on our Honda conversations?

@Hurakanywo Scanning back over this thread I read this post again.

The advice I will offer in the current economic environment we find ourselves in is do not incur debt now unless absolutely necessary. If, for example, your home heating system dies and is beyond repair and must be replaced and you don't have the cash available borrowing is probably required. Otherwise, say no to temptation.

The Biden economy is on shaky ground. Every day the news has another self-proclaimed economist predicting a stock market crash. Retailers are closing restaurants and stores, automakers are laying off workers and closing plants, and prices of everything are high. Many thousands of Americans could lose their jobs in 2024.

I would hold off until January 2025, after the elections, to determine if you really need something.

If the democrats steal another election we are probably doomed.

 

[Scrappapotamus]

Dealer participation involves dealers setting the finance charge above the rate at which a bank or finance company has indicated it might be willing to buy a contract. The dealer keeps a portion or all of the difference. It doesn't cost the dealership money - it makes money for them.

No, the finance arm and manufacturer offer rates which the dealer participates in. We have various finance companies who work out deals with the manufacturers to buy the rate down and the dealer is charged a small amount as well. We have 0 for 60 with 2% dealer participation. What ever the selling price, the dealer pays or charges this back to the consumer 2% of the finance amount. This started several years ago when prime started to climb. I think you're thinking about points? Not the same.

 

[Scoop]

I think you're thinking about points? Not the same.

No, I actually got the definition from an article on ConsumerFinanceMonitor.com. Your description wasn't in line with what I remember being told, so I looked it up. But, hey, I'll take your word for it - you learn something new every day.

A future without dealer participation and what it should look like, according to the CFPB

At the CFPB’s auto finance forum on November 14, Director Cordray and other CFPB officials reiterated their distaste for dealer finance charge

www.consumerfinancemonitor.com

Also, NADA.org describes it the same way I did in a publication titled Fair Credit Compliance POLICY & PROGRAM:

On March 21, 2013, the Consumer Financial Protection Bureau (“CFPB”) issued a fair lending guidance bulletin to indirect auto finance sources (which the CFPB refers to as indirect auto lenders) stating “that certain lenders that offer auto loans through dealerships are responsible for unlawful, discriminatory pricing” and that lender policies “that allow auto dealers to mark up lender established buy rates and that compensate dealers [for originating credit contracts] in the form of dealer [participation]” create a “significant risk” of fair lending violations.5