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😎.
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).
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 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.
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!
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!
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.
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!!
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!
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'm in my late-40's and I did a lot of financial stupid until a few years ago when I learned to handle money better. I purchased an '18 Road Glide new, but I sold it in 2019 to get out of debt. Couldn't justify a $410/month bike payment when we were trying to pay off debt. We will be done with all of our non-mortgage consumer debt by summer, and I'll be back on two wheels (paying cash this time) by end of year. Can't wait! Great video! Stay warm up there in Canada, eh? :)
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.
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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.
In the 70’s and 80’s interest rates was around 20%. Since I had good paying job and was incredibly stupid I didn’t give it a second thought. Quickly learned my lesson and started living with the idea “if I don’t have the cash, I don’t need it.” I buy used from a reputable dealer and I have 2 nice older bikes. I paid cash for my 02 VTX 1800 and 08 Concours14 so they have clear titles. Enjoyed your video and your viewpoints are very important. Thank you.
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!
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
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.
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.
Top effort. Boy I wish I’d had this advice back in my youth when I financed a new bike every year. I can barely remember all the bikes I “owned” but my investment portfolio (haha) sure does. Keep up the good work.
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 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.
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
...ironically I just wrote a check today for $10,593 to pay off my Harley FLHTK. I bought it in August 2020 on a 60 month note. LOVE the bike. HATE the price. But she's all mine now. Everybody will watch this and absolutely agree. Then do it anyway.... You speak the truth. Great video!
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.
Great video even if the subject was painful for some to admit or hear. We hopefully learn from past missteps and share the knowledge for others to benefit from. Thanks for your honesty and frankness.
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.
Thanks Man, honest, practical info...especially that APR detail. Hopefully people open to considering. At least, if still finance, they'd be doing so with informed consent at lower total cost.
@@richardsprings1414 Africa Twins seem exceptional... They are all different, with different feel, power delivery, riding style...I have 2 bikes now - looking at a 3rd style bike :-)
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.
The only true Freedom we have anymore is the freedom to be debt-free if we so choose. And I tell you that it feels fantastic. A old truck driver told me many many years ago: never Finance anything unless it's going to make you money. I cannot say that I always live by those rules but I can say it's the best advice I ever got.
Great video. I'm in my 60s and never bought a bike at a dealership. I've had 30+ bikes and own 4 right now, its been Craigslist and marketplace and cash.
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.
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.
Still riding and loving my Triumph America. A Road King may be in the cards someday but it would be used and less than half the cost of new. The amazing thing to me is how many low to almost no mileage Harleys I see for sale. If you buy it at least ride it! Ride on!
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 informational video. I’m probably dating myself but in high school there was a course offered called Consumer Education and it covered topics just like this. I wish it was still in high school today. I fully agree with your previous video on the disappointment of HD this year. Great road you were on while doing this vid, I’d love to ride it someday. Keep up the great work you and your wife do. Cheers
Awesome content! I call it" Truth In Content". I financed a bike over 30-years ago. Since then, it's been only cash--I shop for an older bike in pristine condition...and I try to keep them for long periods (i.e., 7-10-yrs). The wait and discipline has yielded great results for me over 30-years. BTW, I gave my each of my adult children a copy of Kiyosaki's book years ago. Be well.
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.
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!! 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.
Very well put. Here in Oz finance deals always have to include the full cost but some people still finance bikes (which are much more expensive than in the US) Crazy imo
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!
Great video, everything you said was spot on. Shortening the loan time. Helps greatly. I was looking at a 23 break out 117 if I did it for 48 months it would be $500 a month which would be 4000 in interest. But hey, money is not real it’s all just numbers.
Option 2 (AMF era) is definitely me. I bought a 1979 Ironhead with a loose crank, blowing front head gasket, bent rear exhaust valve, knackered primary chain, buggered wiring, I could go on. Rode it like that for seven months, then rebuilt it.
Great information and I wished I had made better choices when it comes to financing a bike. I have paid it off and will only pay cash if I buy another bike!
Great video about the hidden costs. One you forgot that also adds to the overall expenditure is the high insurance rates when you finance. I pay cash and go for the lowest insurance allowed by law and not the finance company with insurance partners.
Paying full coverage insurance will cost you significantly more than the interest, even if you are middle aged or older, have a perfect record, and perfect credit.
Used is also a pretty good option as well. They may not be new but usually (in regards to a used Harley) are for the most part well maintained, are broken in and usually have most of the upgrades you may have been planning on doing if it were a new model already on the bike i.e. exhaust, LED lighting, performance upgrades and accessories like backrests and aftermarket seats already installed at no extra cost to you. It pays to shop around.
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!
I was never very fond of financing, but now I see why. I want to honestly thank you from the heart, because you might have saved me and other people a sh#t ton of problems and worries. Thank you!
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
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!
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.
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).
If you can't pay cash you can't afford it! I learned that the hard way. Will never finance again
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.
Spot on!
"Freedom doesn't come from being burden by debt" sums it up good! Thank you for a great and insightful video.
Lol truth
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.
Spot on mate
Well done! Thanks for the Canadian view point! EH!Fellow Canadian.
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!!!
Agree with any word here
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!
A Streetbob here in Australia 🇦🇺 costs $26250. A FatBoy is $36250. A RoadGlide is $41995. A RoadGlide ST is $44995. How are those darts 🎯
What a magnificent road.
That's Old Barry's Bay road in central Ontario. They're all like that around there. It's awesome.
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!
so true...
badass video... While keeping it Canadian.
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.
Very useful information. Thanks for sharing.
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!!
Thanks Brother I needed this video. Maybe I can find a wreck 🤔 bike and bring it back to life.
Great video. Thanks for sharing!! 👍
All Facts!
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!
Sound Advice!
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'm in my late-40's and I did a lot of financial stupid until a few years ago when I learned to handle money better. I purchased an '18 Road Glide new, but I sold it in 2019 to get out of debt. Couldn't justify a $410/month bike payment when we were trying to pay off debt. We will be done with all of our non-mortgage consumer debt by summer, and I'll be back on two wheels (paying cash this time) by end of year. Can't wait! Great video! Stay warm up there in Canada, eh? :)
Glad I financed my shadow.! 50 yrs old. First bike. Done paying years ago, years of riding left. 😃
I needed this now
Amazing video…so many don’t know these things. Also …love the “rubs”….definitely going to use that 🇨🇦👍🏻
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.
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.
In the 70’s and 80’s interest rates was around 20%. Since I had good paying job and was incredibly stupid I didn’t give it a second thought. Quickly learned my lesson and started living with the idea “if I don’t have the cash, I don’t need it.” I buy used from a reputable dealer and I have 2 nice older bikes. I paid cash for my 02 VTX 1800 and 08 Concours14 so they have clear titles. Enjoyed your video and your viewpoints are very important. Thank you.
Was way different times huh. I wish I still had the economic growth we had then or just the income I had in the 90's vs today
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 TH-cam will demonetize a couple of S-Bombs, but no point in taking chances.
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
Well done. Very informative video. Thanks
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!
I always say the best bike you can have is the one thats paid off lol love my 2015 vulcan 900! 😁
Great video and great advice. You just saved me from making a mistake, and saved me a wasted trip to my local HD dealership.
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.
Brilliant! Wonderful presentation and a lot of common sense! Well done 👍
Thank you kindly!
Probably the most honest and therefore the best video to date on TH-cam, great job!
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.
Gr8 vid. Ride safe, god bless u both.
Great job, a message all need to hear!
Top effort. Boy I wish I’d had this advice back in my youth when I financed a new bike every year. I can barely remember all the bikes I “owned” but my investment portfolio (haha) sure does. Keep up the good work.
Your BEST VIDEO to DATE.!!
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 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.
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
Great video-
...ironically I just wrote a check today for $10,593 to pay off my Harley FLHTK. I bought it in August 2020 on a 60 month note. LOVE the bike. HATE the price. But she's all mine now. Everybody will watch this and absolutely agree. Then do it anyway.... You speak the truth. Great video!
Hilarious, Then do it anyway. Hopefully think it though. One truck payment is enough for me.
Thanks and congrats on avoiding most of the interest. They're great bikes but not worth a six year debt.
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.
Great video even if the subject was painful for some to admit or hear. We hopefully learn from past missteps and share the knowledge for others to benefit from. Thanks for your honesty and frankness.
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.
Much needed video and very interesting, thank you 👍
Absolutely on point! Learn about money!
I'd give you two thumbs up but it won't let me.😁 awesome content, learned a lot and made me a bit wiser.
Hilarious and true!
Thanks Man, honest, practical info...especially that APR detail. Hopefully people open to considering. At least, if still finance, they'd be doing so with informed consent at lower total cost.
I ride a Honda Africa Twin I don't want a Harley they're overrated Is an underpowered
@@richardsprings1414 Africa Twins seem exceptional... They are all different, with different feel, power delivery, riding style...I have 2 bikes now - looking at a 3rd style bike :-)
Thanks! Paying off your financing early makes a huge difference.
Geat video lots of good information
Great advice! The hedonic treadmill can be hard to jump off.
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
Thanks for the video now I will not buy the Triumph Street Scrambler but I would rather go for the Re Interceptor 650
The only true Freedom we have anymore is the freedom to be debt-free if we so choose.
And I tell you that it feels fantastic.
A old truck driver told me many many years ago: never Finance anything unless it's going to make you money.
I cannot say that I always live by those rules but I can say it's the best advice I ever got.
Best advice you can get. Wish out schools taught that.
thanks man, it is really helpful watching your video.
Great video. I'm in my 60s and never bought a bike at a dealership. I've had 30+ bikes and own 4 right now, its been Craigslist and marketplace and cash.
Nice! That's a good habit to have for buying toys.
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.
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.
Still riding and loving my Triumph America. A Road King may be in the cards someday but it would be used and less than half the cost of new. The amazing thing to me is how many low to almost no mileage Harleys I see for sale. If you buy it at least ride it! Ride on!
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.
If you can't pay cash, then you can't afford it!!!
Great informational video. I’m probably dating myself but in high school there was a course offered called Consumer Education and it covered topics just like this. I wish it was still in high school today.
I fully agree with your previous video on the disappointment of HD this year.
Great road you were on while doing this vid, I’d love to ride it someday. Keep up the great work you and your wife do.
Cheers
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
Thank you for this video!!! I was planning on financing my next bike but I think I'll keep saving
The money from the laid off workers goes to paying off interest Harley has on their own loans... smart money
Awesome content! I call it" Truth In Content". I financed a bike over 30-years ago. Since then, it's been only cash--I shop for an older bike in pristine condition...and I try to keep them for long periods (i.e., 7-10-yrs). The wait and discipline has yielded great results for me over 30-years. BTW, I gave my each of my adult children a copy of Kiyosaki's book years ago. Be well.
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!
Very helpful informative video! You should do one on house loans.
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.
And you make those payments while it's parked in your garage all winter too..
Your best video!
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.
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…
Very well put. Here in Oz finance deals always have to include the full cost but some people still finance bikes (which are much more expensive than in the US)
Crazy imo
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!
Great video, everything you said was spot on. Shortening the loan time. Helps greatly. I was looking at a 23 break out 117 if I did it for 48 months it would be $500 a month which would be 4000 in interest. But hey, money is not real it’s all just numbers.
Great video and to the point, I to have done the same thing.
Option 2 (AMF era) is definitely me. I bought a 1979 Ironhead with a loose crank, blowing front head gasket, bent rear exhaust valve, knackered primary chain, buggered wiring, I could go on. Rode it like that for seven months, then rebuilt it.
PS it could also be argued that buying new itself is a bad idea compared to, say, five years old with the bulk of the depreciation gone.
Great information and I wished I had made better choices when it comes to financing a bike. I have paid it off and will only pay cash if I buy another bike!
As always great video with some very valuable information for whoever hasn’t learned the perils of financing and accrued interest.
Great video about the hidden costs. One you forgot that also adds to the overall expenditure is the high insurance rates when you finance. I pay cash and go for the lowest insurance allowed by law and not the finance company with insurance partners.
Paying full coverage insurance will cost you significantly more than the interest, even if you are middle aged or older, have a perfect record, and perfect credit.
@@geraldscott4302 full coverage insurance on my bmw1200gs was $360 per year ? A little less on my current KTM adv bike
So without full coverage insurance if you have an accident (knock on wood not 🤞) your out the value of the bike
Used is also a pretty good option as well. They may not be new but usually (in regards to a used Harley) are for the most part well maintained, are broken in and usually have most of the upgrades you may have been planning on doing if it were a new model already on the bike i.e. exhaust, LED lighting, performance upgrades and accessories like backrests and aftermarket seats already installed at no extra cost to you.
It pays to shop around.
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!
Great, decided to buy a bike, used got a 2013 cbr 250r 2500 miles perfect condition, 2200 American. Best move I ever made! Cash is king.
I was never very fond of financing, but now I see why. I want to honestly thank you from the heart, because you might have saved me and other people a sh#t ton of problems and worries. Thank you!
A little painful to hear perhaps but all true and good advice.
Amazing lesson
Nice video, and sound advice.
Glad it was helpful!