Another STN Economic Survey

[FiremanBob]

With all the talk about credit crunch affecting the motorcycle industry, I wonder if this question might help diagnose where the weakness is in the bike market.  I was talking to an industry guy over the weekend who said that his sales were definitely affected by people who apply but are denied for dealer financing. Also we have heard a lot about folks using home equity as a credit card.

My own policy is that I'll borrow $$ for a house or very short-term to bridge cash flow for a big, urgent item, but always pay cash otherwise.  Especially since tax deductibility of consumer interest went away in 1987.

[garry]

Paid cash for all my bikes.

[kendenton]

Paid 1/2 in cash, 1/2 on a credit card that I paid off in 6 months.

[rkrayton2000]

I bought with cash because was denied credit because the only credit I had was a house. Never messed with the credit cards. Borrowed from my bank for small amounts in emergencies(under $2000).  sure alot of people would by motorcycles if they were extended credit so i'm sure it hurts the industry as a whole.

[bizarro]

Sort of financed, but basically cash. I've officially financed two bikes, my first, and the Fuckenstein ('04 R1150GS). After the BMW fiasco I vowed I'd never finance a bike again. After a bout of madness trying to get a 1050 Speed Triple I fortunately recovered my senses and bought the much less expensive Guzzi with cash.

[Tar Snake]

My credit union gives me car loan rates on motorcycles. I usually pay in cash at least 50% of the purchase price and finance the rest for 2-3 years.

Right now everything but my Hyundai is paid off. I can only afford one small payment at a time so I try to keep vehicles at least 5 years or so.

[mike goodwin]

I have paid cash,financed thru the bank and credit union,and did a credit card deal twice.
Both times on the CC card i took one the fixed low interest convience checks(3.9%) and paid for the bike.
Then true to form within less than a month another company offered a one year 0 % balance transfer.
So i transferred and paid the bike off in one year with the only charges of less than $50.00 total for the convience cards first months interest and the transfer charge on the other card which i think was $35.00.
Just too good of a deal to pass up really.

[Global Rider]

I'm too poor to make those extra interest payments.

[maddjack]

pay cash

[RexRider]

I've done all three, but now that the bike, truck and car are paid off, I don't plan to mess with any of that for some time...

[PatM]

I've paid cash for cheap used bikes.

I'm now eying a brand new (read expensive) bike. I'm afraid that I may have to boorow this time.

[jed]

Paid cash but willing to finance for a brand new bike.

[Mookie]

I financed about 25% of my 675 just so I could build my credit up.  I'm making triple sized payments so it'll be paid off next year.  All my other bikes were paid in full on the spot.  And so will my next one, paying intrest is retarded, especially since bikes lose their value so quickly (at least the ones I ride )

[stefrrr]

Yet more proof that STNers are abnormal.  

[krashtestdummy]

Credit unions rule!

Much better service, and more favorable rates than most banks.

[gamountains]

I pay cash most of the time, but if I need to put a couple hundred on a credit card that's OK. But I have 2 or 3 bikes at any time and sell on every year. Never racks up the miles, will sell right before I get my tax return. Usually I buy used, a year or two old with low miles. So it only cost me $1500 on the average out of pocket to ride a new bike every year.

[highside]

I put half down and financed the other half with my credit union with pretty nifty rates. I actually had the cash to buy the bike outright but I want to buy a house in a couple years so I wanted a little more credit history.