Motorcycle Financing?

[Anonymous]

Hello to everyone one.  New to the board and am glad to find such a great fourm for people to

help each other out. 

I have been told a way to raise your fico was to buy a used car at a lot get it financed and pay it off within a few months.  This of course was a low priced economy car that they could either keep or sell off.

Just curious, will this work with motorcycle financing as well?...  I currently have an avg of 722 between the three.  I was thinking this might be an eaiser alternative if the process is the same.

Ducati has very good financing right now, plus motorcycles are inexpensive compared to cars.

Thanks Guys!

[Anonymous]

Actually paying off the loan drops your score a bit. I don't know why, but it does.

[Anonymous]

Wow, thanks Pappy for the reply.  My friend that has been a lender for the past 8yrs has been using this tactic for a while now.  He would get the people with borderline credit bumped up by doing this, so they would qualify for their loans.

Now I'm really stumped..

[IrishPM]

Not sure if this response helps or not but here goes.

I purchased a 2009 Harley Davidson on 10/18 and it took them all of about 10 minutes to come back with a credit decision. My FICO score is 739 (Experian is what they pulled). I put 25% down on a total purchase price of $9,995 (total financed was $7,496 +/-). I'll have this paid off in approximately 6 months just to be able to show another trade line in my credit file that shows I'm a good credit risk. The finance rate isn't the best with Eagle Mark Savings Bank (9.92%) but it doesn't suck either especially because of the convenience of application and approval right at the dealer.

I purchased an XL883L Sportster and they told me that I qualified for three times as much bike financing but I declined the offer since I'm happy with my purchase (motorcycle is for work commute only).

Based on my experience, by the time I arrived at the Harley dealer and drove out of their parking lot with my new motorcycle it was about 1 and a half hours and the sales staff couldn't have been more helpful as well as the finance people.

Just my thoughts.

[Anonymous]

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@Anonymous wrote:

Wow, thanks Pappy for the reply.  My friend that has been a lender for the past 8yrs has been using this tactic for a while now.  He would get the people with borderline credit bumped up by doing this, so they would qualify for their loans.

Now I'm really stumped..

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I think this tactic may work because it improves or gives some form of CAR CREDIT, as many dealers call it. Which would help auto enhanced fico scores? Just a stab at the logic....

[Anonymous]

Thanks IrishPM for your post.  That's great news about your HD purchase.  Please let us know how it goes.  This whole motorcycle financing was just another excuse to kill two birds with one stone.  Been riding for 17yrs and sold my bike last year because Los Angeles is not what it used to be.  But miss riding still on weekends.  

IrishPM, do you know if financing with a credit union the same with the dealership?

Thanks 

[Anonymous]

If I had to choose I would go the CU route. Dealerships mainly look after themselves. You should get a lower rate from a CU.