Do Lenders Know if They're a CFA?

[Anonymous]

About the Honda financial motorcycle loan.


I think it would be coded as CFA unlike a car because it is a credit card type scheme. I do not think you need proof of insurance etc.

It’s for buying toys. Motorcycles. ATVs. Etc. stuff that people either do not put insurance on or they take insurance off during the winter.

Also credit unions and banks tend to shy from powersports due to the default rate and recovery issues.


I just bought a new Honda Motorcycle. I did not finance it. But I asked about financing at a couple brands dealerships and they were credit cards packaged as a loan.

Plus with no data I would put money on the average customer that would finance a powersports item would be more likely to default of a mortgage. AVERAGE buyer. Maybe not as risky as the person that finances a mattress. But the credit score is just risk assessment. However flawed it may be

[sarge12]

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@Anonymous wrote:
About the Honda financial motorcycle loan.


I think it would be coded as CFA unlike a car because it is a credit card type scheme. I do not think you need proof of insurance etc.

It’s for buying toys. Motorcycles. ATVs. Etc. stuff that people either do not put insurance on or they take insurance off during the winter.

Also credit unions and banks tend to shy from powersports due to the default rate and recovery issues.


I just bought a new Honda Motorcycle. I did not finance it. But I asked about financing at a couple brands dealerships and they were credit cards packaged as a loan.

Plus with no data I would put money on the average customer that would finance a powersports item would be more likely to default of a mortgage. AVERAGE buyer. Maybe not as risky as the person that finances a mattress. But the credit score is just risk assessment. However flawed it may be

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Really?....We are not talking about a regular motorcycle here, this was a new Goldwing...20,000 dollars worth of motorcycle with a 1800 cc, 6 cylinder engine. I have no idea what you mean by credit card type scheme...this was not a revolving account, nor was any card issued with it. The goldwing is not like a dirt bike, and the typical goldwing owner is usually very financially secure, because 20 grand is a huge chunk of change for a toy with a larger engine than many cars have. This dealership also sold almost exclusively goldwing Bikes, and Trikes. I also assure you that you are not going to ride a goldwing off the lot without both liability, and if financed, collision insurance either. The laws for street legal motorcycles is pretty much the same as for cars, except you don't have to have a seatbelt, and actually have to have a much more difficult to pass motorcycle class license. I am somewhat confused why you would think the insurance requirements might be different.

[Anonymous]

It’s nothing personal. I said the average person who finances powersports who have a higher default rate. Nothing about you. The average. I just bought a new Honda motorcycle. Not a gold wing but I was looking at them. Still a toy and I don’t buy toys on credit no matter how much they are

Insurance. I take off insurance during the winter. That around me lasts a long time. (Salted roads) and it’s very common to do that.

Credit card scheme means it’s more of a credit card or credit card with terms for a set number of years. You do not need a physical card. You apply. Get approved. They give you 4 years at 4% or w/e.

Like Kawasaki. “Kawaski Credit Card through Citibank. You can also apply for a Kawaski Credit Card at authorized dealers and use it to purchase your new motorcycle or ATV.”

Honda. I can not find info on the loan quickly and why it is CFA but I know Honda auto loans are not.

I asked my dealer if financed through Honda did they have a insurance requirement and they said no. Would a Honda require a farmer to put insurance in his 20k+ UTV?

[sarge12]

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@Anonymous wrote:
It’s nothing personal. I said the average person who finances powersports who have a higher default rate. Nothing about you. The average. I just bought a new Honda motorcycle. Not a gold wing but I was looking at them. Still a toy and I don’t buy toys on credit no matter how much they are

Insurance. I take off insurance during the winter. That around me lasts a long time. (Salted roads) and it’s very common to do that.

Credit card scheme means it’s more of a credit card or credit card with terms for a set number of years. You do not need a physical card. You apply. Get approved. They give you 4 years at 4% or w/e.

Like Kawasaki. “Kawaski Credit Card through Citibank. You can also apply for a Kawaski Credit Card at authorized dealers and use it to purchase your new motorcycle or ATV.”

Honda. I can not find info on the loan quickly and why it is CFA but I know Honda auto loans are not.

I asked my dealer if financed through Honda did they have a insurance requirement and they said no.

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I was not offended by your remarks. If a bike is financed, the lender has requirements that state, collision and comprehensive insurance must be carried at all times, and if it is not, the lender will have the right to purchase the insurance for you and send you the bill. It is in the fine print on the loan. Carrying the insurance in the riding season only would not work in my State either, even if parked for the winter, It is a State law that liability must be carried if you have a tag on the vehicle. Even if you could, the insurance would likely save me much, because the insurance company knows most people do not ride in the winter, and probably is actually higher in the summer than it is in the winter, so cancelling it for six months in the winter would likely not be 50% of the annual rate. Most motorcycle accidents happen in the warm months, so carrying it only then is likely something like 80% of the full year rate.