Honda CBR 500 Riders Forum banner
1 - 20 of 21 Posts

·
Registered
Joined
·
60 Posts
Discussion Starter · #1 ·
Hey all,
I have seen the advertised 1.9% that Honda is offering on the cbr250r right now and think it is a great idea. But when it comes to these new 500's, the rate jumps up to 8.99%. Why is that? I would have assumed that it is a similar type of customer who is in the market for both bikes, and budget and value would be pretty important in this class.

If Honda can afford to sell some bikes at a lower rate, why can't they afford to do it with these ones? I will probably just use my line of credit any ways, but I cant understand why the dealers wouldnt want to make these bikes as easy as possible for people to get into and just flood the market with them. Especially since they are courting the first time buyers and upgraders - dont lower the price of the bike, but make the financing attractive enough that you can get those riders into the fold... I know that my first bike had a strong influence on future preferences. It might keep those riders on Hondas as they progress in the hobby.

What do you think?

Chad
 

·
Registered
Joined
·
40 Posts
If I were to hazzard a guess as to why Honda is not offering the 1.9% promo rate for the 2013 CB500 bikes...

Unlike the CB250 the CB500 motorcycles are all new, and according to Honda's press release aren't supposed to be out until sometime in April. I would imagine that once the motorcycles start shipping to dealers and the pre-orders have been filled that the website will be updated with their 1.99 APR rate for these motorcycles.
 

·
Registered
Joined
·
582 Posts
I assume the rates are done locally in line with bank rates. In Thailand the rate is 6.5% and is available from 2 major banks.
 

·
Registered
Joined
·
6 Posts
Hey all,
I have seen the advertised 1.9% that Honda is offering on the cbr250r right now and think it is a great idea. But when it comes to these new 500's, the rate jumps up to 8.99%. Why is that?
It's all about supply and demand.

If a manufacturer has high demand for a bike, why offer a lower finance rate? But if sales are slipping, or if mfgr really wants to move a model, they can offer a lower rate for that model only.

Doesn't matter that the bikes cater to similar consumers. And there might be little connection between manufacturer financing incentives and current rates you could obtain at your local bank.

The cb500 models are new, so why would Honda cut into finance profits by offering a low rate? They don't even know what the demand will be yet.

You might try local financing. My credit union offers 2.74% for 60 months at 110% LTV, new or used. For a $7,000 (USD) loan for 60 months, that works out to only $2.59/month more for the 2.74% vs. 1.9%.
 

·
Registered
Joined
·
6 Posts
Especially since they are courting the first time buyers and upgraders - dont lower the price of the bike, but make the financing attractive enough that you can get those riders into the fold... I know that my first bike had a strong influence on future preferences. It might keep those riders on Hondas as they progress in the hobby.
I agree. I wish the corporate suits thought more like you do!

Sadly, they know that dealers will partner with other lenders if the mfgr's rate isn't competitive. And they also know that buyers will usually buy the bike they want - regardless of the current financing. Honda then gets paid up-front from the lender and they don't have to dive into the mire of lending, missed payments, repossessions, lost opportunity cost of their money , etc.

I think your logic makes great sense as a longer term business plan. But most corporations are far too focused on next quarter's profits than the next generation of buyers!
 

·
Registered
Joined
·
582 Posts
6% here in Thailand - way over base levels, but it is what it is.
 

·
Registered
Joined
·
9 Posts
Hello guys,

Here is some information from the horses mouth or whatever the saying is these days haha.

I'm the Finance Mgr at a Honda Dealership and try to shed light wherever I can to help people not get taken to the cleaners from their dealership. To me it doesn't matter if I'm making a dime or not as I'm a true enthusiast and enjoy helping a fellow rider...

To clear up on the interest rate from Honda Finance and what is being offered right now promotion wise on all bikes listed under "Sport" bike from Honda Finance which will include the CBR250R / CBR500R / CBR600RR / CBR1000RR.

All of these Promotional Interest Rates are valid until July 8th, 2013.

24-36 months - 3.99%
48 months - 3.99%
60 months - 4.99%

That is for the best rate on the Super Preferred Tier. If you don't qualify for the best rate the next tier is as follows:

24-36 months - 4.99%
48 months - 4.99%
60 months - 5.99%

The 3rd tier:

24-36 months - 7.99%
48 months - 7.99%
60 months - 8.99%

A dealer can take your "buy rate" and bump it up a couple points to make more $$ on the backend the second you sign the contract. You think you got the best rate offered and they make some extra $$ off of you.

The 1.99% promotion right now is only on the Gold Wings & F6B's.

The 2.99% promotion right now is on the Cruisers / ATV's / PWC's etc. Basically everything except the Sportbikes and Gold Wings.
 

·
Registered
Joined
·
113 Posts
whenever you finance you are at the mercy of the dealer. they will profit off of your purchase until the end. intrest rates are higher on newer bikes b/c of the demand and to add to insult the banks who finance will make it worse with a large down payment
 

·
Registered
Joined
·
9 Posts
whenever you finance you are at the mercy of the dealer. they will profit off of your purchase until the end. intrest rates are higher on newer bikes b/c of the demand and to add to insult the banks who finance will make it worse with a large down payment
Not entirely accurate. Dealers that don't play any finance games will not make anymore money if you finance vs paying cash. Interest rates are lower on new bikes, not higher. As long as your credit is halfway decent any remotely capable finance guy should be able to get you done with $ down and not a large down payment. I'd venture to say 95% of the finance deals I get approved are with $0 down.
 

·
Registered
Joined
·
22 Posts
Im now wondering if this is a lie:

When i was talking to a salesman about getting a ninja 300 or the cbr500r, he told me that its easier to finance the ninja300 and that he could get me financed with 0 down with like 7 different banks.

But, he said in order to finance the CBR500r the loan had to be financed straight from honda themselves and that theyd control everything.

Is this true?
 

·
Registered
Joined
·
458 Posts
Hey all,
It might keep those riders on Hondas as they progress in the hobby.

What do you think?

Chad
Brand loyalty is a big thing in bikes, It's one reason I don't think suzuki or kawasaki do as well as Honda or Yamaha in the UK or the rest of Europe.
Here every kid has to start on a 125cc and neither suzuki or kawasaki do a sports looking bike in that class. It means that the 16 and 17 yr olds starting out on bikes buy a Honda CBR 125 or a Yamaha yzf 125 and then when the time comes to move to a bigger bike guess what they buy?;)
 

·
Senior Knee Dragger
Joined
·
286 Posts
I'm not entirely sure about the situation but I remember looking down when I was signing and it said HONDA FINANCE INC. So it is a possibility that have control over certain things.
 

·
Premium Member
Joined
·
1,350 Posts
Im now wondering if this is a lie:

When i was talking to a salesman about getting a ninja 300 or the cbr500r, he told me that its easier to finance the ninja300 and that he could get me financed with 0 down with like 7 different banks.

But, he said in order to finance the CBR500r the loan had to be financed straight from honda themselves and that theyd control everything.

Is this true?
No.

Most dealers will have relationships with multiple lenders and should be able to finance things through multiple lenders. Sounds like this guy wants to sell you a Ninja and was spinning a story. There's nothing Honda can do to force you to borrow from them, or to prevent a dealer from offering you financing alternatives. And of course you don't need to finance it through the dealer at all. If the manufacturer isn't offering any special promotional rates, you will often do just as well with a local credit union or other place where you already have a relationship.

It's possible that some lenders (just like some insurers) didn't have the bike "in the system" because of how new it was. I had this issue with my insurer just two days ago. Had to get an underwriter on the line with the agent to approve the addition to my policy. Banks are even more of a pain.
 
  • Like
Reactions: SandMantis

·
Registered
Joined
·
1,795 Posts
My insurance agent had the Honda CBR500R in his system months ago.
( FARMERS INSURANCE CO )

He quoted me rates even before I ordered the bike.
We are just waiting for the VIN number to get the policy going.
( Bike is supposed to be here this week. )
 

·
Registered
Joined
·
35 Posts
Im now wondering if this is a lie:

When i was talking to a salesman about getting a ninja 300 or the cbr500r, he told me that its easier to finance the ninja300 and that he could get me financed with 0 down with like 7 different banks.

But, he said in order to finance the CBR500r the loan had to be financed straight from honda themselves and that theyd control everything.

Is this true?

They want you to buy a ninja. Your credit will determine finance at any bank. My guess is that they have figured out that people are opting for the CBs because the price difference is nill. Any bank can finance a Honda.

There may be a dealer incentive to sell the ninja, meaning the dealer gets a couple hundred for everyone they sell in june or july. It may be that he has someone else interested in the CB and wants to make 2 sales instead of 1. It may be that he is talking out his rear end. I know that if you don't have much credit as in the case of my son Honda might make you a loan but at a much higher rate. If you have good credit they will make you a good loan at 2.99 or 3.99 right now. It might be that Kawasaki is better about higher risk loans.. But if he's looking at local banks, its all about your credit, Loan to Value, and the term length.

I can't think of any bank would prefer to finance a Kawasaki or a Honda or vs versa. The guy is feeding you something you shouldn't swallow.

Go to your own bank. They will quote you a rate. Tell them what the rate is an ask them if they can beat it or not, but DO NOT let them Ask every bank on the planet. When your credit is checked often it can do damage to your credit score for some reason.

Good luck, I am not a banker, look into this yourself. What he is saying doesn't past the smell test in my book. Get the bike you want.

Get the Honda.
 

·
Registered
Joined
·
110 Posts
Im now wondering if this is a lie:

When i was talking to a salesman about getting a ninja 300 or the cbr500r, he told me that its easier to finance the ninja300 and that he could get me financed with 0 down with like 7 different banks.

But, he said in order to finance the CBR500r the loan had to be financed straight from honda themselves and that theyd control everything.

Is this true?
From my experience, Honda keeps a pretty tight grip over the whole thing and it wouldn't surprise me if they were pushing dealers in that direction.
 

·
Registered
Joined
·
380 Posts
My suggestion is always to join a credit union if you have excellent credit and avoid the risk of the dealer adding 1 or 2 points to the finance rate to make money on the back end of the deal. Credit union interest rates are rock bottom LOW for new car and motorcycle purchases.
 
1 - 20 of 21 Posts
Top