Financing rates suck

[Randi Morgan]

Do you own a house? Secured line of credit rates are as low as 2.95% I know that’s what mine sits at? Even if you don’t unsecured line of credit rates would probably be 2% + higher than that obviously credit rate dependant(I realize this is the tricky part for some). I actually assumed a huge part of inflation was from people tapping into these cheap lending rates. I have to agree with above interest rates are very likely to climb in next two years. I’m stunned by these financing rates you quoted had no idea that even existed that high.

I don’t own a house and a vehicle counts for nothing when it comes to assets.
My own bank suggested a cash secured loan (not kidding) if I could put up cash security for the value of the sled for 5 years they would grant me a loan.
I am not making this up.
Yes my credit is not great but I own my own business and am doing reasonably well, can show the income just not T4 income.
It’s a challenge may go corporate lease instead. They are begging for the business.

 

[Randi Morgan]

there is always more to the story.

Yes my credit is not great fell behind on the house after the divorce in 2016
Sold it to satisfy the bank
Fell behind on Telus and Epcor( missed 1 Covid deferred payment to epcor which booted me from the deferred repayment program and my entire balance went to collections
Also I don’t have a car loan or credit card so if you don’t use credit your credit score drops
Like if you paid cash for everything you would have a poor or very low rating
I’m more just kinda shocked about the bank and finance companies attitude towards it
One credit officer described it as a luxury purchase and said therefore the interest would be higher
It’s all bs talk for “jacking the rates during a pandemic is good for the bottom line” kinda tactics in my honest opinion

 

[neilsleder]

Back when I was a young buck ( Frick am I getting old for saying that!!!! )
I financed toys and didn't care what the end result was , But I had a TON OF FUN, so I cant fault anyone for doing the same, Now I won't buy any thing unless I can pay cash or it is at a lower rate of interest then i am getting from my bank and can keep my money in the bank or investments

I am exactly like you, getting older and wiser. Back in my early 20’s I wouldn’t blink on financing sleds and dirt bikes etc. Now that I am getting older and only have my house payment I can’t bring myself to finance anything. And my truck shows that lol

 

[MP Kid]

I’m honestly just kinda shocked at how many guys on here are buying sleds with cash. Is it just this small group of sledders? Because you can’t tell me that when I pull into the staging areas in BC in my rusty 02 dirtymax and my old ‘16 Cat up on the deck, that all the new or next to new diesels pulling 4 place enclosed trailers full of new sleds were all bought with cash. Am I wrong?

Not surprised at all…
Next time you’re in the staging area, check the plates colour and see if it has a farm sticker on it.

 

[jhurkot]

Not surprised at all…
Next time you’re in the staging area, check the plates colour and see if it has a farm sticker on it.

Why does that matter? Why don't you just unload your sled and have fun instead of worrying what kind of plates the guy next to you in the parking lot has?

 

[scotts]

Lot of looking over the fence here, Any given weekend you can rest assured there is somebody there that could buy every sled there with cash and not blink an eye as well as guys putting every cent of their trip on a CC without a clue how they are gunna make next months payment!
None of it's my concern, an old cowboy friend once told me, " be no mans conscience or keeper"!

 

[lilduke]

Ah the ole divorce, those can get ugly.


Buy the sled, make the payments, build back better....

You are correct, you will need to be making some sort of payment to ever acheive a good credit score.

 

[pano-dude]

I don’t own a house and a vehicle counts for nothing when it comes to assets.
My own bank suggested a cash secured loan (not kidding) if I could put up cash security for the value of the sled for 5 years they would grant me a loan.
I am not making this up.
Yes my credit is not great but I own my own business and am doing reasonably well, can show the income just not T4 income.
It’s a challenge may go corporate lease instead. They are begging for the business.

I know the pain of being self employed and having troubles with banks.
When I first started my business I had a good amount of cash in the bank. We through it pretty quick in the first couple years but business was good and had solid contracts.
Son wanted to buy a condo, was only 65k, he had 20k in an resp we saved for him but they would not give a mortgage, would not approve me as cosign even though we have lots of equity in our acreage and I run hundreds of thousands through the bank each year. When my mortgage came due I told CIBC to suck it and went to East Kootenay Savings. They were very accommodating, offered big line of credit and lowest interest rate.
That same condo sold last week for 150k. Still pissed off

 

[kingcat162]

Might have to see if I can get a line of credit just for fuel this season - will they give a guy one for that - go into the bank "what do you need this line of credit for?" "Umm..... race gas"

 

[tmo1620]

I buy all my toys cash, sxs, sleds, 5th wheel etc. I have financed a sled in the past but that was in 2007 when I was 22 lol, but truck and house are financed. Was gonna buy my next sled cash as well but got in for surgery way earlier than expected and now I’ll be able to ride this year which was unexpected . Was gonna wait until our bonus time and buy a sled in End feb beginning of march but I’m throwing the idea around of financing one so I can ride 3 extra months and then just pay out the loan in the spring. You only live once, and might as well enjoy your time while here, or at least try to, it’s hard to enjoy life these days.

 

[Levithan]

Yes my credit is not great fell behind on the house after the divorce in 2016
Sold it to satisfy the bank
Fell behind on Telus and Epcor( missed 1 Covid deferred payment to epcor which booted me from the deferred repayment program and my entire balance went to collections
Also I don’t have a car loan or credit card so if you don’t use credit your credit score drops
Like if you paid cash for everything you would have a poor or very low rating
I’m more just kinda shocked about the bank and finance companies attitude towards it
One credit officer described it as a luxury purchase and said therefore the interest would be higher
It’s all bs talk for “jacking the rates during a pandemic is good for the bottom line” kinda tactics in my honest opinion

Unfortunately this is why you got the rate you got. Sign up for creditkarma, it's free and you can check your score whenever you want.
Your score is probably in the early 600s, you will get killed with interest rates at this as the banks consider you a risk.
High rates will be the norm for anything you try and finance n o matter how much you put down because of your credit bureau.

 

[Longhairfreak]

I might not have $2 000 000 in the bank when I retire but I can assure you I had $2 000 000 worth of fun during my life.

 

[tmo1620]

I might not have $2 000 000 in the bank when I retire but I can assure you I had $2 000 000 worth of fun during my life.

Hell yeah freak

 

[mclean]

Amen. There is a semi fine line between spending and saving. Enjoy it while you can but don't get yourself in a pickle where it causes more stress down the road. And no sense on being cheap when you're young and having all this money when you're too old to enjoy it. Find the balance

 

[kanedog]

Amen. There is a semi fine line between spending and saving. Enjoy it while you can but don't get yourself in a pickle where it causes more stress down the road. And no sense on being cheap when you're young and having all this money when you're too old to enjoy it. Find the balance

Hi Dad!

 

[fj40]

If $50 a month is all the difference between 6 and 12 % and you can make the payments no problem than get the sled and have fun.
If that extra $50 or so a month would make it hard to make the payments than you looking for a world of hurt.
Also either way, find ways to help your credit score. As this will not be the last time you will be borrowing.

 

[Modman]

Just remember that all this financing is why new sleds cost more, the companies have figured out that payments are more desirable than total price, so raise the costs and have buyers finance. BRP = 6 Billion in profit last year.

Also remember that most toys carry a heavy depreciation curve. Especially the way they get ridden these days. Lots of people getting into the sport in the last decade have forgotten this. They finance the sled for 5 yrs and try to sell after 3, then are upside down on it and want a mint to cover the remaining balance. I looked at a sled a few years ago where the guy had added it to his line of credit and so the bank owned it still (technically). He made minimal payments owed $13K and the sled was only worth 10 (this was Pre-covid times). I told him he'd have to pay the lien out before I even considered it and offered him $10K, he was mad but I told him to take it or leave it. He price dropped it on kijijiji for months, last I saw he wanted $10K. Don't finance if you don't have to. Look up the top companies in the world and you'll see a lot of them are banks. They don't get rich by giving it away.

 

[pfi572]

^^^^^^
Exactly!!
You buy a sled new ? Times the purchase price by two and that will be roughly your cost of ownership for a couple years . Not including finance charges .
Insurance, wear a tear on clothing ,gear , trailer , truck , sled maintenance ,accommodation’s ,trail pass’s and blah blah .
Nothing cheap about sledding and having new iron .
Plus all this is paid for after tax dollars for most !

 

[tmo1620]

Just got 6% on used turbo, doesn’t really matter as it will be paid for before a year is up but just saying interest rates are still ok if you got credit

 

[team dirt]

Just was told 4.99 by BRP financing. I think I might just keep my cash in the bank and borrow the money and if the world goes to crap I still have cash to maybe save my ass somehow.