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Whats better when financing


YellowTang's Avatar
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08-28-05, 05:13 AM   #1  
Whats better when financing

What would you do between these 2 choices.

Your buying a motorcycle threw honda ( $5,500 bike). When you buy a bike with them they want to finace you with honda, which is pretty much a credit card at 13.9% interest.

If I go with them at 13.9% the monthly payment to start will be $150.00 but as with a credit card the smaller the debt the smaller the monthly payment will be. The thing that confusses me with these type of payment is how long will it actually take to pay off.

or go with a bank loan at 9% interest, 4 year loan with a payment of $150 a month.

If they were your 2 choices which would you go with? It really isn't a hugh debt and I do plan on making some large payments but if I can save a few hundred one way or the other that would be great.

 
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slickshift's Avatar
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08-28-05, 06:44 PM   #2  
Is the bank loan a personal loan or a new/used vehicle loan?

 
YellowTang's Avatar
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08-29-05, 01:16 AM   #3  
Posted By: slickshift Is the bank loan a personal loan or a new/used vehicle loan?
It would be a Used bike loan, But I would barrow the money before I buy the bike. So it wouldn't have nothing to do with the dealer.

 
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08-29-05, 04:20 AM   #4  
That's much "better" debt though
It's not "unsecured" like a credit card, or even a personal loan
In other words, you have something to show for your loan
A bike
That's a "better" type of debt
The CC is the worst, you might have spent the money on groceries or at the casino
The personal loan is better, at least it's a lower rate
The used vehicle loan is the lower rate, and you have something to show for it
That's the best for sure

 
YellowTang's Avatar
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08-29-05, 03:35 PM   #5  
Thanks for the advise, I didn't look at it that way. It's something to think about.

 
bejay's Avatar
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08-30-05, 03:47 AM   #6  
getting a loan through a bank is probably going to save you some on interest just try to get the lowest interest rate you can find wether it be a personal loan or used vehicle loan, then you will know exactly how long it will take to pay off if you just made the monthly payment, however paying the loan off early can also help to save some on interest.

 
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