Are Finance Promotions Purchasing Incentives?

Publish Date: 
Jul 22, 2008

A fixed APR of 1.99%, 4.99%, 11.99%, 15.99% will be assigned to the purchase of a Hypermotard based on approval criteria. A fixed APR of 5.99%, 6.99%, 13.99%, 17.99% will be assigned to the purchase of a 1098 Superbike based on approval criteria. A down payment of up to 10% may be required for all options.

Over at H-D, customers are being coaxed with an offer of a new Sportster for $99 a month if delivery is taken before July 31.

The offer is valid on previously untitled 2006, 2007 and 2008 Sportster 883L and XL 1200 models; and 2007 Sportster XL50 models financed through Eaglemark Savings Bank (ESB), a subsidiary of Harley-Davidson Credit Corp. As usual, APR and monthly payments may vary and are based on evaluation of applicant's credit and actual terms may vary. "Monthly payments increase substantially beginning in year three," the OEM also warns.

For example, a 2008 Sportster 883L with a $7,425 ($7,525 in California) MSRP, no down payment, a 72-month repayment term and 8.39% APR, would result in 24 monthly payments of $99 followed by 48 monthly payments of $152.48. A 2007 Sportster 1200C with a $10,165 MSRP, no down payment, a 72-month repayment term and 11.25% APR, would result in 24 monthly payments of $150 followed by 48 monthly payments of $225.92.

Polaris' Power Play promotes rebates of up to $800 and financing "as low as 3.99% for 60 months" on all 2008 and prior year ATVs purchased by July 31. Of course, the rebates vary by model and apply to the purchase of a new Polaris ATV made on the Polaris Installment Program, where finance customers are assigned a fixed APR of 3.99%, 7.99%, 10.99%, or 13.99% based on their credit approval criteria. Loan terms are for up to 60 months.

Polaris also is promoting 4.99% financing for up to 72 months on all model year 2008 and prior Rangers. This offer ends July 23. Terms of up to 72 months are available for purchases on Ranger based on credit approval criteria. Fixed APR of 4.99%, 7.99%, 10.99% or 13.99% will apply.

Suzuki has two consumer finance promotions happening until July 31.

The first promo invites consumers to purchase any new Suzuki for "as low as $79 a month for 24 months" on a Suzuki card at a 15.99% APR. To be clear, purchases up to $5,000 garner payments of $79 per month while purchases between $18,000.01 and $20,000 require payments of $279. Paying only this amount will not pay off the purchase during this period. Thereafter, the regular minimum monthly payments at a rate of 17.9% apply.

In the second Suzuki consumer finance promo, the OEM is offering a rate "as low as 8.99% for up to 84 months" on all 2008 and prior cruisers, ATVs, GSX-R and Hayabusa models made on a Suzuki installment loan account from July 1 though July 31. Fixed APR of 8.99%, 10.99%, 13.99%, or 16.99% is assigned based on credit approval criteria. Minimum contract length is 24 months and maximum length is 84 months for qualifying tiers. Minimum amount financed is $2,000.

Until May 31, the end of SuzukiFest, the OEM was offering a rate as low as 7.99% for up to 84 Months on all 2008 and prior street bikes, dual sports, scooters and ATVs.

Triumph is promoting a no down payment offer with financing as low as 3.9% for 72 months on new 2008 Rocket III Touring models, now through September 30.

The no-down-payment and 3.90% offer, financed through FreedomRoad Financial (FRF), a division of Evergreen Bank Group, is of course available to qualified applicants only. Not all buyers qualify and if approved may receive a higher rate, depending on credit score. The maximum loan term is 72 months. So, for example: A 2008 Triumph Rocket III Touring with a purchase price of $16,999, no down payment, a 72 month repayment term, and 3.90% APR results in monthly payments of $265.20.

The Yamaha Model Year End Sales Event offers customers $1,000 cash back on 2008 and prior year models purchased before August 31. Or, ATV and Rhino consumers who purchase by August 31 using a Yamaha card are being offered payment options of 8.99% and $69, $89, and $129 for 24 months. However, since paying only this amount during the 24-month period will not pay off the purchase, any remaining balance would be made through payments at a standard rate APR of 12.99%, 16.99%, 18.99% or 22.99%.

*Major OEMs not listed may be between promotions, many of which ended June 30.