I'm sure there are many others on here that have or are financing a 4-wheeler. My question is that I bought my first 4 wheeler this past summer and had only financed a dirt bike before that. I think my interest rate on my dirt bike was about 6 or 8%. However for my 4wheeler it's a whopping 17%! I was just wondering is that a normal rate for a 4 wheeler, or am I getting bent over and dry humped by the financing company?

 

You're getting beat on. Go to your local bank or credit union, they may be able to refinance it for you. If they can't, you'll just have to pay it off as quick as you can.

 

your interest will depend on who they financed thru and what kind of credit rating you have.
If you went with one of the bike manufactures credit, they are nailing you to make up for the dealer selling the bike for less (I have a buddy that bought a honda and got 15% APR with "Honda credit")
If you bought the from a secondary seller, you probably got Capitol One. They are the biggest ripoff lenders I know about and they are the one most secondary sellers go to first.

 

If you can't get refinanced try to get an unsecured loan and the interest rate will be a lot cheaper.

 

Depending on your length of contract, if you have a payoff penalty (also common on some high interest loans), you might be better off paying off at 17% and take it as a lesson learned.

 

I need to call the finance company tomorrow and see what the deal is with the loan and why it is so high with my credit score and history, which is at least 710 from the last time I checked a couple months back and probably around 5 years long so far. I'll see if there is a penalty and if not i'll get it sent to me in writing that there is not so that if I send a payoff they can't hit me for anything other than the principal. The finance company is GE money bank, for those of you that want to know who to avoid.

 

Usaly on ATVs if you financed threw the manufacturer like I did they give ya a certain amount of time at a low intrest then nail ya after that period. The one I have now is 2 years from purchase date then it goes up to an ungodly high rate. I will either pay it off before then or get a bank loan to cover it and refinance it threw the bank at a more sane rate. On second thought the one i am making payments on now(Raptor) will probobly find a new home before either of the above happens. Got a kid on the way and could use the payment money for better things.

 

The big question is, Why did you sign on the dotted line without knowing the interest rate or if you knew your credit rating was that high? It sounds like you took the first offer they made. Yamaha presented me with a contract and I found in a little spot where they were going to charge me 12.5%. I told them never mind and went to my credit union. While talking to my loan officer she told me that she had financed the same model 4 wheeler the day before from another dealer and there was a $600.00 rebate that my dealeer wasn't telling me about. I made a formal complaint to Yamaha but never heard anything back from them.

 

Like bkrukow said if you financed through the manufacturer there is a certain time that your interest rate stays low then skyrockets if you don't pay it off within lets say the first two years. My friend got sucked into one of those traps when he thought it was a "good deal" to buy a "buddy pack" for him and his wife. He got 2 4 wheelers, a trailer, helmets and safety gear, and I told him there's got to be a catch somewhere, well about 2 years later he is now paying 23 percent interest and never rides the wheelers anymore.

 

Okay to clear something up I did know the interest rate beforehand. I like many saw the lower rate advertised on Gander Moutain's little signs in front of each atv which advertised an estimated payment based on 9.9% and by the time everything was ready for me to sign I was too psyched to hit the trails that I really didn't give a darn. They actually have a company shop for a loan for you, and apparently the company that gave me the "best" rate was actually a little higher at first but came down like a half a percent or something - at least that's what the guy that was shopping for my loan told me. So I think i'm going to just call around to some banks and see who will refinance for me.

 

My new snowmobile is 0% for 2 years, no penalties if paid early, and like 27% after 2 years. My credit score is in the HIGH 700's too. I think it's just the way the recreational vehicle financing thing works. They do it because they KNOW you want what they have and most people won't think twice. I will however have the new sled paid off in a few months though, so the interest thing shouldn't kill me.

Shawn

 

Yeah, that's true....but I am sure that I can get a much lower rate somewhere and get it down.....I mean it's not a stinking credit card going to an 18 year old with no credit established here...what a joke

 

I forgot to mention my local credit union finances recreational vehicles with a rate of like 8% used or new. It's just the way the dealer available financing is, is what I meant to say.

Shawn

 

The smaller the loan the higher the rate generally, but you really got took.

The problem is that now that you have bought the quad, if you went to refinance it you would likely end up with the rate for used machines, which is generally higher than the rate for new.

Shop around for the best loan the same way you would shop for the best price. Sometimes you can also negotiate on the loan rate. I had a dealer use part of what they make selling the finance contract to buy the rate down to meet what my bank offered.

Lastly, you might look at State Farm Bank. When I bought my quad, they had the best rate I could find anywhere. Some agents may not offer their loans, as obtaining a banking license is required. If I recall correctly you don't have to have their insurance, but you get a slightly better rate if you do... I think they do have a small penalty for early payoff in the 1st year, but otherwise it's a straight simple interest loan.

 

Thanks a lot fellas, i'll look into it all and post what I learn....