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What the heck is a Yamaha/Kawasaki/Honda Credit Card?

Discussion in 'General' started by britx303, Nov 16, 2019.

  1. britx303

    britx303 Oh long Johnson!

    For buying a bike? The only time ive bought a brand new bike was once ,14 years ago and paid cash. Looking into a possible new purchase and this was suggested to me,but seems like a ridiculous idea. Just seems wrong,but maybe Im missing something?? Any of yall done this??
  2. SPL170db

    SPL170db Trackday winner

    It's basically for financing a new bike, not very different from doing it for a car. Your financing company just happens to be the manufacturer.
    BigBird likes this.
  3. ryoung57

    ryoung57 Off his meds

    I think the idea of a “credit card” is that you can use it to buy accessories and junk too. They have a much higher margin than bikes so the dealers make more money. That’s how guys wind up owing $15k on a year old R6. They finance a bike for $13k, then spend another two or three grand on a helmet, gloves, slip on, etc.
  4. nick_b_507

    nick_b_507 Member

    If you do a traditional loan, the lender will require full coverage insurance. If you put your bike on a "credit card", then full coverage is not required. This way you can avoid getting boned for $3k or more per year for full coverage insurance on a sport bike.
    BigBird and Metalhead like this.
  5. ducnut

    ducnut Well-Known Member

    The only time I’ve seen those utilized is when a person can’t get financing for the full amount, so the uncovered amount is shifted to a powersports credit card, which has a ridiculous interest rate. Then, the poor schmuck has two payments on the same thing.
    Phl218 likes this.
  6. D-Zum

    D-Zum Alex’s Ohvale Maintenance & Transport Service

    ^This 100 percent.

    It's a creative loophole the motorcycle dealers and manufacturers came up with to get people on two wheels to avoid outrageous insurance rates.

    You get the bike and can do what you want about insuring it. Insuring it's not really their concern anyway.

    For responsible adults who do get the proper insurance...probably not going to be an issue.

    For those that don't, it's OK until the thing gets wadded up or low-sided....then they call the insurance company...and it gets totalled.
    Now they have a credit card debt they're stuck with and no bike. Most of the bikes probably become race bikes or parted out from an
    insurance auction.
  7. baconologist

    baconologist Well-Known Member

    Honda card is good for any new retail purchase at a Honda Powersports store. New units, parts and service invoices. There are cheap APR deals to card holders on new units from time to time.
  8. SPL170db

    SPL170db Trackday winner

    Well yeah, you can also do that with the credit card, but isn't it limited to the manufacturers products? or can you purchase anything on the card.....at the aforementioned rather high %age rates.
  9. sdiver

    sdiver Well-Known Member

    What? Sure you can always finance with unsecured debt, but the interest rate will be much higher.
  10. Is it such a thing as a Yamaha (for example) credit card that you can use to purchase anything, like a real credit card...and you earn points towards the purchase of a new bike?

    I am thinking about a bike version of the "GM MasterCard".

    Does that exist?

    If it did, I would probably use it instead of my Delta Reserve Amex.
  11. D-Zum

    D-Zum Alex’s Ohvale Maintenance & Transport Service

    No, not even close to that. They want bike/unit sales at a higher interest rate. Nothing more than that.

    Your Delta Reserve Amex is safe from neglect
    Phl218 and Gorilla George like this.
  12. TurboBlew

    TurboBlew Registers Abusers

    my advice... DO NOT REVEAL YOUR FINANCIALS to some random dealer on an application they submit to a 3rd party.
    Find out how to apply directly with the lender. Last thing you want is some unlicensed, desk jockey with no fiduciary obligations, playing middle man to get you a credit line.
    Phl218 likes this.
  13. klebs01

    klebs01 Well-Known Member

    Used Yamaha financing once. It ended up being an HSBC credit card deal at like 1.9%. Just because it's a credit card doesn't mean the interest rate will be high. It's just about fitting the deal within government regulations.
    BigBird likes this.
  14. HMEN

    HMEN Well-Known Member

    I will stay away from those things, when I used to work in a dealer a few years back they used to deal with the Yamaha card. The card was good for purchasing the bike with some low APR but as soon as you used to purchase any parts or accessories the APR will jump to 21% APR or higher I can't remember but it was crazy, a lot of the customers were complaining about it. It may have changed but I don't know. I do believe that all those cards were with HSBC.
  15. BigBird

    BigBird blah

    I used it a couple times. The low interest/no interest deals are through the credit card, but it's usually HSBC as the bank, at least with Kawi. Honda is Honda Financial, since they have their own bank division.

    If you want a loan on a bike, and the promotional terms, then it's not terrible.

    Sent from my smatrfone
  16. baconologist

    baconologist Well-Known Member

  17. TurboBlew

    TurboBlew Registers Abusers

    beware of Citi. You have to watch your statements like a hawk. Ive had a Citi card ~3yrs... caught 4 erroneous charges. Not fraud but just random $30 or $40 admin "balance" charges on months where I would have a few thou in charges. Usually results in a 20 min call with CSR reversing the mistake. Also if you dont pay the balance from the previous statement (say it closed at $1000) and you leave $100 to carry forward... they will charge you the interest on the full prev closing statement balance.
    ducnut and BigBird like this.
  18. BigBird

    BigBird blah

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