Financing rates suck

[Longhairfreak]

I am pretty sure when "we" voted, our memories were just fine!!

A lot of memories weren't fine because Turdeau was re-elected.

 

[canuck5]

trying to get financing for my 2022 snocheck, with a $5k downpayment these guys are quoting between 14 and 26% rates on roughly $13k. Is anyone else as choked as me at these ripoff numbers? How did credit card rates become the new norm for financing chit that was 6-8% a decade ago? My own bank is quoting just under 20% (but wont actually say what the rate is when pressed). Are there any better options out there?

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.

 

[kingcat162]

My brother is about to sign up for 13% on a new Polaris - I paid 5.9% on my t3 in 2015 and I thought that was brutal

 

[ABMax24]

Those are non-prime interest rates. Those are the rates given if you have a pretty significant ding on your credit, or are financed to the hilt and the bank is concerned of your ability to repay the loan. For the time being prime loans are still under 10%.

 

[Rjjtcross8]

I wouldn’t borrow anything on those kinds of rates. I would back out and build up the cash.

 

[Clode]

Secured lines of credits....nothing like using your home as collateral....banks love these things.

 

[lilduke]

Borrowing against an asset to buy a toy seems silly to me. But ya you could do that....

 

[Legend14]

Secured lines of credits....nothing like using your home as collateral....banks love these things.

Wondering what the bank would do to your home if you default on a sled?They own it now or what

 

[Caper11]

Wondering what the bank would do to your home if you default on a sled?They own it now or what

That’s not how that works, the interest would just start compounding on the balance on that line of credit.
You house would not be paid off until that line of credit is paid. Same as if you sold the house with that balance owning, it’s like a lien.

 

[pfi572]

Wondering what the bank would do to your home if you default on a sled?They own it now or what

Banks doesn’t give two rats ass’s about the sled.
The sled is paid for as you have borrowed against the equity on your house .

 

[Turblue]

Easy…ride what you can afford. Don’t get caught up in the latest and greatest. It’s all about getting out there and spending time in the back country with family and friends …that’s my deal.

 

[snoflake]

Guessing there is a credit problem involved, or just need to a different lending institution. A couple buddies bought from Martins and got 0% & 0 interest for 12 months.

 

[Caper11]

Guessing there is a credit problem involved, or just need to a different lending institution. A couple buddies bought from Martins and got 0% & 0 interest for 12 months.

there is always more to the story.

 

[ferniesnow]

...............
Your house would not be paid off until that line of credit is paid. Same as if you sold the house with that balance owning, it’s like a lien.

Been there done that. The lawyer pointed that out to me. The bank still owned our house due to the line of credit because the house was collateral for the line of credit.

 

[canuck5]

Banks doesn’t give two rats ass’s about the sled.
The sled is paid for as you have borrowed against the equity on your house .

Exactly and banks are smart the value of the home is assessed low and then they only give you 75% ish of your equity. Worst case scenario they still get there money back. For those that use lines of credit responsibly they are an unreal tool.

 

[lilduke]

Line of credit is a great tool for buisness owners or investors needing capitol .

Is buying a sled a good use of that tool? guess thst depend who you ask. Haha

 

[maxwell]

the guy didnt ask for your opinions or that he shouldnt buy a toy if he cant pay cash LMAO. He asked if anyone knew of better rates. Pretty simple.

 

[lilduke]

Well when you post on a public forum what do you expect?

Does anyone here get better than 26% loan shark rates? I would think so lmfao

 

[Stompin Tom]

Line of credit is a great tool for buisness owners or investors needing capitol .

Is buying a sled a good use of that tool? guess thst depend who you ask. Haha

actually yes, its a good tool to use. If you have a home equity secured line of credit, the interest rate is usually pretty low, ie prime plus 3% which mine is at. It is cheaper for me to make medium priced purchases ($10,000 to $100,000) with my line of credit and keep pumping my extra cashflow into investments which generally pay a much better return. Why pay cash for something when your actually loosing money by doing so?

Here is another example of creative money usage. My parents sold their home, was paid for, moved into an assisted living facility. They invested all the capital from their home, the interest pays the costs of their assisted living facility plus a nice allowance while never having to touch the capital. A win win for everyone.

 

[lilduke]

actually yes, its a good tool to use. If you have a home equity secured line of credit, the interest rate is usually pretty low, ie prime plus 3% which mine is at. It is cheaper for me to make medium priced purchases ($10,000 to $100,000) with my line of credit and keep pumping my extra cashflow into investments which generally pay a much better return. Why pay cash for something when your actually loosing money by doing so?

I agree for buisness or investments. But If someone wants to buy a sled or furniture or what ever with a home equity line of credit doesnt matter to me. I wouldnt though.


Back to the original post. Buy it with.a credit card. Mastercard gives me 16% thats 10% better!

I pay my card off every month though...

26% must be more to the story im thinking....