No problem!

 

Actually I use no payments and no interest schemes a lot. You just have to make sure that you pay off the loan in full before it expires - usually 6 or 9 months. Your own money sits in the bank earning interest.

Kawasaki over here have usually got an interest-free promotion going. I went in with cash for mine, but as they were offering 3 years interest free I took that up. Payments are set so that it's paid off inside the three years. It's a no brainer. Free money while your own sits earning interest.

Always decide what time frame you want to pay over and set your paymments at the right level to achieve that. Never just make minimum payments, or you'll end paying a shed load of interest and owing megabucks on a bike that isn't worth the outstanding debt.

It's great using other people's money, but you have to be disciplined about it and fully understand what you're committing to.

Rob

 

yea I'll try to pay that off asap when I get one for sure! Thanks to all who helped

 

That's pretty much my point.

People who think that the "no-interest no-payments" deals actually mean that there is no interest at all, are in for a suprise (in MOST cases). Just because one is not paying interest, does not mean it is not accruing in the background. It's the "No!" portion that people are seeing. Read the small print at the bottom for the real deal. Since you (Rob) are paying things off ahead of time, this negates the interest and effectively erases it. People who go the entire "no-interest no-payment" term without actually making any payments at all will often see what I am talking about. Go for 2 years and not make any payments, then check out the balance. ouch! Not to mention since the balance goes up from accrued interest the minimum payments go up.

Here is an example taken from the Yahoo forums when a guy asked about the interest rates on his new Kawasaki motorcycle using his Kawasaki card during one of their "Promotions". These were the terms :
Fixed payment amount: $89.00
Reduced Rate: $6.8% APR. (Notice the term "reduced"? lol)


"At $89 per month and 6.8% interest on your $8,000 motorcycle loan, at the end of 24 months you will have paid $1,017 of interest and you will still owe $6,881 in principal. At that time the interest rate may increase. To pay off the bike in 24 months you would have to make payments of $232 per month."

That "Get into a new Kawasaki at 6.9% APR!!!!!!!!" tagline will NOT last forever.That is no good. The No-Interest No-Payment promotions can be quite good if you plan to pay off the entire balance during that time period, if you don't though it can get messy. However, if you have the cash for the bike already, and want to sign up for the financing, you can actually use this "pre-bike savings" you have to boost your own credit rating. Finance bike ---> pay 3x or 4x or whatever times the minimum payment is ---> pay off bike quite a bit early ---> see credit score go up.