Auto Loan Rates
In my attempt to purchase a BMW R1100S I immediately contacted the bank which I have my current BMW motorcycle loan through. Currently Jonestown Bank has the title to my BMW F650GS. When I was buying it, they offered the absolute best interest rate. Within a few hours I received a call that I was approved for an auto loan for a 2002 BMW R1100S at 8.2% interest rate for 48 months. Awesome!
But then I thought I should check with my current bank just to see if their interest rates have changed. I use Members 1st Credit Union which is actually located in the parking lot of where I work. I checked out their web site which shows auto loans for “2004 and older Vehicles” at 7.89% for 48 months. That was fantastic news!
I went through the loan approval process with Members 1st and was excited because I could have the payment deducted from my direct deposit which would lower my payment even more. After receiving a call from the loan officer he explained that because the motorcycle I wanted to buy was a 2002 they would not consider an auto loan and instead would only offer a personal loan at 10% interest rate for 48 months. He said if it was a 2004 or newer it would be an auto loan. So my question is, why do they advertise “2004 and older Vehicles” on their web site for auto loans? Sounds like false advertising to me. Or do they not consider a motorcycle a vehicle? Last time I checked I need to register my motorcycle with the state, get it inspected, and have insurance just like any other vehicle.