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Discussion Starter · #1 ·
Hey guys, I'm new to the whole motorcycle thing, but have been a Honda guy since I could drive. I'm very excited to get my first moto this Friday! I went in to the dealership (Woods Fun Center) in Austin, TX to look around at the bike and got everything straightened away, and the manager told me about the 3 year warranty they offer but for $800. I was wondering if this is worth it (I plan on using this bike a lot, commuting about 52 miles round trip to campus and work). I was also curious if there is any sort of factory warranty that comes with all new CBR250rs. Thanks!
 

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the factory warranty is for 12 months from the day you drive away with your cbr...my slealership tried to sell me the extended warranty for $750..when i declined she offered it to me for their cost of $500...you have until the end of the one year factory warranty to purchase the extended..so you dont have to do it right off the bat if you dont want to..ive decided not to get it at all....and your dealer is trying to make 300 quick dollars off you...if you decide you want it..try to get it for "cost" from them
 

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Not sure about your dealer but mine offered me a long term warranty for $400ish if I bought it that day -or- 600ish if I bought it within the year. He tells me that if I do extend the factory one and have no claims that I get back all that I paid for the extended at the end of the warranty. I figured that if the bike started to have issues in the first year I would extend it but if it was rock solid I wouldn't.
 

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Not sure about your dealer but mine offered me a long term warranty for $400ish if I bought it that day -or- 600ish if I bought it within the year. He tells me that if I do extend the factory one and have no claims that I get back all that I paid for the extended at the end of the warranty. I figured that if the bike started to have issues in the first year I would extend it but if it was rock solid I wouldn't.
Did not know that was an option to get the amount paid for the extended warranty back.

Maybe I should see if my dealership would do that.
 

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guess it just depends on how greedy your dealer is..mine is a money grubbing thief greedy...another dealer in SC had offered the extended warranty as part of the OTD price ..and it was an even lower price than my dealers OTD price without it..but it was too far to from here to ride it home during break in miles and i didnt have a trailer for the jeep to haul it
 

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Discussion Starter · #7 ·
My bike came to 4700 OTD in Austin and in small print at the bottom they added the 800 dollar extended warranty that wasnt included in the price. This is all considering the fact that I am financing the bike and that was the offer they shot me. Also, since I'm 21 years old they told me my interest rate would be 18% since I got approved by them without a cosigner. If I may, what kind of interest rate can I expect that is reasonable?
 

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I ended up just paying cash. Financing would be a PITA for me without the cosigner and I had the cash on hand. I really didn't have the money at the time for an extended warranty(college student), so I didn't do it.

Maybe get a loan elsewhere?
 

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My bike came to 4700 OTD in Austin and in small print at the bottom they added the 800 dollar extended warranty that wasnt included in the price. This is all considering the fact that I am financing the bike and that was the offer they shot me. Also, since I'm 21 years old they told me my interest rate would be 18% since I got approved by them without a cosigner. If I may, what kind of interest rate can I expect that is reasonable?
That's awfully nice of the dealer. None of them around here would even consider doing something like that. But judging by your interest rate, they'll likely make much more off of interest than selling you that warranty. Check the contract for an early payoff fee.

I'd suggest getting someone to cosign, unless you're planning on paying it off in a year before interest hits. 18% kind of sounds like the highest you can actually get. Anyone with a decent credit score should get you a dramatically less interest rate if you're going to have a multi-year note. Since you're going to be financing the bike, you're going to be required to have full coverage so make sure you look at that too.
 

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Do not buy an extended warranty.

The factory warranty and regular maintenance will keep it running fine for as long as you own it.

If you do the maintenance, the chances of needing an extended warranty are extremely minimal.


Jay
 

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You can haggle on the finance rate. I'm 23, this is my first vehicle purchased independently and I chose to finance because I was too eager to save up. My first offer was 11.99% APR for 60 months. I told them that that was completely unacceptable and that I had seen the offer for 1.99% for up to 36 months for qualified buyers on the Honda website. The finance lady said, "Yes but they only offer that for certain models." I did not sign the contract that day.

I had checked my credit scores before I went in, you should do the same, you get one free check per year in the US. Anyways, I knew I had good enough credit to qualify for SOMETHING better than their initial offer. I went in again with a print out of an ad on the Honda website verifying that the 1.99/36 offer was valid for ALL street bikes. Their second offer was 3.99% for 60 months. I asked if there was a problem getting the 1.99/36 deal and the finance lady (the same one as before) acted as if it was the first time I had asked about it, didn't submit any new information to Honda, and printed out a new contract for 1.99/36. Here, I assume she didn't submit anything to Honda because the other times we were "waiting for a response" for up to 30 minutes, whereas the last time it was instantaneous.

The lesson is that the finance team is part of the sales team, too. Everything is negotiable. Do not pay more than MSRP out the door if paying cash. The Austin-San Antonio-Dallas area is too big a metropolis for any dealer to have sustainable, outrageous prices even for high-demand bikes. Financing is really the only way they make money on the 250, but that doesn't mean you need to pay twice what the bike is worth.
 

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Discussion Starter · #13 ·
Thanks a lot for the info. I'm looking to finance it myself, (my parents have a lower credit score than I), and this is also my kind of big step into the world (I'm in my last year in college and have no credit cards). My buddy told me I actually have a decent score (idk if upper 600's is good) but I have no idea about any of it. I'm glad I talked to you guys before purchasing, and I will definately make sure I get a significantly lower price. I'm checking my local credit union for a loan tomorrow!
 

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Upper 600's may not get you the 1.99% but you should come close, definitely better than 18%. I read that the cutoff for the "super preferred credit tier" is near 700. Reducing your finance period to 36 months will increase your monthly payment versus a 60 month note, but you'll save thousands in the long run.
 

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Make sure you are getting the extended warranty backed by Honda instead of the dealership and/or a 3rd party. See it in writing. Those other companies go bankrupt on ooccasion.
 

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My dealer gave a quote of $850 for a 4 year third party extended warranty. That is stealing. Honda extended warranty is $299 for 2 years extended and a $100 for each additional year coverage. Coverage goes till 4 year extended for $499.
 
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