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I know I've seen some great write ups on here before regarding lending since some of you work in the industry -

Just curious, with this 0% on 2016 deal... Is BRP working the finance charge into the cost and then paying the finance charge to the banks themselves? It's not like the bank needs to get rid of these sleds after all so they need to make their money somewhere.

And if BRP is building in the finance charge, are they then giving bigger discounts on the 2016's if you walk in with cash?

Just curious - thanks for any input!
 

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No they are not building it in as far as I know. I bought a 2016 t3 a month ago, and the discounted price of the sled was the same regardless of whatever payment method I chose. Also the 0% is only through sheffield financial.

I chose the 0%.
 

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No they are not building it in as far as I know. I bought a 2016 t3 a month ago, and the discounted price of the sled was the same regardless of whatever payment method I chose. Also the 0% is only through sheffield financial.

I chose the 0%.
Same here with a Blizzard.
 

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I bought a bike through Sheffield financial at 0%, it's all been good but don't be late on a payment or I think they default on the 0% and jack it way up.
 

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The prices went down with this latest promo, on most sleds the discount was $1200 , BUT you only get a 1 year warranty, if you pay $400 more, so a $800 discount you get a 2 year warranty. There is no incentive to pay cash and in fact even if you have the money to pay cash why would you do it if you qualify for the 0% financing, let your money earn interest even if it is pathetically low at the the bank. Believe it or not BRP has almost no additional inventory to provide dealers that are looking for more sleds, So... basically BRP is able to buy down the interest rate with Sheffield since they are not stuck (BRP Corporate) with stock which in turn helps dealers in the areas with no snow sell sleds
 

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It's a no brainer. Went in with cash and walked out with 0% for 5yrs. $1600 rebate. Super easy.

Sent from my iPhone using Tapatalk
 

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BRP pays on money top of the rebates to get to the 0% financing. They basically buy down the rate at a negotiated price with Sheffield Finance.
 

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They made enough off of the early year sales that this won't hurt the bottom line.
 

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BRP pays on money top of the rebates to get to the 0% financing. They basically buy down the rate at a negotiated price with Sheffield Finance.
You are 100% correct, it probably costs BRP 4-5% per machine to "buy" zero percent financing.
 
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You are 100% correct, it probably costs BRP 4-5% per machine to "buy" zero percent financing.
Probably less, money is pretty cheap right now.

We're looking at a car for my youngest, 1.99% as a regular, non-promotional rate.

Good credit score = low interest rates.
 

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IMO even though brp is giving the rebate of 1200 per sled , or 800 with 2 years warranty , unless I am mistaken it is brp Not the dealers knocking the price down and eating the rebate , therefore the dealers are still getting full retail msrp for the sled and making their full margins. Why is this important, its not, if your buying your buying , but seeing multiple threads about how much you paid OTD during spring check and fall buys etc it comes into the equation ,, I know if it was not for the rebate you would and Could walk into any dealer overstocked with sleds and negotiate with them to knock probably 1000 of the price or more and retain full warranty, before you say impossible, I have knocked off More than 1500 on free rides and other sleds off of msrp retail price from multiple dealers with full warranty intact. The good thing about this spring sale is the 0% granted but i still feel there should be and is room to negotiate more at dealers that are over stocked, if they will not , then sit on it all summer and see you after the new release or in the fall , especially if you are a Cash Buyer.
 

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The 0% seems like a pretty good deal at this point in the season. However, I spring bought and paid $12,853 OTD for an XRS Gade..... Cash.... walked out with a paid for toy and a 4yr bumper to bumper warranty. I'm still good with that! :wink_old:
 

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0% may be ' built in' but $$ rates are very low right now. It almost doesn't matter if it's zero % or 1.75% or whatever. Just like when the bank used to offer you a 'free' toaster for opening up an account, they make up for it somewhere else.

Of course with a loan comes an insurance policy. Yeah I know that's a whole other issue, but it would be a consideration for me.

And yes, they want to MOVE sleds.
 

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What is a normal car loan rate? in Canada a loan on recreational vehicles is always more usually 2% more than a car loan.
 

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IMO even though brp is giving the rebate of 1200 per sled , or 800 with 2 years warranty , unless I am mistaken it is brp Not the dealers knocking the price down and eating the rebate , therefore the dealers are still getting full retail msrp for the sled and making their full margins. Why is this important, its not, if your buying your buying , but seeing multiple threads about how much you paid OTD during spring check and fall buys etc it comes into the equation ,, I know if it was not for the rebate you would and Could walk into any dealer overstocked with sleds and negotiate with them to knock probably 1000 of the price or more and retain full warranty, before you say impossible, I have knocked off More than 1500 on free rides and other sleds off of msrp retail price from multiple dealers with full warranty intact. The good thing about this spring sale is the 0% granted but i still feel there should be and is room to negotiate more at dealers that are over stocked, if they will not , then sit on it all summer and see you after the new release or in the fall , especially if you are a Cash Buyer.
I'm not sure how much margin you think dealers make on a sled, but I can tell you it's very low. The wiggle room between profit and break even is in the hundreds, not thousands of dollars.

Dealers make all their margins on PAC (parts accessories clothing). So a savvy buyer won't try to play the pricing game on the sled (but yes, use all available incentives and rebates from the factory) but rather negotiate a discounted PAC offer thrown in with the deal.

The sled is just the seed, the harvest for the dealer is service, parts, consumables like oil, and all those BRP branded goodies we love.

It's the same for Harley dealers.
 
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