- 1 Motorcycle Loans
- 2 Bad Credit Motorcycle Financing
- 3 Refinancing Motorcycle Loan
- 4 Used Motorcycle Loans
This is our section about motorcycle loans and financing. We offer a guide to the best places to apply for it. Simply scroll down to learn more about each option.
This is easily one of the best places for motorcycle loans on the US market. With very competitive interests and high security they have become very a very popular place for bikers to go and finance their motorcycle purchases. To learn more about their policies, their current interests and if you are able to apply, simply click here.
Owning and using a motorcycle comes with a host of benefits including superb engine mileage, ease of ride in rush hours, ease of parking, enabling you to completely experience the wonders of nature and inexpensive maintenance costs compared cars. All these attributes make purchasing a motorcycle a bright idea. Many people cannot afford to buy a motorcycle in a one-off installment. Luckily, there are many entities across the country that offer motorcycle financing in form of motorcycle loans. The only question is how to obtain the motorcycle loan.
There are many types of loans and depending on your situation, you might want to get in touch with a different company, as many of them specializes in different areas; bad credit motorcycle financing, refinancing motorcycle loans or used motorcycle loans. Read on to learn more about each situation.
Bad Credit Motorcycle Financing
These motorcycle financing companies help you get approved for a motorcycle loan regardless of whether you have been a victim of bad credit caused by events such as bankruptcies, repossessions, judgments, foreclosure, collections, liens or slow pay. Even applicants with high risks such as slow credit and no credit are able to access motorcycle loans. These loans are typically unsecured loans, and they carry higher interest rates.
Refinancing Motorcycle Loan
Motorcycle refinancing process is easy and can lead to lots of savings at the end of month. Applying for refinancing contributes to a lower interest rate, significantly lowering your monthly motorcycle loan repayment.
Used Motorcycle Loans
Motorcycle financing companies also extend used motorcycle loans to applicants regardless of where they buy the motorcycle. These kinds of loans are unsecured, so you may get funds upfront, and the title of your motorbike won’t be held as security. Used motorcycle loans can be secured with three to five years unsecured personal loans. Used motorcycle loan rates are low and fixed, which makes them more convenient.
The Process Of Refinancing Your Motorcycle Loan
The first step is to get in contact with your current lender and ask about your current loan balance. Next, gather your personal information such as social security number, your motorcycle VIN, insurance information and model and make of your bike. This information is vital for the lending institution to price your bike. Also, ensure the information contained in your refinancing request concurs with the data you submitted in your first loan request. That information will be utilized to verify your identity as well as your current loan.
A good rule of thumb is only to consider refinancing your motorcycle if the current debt exceeds $7500 on your loan. The amount owed on your loan below $7500 may not be considered for loan refinancing. It’s also vital to determine that the current value of the bike equals the amount of loan you owe. Motorcycle refinancing normally takes at least two days to come through.
Before applying for motorcycle loans, it’s prudent to know that they vary from auto loans. While a few similarities might be observed, there are marked differences that can considerably affect interest rates, and establish your suitability for the motorcycle financing. Generally, motorcycle loan lenders are more cynical to underwrite a motorcycle than an automobile because of the following variables:
· Risk factors
Despite your skill level, motorcycles are a lot more dangerous to ride compared to automobiles. Lenders recognize this fact and categorize motorcycle loans as high-risk investments because of the hazards posed to the machine and rider. They acknowledge that motorcycle riders are at a high risk of defaulting repayment because of injuries or death, and the prospective damage to the vehicle erodes the value of the motorcycle as collateral. This is why motorcycles interest rates are higher than traditional automobiles.
· Recreational vehicles
Regardless of the reason, you are buying a motorbike; lenders see motorcycles as recreational machines. They classify bikes as luxuries and assume anyone buying them can easily afford a higher interest rate. Expect to pay a higher interest rate even if you are just buying a motorcycle for daily commute.
It finally boils down to economics. Because of the risk factors related to riding a motorcycle, most credit institutions and banks scrap motorcycle loans from their loans books. Supply and demand take center stage and so with fewer lenders, interest rates explode.
All that said, some lenders still extend loans to applicants at the best motorcycle interest rates. But these motorbike interest rates will largely hinge on your personal assets, credit history and the amount you are able to offer as down payment. Some of the financing options you can leverage include:
Motorcycle loans may not be as common as automobile loans, but they are available. While most banks might be coy about underwriting a bike loan, most credit entities, and national banks provide motorcycle financing for eligible applicants. Some of the national banks that you can get motorbike loans include USAA, SunTrust, and Nationwide, and they also provide competitive motorcycle interest rates.
2. Dealer financing
A number of dealers extend motorcycle loans to qualified applicants. However, a dealer’s motorbike financing rates might be higher than those offered by an alternate lender. It’s always wise to do rigorous research before settling on any alternative lender. Just like any motorcycle financing, the terms and interest rates will be determined by the dealer depending on your credit rating, life of the loan and down payment.
3. Personal loans
If your preferred credit entity or bank doesn’t provide loans customized for motorcycles, a personal loan is the best alternative. However, the personal loan should be supported by your assets and financial position. That said, a personal loan might need a form of security, and you should be well aware of the risks involved in buying the motorcycle.
4. Credit cards
The purchase of a motorcycle with a credit card can be enabled if you have a high line of credit. The benefits of credit cards are: You will insulate yourself from loan applications, credit checks, and penalties related to early payment. However, high motorcycle interest rates await, so you need to proceed with caution.
5. Online lenders
These days, online lending companies are mushrooming everywhere that deal in motorcycle financing. Also, a wide range of lenders centering on bad credit loans have set up shop everywhere. However, these online lenders have slapped high-interest rates on motorcycle loans because of the risks involved.
6. Original equipment manufacturers (OEM) financing
Original equipment manufacturers like Harley-Davidson, Suzuki, and Yamaha extend direct loans on their new models. The rule is the same; to qualify for the loan, your credit history must be impeccable, and these loans attract higher motorcycle interest rates.
How Motorcycle Financing Companies Work
With the advent of technology, most motorcycle loan applications occur online. They are secure, free and take a few minutes to complete. The moment you submit your motorcycle loan application, the process begins right away with the motorcycle finance company contacting you within the hour. If all goes well, you get immediate approval. Immediately the contact is instituted, and approval is attained, your motorcycle loan terms and rates are ironed out, and a tailored finance package is developed to suit your needs and within your budget.
However, motorcycle financing companies require that an applicant must be 18 years and above. The lender will also ask for your address and phone number. Some of the motorcycle financing companies include Mountain America Credit Union (MAU), Nationwide, Light Stream, Hudson Valley, Federal Credit Union and so on.
How Do You Get You Cash?
There are two main options via which you can receive your motorcycle financing funds, either by direct deposit to your bank account or check delivery by mail. If you choose the direct deposit option, you can be sure to receive your funds and hop on the bike the same day.
How Motorcycle Finance Calculator Works
A motorcycle finance calculator can assist you adjust loan terms and amounts to aid you in deciding the kind of loan that resonates with your need at a particular time. The calculator can help you determine the best motorcycle loan rates between 1, 3 or 5 years, and the exact amount you need on hand to have your own bike. With the motorcycle loan calculators, you are in control of your loan requirements.
How does it work when you apply for a motorcycle loan?
Content on this page is not to be taken as legal advice and we recommend you to talk to an expert or legal advicer before buying a motorcycle or taking a loan to do so.