Motorcycle Loans
If you are buying a new motorcycle and you have good credit, you will probably have an easy time getting approved for financing at a reasonable rate. Otherwise, getting a loan for a motorcycle can be more difficult than for a car. This is because motorcycles are higher risk vehicles, and not many lenders want to have such a high risk loan.
If you are buying a new motorcycle you will probably want to look into the factory financing before getting financing from a dealer. Factory financing will generally save you more on interest rates, particularly with some of the more famous Japanese and American brands such as Kawasaki, Harley-Davidson, and Suzuki.
Whether you are buying a new or used motorcycle, you will want to go to a credit union to get some competitive quotes on APR financing. Credit unions often offer lower quotes than the dealerships. When you are researching your purchase, you will want to have the lowest quotes possible so you can bargain and make an educated decision.
If you are buying a used bike, you have a couple of options. You can try to get a regular bike loan. Some brands, such as Harley Davidson, help sponsor resale of Harley bikes by offering to assist sellers in personal purchases. If you can’t get a bike loan, you might consider getting a personal loan and funding your purchase that way. A third option is a home equity loan, which can be beneficial during taxes, but will also link your bike to your house.
If you already have a motorcycle loan, you might benefit from refinancing your motorcycle loan. To do this, you call up your lender and ask how much your payoff amount is. If it is more than $7,500, you could save a lot of money by transferring your loan someplace where you get a lower APR rate. Refinancing your loan sooner rather than later will save you the most money.
When you buy a motorcycle, financing is not the only financial concern. Remember also to think about how much you will be paying for insurance and factor that into your monthly payment costs.
