How to Finance a Motorcycle

Motorcycle riders, perhaps even more than car owners, have a strong emotional attachment to their machines. The issue with such devotion is that it can occasionally cloud your better judgement. Your emotions may get the best of you while shopping for the bike of your dreams.

Spend some time determining how much you can realistically afford to pay before visiting your local dealer or checking the want ads. This stage should include investigating the best ways to finance a motorcycle.

 Is it hard to finance a motorcycle?

Motorcycle financing is not something we consider difficult. Motorcycle financing with us is a straightforward process with high loan approval rates. Most new or used motorcycle dealers will make it appear nearly impossible to get you approved for financing if you have bad credit or no credit.

Financing a Motorcycle Is Similar to Financing a Car

There are some distinctions between financing a car and financing a motorcycle, but there are more similarities than distinctions. This should come as no surprise—you’re buying a vehicle to get around in both cases. Whether you’re buying a car or a motorcycle, the purchase will most likely be costly.

In both cases, the lender will run a credit check. If you have a lot of credit card debt, consider waiting until it is paid off before purchasing a new bike. Excessive debt can lower your credit score, make you appear riskier to lenders, and ultimately force you to accept a more expensive loan.

Where to Get a Motorcycle Loan

The best-case scenario when purchasing a motorcycle (or any large purchase) is to wait until you have saved enough money. If you’re set on taking out a line of credit to buy a motorcycle, proceed with caution as you would with any other large purchase; make sure you understand the terms and can afford the payments.

Almost all motorcycle dealerships offer their customers financing options. They may be the most willing to work with you because they want to sell something, but don’t expect the best rates. When reading the terms of your finance agreement, take extra precautions.

Another potential source of funding is motorcycle manufacturers. As part of their sales promotion efforts, they may offer special financing programs, particularly on unpopular or newly introduced models. Always inquire with your dealer about OEM (original equipment manufacturer) loans on the models you’re interested in.

A local bank or credit union is one of the most cost-effective places to look for a loan. The available rates and terms are almost always better than those offered by other sources.

There are online lending options in addition to traditional banks and credit unions. These are all viable options, but you must do your research. Investigate the lender to determine their credibility. Look for feedback from previous customers.


 The Bottom Line

No matter how much that new shiny bike tempts you, you should never succumb to it unless you can truly afford it. When it comes to transportation, the motorcycle of your dreams is probably not your only option. While shopping, keep in mind that you have other options.

When you believe you’ve found an affordable way to buy a bike, carefully consider key loan aspects such as interest rates, down payment, and monthly payment. Can you reasonably expect to meet these expenses without impacting your financial future?

Conducting your due diligence before committing to financing will pay off in the end—and bring you one step closer to your dream bike.

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