Motorcycle loans are available for a variety of motorcycles such as sports bikes, cruisers, mopeds, scooters, touring, and dual sports, etc. The cost of motorcycles typically ranges between $1000 and $50,000, which is just like buying a car. There are loans that come with APRs as high as 14 percent, which means that taking out a motorcycle loan can be a hefty sum to repay. Additionally, a lot of lenders do not regard motorcycle financing to be an auto loan and hence getting a motorcycle loan can be quite difficult and tricky. Motorcycle lovers however do not have to worry as there are many options for motorcycle loans just like car loans.
Some of the common avenues to get motorcycle loans are listed below.
1. Online motorcycle loan lenders
It is good to check out the different motorcycle financing options available online before actually looking at bikes as doing so allows you to get an idea about the price range within which you have to select a motorcycle. Also, since you already know the amount of motorcycle loan you can avail, you do not have to worry about funding a motorcycle that you had not planned for but fell in love with at a dealership.
After you get to know the amount of financing available from online lenders, you can visit the dealership and ask them if they can offer better APRs than the motorcycle loan that is pre-approved. If not, then you can use the online lender and purchase the bike of your dreams.
2. Brick-and-mortar and online banks and credit unions
Credit unions and banks where you have your savings accounts or have other financial dealings with have a relationship with you and are already aware of your personal and financial details. Hence, they may be able to offer a good rate for motorcycle loans as opposed to other lenders so as to maintain the business relationship with you. It is important to check this option and not avoid it, as you may get a really good deal. Some credit unions and banks may offer discounted rates if you permit monthly automatic repayment of the motorcycle loan from the bank account that you have with them.
It may however be noted that motorcycle loans are not offered by all banks. Chase, Capital One, and other banks which are big-time lenders of car loans do not offer motorcycle loans. Some other banks may consider bike loans as secured personal loans and not as auto loans.
3. Motorcycle loans from the dealership or directly from bike manufacturers
The most convenient and easy option for motorcycle loans is at the dealership. Dealerships have a network of lenders working with them and you can get an array of motorcycle loan options there. It may however be noted that dealerships generally tend to raise the APR and in that manner they make the additional money and profits. It is therefore a better option to first find out all the financing options available to you and the associated APRs. Once you are aware of the APRs that you qualify for, you will be better prepared to get the best APRs from dealerships.
If your credit score is excellent, then you can try for a motorcycle loan from the bike manufacturer itself. Depending on the model and make of the bike and the time of the year, the motorcycle manufacturing company may offer APRs ranging from 0 percent for a period of 5 years in addition to rebates and other discounts and incentives. Such a sweet deal may not be offered by other financial lenders, but such deals are offered by bike manufacturers to only those with great credit. You may visit the website of the manufacturer, select the bike, and apply for financing to know the APR.