Getting a Motorcycle Loan and Other Financing Option

Thinking of how you can raise money to get a motorcycle like you have always wanted? Purchasing a motorcycle can be an exciting experience, but it’s also a big financial decision. This are major instances when you can apply for Motorcycle Loan.

Getting a Motorcycle Loan and Other Financing Option

A motorcycle loan is often a secured loan; meaning you must back them up with collateral — in this case, the collateral is usually the motorcycle itself. When you get a secured loan, your property can be repossessed by the lender if you fail to make your payments.

Many people are turning to motorcycle financing in order to help them complete their purchase. But with all the options available, you might be wondering how to find the best motorcycle loans.

They are many Motorcycle financing options. So, on this article we will help you in understanding them and also select the best option for you.

On this article;

Best Online Motorcycle Loans

There are a number of online lenders that offer motorcycle financing and make applying for motorcycle loans easy. Online lenders can often be a better option when financing a motorcycle than the financing options offered by manufacturers or dealers because they offer more choice around interest rates and term lengths.

Online lenders offer a number of different term length options, down payment requirements, and the choice between variable and fixed interest rates. Some will finance any type of motorcycle, whereas others will only finance certain models or years.

It’s important to shop around to get a good deal and to understand the fine print of your loan. So below are the best online motor cycle loan, selected for you.

LightStream

LightStream offers motorcycle loans and personal loans that are easy to apply for and have relatively low interest rates.

It offers longer terms higher borrowing limits than competitors.  It’s a good choice if you have good credit or want to repay your motorcycle loan over a longer period for a lower monthly payment.

Loan info

  • Minimum credit score: 660
  • Loan amounts: $5,000 to $100,000
  • Loan terms: 24 – 84 months*
  • APRs: 4.29% to 10.84%*
  • Fees: None

Freedom Plus

Freedom Plus allows you to apply for a loan in minutes, get qualified the same day, and get your money within 48 hours. It has a relatively low minimum credit score, which makes its loans accessible to more people.

Loan info 

  • Minimum credit score: Not disclosed
  • Loan amounts: $7,500 to $40,000
  • Loan terms: 2 – 5 years
  • APRs: From 5.99% to 29.99%
  • Fees: 0% – 4.99% origination fee, $0 prepayment fee

Best Egg

Best Egg is an online lender that offers fixed-rate personal loans. It caters to high-income borrowers with excellent credit. You can get your loan quickly, sometimes within the day.

Loan info 

  • Minimum credit score: Not disclosed
  • Loan amounts: $2,000 to $35,000
  • Loan terms: 3 – 5 years
  • APRs: 5.99% to 29.99%
  • Fees: 0.99% – 5.99% origination fee

Upstart

Upstart is an online peer-to-peer lender that takes into account factors other than just your credit score when underwriting a loan. It also looks at your occupation and education.

It has a lower minimum credit score relative to other lenders, but higher interest rates and fees. If approved, you could receive funds within a day or two.

Loan info

  • Minimum credit score: 620
  • Loan amounts: $1,000 to $50,000
  • Loan terms: 3 or 5 years
  • APRs: 5.69% to 35.99%
  • Fees: 0% – 10% origination fee, $0 prepayment fee

Prosper

Prosper is a peer-to-peer lender that facilitates loans for borrowers with good credit. It offers a quick application process, so might be a good fit if you need cash fast.

Loan info

  • Minimum credit score: 640
  • Loan amounts: $2,000 to $40,000
  • Loan terms: 3 or 5 years
  • APRs: 6.95% to 35.99%
  • Fees: Origination fee of between 2.41% – 5.00%; $0 prepayment fee

Personal Loan for Motorcycle Financing

Most personal loan companies provide motorcycle financing even if it’s not specifically branded as a motorcycle loan. With many lenders, this kind of loan is considered a “major purchase” and you can qualify just as you would if you were using the loan funds for something like a wedding or a vacation.

One of the benefits of using a personal loan to buy your motorcycle is that you typically get your funds deposited straight into your bank account. That helps you negotiate with the seller because you’re essentially a cash buyer. It also gives you more options for buying your motorcycle used.

Additionally, you can use the money to finance gear as well. Just be sure to calculate how much you expect to spend on accessories so you can include it in your loan request amount.

Manufacturer Motorcycle Financing

The first type of motorcycle loans you might consider is manufacturer financing since you will likely hear about it when you go shopping for bikes if you plan on buying one new. The type of financing offered varies greatly between manufacturers.

Many manufacturers offer motorcycle financing deals at different times of the year, especially when they’re trying to sell more bikes. These deals often include discounts on interest rates or even 0% interest loans.

These loans often have low minimum down payments and can be an easy and cheap way to finance your bike. They also make it easier to qualify for these loans since they are trying to use them to sell more bikes. The downside is that if you have bad credit, you might have to pay a rate much higher than the lowest rate advertised.

Dealership Financing

The next type of motorcycle financing that you might encounter is dealership financing. Therefore, it is depending on the type of dealership you go to, this can sometimes be the same as manufacturer financing.

Most motorcycle dealerships won’t offer financing themselves, but will refer you to a list of approved lenders. These lenders will likely include the manufacturer’s financing arm, but they will also have a list of third party lenders that they work with.

One of the ways that dealerships make money is via commissions from pushing these loans. They also use these loans as an enticement to get buyers to spend more money than they can afford. So, you should know how much money you can reasonably afford to spend before walking into a dealership.

Final Thought

Purchasing your next motorcycle clearly doesn’t need to be a stressful process. There are countless options available to get the right kind of motorcycle financing you need. Before you go into the dealership, research some options so you can go in with as much information as possible.

Once you find the best deal, you’ll be ready to hop on your new motorcycle and enjoy the ride with total peace of mind.

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