Thinking of Getting a Motorcycle Loan for the motorcycle you have always wanted? It is not difficult anymore! Let’s walk you through the details!
Overview of Motorcycle Loan
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 purchases. But with all the options available, you might be wondering how to find the best motorcycle loans.
There are many Motorcycle financing options which makes purchasing a motorcycle an exciting experience, but it’s also a big financial decision. So, in this article, we will help you in understanding them and also select the best option for you.
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 choices 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 motorcycle loans, selected for you.
It offers longer terms and 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.
- 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 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.
- 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 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.
- 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
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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.
- 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 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.
- 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
Other Financing Options for Motorcycle Loan
Here are alternative options to consider. Remember, when looking for loan options, it is always profitable to keep your options open.
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.
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.
The next type of motorcycle financing that you might encounter is dealership financing. Therefore, it depends on the type of dealership you go to, this can sometimes be the same as manufacturer financing.
Most motorcycle dealerships won’t offer to finance 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.
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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.