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Motorcycle Loan
Motorcycle Loans In 2021
A motorcycle loan is a good option if you are looking for a bike but don’t have enough cash to purchase it. Motiveloan allows you to compare motorcycle loans from multiple lenders. It’s quick, simple, and best of all, it’s free.
How to select the best option
We compared more than a dozen motorcycle lenders to find the best deals and the most flexible terms for borrowers. Although credit unions usually have the lowest rates for motorcycle loans, you will need to meet certain membership requirements. You can also get motorcycle financing through the manufacturer. This is possible if you are willing to jump through some hoops such as:
- Completing a driver safety course
- Credit card use
- Meet the requirements to maintain excellent credit
Which motorcycle loan is best for you?
Before you apply for a motorcycle loan or purchase of a cruiser, sport bike, touring bike, scooter, or moped, it is advisable to compare rates from different lenders.
What is the process?
You have two options when it comes to motorcycle loans: unsecured or secured. While a secured loan may have a lower interest rate, the lender may also be able to repossess your motorcycle if you do not make regular payments. An unsecured personal loan does not require you to have vehicle documentation.
Don't waste your time. Get a loan online.
Find the best rate and terms
Motiveloan can help you find the right lender for your situation. Motiveloan can help you find the right loan for you.
- Loan amounts starting at $1,000
- Compare shopping to find the best rate for your loan
- Flexible terms to suit your lifestyle
- Bad credit motorcycle loans for those with less-than-perfect credit
How to apply for a loan:
Although motorcycle loans are not as easy to get than auto loans, the process of applying for a loan for a new or used bike is very similar.
- Verify your credit.Check your credit report if your score is lower that you thought. Your score will determine the rate of your motorcycle loan.
- Get your paperwork together.Sometimes, you may be required to provide proof of income or other documents.Documents Potential lenders. Lenders will also be interested in the following:* The make and year of the motorcycle (it’s okay if this isn’t fixed in stone).
* Estimated loan amount. This includes the price of the motorcycle, helmet and protective gear as well as the sales tax and registration fees. - Pre approve your motorcycle loan application.You can apply to multiple lenders in order to compare rates and terms.
FAQs
Do I need a loan to buy a motorcycle?
A motorcycle loan is a good option if you use your motorcycle as your primary means of transport and don’t have enough cash to purchase a new bike. It might be more difficult to balance a motorcycle loan with a car payment simultaneously. Instead, you can pay for the bike with cash. This will help save interest. Although motorcycles are generally less expensive than cars and some Harley-Davidsons begin at $50,000, they can be just as affordable. Find the best rate for you and the shortest term.
Is it difficult to obtain a loan for a motorbike?
You can get motorcycle loans from many places, including banks, credit unions and online lenders. Although some auto loan providers may not finance motorcycles all the time, there are many options available for borrowers with any credit profile.
Is there a better place to obtain a loan for a motorcycle?
You should only go to the place that offers you the lowest rate and terms for a motorcycle loan. You can start by joining a local credit union. Rates are usually lower and the membership requirements may be simpler than you might think.
What is the best rate for a motorcycle loan
Although credit union motorcycle loan rates have been as low as 1.69 percent APR, they are generally higher than auto loan rates. This is because a motorcycle’s default risk may be higher than that of a car.
What credit score is required for a motorcycle loan
People with credit scores above 660 will generally receive the best rates on motorcycle loans and the most favorable terms. Although rates can be high for those with credit scores below 600, some lenders will accept lower credit scores. You should delay your purchase until your credit has improved before you apply for a loan.
Unsecured vs. Secured Motorcycle Loans
Unsecured loans take into account your creditworthiness rather than requiring you to pledge the bike as collateral. If you don’t make your payments, the lender won’t be able to take your bike. These loans are more commonly offered by online lenders, which usually let you pre-qualify for a loan to see the amount, rate and term you may qualify for without impacting your credit score.
Secured loans have lower interest rates as the lender is taking less risk by using your motorcycle as collateral. Banks and credit unions are more likely to offer secured loans than banks, while large banks may also offer motorcycle financing through unsecured loans.
Secured loans might require a down payment, or an optional one. A down payment will reduce the amount of the loan and the interest that you’ll have to pay. Unsecured loans do not require down payments.
Financing for motorcycle manufacturers
Many motorcycle manufacturers offer financing at lower rates that unsecured or secured motorcycle loans. Harley Davidson offers financing options at local dealers for its bikes, for instance. The company states that rates for new motorcycles start at 3.99% and last seven years.
How to compare motorcycle loan rates
These are the main features that you can compare between motorcycle loans.
- Lender requirements: Most lenders look at your credit score and debt-to-income ratio to determine whether to lend to you and at what rate. While some lenders will lend to borrowers with poor credit, others require excellent credit. A secured loan might have a lower credit score than an unsecured loan.
- Annual percentage rates: A loan’s APR is its interest rate plus any fees, like an origination fee. The APRs for most unsecured personal loans are between 6% to 36%. Starting rates for secured motorcycle loans might be lower. The best loan is usually the one with the lowest interest rate.
- Repayment terms: While most unsecured loans can be repaid in two to seven years, some lenders have a more limited range. For example, upstart loans can have three- to five-year repayment terms. You’ll pay lower monthly payments if you have a longer repayment term. However, you will pay less overall interest if you have a shorter repayment term. Use a personal loan calculator to estimate your rate and monthly payment based on your credit score.
- Additional loan features: A loan with unique features may be able to break the tie if you have multiple loans at affordable rates. Many lenders offer next-day financing, credit scoring access and a mobile app for managing your loan. While these features won’t be able to beat the offer with the lowest interest rate, they can make it easier for you to get and repay your loan.
Frequently asked questions about motorcycle loans
Where can I apply for a loan to buy a motorcycle?
Some motorcycle manufacturers offer motorcycle loans through banks, credit unions, and online lenders. Compare rates from different lenders to find the best rate.
How can I obtain a loan for a motorcycle?
Compare multiple loan offers before you apply for a motorcycle loan. You’ll then submit an application, typically with documentation like W-2s and pay stubs. An application will be submitted to trigger a credit check. Usually, the loan will be available within one to five working days after approval.
What credit score is required to obtain a motorcycle loan?
Lenders have different minimum credit requirements, but the better your credit score the higher the chance you will be approved for a low rate of interest. Borrowers with good to excellent credit scores (690 or higher FICO) receive the lowest rates, though some lenders offer bad-credit loans.
What are the repayment terms for motorcycle loans?
Most motorcycle loans have a repayment term between one and seven year. A longer repayment term will result in lower monthly payments but higher interest.
What are the rates for motorcycle loans?
Personal loans online can be obtained at rates ranging from 6% to 36%. Unsecured bank loans, however, may have rates as low as 7% to 25%. Federal credit unions have a cap on interest rates of 18%
Pre-qualifying will allow you to see the rate that you are eligible for on an unsecured personal mortgage. NerdWallet allows you to see the potential terms and rates from multiple online lenders. This doesn’t affect credit scores.
