There may be a time when you need a motorcycle loan. Click here for a guide on everything to know about getting motorcycle loans.
The financial crisis was an awakening for many — including prospective motorcycle buyers.
In 2006, the U.S. motorcycle market hit a peak with well over 1 million bikes sold. Contrast that with 2018 with roughly 460,000 motorcycles sold.
Admittedly, it’s hard to know for sure if Americans like motorcycles any less or if they are buying from hard-to-track nontraditional sources. Either way, the motorcycle is the embodiment of the American spirit into a vehicle.
But getting the most out of a bike means paying good money for a new bike. That’s just good sense. And like another vehicle worth owning, vehicle-specific loans, motorcycle loans in this case, are the way to get on the road sooner than later.
After you’ve found the right motorcycle for you, start by looking for the right lender for you.
If you have loans through a lender you already know and trust, consider contacting that loan officer again and explaining your goals and hopes for a motorcycle loan. Often, local lenders who have a rapport with borrowers can offer side debt offerings.
Further, these local lenders can help you understand the differences between motorcycle loans and other types of financing in the context of your current debt load.
The other option, as with all things in life these days, is to start with a web search.
The first question to ask is whether or not the lender has a dedicated motorcycle loan offering. Some lenders do not.
Ask about down payment requirements. Many car loans and car purchases involve a trade-in vehicle that acts as a down payment in a no cash-down deal.
But buying a new motorcycle after you’ve passed your CBT, or even a used bike, from a deal, often doesn’t involve a trade-in vehicle as an asset in the deal. Don’t be surprised if the lender wants a large down payment in an attempt to minimize how much risk they have in the loan.
Ask if the loan is secured or unsecured. A secured loan has some kind of collateral put up for the loan. A lot of the time, the bike is the collateral. This is decided by the lender. Secured loans tend to have lower interest rates.
The biggest question and most important question to ask is if there is space in the monthly budget for another payment.
The loan terms of the motorcycle will likely be shorter. This means that the additional cost won’t last forever. However, the limited timeframe is not relevant if you can’t afford it during that timeframe.
Motorcycle loans are delivered in similar ways to car loans. Some lenders will transmit directly to the dealership or will provide a type of check for you to deliver to the dealer.
Keep reading to get the latest on the latest cars and motor news with the articles below. Hit the social media buttons to get the conversation started on your next motorcycle.