How to Get a Motorcycle Loan

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Getting a motorcycle loan requires consideration of credit, your budget and comparing quotes. This article provides some details on how to get a good loan.

Steps

1. 1
   Know your credit. Before you submit a motorcycle loan application you should highly consider taking a look at your credit report. Lenders see motorcycles as risky because bikes are frequently stolen and crashed. As a result, lending requirements are more strict with motorcycles then with cars. If you have one slight blip on your credit report you are at risk for getting declined. It is best to study your credit report before submitting an application and if you find inaccurate information have it fixed before submitting an application. Also, lenders hate high credit card debt when looking at motorcycle loans. If you have high credit card debt it is highly recommended you pay off some of your debt before applying.

   
   
2. 2
   Create a budget and know how much you can afford. Before you apply for a loan, you should understand your budget and how much you can afford. Don’t stretch yourself so far in debt that it is difficult to make your loan payments. You may find it necessary to accept a less desirable motorcycle to afford the loan, but at least you still get to ride.
3. 3
   Avoid common motorcycle financing mistakes. Avoiding common motorcycle financing mistakes is the key to having a good experience when financing a bike. Some of those mistakes include being afraid to ask question about the loan, borrowing to much, and opting for a credit card motorcycle loan.
4. 4
   Comparison shop. Make sure you not only shop for a loan in a dealership, but you also shop online motorcycle lenders, your local bank and credit union. To get the best interest rate and terms you should shop at least 4 lenders. When shopping you should do it in a couple days time to ensure it does not hurt your credit score. You want to be wary of loans that require you to put your house up as collateral. You never want to put that at risk for a bike. In general, motorcycle loans will not have these in the terms, but some may. You can look many places for these loans. A local motorcycle shop may have options, your bank or credit union will, and you can even find a motorcycle loan online. Your needs are different than others, so some loans may be better or worse for you.
5. 5
   Select the best quote. After you comparison shop you will want to select the best motorcycle loan quote to fit your need. You will want to consider the interest rate, and the terms of the loan. The longer your loan the lower your payment, but this will also mean you have less equity in your bike if you decide to sell it in 2 years. You should also examine if the loan terms have a prepayment penalty and look at the details of fees to ensure you are selecting the best terms.
6. 6
   Purchase your bike. This is where the fun begins and you get to purchase a new bike and enjoy the motorcycling lifestyle.

   
   

Tips

• Ask lots of questions.
• Read the fine print on your bike loan contract.
• Avoid signing a contract you do not understand.
• Get multiple loan quotes.
• Consider making a down payment to get equity in your motorcycle.

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