Motorcycle Loans

So you would like to own a motorcycle of your own and you need money to support your plan? Then you need a motorcycle loan. Before you take the first step in looking for the suitable bike, you should first look at your financial status and see what lenders might want to borrow you. If you think getting a motorcycle loan is the same as getting a car loan you are wrong. There are some exceptions that are unique to buying a motorcycle.

Things To Consider With A Motorcycle Loan 

  • Your loan might be in form of a credit card.
  • Some manufacturers of motorcycles can offer credit cards as a way of paying back your loan. The credit card will have the name of the manufacturer on it but is managed by a proper banking institution.
  • The terms for this credit card vary. Some come with introductory or promotional interest rate which will last for only a specific period of time while other rates could last through the duration of the loan.
  • If the card states that your lower interest rate will last only a couple of months and you intend to have the loan for longer, then this loan is not a good idea for you.

The most important thing is to read the fine print.

Don’t create problems for yourself with longer loan terms 

Things like cars depreciate within a very short while and motorcycles depreciate even faster than cars. A long loan term could offer you lower monthly interest rates but over time, you would still be paying off the loan and you might end up paying more than you should on the motorcycle as a result of the depreciation.

Get ready for higher interest rates 

Financial rates are usually based on the length of the loan and how strong your financial status is. When it comes to obtaining a loan on “special vehicles” like motorcycles, the interest rates are usually higher than normal vehicles like cars. Other examples of special vehicles are boats, RVs. Of course, interest rates are never constant but a motorcycle loan simply has a higher interest on it.

Finding the Best Motorcycle Loan Rate

The first step is not to walk into a motorcycle dealership. The first thing you should do is to shop around for your financing options so you can compare and choose the most suitable option. Often times, you can as well secure financing for your motorcycle from your chosen dealership but the terms are not always the best. Consider getting a personal loan or even the credit card offered by the manufacturer. When you have decided on your desired type of financing, make sure you ask how much insurance coverage you will need with the loan.

Other important things to note 

  • The biggest negotiating tool that you have is your financial record. This is what the lender will use to judge how dependable you are on paying back as at when due.
  • Your financial situation at the time of obtaining the loan will influence the terms and amount of loan you are given.
  • Before looking for loans, endeavor to get your comprehensive credit report so you can see how you’re doing financially.
  • Keep the balances on your credit card reasonable so lenders will know that you do not use up every dollar given to you on your credit card which is a sign that you would make a good borrower.

With all of these in place, your ride home from the dealership would be quite a sweet ride and you can comfortably plan on how to settle your loan over its term.