Are you looking for financial options to get the bike you have been eyeing for a long time? Perhaps, your old one has finally moved to a better place. Or it might be that you shifted, and commuting has been an issue.
Well, whatever the reason, you will find several types of lenders to help you acquire motorcycle finance.
Here are a few of the options you have:
1. Online Lenders
The first feasible option that you have to finance your bike would be to find a reputed and trustworthy online lender. Some also offer specialised motorcycle loans, while others offer loans that can be used for bike purchases.
That said, an online lender is a good choice if you want something quick with less paperwork.
2. Banks and Credit Unions
For loans, you always have the door of banks and credit unions to knock on. Unlike an unsecured loan in the case of lenders, these loans are secured by the motorcycle you buy.
What’s more incredible is that you can enjoy lower interest rates and long-term repayments. However, remember, if you fail to pay the loan, ultimately, you will end up losing your bike. In addition, you might also have to submit some documents and wait a little longer for loan approval.
3. Dealership Financing
Another option for motorcycle finance you can leverage is if you purchase a bike from a dealership. This way, you will directly get a loan from the dealer for the exact amount of your purchase and even get on-the-stop approval.
Though, the dealership option might need a down payment.
4. Manufacturer Financing
Luckily some motorcycle manufacturers such as BMW, Suzuki, and Harley-Davidson – come with their own financing choice. They are safeguarded by the motorcycle you purchase. Though, remember they might require a down payment as well, like dealership financing.
That said, these are available both for new and used bikes and might provide lower promotional rates.
Are you Ready to Get the Loan?
If you have decided to get a motorcycle loan, follow these five simple steps.
- Check your Credit: No matter where you decide to get motorcycle finance, the lender will check your credit history. So, it’s wise to check it yourself and figure out where you stand. Some online websites are available to help you review your credit reports.
- Decide the finance type: There are different motorbike loan choices at your disposal from various lenders, as listed above. Some dealerships also provide their financing.
- Compare lenders: Next, it is best to compare each lender type to make an informed choice. Compare the rate of interest and the repayment period, eligibility requirements, and lender’s charges.
- Fill out the application: Once you have picked a finance option, you will be requested to fill out an application form and submit the requested documents.
- Get your loan: If your paperwork is right, the lender will release your funds, and you will be on the road.
The Bottom Line
No matter how much that shiny and sleek bike is calling your name, don’t give into your temptation until and unless you can actually afford it.
Even when you find the best financing option for your bike purchase, consider the interest rate, monthly payment and down payment. It is only after you are convinced you can pay these costs without impacting the important financial needs that you go for the loan.