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Publish Date - July 25, 2022

Author: Staci Bailey

Categories:   Tips & Insights For Car Buying    Auto Loans & Financing   

4 Ways to Finance a Motorcycle

Motorcycle owners have emotional and psychological connections to their bikes, sometimes more than car owners. The problem with this kind of devotion is that it can easily cloud your judgment, especially in making wise purchasing decisions.

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Motorcycle owners have emotional and psychological connections to their bikes, sometimes more than car owners. The problem with this kind of devotion is that it can easily cloud your judgment, especially in making wise purchasing decisions.

Your pressing desire to purchase a new bike can get a better hold of you, preventing you from making an informed purchase decision. You may end up spending too much or breaking the budget to fulfill short-term emotional fulfillment and psychological needs.

So, before visiting your desired dealer or checking for any available listings, spend a good time thinking about how much you can realistically spend on a bike. Deciding how much you want to spend on a motorcycle will sometimes require you to explore multiple funding options.

Here are six ways to finance a motorcycle – whether you’re a first-time owner or an existing owner.

1. Online lenders

Online lenders are gradually phasing out brick-and-mortar dealerships because of several factors. One of the reasons behind the rise of online lenders is that they offer an all-online application process. This application can be filled out by anyone from anywhere. In addition, online lenders offer faster funding times due to little assessment of multiple variables: credit card scores, bank statements, cash flows, and more.

Online lenders also offer competitive rates than most physical lenders. Thus, clients who leverage online lending enjoy unbeatable deals like flexible repayment schedules and discounts on early repayments.

2. Credit unions

While you have to officially qualify for membership in credit unions, many offer better and unbeatable rates in all product categories. Credit unions, including national ones, have lax membership limitations, meaning clients must undergo a rigorous assessment before gaining membership.

Credit unions typically offer lower rates, higher-saving opportunities, and a more personalized and focused customer service. Credit union financing offers lower interest rates on loans, and it's easier to get approved than in a personal bank.

3. Banks

Most people trust bank financing because of the reputation, trust, and confidentiality that banks offer. So, it's advisable that if you're taking the 'bank' route, consider first building a credit score.

Some of the ways to improve your credit score include:

  • Increase your credit limit
  • Improve the nature and frequency of transactions
  • Pay down your recurring credit balances
  • Enquire about all negative credits that are paid off to be cleared from your report
  • Regularly evaluate your credit report for errors or anomalies
  • Inquire for credit limit increases

The reason national banks are likely to finance consumers with better credit card scores is that they're confident the client will repay the amount in full and in time.

Banks charge 'trusted' clients lower interest rates because they're assured of full and timely repayment. And when the lender is ascertained to get his money back, he doesn't need higher returns to stay in business.

So, when financing your motorcycle, bank financing is a viable option especially if you have a positive credit card score.

4. Dealerships

Dealerships are essentially sellers of products (cars, motorcycles, ships, planes, etc) that offer these products on credit. You may have an opportunity to apply for motorcycle financing through a dealership. If that's the case, compare rates from different dealers and ensure to get the best quote before signing the paperwork.

While financing through a credit union or a bank is one way of owning a new or previously-owned property – a car or motorcycle - there are numerous benefits of financing through a dealership.

  • Convenience. A finance officer at a motorcycle dealership will submit your papers on your behalf and negotiate for the best dealers from lenders. The finance manager will carefully guide you through acquiring your motorcycle, all in one visit – test drive your bike, check your paperwork, evaluate your trade, get your loan approved, and speed off in your new bike – all in one sitting.
  • Trade-in. The ability to trade in your bike or motorcycle is one of the most sought-after benefits of bike ownership. Most dealerships will allow you to trade in a motorcycle with a newer, speedier model.
  • Tax credit. Trading your motorcycle at a dealership can help you save money on tax credit instead of selling the bike privately. That's because, in most dealerships, you receive a sales tax credit for the difference in amount between your new bike and your old one.
  • Loan-terms. Dealerships are lauded for offering longer loan terms. Dealerships offer unbeatable discounts that cannot be found in other financial institutions or plans, including flexible and longer repayment terms. A longer loan term of, for example, 72 months, as opposed to a short 48 months, means that you have adequate time to repay.
  • Incentives on new bike financing. Financing through dealerships can offer special incentives for financing a new motorcycle. For instance, you may enjoy lower interest rates, cashback, and trade assistance.
What’s more, these incentives are likely to change every month based on buyer pre-qualification. So, qualified buyers can notice significant savings on new purchases.

So, depending on your budget and options, motorcycle dealerships are classic alternatives.

myAutoloan.com – A Hassle-Free Approach to Motorcycle Ownership!

myAutoloan.com provides customized loan and financing solutions for cars and motorcycles. Potential clients can compare up to four options in minutes when applying for motorcycle financing.

myAutoloan.com offers an interest loan chart, allowing buyers to check the interest rates on all loan types, including motorcycle loans. In addition, myAutoloan has an interest rate calculator or evaluator that allows you to check your interest rate before you apply.

And finally, a payment calculator. Since you know your interest rate and the lowest possible interest, you can estimate how much you can afford for your bike.

At myAutoLoan, we believe comparing and evaluating different motorcycle loan options is the best way to finance your bike.

That’s because of the following reasons:

  • Choice. When comparing and contrasting different financing options, you can pinpoint the package that works best for you. You're in control of your financing options.
  • Flexible rates. The lowest motorcycle loan rates aren’t usually the first you come across. Sometimes, the first deals you get are the most expensive. Shopping around gives you time to search for the right product at the right price.
  • Bad credit options. myAutoloan.com works with all types of bikers regardless of their credit ratings. We strongly believe that having a poor credit rating shouldn't be a barrier to owning your dream bike. Submit one offer form and get four financing options through myAutoloan.com. Finding the right motorcycle financing shouldn’t be a hassle!

Contact myAutoloan.com for inquiries on motorcycle financing.