Getting a new motorbike is a significant financial decision, in much the same way that buying a car is. Whether you’re a beginner biker or an experienced one who’s looking for an upgrade, you’ll need to plan how you’re going to fund your bike purchase.
Is It Difficult To Get A Motorbike Loan?
Generally, financing a motorbike isn’t that different from financing a car. However, it’s worth noting that riding motorbikes is associated with more dangers compared to riding a car. Thus, the total cost of owning a motorbike is usually more expensive.
Additionally, banks, credit unions, or similar financial institutions may not offer loans for motorbikes.
But, if you’re really set on purchasing one, there are companies that specifically finance motorbike purchases.
Can I Get A Motorbike Loan If I Have Bad Credit?
Although most dealers aren’t accommodating to buyers who have bad credit, there are some dealers that particularly specialize in it.
They already have long-standing business relationships with lenders that are willing to help people in your position.
Limit your choices to the ones that can grant you a personal loan or motorbike loan.
How Do I Apply For A Motorbike Loan?
Just like applying for a car loan or a personal insurance policy, you need to shop around for your motorbike loan options first. You want to get the best deal possible to considerably reduce your expenses.
If you think you’re financially ready to meet the loan requirements of your bike, listed below are four options where you can apply for them:
- Motorbike Dealers
Most motorbike dealers provide loans to their buyers. Because they’re also concerned about their sales, they’re usually willing to provide you with several options, just so you can push through with the purchase.
In a way, this is a good deal because you wouldn’t need to do business anywhere else.
However, dealers’ rates may be more expensive because they’re already handling everything for you. This is why you need to shop around, as this can help you negotiate rates with the dealer.
- Motorbike Manufacturers
Sometimes, motorbike manufacturers offer loans as part of their marketing efforts. Usually, they offer loans for the newest models or for unpopular models.
If you plan to apply for loans at a dealership, also ask them if there are any original equipment manufacturer (OEM) loans for the bike models that you’re looking at.
- Banks Or Credit Unions
Banks and credit unions offer motorbike loans the same way they offer car loans.
Customers apply for a loan, get an offer depending on their credit score, and sign the loan if the terms match their needs.
Usually, these financial institutions offer the best loan rates.
Before you agree to the loan, however, make sure that you carefully review the required monthly payment and the loan term, or the loan’s duration.
Lower monthly payments generally translate to longer loan terms, which means you’ll be paying more in interest.
- Personal Loans
If you can’t find a motorbike loan that suits your preferences, you can also consider personal loans. Unlike motorbike loans or car loans that exclusively finance bikes or cars, personal loans can be used for all sorts of purposes.
While this sounds like a great deal, the downside is that the interest rates of personal loans are generally higher.
Because this type of loan doesn’t involve collateral, you could end up paying the loan off straight from your paycheck if you fail to pay as agreed upon.
Financing Options To Avoid
- Secured Loans: Motorbike loans are a type of secured loan. Now, you may be tempted to use something valuable, like your house, as collateral for your new bike. Don’t fall for this, as this may only result in more financial problems.
- Credit Cards: If you have a high credit limit, you may feel like using your credit card is a good idea for this purchase. However, if your debts pile up, you’ll have to deal with high-interest rates, bad credit scores, and serious penalties.
Get Your Preferred Bike In No Time With The Right Motorbike Loan
Once you’ve been granted a loan, take note of its key points, like down payment, required monthly payment, and interest rates.
Make sure that you can consistently fulfill your payment duties to your loan, otherwise your efforts will all go to waste.
Ultimately, financing your new motorbike isn’t that difficult, and it’s still possible even if you don’t have the best credit score. You simply need to find a financier that can give you a motorbike loan that suits your needs.