Motorcycle Financing is one sure way to purchase either a new or used motorcycle of your choice without robbing a bank no matter how expensive it might be.
According to the Bureau of Transportation Statistics, over 457,000 new motorcycles were sold in 2018. Most of these motorcycles were not bought with life-saving or salaries. A large percentage of the sales were made using loans.
Basically, there are over 50 motorcycle loan lenders are willing to provide you with the purchase power; money to get any type of motorcycle you want.
Whether you want Scooters and mopeds, Sports bikes, Naked bikes, Cruisers, Adventure sport, Touring motorcycles, Dirt bikes, Enduro bikes or Motocross bikes, motorcycle loan lenders that get it for you.
The question is, which of them will serve you best?
To help you get the answer, we have made a list of 6 best Motorcycle Financing loans lenders that can serve you well. Aside that, they are easily be accessed and have other unique features that you would love.
To compile this list, we had to make research and during that, we looked at there interest rates, requirements and some other factors that distinguishes them from each other.
Carefully read through!
Table of contents
- What are Motorcycle Financing Loans?
- What Kind of Motorcycle Loan Can I Get?
- How Much Do Motorcycle Loans Cost?
- How possible is it to get a Loan for a Used Motorcycle?
- What’s a Good Credit Score for a Motorcycle Loan?
- What are the Best Motorcycle Loans that can be Accessed Easily?
- Reference
- Recommendations
What are Motorcycle Financing Loans?
Motorcycle loans are mostly guaranteed loans, which means you have to back them up with collateral which is usually the motorcycle itself.
A guaranteed Loan means that your property will be reassessed if you fail to meet the payments.
On the flip side, it’s advisable you go for an unsecured personal loan if you want to use your motorcycle as collateral.
The reason is that with an unsecured personal loan, the lender won’t take back the property if you default. The only challenge about this type of loan is that it has a higher interest rate.
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Types of Motorcycle Loan
Lenders typically categorize motorcycle loans and car loans differently. Some lenders may charge higher interest rates for motorcycle loans than they would charge for car loans.
Some lenders split up motorcycle loan forms into more comprehensive divisions, with choices for new or old motorcycles and specifications for what is and is not called a motorcycle.
Many lenders don’t give loans for dirt bikes, scooters or ATVs.
What Kind of Motorcycle Loan Can I Get?
Motorcycle loans and car loans are different. They are different in terms of interest rates and repayment terms. But, when buying a new or used motorcycle, there are three different financing options:
Manufacturer financing
Manufacturer financing is available from a range of motorcycle firms. Instead of funding by a third-party bank or a broker, you get financing directly from the producer.
Depending on the business, you will be able to obtain funds for new and used bikes.
Manufacturers’ loans are backed by your bike, which ensures that the manufacturer will seize your car if you go behind on your payments.
Personal Loan
Just like I mentioned earlier, personal loans are unsecured loans that come with a higher interest rates. You can get the from banks, credit unions, and other financial institutions.
They can be used for any big investment, including home improvement or the purchase of new or used motorcycles. With personal loans, you can get money.
Motorcycle Loans
Motorcycle loans are niche loans provided by banks, credit unions and internet lenders.
Depending on the lender, they can be secured or unsecured. Note, any motorcycle loans have limits on how money can be spent, such as forcing you to buy a new motorcycle instead of a used one.
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How Much Do Motorcycle Loans Cost?
To get a motorcycle loan won’t really cost you much.
Standard motorcycle loans usually only require the payment of interest on the amount lent.
Rates as low as or below 3.49 percent APR could be available if you find the right lender. People with less-than-ideal credit may have to pay an APR of 10% or more.
However, borrowers who take personal loans to buy a motorcycle may have to pay an administrative or origination charge of a few percent of the amount borrowed.
How possible is it to get a Loan for a Used Motorcycle?
Typically, you will can used motorcycle loans although the specifics can vary depending on the lender you select.
Few lenders have minimum loan sums that can not be met when purchasing older bikes, whereas other lenders may restrict the motorcycle to a certain model year age.
Having a used bike loan isn’t necessarily a bad idea, but paying for a motorcycle with cash might save your interest.
What’s a Good Credit Score for a Motorcycle Loan?
An outstanding credit score is going to help you apply for the best deals. Motorcycle loans with lower credit ratings, such as 600, are also possible.
However, you should plan to pay a higher interest rate on your loan.
APRs can decline as the score rises to 700s and 800s, assuming that you follow the other requirements.
What are the Best Motorcycle Loans that can be Accessed Easily?
Below are 6 best Motorcycle Loans Lenders that are easily accessible:
- LightStream
- Harley-Davidson
- Digital Federal Credit Union
- Weels Fargo
- Avant
- USAA
Let’s talk about them briefly!
#1. LightStream
LightStream is one of the best motorcycle financing loan lenders that you can easily get loans from.
One interesting fact about this motorcycle loan lender is that they offer unsecured loans with low-interest rates ranging from 4.29% to 11.89% (including a 0.50% autopay discount).
The company also allows for loans between $5,000 and $100,000. You’ll need to have decent to excellent credit to apply for a loan.
According to Equifax, this means that the ranking should be between 670 and 850.3.
You may need to deal with another lender if your credit score is below the range.
LightStream doesn’t have a pre-qualification loan feature, so you’re going to have to undergo a hard credit inquiry to find out what interest rates you can get and if you’re approved for a loan.
Amidst its tight borrowing criteria, LightStream has the leverage above other lenders due to its low-interest rates, various redemption choices, and fast loan financing.
If you get a loan from LightStream, you will get your money on the same day and close the contract with the bike dealer.
| Leverages | Pitfalls |
|---|---|
| Get your funding the same day you apply | The Lender demands for excellent credit. |
| There is No down payment required | The minimum loan amount is $5,000 |
| 0.50% interest rate discount if you sign up for automatic payments | There is no loan prequalification tool available. |
Visit the official website to learn more.
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#2. Harley-Davidson
Harley-Davidson is one of the best-known motorcycle producers in the world. In 2019, almost 126,000 bikes were sold in the United States, more than double the amount sold by manufacturers including Yamaha and BMW in the United States.
Harley-long-standing Davidson’s reputation for motorcycles continues to be more luxurious than any of its rivals.
With Harley-Davidson Financial Services, if you have fair to excellent credit, you can fund a new or used bike.
Harley-Davidson has a range of lending offers available, including $0 down payment plans with low-interest rates and loan periods of up to seven years.
As of 2020, Harley-Davidson has loans at prices as low as 3.49 percent.
If you wish to purchase a Harley from a private party, Harley-Davidson will help make the deal smoother.
You will obtain funds from Harley-Davidson Financial Resources and then meet with the vendor at the nearest Harley dealership.
The dealer will help you complete the selling and transition of ownership of the bike.
Note, Harley-Davidson financial loan is secured. That means, if you get behind on your payments, the lender will take the bike back as security.
You will only use the loan to purchase Harley-Davidson bikes, and the lowest advertised prices and terms are only valid on select models.
| Leverages | Pitfalls |
|---|---|
| Gear and accessories can be added to loan cost | Can only be used on Harley-Davidson models |
| Loans available for new and used models | Loans are secured |
| Low-interest loans with no down payment available | Financing offers not available on all models |
To learn more about this lender click the link below.
#3. Digital Federal Credit Union
Digital Federal Credit Union is also one of the top motorcycle loan lenders that can be accessed easily. The firm is a credit union, a non-profit financial cooperative owned by its members with over 850,000 members nationwide.
DCU as its commonly called provides secured motorcycle loans at the rates of 3.50% to 4.25%, including its 0.50% discount for automatic payments for street motorcycles.
While for off-road motorcycles, the interest rates ranges from 7.85% to 8.35%.
Also, DCU allows you to borrow up to 125% of the motorcycle’s purchase price. This makes it possible for you to sort out the registration costs, buy an extended warranty, or get a service protection plan for your new bike.
Note, to be eligible for a loan in this company, you must have good excellent credit, have a relative belonging to DCU family, be a partner of a non-profit organization, and have an engagement you run in one of DCU’s service communities.
| Leverages | Pitfalls |
|---|---|
| Low-interest rates | Must be a credit union member to be eligible for a loan |
| You can use the loan to purchase new or used bikes | The longest loan term is five years. |
| You can borrow up to 125% of the motorcycle’s purchase price | Higher interest rates for off-road motorcycles |
To learn more about this lender click the link below.
#4. Wells Fargo
Wells Fargo is one of the best motorcycle financing firms you can easily access. It is also the best in terms of Personal loans.
This is because the firm without any collateral, prepayment penalty, application, or origination fees, allows you to borrow up to $100,000.
Also, as a customer who has a checking or savings account, you get their lowest rates with ranges from 5.74% to 24.49% with the relationship discount.
And you can get loan online or over the phone if you have an existing Wells Fargo bank account.
Even if you are not a Wells Fargo customer, you can still apply for a loan, but you’ll have to apply in person at a Wells Fargo branch. Your loan will be disbursed in as little as one business day if approved.
| Leverages | Pitfalls |
|---|---|
| Borrow $3,000 to $100,000 without collateral | You must be an existing Wells Fargo customer to qualify for lowest-advertised rates |
| No origination or application fees | You may have to apply in person |
| Loan terms between one and seven years | Good to excellent credit required. |
To learn more about this lender click the link below.
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#5. Avant
Avant is a lending firm specialized in unsecured lending for individuals with good or very bad loans.
Most borrowers who are eligible for a loan from Avant have credit scores between 600 and 700, so you are more likely to apply for a loan from Avant than other lenders.
Avant has a pre-qualification feature, so you can verify the eligibility of your loan without harming your credit score. When you wish to apply for a loan, you can apply online and qualify for a loan of between $2,000 and $35,000. If accepted, your loan can be disbursed in as little as one day.
Since Avant caters to those with less than ideal loans, it has higher interest rates than some other personal loan providers, with rates ranging from 9.95 per cent to 35.99 per cent.
It has fewer credit extension opportunities than most providers, with a limited loan period of just five years.
A noteworthy downside is that Avant charges operating costs. The fee is 4.75 per cent which is deducted from the amount of your loan before it is taken out.
For example, if you applied for a $5,000 loan and had a 4.75% administrative fee, $237.50 would be deducted from the loan total.
While Avant charges added fees and has potentially high interest rates, due to its lower credit score requirements and rapid loan financing, it is the best choice for people with poor credit.
| Leverages | Pitfalls |
|---|---|
| Borrow $3,000 to $100,000 without collateral | Double-digit interest rates |
| Borrowers with subprime credit can qualify for a loan | Administration fee applies |
| You can get up to $35,000 within one business day | Maximum loan term of five years |
#6. USAA
USAA, founded in 1922, is financial services and insurance firm focused on serving the needs of military forces, veterans and their families.
USAA is one of the best motorcycle loan for military and veterans because of their willingness to cope with unique circumstances that military members face.
With USAA’s motorcycle loans, you can buy new and used vehicles, scooters and new off-road dirt bikes.
These loans come with APRs as low as 5.99 per cent, including a 0.25 per cent autopay discount, and loan periods up to 72 months. You must fund at least $5,000 to apply for 12-to 48-month terms, $10,000 to $15,000 for 60-month terms, and $15,000 or more for 72-month terms.
The loan-to-value ratio must be 90% or less. Note, there is no minimum credit score requirement.
You’re going to need a signed document with a dealership or private party title details. USAA needs you to sign the loan papers and send a check to you or the previous owner’s lender via FedEx, which takes between one and three business days.
USAA consumers cite hassle-free credit experience and good customer service but stringent credit requirements in their ratings.
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Reference
- https://www.thebalance.com/best-motorcycle-loans-5088114
- https://www.creditkarma.com/auto/i/how-to-get-motorcycle-loan
- https://www.investopedia.com/best-motorcycle-loans-5080905
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