Best Motorcycle Financing
Useful Guide for a Motorcycle Loan

How to find the best motorcycle financing? You might need some sort of motorcycle loan to make the purchase, i mean motorcycles aren’t cheap. It’s also a difficult topic to discuss because so many situations are so different for all of us.

Let me start by explain how a financial institutions see motorcycles. Motorcycles are a luxury object. They are risky to ride, often get stolen, easily damaged and loss there value very quickly. Also banks know that generally speaking people will first pay all other bills before paying the motorcycle loan / finance.

Loans based on motorcycle collateral are hard to make because of the earlier describe views. In such a case you might have to come up with a substantial down payment. Also other collateral might be attached to your financing for the bike.

A dealer might offer a manufacturer financing option or have a regular contact with a financing company who gives a good deal. Check it out but also compare it to others.

Watch out when dealing with repo artist financing since your interest is the last thing on their mind. They just want to make money of your bike when you can’t make the payment anymore. So super high interest rates are very common. This is NOT your best motorcycle financing option.

A quick check (only gives an idea) is checking your financing (income and expenses). Your debt to net income should be no more that 15%. And if you own a house banks allow for a 28% of your gross income can be allocated to the housing payments. But you are not allowed to be paying more than a 36% on all your debt expenses together. So a motorcycle financing may not be more than 8% of your gross income if you don’t have any other debts.

Interest on financing can add up to a significant amount of money of the overall cost of your motorcycle. So pre-arrange the financing before you go shopping for a motorcycle

Don’t compare apples & pears. So when shopping around ask for exactly the same financing deal. Otherwise you still will not know who is cheaper.

Remember to work with the out-the-door-price when dealing with your purchase of your motorcycle. Include all hidden costs like service, taxes, licenses, and repairs (depending on new or used).

Buying a motorcycle in the off season will get you the best price.

Motorcycles can have high service costs. You can save money in the long run by buying a low service friendly motorcycle. Low maintenance are bikes with drive shafts, center stands and hydraulically adjusted valves (just to mention a few)

If you need financing - Please shop around before you buy a motorcycle!