 If you have perfect credit, plenty to put down, are buying
a brand new bike and it's from the local dealership then obtaining
financing on your bike is pretty easy. Just about all major manufacturers
have some sort of promotional deal tied to financing offering
easy access and low interest rates.
If you are buying a new Japanese bike such as a Honda, Suzuki
or Kawasaki I would highly recommend looking to their factory
financing programs first. If you can qualify this will most
likely be your best bet. Same deal with Harley Davidson, Big
Dog and American Ironhorse. All have great financing programs
for good credit borrowers.
Let's
say you don't qualify for the factory financing or are buying
a used motorcycle. You may find your options are very limited
compared to a home mortgage or used car loan. Why is this? Simply
put, there's unfortunately not a lot of money to be made in motorcycle
loans compared to the average risk they represent. (especially
when the borrower has less than perfect credit. )
Home loans are easy because they backed by the real estate for
which they were borrowed and car loans are big enough loans to
allow the lender to make enough money to justify the risk. Credit
cards are somewhat easy to get because the card company will
set your maximum based on your risk level, usually starting most
borrowers at $500 - $3,000 spending limit. Most motorcycles unfortunately
fall smack in the middle of those two categories. Wouldn't it
be nice if you got offers for a new motorcycle loan in the mail
everyday like you do home refinance and credit cards?
Don't worry - just because there's not tons of them out there,
it is possible for most anyone to obtain the financing they need.
Just remember, the greater the risk to higher your interest rate
will be so be prepared. The most important thing to know is YOUR
SITUATION and the right place to start! Starting your search
for a loan can totally blow your whole chance by flooding your
credit report with a bunch of inquiries.. This is a bad thing.
The most important step is to KNOW
YOUR CREDIT SCORE. > |