If you’re purchasing a motorcycle from a dealership, you might be able to get financing directly through the dealer. With dealership financing, you can apply for a loan for the exact amount of the bike you select and get an approval decision on the spot. Keep in mind that dealership loans might require a down payment.
Considering this, can an auto loan be used for a motorcycle?
Financing a motorcycle may be a little trickier than getting a car loan. Most banks and credit unions offer dedicated auto loans for new and used cars, but that may not be true of all banks and credit unions when it comes to motorcycles.
Subsequently, can I get a motorcycle with a 600 credit score?
You will typically need good to excellent credit to qualify for a motorcycle loan with competitive rates. According to Equifax, one of the three major credit bureaus, good credit scores range between 670 and 850.
Can you get a title loan on a motorcycle?
When you are using your motorcycle as collateral for a secured loan, it is referred to as a motorcycle title loan. Although you must give up your title, you can keep the motorcycle with you to ride while you pay back the secured motorcycle loan.
Capital One Motorcycle Loans is a auto loan provider. If you’re looking for a car loan (and your credit score isn’t great) Capital One Motorcycle Loans offers loans — with a catch. In general, loans from sub-prime lenders mean higher rates.
Taking on new debt typically causes your credit score to dip, but because refinancing replaces an existing loan with another of roughly the same amount, its impact on your credit score is minimal.
Tell the representative that you are interested in buying the motorcycle. Ask whether the lender will take the payoff amount from you and send the title directly to you, or to your bank if you are financing the cycle. Some lenders will do this while others will only send the title to the owner currently on the loan.
A bike loan usually only takes a few hours to be approved, however complex or difficult applications can take a few days. Once approved original finance documents must be signed and the supplier will be paid directly, usually within 1-2 days.
Most typical Harley-Davidson loans will require 10%-20% down.
|Bike Amount||10% Down||40% Down|
Taking out a loan can be a good option when you need to secure transportation and don’t have the luxury of waiting to save money. Financing will allow you to buy a bike now and repay what you borrowed over time. Build your credit. Like an auto loan, repaying a used-motorcycle loan can also help you build your credit.
Since bikes can depreciate pretty fast, you’ll want to pay off your loan as quickly as possible so you can avoid accumulating negative equity. … Sometimes lenders will offer a low promotion rate on long term loans, which can work for you if there’s no prepayment penalty.
Step 2. Apply for motorcycle refinance
|Motorcycle loan rates|
|Lender||Starting APR||Terms (Months)|
|Digital Federal Credit Union (DCU)||3.50%||Up to 60 months|
|LightStream||4.29%||Up to 84 months|
|USAA Bank||5.49%||Up to 72 months|
Most lenders require a credit score of 620 in order to get motorcycle financing. If your score is below 620, you may still be able to find a lender to work with you.
They require more maintenance and depreciate more quickly than most cars. Motorcycle crash rates are also higher than regular car crash rates. All of this makes motorcycle loans riskier for lenders, and the greater the risk, the higher the APR.