Red Lasso
  • Home
  • News
  • Sports
  • Entertainment
  • Lifestyle
  • Tips & Tricks
SUBSCRIBE
No Result
View All Result
  • Home
  • News
  • Sports
  • Entertainment
  • Lifestyle
  • Tips & Tricks
No Result
View All Result
Red Lasso
No Result
View All Result

What To Know About Financing A Motorcycle

What To Know About Financing A Motorcycle
Share on FacebookShare on Twitter

There are a lot of reasons you might want to buy a motorcycle. One could be because you simply love the idea of riding. It might be a dream you’ve always had or a hobby you want to explore. You can also use a motorcycle as your primary mode of transportation, and with gas prices high right now, it’s not such a bad idea.  

However, not everyone has it in their budget to buy a motorcycle. 

Looking for a used motorcycle can help you save money, but even then, you might want to finance it. 

RELATED STORIES

What Most Often Causes These Devastating Injuries

TBIs: What Most Often Causes These Devastating Injuries

Tips For Navigating Online Shops And Finding The Perfect Gift

5 Essential Tips For Navigating Online Shops And Finding The Perfect Gift

So can you finance a motorcycle, and if so, what’s the process like? We discuss it below. 

Buying A Motorcycle

The prices of buying a motorcycle can vary significantly. The prices for a beginner bike can be anywhere between $5,000 and $10,000 on average. This would be a basic bike, fit for someone who doesn’t yet have a lot of experience riding. 

You’ll need to factor in some costs aside from the bike itself. For example, you’ll have to get insurance. Your age, your driving record, where you live, and how often the bike model that you choose is stolen will play a role in your insurance costs. You might be able to get insurance for less than $500 a year, but it’s not guaranteed. 

Your costs are going to add up as far as your equipment and maintenance too. 

A car can usually go much longer between service intervals compared to a motorcycle. You also have to remember that replacing tires on a motorcycle can be expensive, and you might have to change your rear tire every 3,000 miles. Your chains and belts will need to be replaced occasionally, with costs usually between $150 and $250. 

Your maintenance intervals on a motorcycle can be between 5,000 and 20,000 miles, and if you need something like a valve adjustment during maintenance, that can be expensive—as much as $1,500. 

Other bike maintenance you’ll have to keep up with includes oil changes and chain maintenance. 

An upfront cost will also be gear. At a minimum, you’ll need a high-quality helmet, but you should also get a jacket made of high-abrasion-grade leather, boots, and gloves. Otherwise, you’re putting yourself at risk. Plan on putting at least $800 to $1,200 toward gear when you start riding. 

Once you’ve factored in those additional costs, you can start to plan for what your financing experience might be like. 

Getting Motorcycle Financing

The process of financing a motorcycle is similar to what you would do if you were buying a car. There are plenty of lenders that will offer motorcycle financing, so as you would with any other type of financing, you want to compare terms and rates and make sure you’re getting the best deal.

A motorcycle loan is secured most often, so that means backed by collateral. The collateral is the motorcycle itself. When you get a secured loan, the property that’s the collateral can be repossessed by your lender if you don’t make the payments as agreed. If you want to know more about motorcycle features, read these motorcycle user manuals.

You could, if you don’t want to use your motorcycle as collateral, get an unsecured personal loan. Those are riskier, so they’re going to have higher interest rates, and you’re going to need a higher credit score to be approved in a lot of cases. 

Lenders will usually classify auto and motorcycle loans differently, even though the general process is similar. 

A lender may charge a higher interest rate for a motorcycle loan compared to a car loan. 

You might also find that a lender will categorize motorcycle loan types. There may be loans for new motorcycles, used ones, and specifications on what’s considered a motorcycle and what isn’t. 

Then, there will be lenders who won’t finance a motorcycle at all. 

Getting A Motorcycle Loan From A Dealer

If you’re buying a motorcycle from a dealership, they might offer to finance it. 

A motorcycle dealer could submit your application to lenders on your behalf, and it’s convenient, but it can cost more. A dealer might add their own fees to the quotes from lenders. 

In-house financing might be offered, and it could appeal to you if you don’t have great credit, but these loans will have higher interest rates, meaning your cost of borrowing overall will be a lot greater. 

Manufacturer Loans

Some motorcycle manufacturers, like BMW and Harley-Davidson, will let you apply for a loan through them online. 

Loans From Banks Or Online Lenders

If you don’t want to go through a dealer or manufacturer, you can shop around at traditional lenders like a credit union or bank or an online lender. You can apply for preapproval, and like a car loan, your preapproval will probably include a quote on loan terms, such as an estimated interest rate and whatever amount you could be able to borrow. 

Whether you decide to go with a loan from a federal credit union New York or choose to work with an alternative type of lender, before you try to get financing for a motorcycle, you need to check your credit score. You’ll also have to decide on a budget. If you’re going to make a down payment, if you can put more down, you’re going to pay significantly less in interest, but you have to balance your need for an affordable monthly payment.

Regardless of the particular path you take, before you try to get financing for a motorcycle, you need to check your credit score. You’ll also have to decide on a budget. If you’re going to make a down payment, if you can put more down, you’re going to pay significantly less in interest, but you have to balance your need for an affordable monthly payment. 

A lot of lenders will want to know the specific motorcycle you want to finance, so you’re probably going to have to give them the VIN, and the mileage, as well as the year, make and model. That means deciding on one before you start the financing process. 

Apply to a few lenders, even if you think your preference will be to go through the lender. 

After you find the best deal for your financial situation, you’ll sign the paperwork and finance everything. 

If you want alternatives to financing a motorcycle in a fairly traditional way, you can lease a motorcycle, use a home equity loan or opt for peer-to-peer lending. Each of these options has pros and cons you’ll have to think about. 

Related Posts

What Most Often Causes These Devastating Injuries
Lifestyle

TBIs: What Most Often Causes These Devastating Injuries

You might hear the term “TBI” in a doctor’s office or emergency room. TBI means traumatic brain injury. They happen...

Tips For Navigating Online Shops And Finding The Perfect Gift
Lifestyle

5 Essential Tips For Navigating Online Shops And Finding The Perfect Gift

The world of online shopping has revolutionized the way we shop and has made it easier than ever to find...

Wear A Low Back Prom Dress Perfectly
Lifestyle

What You Need To Wear A Low Back Prom Dress Perfectly

Prom season is fast approaching, and if you've got your heart set on a low back prom dress, we've got...

Easy Ways To Live A More Eco-Friendly Lifestyle
Lifestyle

3 Easy Ways To Live A More Eco-Friendly Lifestyle

With the rise of social media, different people are slowly becoming more aware about how their lifestyles and daily habits...

ADVERTISEMENT

Recent Posts

  • Tips For Obtaining An International Driving Permit: Expert Tips
  • How To Compare Shipping Rates Between UPS And USPS
  • Best 3 Places To Buy FIFA Coins
  • TBIs: What Most Often Causes These Devastating Injuries
  • 5 Essential Tips For Navigating Online Shops And Finding The Perfect Gift

About Us

Redlasso website can be described as an online information-entertainment platform with the core initiative to keep its followers informed and thoroughly entertained.

Learn more

Recent Stories

  • Tips For Obtaining An International Driving Permit: Expert Tips
  • How To Compare Shipping Rates Between UPS And USPS

Categories

  • Business
  • Education
  • Entertainment
  • Lifestyle
  • News
  • Real Life
  • Sports
  • Tips & Tricks

Follow Us

Facebook Twitter
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms & Conditions

© 2022 Redlasso - All Rights Reserved By Redlasso

No Result
View All Result
  • Home
  • Entertainment
  • Lifestyle
    • Real Life
  • News
  • Sports
  • Tips & Tricks