If you are not a diehard rider who uses their bike as a daily driver, you probably own your motorcycle for recreational enjoyment. Since the bike is a luxury and not a necessity, it probably is funded out of your “discretionary” budget. Because of this, you may be tempted to go out of the mainstream and finance your bike from one of the hundreds of finance companies that seem to specialize in motorcycle loans.

Our first tip on financing is to seek out the standard sources of a loan before you sign on the dotted line with a secondary finance. If you are buying a new bike check out the financial offerings the motorcycle dealer has available. Look for loans from financial banks and institutions that you know and trust. Network with fellow bikers to ask how they worked out their financial arrangements, check out web forums for suggestions.

Getting a Motorcycle LoanMotorcycle loans are much different than auto loans. There are so many companies offering so many different types of loans to choose from that you have to make sure you are getting exactly what you need. Make sure you understand the different terms, interest rates, conditions, and expectations. They are usually much different from auto loans and can get you into financial difficulties that make your ownership of a bike a burden instead of a joy.

Just because a financial institution has a comforting name like “Motorcycle Financing Corporation of America,” doesn’t mean that they specialize in motorcycles or care about motorcyclists. Many of these names are simply DBA’s for secondary financial institutions. They rely on their appeal to motorcyclists as a “friend of the community”, while hiding back breaking terms and outrageous interest rates.

Once you take the time to select a few reputable financing company to provide your loan, here are some quick tips –

Motorcycle loan rates are variable just like many car loan terms. Make sure you check out current rates to make sure you are getting a fair deal.

Know your credit score before you apply for financing. Unlike when you apply for a car or truck loan or a mortgage, many credit companies look upon motorcycles as a luxury that requires stellar credit scores to get good financing rates.

Ask potential lenders if anyone on their staff has special expertise in motorcycle lending that you can consult with on the best terms and ask specific questions.

See if you can find online a comparison site that you trust that will place loan costs from reputable lenders side by side.

Make sure the terms of the monthly payments are comfortable and not at the point where you stretching to write the check each month. Also, make sure you are not overwhelmed by the down payment.

With good research, patience and an eye on not overextending your budget, you should be able to find a reputable lender, who can work a deal that is worry free for you!

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