When shopping for a new motorcycle, some dealers will make it sound like getting a motorcycle loan isn’t an easy process, but that doesn’t have to be the case. The main thing to consider when looking for a motorcycle loan is what type of lender you apply to – the motorcycle dealer/manufacturer (non-traditional) or a trusted financial institute (traditional lender).
If you are trying to secure finance through a non-traditional lavender such as the motorcycle dealership or manufacturer, then it can be a fairly lengthy process to get approved for finance. The eligibility criteria can be strict, the rates you get offered might not be very competitive, and it can sometimes take several working days before you get confirmation on approval.
You can only use a loan taken out via a dealership to purchase a brand new vehicle directly from them, and often it will take the form of a secured loan.
A secured loan means the lender has an asset as ‘collateral’ that they can reclaim if the loan agreement is not fulfilled.
In the case of a motorcycle loan, this would mean the total amount of money you have borrowed (interest included) is ‘secured’ against your new motorcycle. If you cannot meet the full repayment terms of your loan, the lender will repossess your motorcycle to cover the remainder of the money owed.
You may also need to provide a deposit when taking out a motorcycle loan via the dealership, or they might allow you to use another vehicle as part exchange.
Taking out a motorcycle loan from a traditional lender gives you a lot more flexibility and options.
Some of the main benefits of taking our a specialist motorcycle loan with a traditional lender are:
- Traditional lenders offer a quick and easy process to see what amount, rate and terms you pre-qualify for. Even if your credit score isn’t great, they will have various options that may be suitable for you.
- You can use the money borrowed to buy any type of motorcycle (brand new, second hand, classic, sports bike) and also use it to fund any maintenance, repair or costs associated with owning a bike.
- They can give you the option to take out an unsecured loan, meaning you don’t have to put an asset such as your motorcycle or another vehicle up as collateral.
- You won’t be required to provide a deposit or other vehicle as part-exchange.
The Easiest Way to Qualify for a Motorcycle Loan
Motorcycle loans don’t require a minimum credit score in order to qualify but, as with any loan product, the better your score is the more likely you are to be offered better rates and terms.
The easiest way to find motorcycle finance is to look at a traditional lender that offers specialist motorcycle loans. Their simple pre-qualifying assessments will show the options available to you (this won’t affect your credit score), and a loan specialist will help you find the right deal best suited to you. Once the details have been finalized, you can have your money in as little as one day!
About OneMain Financial
OneMain Financial is the leader in offering nonprime customers responsible access to credit and is dedicated to improving the financial well-being of hardworking Americans.