How to Get a Motorcycle Loan

If you’ve been eyeing a motorcycle for a while now and you’re ready to get it, you’re probably going to need a loan to finance it. Getting a good loan with a low interest rate from a bank or credit union usually requires you to have pretty good credit. However, if your credit is less than stellar, you can also finance your motorcycle with the dealership, an online lender, or through a personal loan, albeit at higher interest rates.

Method 1

Method 1 of 2:

Applying for a Loan with a Bank or Credit Union

1
Make sure you know your credit score before applying for a loan. You can check your credit score either by going to a free credit report website, checking with your credit card provider, or buying your score from 1 of the major credit reporting agencies. You’ll want to make sure your credit score is good enough for banks and credit unions to offer you loans at competitive rates, since lending requirements are generally more strict with motorcycles than they are with cars.^{[1]XResearch source}
- This is because lenders tend to see motorcycles as inherently risky, since the bikes are more frequently stolen or crashed.
- At minimum, your credit score should be at least 620. If it’s any lower than this, you’ll probably have to look for other ways to get a motorcycle loan with bad credit.
- If you have one slight blip on your credit report, you may get declined. It’s best to study your credit report before submitting an application to make sure it doesn’t contain any inaccurate information.
- If you can wait a few months before buying your motorcycle, it may be worthwhile to spend some time improving your credit score by doing things like paying off high credit card debt and building up healthy lines of credit.
2
Look for banks or credit unions that specifically offer motorcycle loans. Banks and credit unions will probably give you the best rate on a motorcycle loan, provided you have good credit. However, this will only be the case for loans you get specifically for motorcycles; if you have to take out a personal loan instead, the interest rate will be significantly higher.^{[2]XResearch source}
- If possible, try to get a loan from a bank that you already do business with. They not only have your information on file already, but depending on the size of the bank, they may have a more personal relationship with you.
- Working with banks and credit unions also has the added benefit of being able to work with representatives in brick-and-mortar locations instead of solely online or over the phone.
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3
Submit applications to no more than 2 or 3 of the best lenders. Applying for loans usually results in a hard inquiry on your credit score, which unfortunately can knock it down a few points. Thus, unless your credit score is very high, it’s not worth lowering your credit score in order to send out more than 3 applications for a loan.^{[3]XResearch source}
- Many banks will allow you to submit your application online or over the phone, though some may require you to come to a physical location and apply in person.
- The required paperwork for loan applications varies between lenders, but you will probably have to provide your most recent paycheck stub, proof of residence (e.g., an apartment lease), and a valid driver’s license.
- If you’re not sure which options are the best, call the bank or credit union and ask about the specifics of the loan. Find out which loans have the lowest interest rates, the most affordable minimum payments, and so on.
Once you’ve received loan offers in response to the applications you sent out, choose the offer that gives you the lowest interest rate for the longest time. Then, use that loan to buy your new motorcycle!^{[4]XResearch source}
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Method 2

Method 2 of 2:

Securing a Loan if You Have Bad Credit

1
Finance your loan with the motorcycle dealer or manufacturer. Most motorcycle dealerships will offer financing directly to consumers, although their interest rates will fluctuate, depending on the applicant. OEMs (Original Equipment Manufacturers—Harley, Yamaha, etc.) usually have financing available to purchase new bikes, as well.^{[5]XResearch source}
- If you want to finance your motorcycle with the dealer, it helps to be able to make a significant down payment upfront. This will give the dealer confidence that you’ll be able to pay back the loan.
2
Go to a third-party lender that doesn’t mind bad credit. Granted, you won’t get the best interest rates from lenders who specialize in poor credit and subprime credit. However, if you can’t get a motorcycle loan from a bank and you can’t finance with a dealer, this may be your best bet.^{[6]XResearch source}
- You can find third-party lenders online by searching for key terms like “bad credit” or "no credit." However, because motorcycle loans are relatively niche, you may have some trouble finding a lender that offers them.
- Note that some online lenders also allow you to compare multiple loan possibilities at once, making them a good option if you’re considering multiple different lenders.
3
Consider taking out a personal loan from a bank or credit union. Your local banking institution or credit union may not provide motorcycle loans, but they’ll probably give you a personal loan, especially if you currently have a mortgage with them. However, the interest rates on these loans are very high, so only take this option if you have no other choice.^{[7]XResearch source}
- If you have poor credit, you may not qualify for a very high personal loan. Thus, you may have to go with a cheaper motorcycle if you’re using a personal loan to finance it.
4
Make a plan to pay off your loan as quickly as possible. The high interest rate on your loan can quickly spiral out of control if you don’t pay it off quick. Make sure you have a budget and plan for paying off your loan, ideally within 12 months, in order to stave off paying an arm and a leg in interest.^{[8]XResearch source}
- If you’re able to afford it, opt for loans with short repayment schedules; these tend to have lower interest rates than long-term loans.
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How does it feel to ride a motorcycle?
Community Answer
A bit like flying. The wind in your face, the noise, the smells, it feels like freedom.
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What can I do if I have good credit but still cannot get financed due to the lack of lines of credit out?
Community Answer
Don't be in too much of a rush to purchase, but instead consider trying to delay the purchase a bit and start building your credit. Store cards like Best Buy, Target, Lowe's, etc. usually offer low starting credit but higher acceptance rates -- it helps them do business and you get an additional account on your credit record. Student loans are another great way to get started, or by being cosigned with a parent or guardian. After you have the means to build your credit, make small purchases and pay them off immediately or put your regular purchases (bills, meals, gas, etc.) on a card and consistently pay them back.
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Where do I get a bike loan?
Junaid Shaikh
Community Answer
You can get bike loan from bank or financing companies. Salespeople in the bike showroom can also help you out.
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