These days motorcycle loan rates have been climbing due to the banks not want to take any undue risks with their lending. Generally speaking the interest rates (or APR) have been between 7% to anywhere as high as 15% – 20% all depending on what your credit rating is.If you’re serious about getting approved for a loan they need to consider your credit score first because that will ultimately decide your rate of lending (or cost of lending). With that said, I will try to make a qualified list of the different interest rates available for motorcycle financing.
At the time of his writing a secured motorcycle loan carries an interest-rate of approximately 9% give or take .15 to .30 depending on the lending institution you are using.
Now, if you have a poor credit rating you will be spending much more than that and if you are going for an unsecured loan expect the cost of funding to be close to 15% interest.
There are many different factors involved when getting approved and these are some of the obvious factors;
- buying a new motorcycle from a dealer
- buying a used motorcycle from a dealer
- buying a used motorcycle from private owner
- what State you live in and what State you are buying a motorcycle in
- your personal credit score (or FICO)
- if you have a job and how much that job pays
- how much debt you have
- what kind of debts do you have (good or bad)
- if you have a cosigner
- if you provide collateral in the form of some kind of security asset
- your past spending and payment history
Actually, there are so many different factors taken into account when you get approved for motorcycle loan and your interest rate is going to very wildly depending on your own situation.
So I know it sounds like a cliché, and you hear it all the climb from lending institutions, banks, and read it on web sites, but the truth is nobody can really tell you what you’re interest rate is going to be until a have all of your information. So don’t be thinking the banks are just being annoying and trying to get you obligated into financing by taking you down the garden path in the form of a full disclosure application form. They have to have all of your particulars before they can even guess what your cost of lending will be.
You will notice that motorcycle loan rates are higher than car loans, motorhome loans, and of course mortgage loans – this only makes sense because motorcycles tend to have a lot of wear and tear and a bad reputation for depreciation. I know this is extremely annoying when you have somebody who’s been riding bikes their whole life in can maintain the value of their bike so that there is very little depreciation, especially with some of the high quality motorcycles on the market.
You need to shop around and look for the lowest rate possible and I guess you are doing that by being on the Financing USA web site which is a good start. When you are considering finally getting your motorcycle loan comeback and check out some of the rates we are posting that particular day. Thank you for your visit.
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