Motorcycle Loans -- dealing with high interest rates Credit Motorcycle
Loans
Motorcycle Loans --
dealing with high interest rates
By Peter Bonavista
Motorcycle
loans are approximately 3% higher than auto loans at the time
of this writing. The reason is that all finanicial institutions
see motorcycle loans as a higher risk. Maybe the banks see people
who ride motorcycles as half bent and therefore claim high risk.
;-) I'll be honest and tell you that I really have not been able
to find statistics proving this theory. I'll bet dollars to donuts
the numbers are there showing motorbike loans are defaulted on
more often.
So once we
except that we will not get motorcycle loans for the rock bottom
rates, we have to come up with to aternative strategies. Probably
the best way to get around the higher rates for motorcycle loans
is to try and put as much of down payment we can. The math is
simple. The less you borrower means the less you pay in interest.
As matter of fact I have seen alot of people get their motorcycle
loan via a home equity loan. This way you pay much less interest
because it is a secure loan. I know that many people don't have
the luxury of owning a house and having equity to use in this
manner.
Another sure
fire way to keep your interest payments from milking you dry:
Make the payment schedule for your motorcycle loan short. See
that you have it all paid for in short order and the banks won't
suck you dry.......so to speak. Of course this is not always a
popular way to setup a motorcycle because you have to make large
payments to keep the term short. If you did not have alot of extra
money per month to save for your down payment, then you not likely
to have alot of money left over each month for your large
motorcyle loan payment.
So I'm sorry
to be a financial bummer. My advice regarding motorcycle loans
is to make the extra bucks somehow to get your down payment good
and high. If you have plenty of cash flow to handle a large payment
and want that motorcycle now..........well go for it!
