Posts filed under 'Motorcycle Loans'
July 19th, 2009
In this summer of 2009 there is a push on for Americans looking for a new motorcycle loan. Depending on your motive(s) for buying a new motorcycle, the amount you borrow will vary greatly. Meaning that if you just need a comfortable cruising bike for casual riding, or a speed bike meant for extreme high speed maneuvers.
The main reason motorcycle loans have become more prevalent in 2009 is because of fuel and gas prices. As the oil companies continue taking advantage of summer travel and traffic Americans are leaving their SUVs and trucks in their driveways, and hitting the open road a motorcycle.
The other reason for the massive increase in motorcycle loans being approved (and declined) is because of the sheer popularity of riding bikes. From your typical old style Harley (high maintenance) to the newest technology Japanese bikes, there is a rise in the amount of people who have fallen in love with being on the open road sitting on a motorcycle.
When you apply for a motorcycle loan you want to surely consider what kind of bike is right for you. You don’t need to be buying a motorcycle, that results in large monthly payment, when it’s not required. If you are new to riding a motorcycle you are best to buy something that has limited power. You can save allot of money and keep yourself on a bike that is somewhat safer – meaning you can’t make a sudden mistake that could hurt you or kill you.
Now the payments, down payment, terms, and monthly payments. You need to be keeping your total principal loan (before interest) down low so try and pay the biggest down payment possible.
Once your down payment is as high as possible then it’s time to find the right bank or lender for the deal. DO NOT rush this part of the process and stay the hell away from motorcycle dealership financing. They will just get your financing with whoever gets the best deal FOR THEM.
December 17th, 2008
2009 is approaching quickly and because of the costs of only a vehicle have become so expensive and the cost of fuel has been climbing up over the last months motorcycles are become a great option. However, you need to be financed for your motorcycle purchase if you don’t already have the cash.
One of the big problems with finding motorcycle loans online is that you just don’t know who to believe and which web sites you can trust. Because I have a web site providing information on motorcycle loans I’m aware of which web sites are trustworthy and which ones are not.
The first thing you need to ask yourself is what are the interest rates charged by lenders who provide loans for motorcycle purchasing. The interest rates do vary of course because of the prime rate, but motorcycle loans generally cost more when it comes to percentage points. Below is the current and standard interest rates charged for motorcycle loans at the time of this writing.
As you can see the interest rates are quite a bit higher than if you were to buy a car, and these rates come in two different categories; the 24-47 month term and the 47-72 month term
Current Interest Rates As Of Today’s Date
|
24-47 months
|
47-72 months |
| New |
8.40% |
9.25% |
| Used (dealer) |
9.45% |
10.20% |
| Used (non-dealer) |
10.15% |
11.00% |
A lot will depend on how long the term of your motorcycle loan is, whether it is new or whether the motorcycle is used, and whether or not you buy your bike at a dealer (or non-dealer).
if you look at your interest charges on a motorcycle loan for a 72 month term and purchased from a non-dealer you will be paying 11% interest over the course of the year. So let us do some math now.
Let’s follow the following scenario shall we; you want to buy a brand-new Honda Gold Wing for the “low price” of $40,000 USD.
We’ll assume you want to take out a loan for a six-year term, and you want to pay biweekly (every two weeks). Using the table from above, and assuming that you are buying the motorcycle from someone who is not a dealer, you will be paying the highest interest rate possible for motorcycle loan – 11%.
The total amount you’ll have to pay for your brand-new Honda Gold Wing motorcycle is $53,284.52. You will have paid $13,284.52 in just interest. As you can see below your monthly payments will be $340.63. Of course you’ll be paying biweekly so every two weeks you will have to pay $170.32.
Total Amount to be payed: $53,284.52
Total amount of interest $13,284.52
Payments: 340.63 per month
So you can see the obvious advantage of being able to buy your motorcycle for cash, but let’s not be too hard on ourselves here because most people can’t afford to buy $40,000 items with cash.
July 22nd, 2007
The interest calculation your lender uses can make a big difference in your situation, especially in the first 18 months. There are two primary interest calculations, pre-computed (combined with rule of 78) and simple interest.
Pre-computed interest combined with Rule of 78, is typically the worst situation for a buyer because most of the interest is paid in the first 24 months. Therefore, in the first 24 months little of the monthly payment has gone towards paying down principal.
If a buyer wishes to sell or trade in the motorcycle within this timeframe they will likely find themselves owing more than the bike is worth. Statistics show that the average owner trades in every 18-24 months.
Simple interest on the other hand, is much more favorable for buyers since interest accrues on the balance of the loan. However, buyers that extend their loans for greater than 48 months can still find themselves up side down with simple interest. This is especially true if a down payment is not made. The reason this occurs is that the motorcycle depreciates faster than the principal is paid; leaving the balance owed to the lender to be more than the bike can be sold for.
A common view that many people have is that they will just surrender their motorcycle to the lender if they are caught in an “up side down” position. If you are considering this option don’t! Your worries do not just end after your bike is surrendered or repossessed; in fact they are just beginning. The lender will sell your bike at an auction for much less than it is worth. You will still owe the difference between the amount you owed on your loan and the amount the motorcycle sold for at auction.
So if you owe $5000 and the bike sells for $1500, you still are responsible for owing the lender $3500. To make it worse lenders may tack on hefty auction fees which you will owe as well. So the net result is that you are now responsible for making monthly payments on a bike you can no longer ride.
July 18th, 2007
Riders around the world are now choosing scooters over motorcycles for different reasons. First off, motorcycles cost more to run, and cost more to by, due to the need for a motorcycle loan.
Electric scooters are mostly preferred by young children for local runs for quick and easy work with fun. The electric motor-scooters are the most low-cost and convenient mode of transportation.
They can be parked anywhere and can make it through the narrow lanes with very little hassle.
There are many types of electric scooters manufactured all over. Some motorbikes have a seat and pedal activated with sense. Some scooters do not have seat or attenuate and are controlled with prevent.
These types of scooters are specially for young children who have to stand on the bike-rest and ride. Also there are scooters specially made for physically unqualified neighborhood. The electric scooter is a great giftedness for seniors or disabled people who cherish on others for their care and entertainment, as the electric scooters have now helped Old Guard* gain their rights again. These types of scooters make them feel like they actually have their legs working again.
They can now get a glass of water from the system* and go out and get the morning newspaper or even take the dog for a walk. These types of scooters are totally battery operated and can be started by pressing a button. Nevertheless, the speed of such scooters is very low.
From amongst numberless kinds of other electric scooters available in the market, there are some scooters made for power riding. Such scooters can go up to 7-8 kms at just 18-20 kph speed limit. Some motorscooters looks like a moped with features like keyed pop, quick-relate battery cable packs and state-of-charge indicators in different models.
Further these, there are also foldable minibikes available. These scooters can be folded and can be either abstracted in the car, bus and train when you do not want to ride or can be dragged by their wheels if the battery runs overthrow. These mountain bike scramblers are very plight faith and so can be stored in a corner of your room in folding position.
Other electric scooters available are the little ones* appearing like the Italy made Vespa scooters that run with gasoline station. These scooters can actually be called as sick repro* of Vespa scramblers. However, there is much difference between these two motorscooters. The electric scooters are overextend oneself light weight compared to motor scrambler because the electric motorscooters have no redouble activated contrivance sound motor scooter.
The body of electric scooter is become engaged than that of the motor scooter. The electric motorbike can run up to the maximum up-to-date of 30kmph. The electric scooters possess all the rest of the rundown like of sense scooter; sparkler*, horn, throttle, braking through control cables.
July 15th, 2007
First of all, understand that too often then not, in the arena of motorcycle loans, I see bikers with bad credit concentrate more on approval for motorcycle financing, instead of making a good decision for their financial future.
As a consequence, when the typical motorcycle buyer with bad credit is approved they are often stuck with hefty fees, and backend products that leave them paying much more for their motorcycle than they should.
If you have bad credit and need a motorcycle loan, the best advice I can give you is do not let someone tell you that you have to pay document fees, extended protection, Gap insurance or other add on products to get approved. Sure you may have to sacrifice for a higher interest rate on your bad credit motorcycle loan, but you do not have to get taken to the cleaners with a bunch of other fees.
Are bad credit motorcycle loans possible? This is a question I am asked over and over again, whether it is just meeting a person on the street or though e-mail from a person that found my motorcycle financing website. 
Well the short answer is yes bad credit motorcycle loans are totally possible even if you have a bankruptcy on your credit report. However, there are certain things you need to consider before looking for a bad credit cycle loans because you can be taken advantage of just because you have bad credit.
It is the above reasons that it is important to try to sometimes go straight to the lender and find a lender that will finance bad credit motorcycle loans. I am not going to tell you that it is easy to get approved like if you had good credit but if you work a bit you can find motorcycle lenders specializing in bad credit. Here are some options you may want to consider.
I. Personal Loans: Many people with bad credit tend to many times go for personal loans. I only recommend this option as a last resort, but I would much rather a bad credit applicant get the credit straight before getting a personal loan. The reason being is personal loans typically have very negative terms for motorcycle buyers and they can sometimes have interest rates in the 30% range. This is not a good situation for a motorcycle buyer.
II. Online Motorcycle Lenders: The nice thing about working with online motorcycle lenders is that you are going directly to the lender and there is no middle man involved with placing you in a loan that may put you in a bad situation. Going directly to the lender for bad credit motorcycle loans is always better in my opinion because the lender does not want to place you in a loan you will default on. On the other hand, going through a middle man you will find the middle man will want to place you in a situation where they will make the most money which could be a very bad loan for you.
III. Local Banks: Sometimes local banks can be an option for finding bad credit motorcycle loans, but typically they are stricter than Credit Unions. So check with your online motorcycle lender or credit union before going to a local bank. But similar to a credit union, local banks probably do not have a ton of their loans in motorcycles so this helps you chances of getting approved sometimes. Many times the less experience a bank has with motorcycle loans the better for you because they can sometimes evaluate bad credit motorcycle loans the same way as a car loan which typically is much more lenient.
IV. Credit Union: Your local credit union may buy bad credit motorcycle loan more often than the average loan at a dealer because the credit union only has a small percentage of its overall loan portfolio in bad credit motorcycle loans. This allows them to control losses a bit better than a dealer because they have other thinks finance not just motorcycles. So they may approve bad credit motorcycle loans a dealer will not touch.
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