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What You Need to Know About Financing a Motorcycle

Aug. 2 2023 Buying A Motorcycle By BMW Motorrad of Santa Maria

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Are you ready to buy a motorcycle but unsure of how best to finance it? You're not alone. Financing a motorcycle can be complicated and intimidating, especially if you don't know where to start. Check out some of these tips to make the process a little easier:

How to Get a Loan

When it comes to getting a motorcycle loan, there are several options available to you. Traditional banks, credit unions, online lenders, and even motorcycle manufacturers offer financing options for purchasing a motorcycle.

To apply for a motorcycle loan, you typically need to provide basic information such as your personal details, credit score, and employment history. Lenders will evaluate your application based on their eligibility requirements and creditworthiness. It's always a good idea to shop around and compare loan offers from different lenders to find the best rates and terms that suit your needs.

Personal Details

Lenders will ask you for some information to determine whether you qualify for their motorcycle financing offers or not, including but not limited to:

  • Your credit score and history
  • Debt-to-income ratios
  • The size of your down payment
  • The age and quality of the motorcycle that you’re interested in
  • The price and value of the motorcycle
  • Any trade-in information

Make sure to have the information prepared before your first meeting to keep things moving.

Credit Score

Your credit score is an important factor here and can make or break your chances of getting the motorcycle financing deal that you want. While you’re taking the time to prepare your information and calculate your budget, try to do little things to help your credit score. Buying small items and paying them off promptly, paying off other credit card bills, and so on can help significantly.

If your credit score isn’t where you’d like, don’t worry. Plenty of lenders will be able to work with you anyway, and many motorcycle financing options are still easy to obtain with low credit scores.

Employment History

When applying for a motorcycle loan, your employment history plays a crucial role in the lender's decision-making process. Lenders use employment history as a factor to assess the risk of issuing a loan.

Lenders typically have certain requirements when it comes to employment history. They may look for a minimum length of time in your current job, usually around six months to one year, to ensure stability and consistent income. They also want to see a history of steady employment, preferably in the same industry.

If you’re ready to purchase a motorcycle and want to explore financing options, make sure to visit the team at BMW Motorrad of Santa Maria in Santa Maria, California.