motorcycle loans

[yabadabapal]

Hi

I am finally getting the first of 2 bikes I am buying. One of them I have to finance and the other is good old cash. Its a used bike so I was wondering if anyone has any resources relating to motorcycle loans on used bikes. My bank will not finance motorcycles and offered me a personal loan. I simply want a motorcycle loan.

 

Thanks

Best Wishes

Bobby

[Selden]

Personal bias: If you don't have the cash to buy it outright, you can't afford a second bike at this time.

[MrHondamatic]

Based on past experience, lending institutions will only loan about half the value on a late model used bike, if they will loan anything at all. That has kept me off of a few nice used bikes, and riding new. YMMV.

[RamblinBoy]

I have financed two used bikes, one of them at 6%. This old anti-bike finance bias is slowly fading. Try a credit union. Most CUs these days will allow anybody to join. I joined a state employee credit union several years ago just to get financing. I wasn't in any way connected to state employment. Also, if you are buying one of the bikes from a dealer, they should be able to give you advice. Even if you are not buying the bike you are financing from the dealer, he(she) should be able to hook you up with a good finance person.

[azpilot06]

+1 on the credit union front. My local CU will finance used bikes out to a 2000 model, at rates as low as 7.5%. Of course, you have to have strong credit to get the best rates.

 

I have heard recently from a few dealers than more and more cycle-friendly lenders are starting to require a 10% down-payment, which, in light of the general credit crunch within the last 12 months, isn't all that surprising.

[bobbybob]

Personal bias: If you don't have the cash to buy it outright, you can't afford a second bike at this time.

 

+++. BTW enjoying reading your AK trip. Might be trying that in the near future.

[AZKomet]

Personal bias: If you don't have the cash to buy it outright, you can't afford a second bike at this time.

 

Good advice, however I have seen some great deals on used bikes here in Phx. Although the # of them for sale has dramatically decreased in the last few months (gas prices) there has been great bargains that might not be in the future again. 08 Concours 1400 with some farkes....9 K with 1400 miles. Nearly grabbed that on for me....so a loan may not be a bad thing if price is right. IMHO

[motoguy128]

I think loans are fine as long as you keep your debt to imcome ratio in check. A few short term loans now and then also help raise your credit score. My wife in a mortgage loan officer and some of the most frustrating people ot work wiht are those that deal almost entirely in cash and have almost no credit history. A short 12 month or 24 month loan won't cost you very much in interest and most allow you to repay early as well.

 

 

I use a credit union I've been a member with since college. Great rates, excellent service. Everything over the phone and by mail. My dealer was also pretty impressed and how easy they were to work with. IMO - Look for ones with a modern website.

 

Be careful with Wells Fargo, Citibank and Bank of America. Use automatic payments if possible. They will bend you over and give it to you good if you're even accidentally late no matter how good you previous payment history is. Not just late fees, I've see retroactive interst rate increases, meaning penalties were in the hundreds of dollars.

[blkvelvt]

+1 on the credit union front. My local CU will finance used bikes out to a 2000 model, at rates as low as 7.5%. Of course, you have to have strong credit to get the best rates.

 

I have heard recently from a few dealers than more and more cycle-friendly lenders are starting to require a 10% down-payment, which, in light of the general credit crunch within the last 12 months, isn't all that surprising.

 

I'll second that on the credit union. Great rate and service. Also keep in mind the dreaded "Gap" insurance. A dealer and lots of banks will nail you with a high premium for this. My credit union was about $125 for it. I got it just to be safe. If you finance a big sum and the bike goes down in value before the loan amount goes down and it is stolen or totaled out, you owe the difference on the loan. Just FYI if your loan goes into the 36 to 48 month range.

[outpost22]

Yep, Credit Unions own this segment of the market. Best rates usually and generally very cooperative. Most will let you join for a small fee. Mine required a $25.00 "savings account" to join.

[dugf]

use your HELOC.

[blkvelvt]

use your HELOC.

 

I had a HELOC but the bank withdrew the unspent money and said it was due to the housing market fall. I guess my equity dried up. What's 150K amongst friends....

[tonyla]

Personal bias: If you don't have the cash to buy it outright, you can't afford a second bike at this time.

 

Its a good thing he doesn't have to ask your permission to buy the second bike.

[iMike]

For a credit union, you can't do much better than Pentagon Federal. Anyone can join, one way or another.

 

www.penfed.org

[swilson]

I financed my R1150RT last year. It was easy to justify financing it... after running the numbers my 36mo loan was going to cost me something like $250 a month and I was going to save $290 a month in fuel cost compared to commuting in my F250.

 

Like the suggestions above, check the credit unions. Mine gave me a GREAT rate and were willing to finance up to 100% bluebook + tax/license.

[yabadabapal]

Thanks to all for the great imput.