How do I use the motorcycle loan calculator?

The motorcycle loan calculator above will tell you your monthly payments and the expected interest amount. All you have to do is input the size of the loan, the loan terms, and the interest rate associated with your loan.

How do motorcycle loans work?

While motorcycles are cheaper than cars, many people still use loans to buy them. Motorcycle loans can also be used to upgrade your vehicle. Some people who have the cash to buy a motorcycle will still use a loan to help build up their credit scores. This is especially true when interest rates are low.

Many people use motorcycle loans to buy a motorcycle or an ATV. Like a car loan, the loan lender provides funding for the motorcycle while you repay the lender in monthly installments. The monthly payments go toward the loan amount plus interest on the loan.

The loan amount will depend on the cost of the vehicle, the down payment, the APR, and your credit score. Loan amounts for motorcycles will be less than your loan for your car or boat.

Are motorcycle loans hard to get?

Applying for a motorcycle loan is an easy process. Since motorcycles are cheaper than cars, boats, and planes, motorcycle loans can be easier to apply for.

There are a lot of options you have when looking for a motorcycle loan lender. Some options include large banks, online lenders, credit unions, and motorcycle dealerships. Going through a dealership can cost you more since dealers will add fees to the lenderโ€™s quote. This can also make comparing quotes more difficult.

What is the average loan term for a motorcycle?

Like other vehicle loans, motorcycle loan terms can vary. The most common motorcycle loan terms range from 12 to 60 months or longer. For all loans, the longer the loan term, the higher the interest payments.

By looking at the life of the loan, we can see that longer loan terms cause higher interest payments over time. For instance, the interest on a $18,000, 12-month loan at 6% is $590. But, the same loan ($12,000 at 6%) paid over 48 months would have an interest cost of $2,291.

Thus, you should always try to apply for the shortest loan term that works for you.

If you need a longer loan term, you can use that to your advantage. Lenders are more willing to offer lower interest rates on long term loans. Try to remember this for your loan negotiation!

Why are motorcycle loan rates so high?

Like other vehicle loans, motorcycle loans are easy to get. But motorcycle loans tend to have a higher interest rate compared to other vehicle loans.

The main reason is that motorcycles are considered recreational vehicles. While lenders view cars as a necessity, motorcycles donโ€™t meet the same standards.

Further, motorcycles need more repairs than cars. Thus, motorcycles depreciate at a faster rate compared to cars. Motorcycles also have higher crash rates. This makes it harder for lenders to estimate the true value of motorcycles.

Considering all these factors, lenders apply a higher interest rate compared to cars.

Is financing a motorcycle easier than a car?

Financing a motorcycle can be more challenging than financing a car. Motorcycles cost less money, so buyers will have an easier time getting approved. But, lenders consider motorcycles and ATVs recreational vehicles. This makes the credit score requirements stricter compared to a car.

There are a lot of options when looking for a motorcycle loan lender. The biggest factor in applying for a motorcycle loan will be your financial situation.

Can I get a motorcycle loan with bad credit?

For most motorcycle loans, borrowers must have a credit score of at least 670. To apply for the best interest rates, borrowers should have an excellent credit score of 740 or higher.

Yet, some lenders will look at other factors besides credit scores. Lenders like to look at a personโ€™s full financial history. Lenders look at credit history, debt-to-income ratio, down payment, and the type of motorcycle.

Can I negotiate my motorcycle loan?

Yes, and you should. Lenders donโ€™t always offer the best interest rates at first. This is especially true for dealerships who add extra fees on top of the lenderโ€™s loan offer.

Borrowers should always ask for a better interest rate. You can use factors like your down payment, your credit score, your financial history, and the type of motorcycle to your advantage.