Motorcycle Financing
Most riders do opt for motorcycle financing rather than paying cash up front and I would suggest that it is worth investigating your options thoroughly. To be honest, I did not really have a choice, but the advantages of getting your motorcycle financed are that you can buy your motorcycle faster and retaining your cash will improve your monthly cash flow.
- Motorcycle financing comparison
- How it all works?
- Questions you should be asking your lender
- Other topics in this section
Motorcycle Financing Comparison
| Unsecured Loan Providers | |||||
|---|---|---|---|---|---|
| Provider | Typical APR | Min | Max | Why? | |
| Alliance and Leicester | 6.5% | £7,500 | £20,000 | Their low rate personal loans could save you up to £1000 and their express loans service means that if you sign your agreement online, you will get your money faster. Even better - their cover includes GAP (guaranteed asset protection) to ensure that you are not out of pocket if your vehicle is written off. |
 |
| Liverpool and Victoria | 6.9% | £10,000 | £25,000 | There is no repayments option for the first three months |
|
| Eurocredit Limited | n/a | Eurocredit are the UK's premier online loans specialist. Unlike many brokers, eurocredit will not charge you a fee for sourcing your personal loan and they can give you an in-principle decision within a few minutes of your application! They work alongside some of the most reputable lenders in the UK so you are guaranteed to find some of the best policies |
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| Secured Loan Providers | |||||
|---|---|---|---|---|---|
| Provider | Typical APR | Min | Max | Why? | |
| Central Capital Loans | 13.1% | £5,000 | £250,000 | Central Capital Loans were recognised by both the Independent on Sunday and the Sunday Times newspaper as one of the fastest growing companies in the UK. They search all the main banks to come up with the right deal for you, so that you don't have to take up precious time doing it yourself. They have 17 years experience and are the biggest loan broker in the UK. |
|
| Only Finance | - | £5,000 | £250,000 | They are an independant loan broker and show really great comparative tables of all of their partners rates. I have found it very useful in the past. |
|
| Net Loans | 11.4% | £5,000 | £250,000 | Apply now and pay nothing for the first 6 months. They also have a speedy service and you should expect a response within an hour. |
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How does it all work?
The first thing you need to do is to contact the refinance company or motorcycle loan company for interest rates. See below for questions you should be asking your lender Once you have an idea about interest rates and repayment schedules, you can start comparing lenders offers to calculate how much it will all cost you. At this point you can send in applications online or even over the phone. It will not cost you anything and you do not to commit to the application. The company will then make a customised package for you to work on, and Bob’s your uncle! You will now be in a position to make an informed decision. It is always good to send applications in so you can compare different companies and find the best one for you. Remember when you complete a quote - YOU ARE UNDER NO OBLIGATION TO ACTION IT!
Always do your research and ensure that you are getting the most competitive price for your motorcycle too, as lowering the price of your motorcycle obviously also means lowering the repayments too.
Questions you should be asking your lender
Asking the right type of questions about motorcycle financing will ensure that you don’t get ripped off or enter an agreement that is not suited to your needs. It is also a sign to the lender that you are serious about the finance and have an idea about what you are looking for. I would suggest going as far as writing out the questions that you want to ask before seeing your potential lender. Also if you do not understand the answers, persist until you do. Empower yourself with the correct information.
- Are there prepayment penalties for the loan you are applying for? This is not a given so if there are, I would suggest finding another lender for your motorcycle financing
- What is the APR? I would recommend getting the APR as it is the best way to work out the total cost of your motorcycle financing
- Is the interest rate fixed or variable? If fixed how long will it be fixed for?
- Under what conditions may this interest rate on the motorcycle loan change in the future?
- What are the total interest charges?
- What is the exact amount of each payment?
- What is the total amount of payments?
- How long is the term on the motorcycle loan?
- What is the down payment requirement to get the motorcycle loan? For example, is a deposit necessary to secure the motorcycle financing?
- Has the down payment been included as part of the contract?
- Will the interest rate increase if my payments are late? If so, how late does the payment need to be for this to happen?
- If the loan is an installment loan, does it use rule of 78 or simple interest? Simple interest does not penalise you if you decide to pay off your motorcycle loan early
- Is full coverage insurance required?
- What is the actual value of the loan? Be sure to check the line items on your contract to make sure the total is the actual value on the contract
- What is the exact amount being financed?
- What are the registration fees and are these included in the motorcycle loan? If so how much are these fees?
- Are there any administrative fees and are these included in the motorcycle loan? If so how much are these fees?
When shopping online it is worth your while to find the answers to these questions on each lenders site. When visiting a bank or dealership, prepare these questions and note the salesperson's answers. Do not feel pressurised by salespeople and take your motorcycle financing documentation home to review at your leisure.
Other Topics in this Section
Click on the following pages for tips and advice on securing the best deal!
Financing Tips
Here you will find over twenty unique motorcycle financing tips to save you money. I have also provided tips
on the process of acquiring finance, as well as a complete list of questions you should be asking your lender.
Online Financing
Read about why you should consider financing your motorcycle online. Find reputable lenders that I have reviewed.
Bad Credit Motorcycle Financing
I have included very specific tips as to why how you can overcome your bad credit history and also tips on how you can better negotiate
your interest rate. You will also find links to lenders that specialise in bad credit motorcycle loans.
Motorcycle Loan Comparison
If you feel confident that you know what you are doing and are ready to buy, then this section is where you're going to do it! There
are two comparison tables on secured loans, unsecured loans and bad credit motorcycle financing.