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Tips for Financing a Motorcycle

Jun. 30 2023 Buying Guide By Windy City Motorcycle Company

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Financing Options

There are a number of ways to finance a motorcycle, typically through the use of third-party lenders. These businesses specialize in offering money for larger investments and purchases, and some will be specifically geared toward motorcycles. 

Loans can also be obtained through banks and credit unions.The biggest benefit here is that you can weigh a number of options, rates, and amounts to choose the lender that best meets your needs and budget. Convenience might be as much of a factor as amounts, so figure out your own priorities before you commit as well.

Proper Budgeting

Budgeting itself should take you some time to figure out. You don’t want to approach financing or any big purchase until you’ve got a budget hammered out. More often than not, the loan won’t cover the entire cost of the motorcycle, meaning you’ll be expected to pay a down payment, which can be a significant chunk of cash on its own. Make sure you’re ready to pay this, and factor in a number of other costs like:

  • Riding gear.
  • Maintenance.
  • Fuel.
  • Registration.
  • Riding classes (if you’re new to this).
  • Insurance.

And there will likely be more. Your budget will, once it’s fully formed, be unique to you and your situation, and it will affect what financing you’ll be choosing. Make sure you spend the time to make your budget as perfect as possible before you make any final decisions.

What They’ll Need

Once you settle on a lender, they’re going to need a few things from you before they finalize the deal. This is largely to reassure them that you’ll pay them back in full, and they’ll do that by examining your financial history.

Some of the things they’ll look at include, but are not limited to:

  • Your credit score.
  • Your credit history.
  • Your debt-to-income ratio (which will require knowing your income).
  • Your down payment.
  • Age of the target vehicle.
  • Price and value of the vehicle.
  • Trade-in information.

You’ll be speaking to a financing expert through your lender agency to find and factor in all of these, and possibly more, types of information. You’ll need to have these ready before you iron out the details.

We hope this guide helps you find the right financing deal for you and your means! If you need more information, or you’d like to speak to finance experts, check out Windy City Motorcycle Company. We proudly serve those in Milwaukee, Wisconsin, Chicago, Illinois, and Detroit, Michigan.