Finance A High Risk Motorcycle

Get financing for your motorcycle.

Banks lend money for purchasing motorcycles, and lending decisions are not based on the riskiness of the motorcycle. If you have poor to bad credit, you, the buyer, are considered to be high-risk. In addition, the bank determines whether or not to extend a motorcycle loan to you by determining your loan-to-value and debt-to-income ratios along with a review of your credit history. If you have trouble securing a motorcycle loan for these reasons, or if you are a high-risk borrower, you may benefit from pursuing a personal loan rather than a motorcycle-specific loan.


Motorcycle Loan

1. Gather your information, such as the motorcycle’s year, make, model, engine size and identification number–you will need this to apply for the loan. Expect to provide your income, Social Security number, date of birth and income information to apply. Know the total price of the motorcycle (given to you by the motorcycle dealer or by calling your state’s Department of Motor Vehicles to inquire about fees and taxes in addition to price) to apply for the correct amount of financing.

2. Apply though the motorcycle dealer if you are using one. Dealers specialize in motorcycle loans and generally use a variety of lenders, including motorcycle-specific lending institutions such as Yamaha or Harley-Davidson Financial. You might also find that if you are buying new, you can get a very low competitive rate that is not offered by local banking institutions.

3. Apply through a local lender if you aren’t using a dealer for purchase. Check with the bank you have an account with to find out if it offers motorcycle loans. If so, apply using the same information provided in Step 1. If your bank does not offer motorcycle financing, call other banks in your area until you find one that offers motorcycle loans (many do).

4. Establish an insurance policy on the motorcycle, required by any lender. Sign your paperwork and contracts at the dealer or at the local bank that approved you. Provide any additional information or money down, if required.

Personal Loan

5. Apply for a personal loan if you cannot find a lender for the motorcycle you want to buy. You might run into this situation if there is not enough equity in the motorcycle, or enough resale worth in case of repossession without significant money down. The vehicle may be too old for a loan (not enough equity), or you may not be approved because of your credit rating.

6. Go to the bank from which you want to borrow, but try to find one with a good reputation and easy service. You’ll have to open a bank account if provided with a loan. Ask other motorcycle owners which establishment they use before making a decision. Or try your own bank.

7. Provide all of your information to apply for the personal loan, minus motorcycle information. Because you are taking out a personal loan, you do not need to provide any motorcycle information.

8. Wait for your approval. Once the loan is approved, sign your contracts with the bank and receive your check to give to the seller. You are not required to get a full-coverage insurance policy on your motorcycle when taking out a personal loan. Talk with your insurance provider to determine the best coverage for your motorcycle.