Refinance A Motorcycle

There are generally two reasons why people chose to refinance a motorcycle loan: Interest rates are lower than at the time of the original loan; or a reduced interest rate will result in a savings on the monthly payment, making a refinance more desirable. Personal financial circumstances may have changed such as a need for a lowered payment or a better credit score triggers lowered interest rates and smaller payments for the life of the loan.


1. Identify the amount that is outstanding on your existing loan. Most loans, especially vehicle loans, have the interest paid off before the principal.

2. Gather personal and motorcycle information such as registration number, driver’s license, insurance documentation and documentation of the current loan.

3. Investigate lending companies. Be sure that they will refinance the loan as some lenders will not offer loans for motorcycles. Get refinancing quotes from at least three different lenders. Compare interest rates, and terms to help make the best decision.

4. Obtain an appraisal of the motorcycle. Refinancing will be restricted to the current market value of the motorcycle. If the bike has depreciated significantly it may reduce the amount of money you can receive for the loan.

5. Purchase a copy of your FICO credit score to ascertain if you are in line for the best interest rates due to good credit standings.

6. Apply for the loan with the lender of your choice and follow proper procedures for loan application per the lender’s direction.