Finance Your Bike or Parts!

Dealer Financing: The majority of motorcycle dealerships offer financing directly to consumers. For as little as 10% down, you can be able to own your motorcycle. The interest rates generally fluctuate with the applicants. You'll require to have good credit and several years of credit history to get a good interest rate.

OEM (original equipment manufacturers) Financing: OEMs generally have financing options available to consumers that purchase new motorcycles. Interest rates fluctuate based upon the customers and current OEM promotions. One option for motorcycles includes a revolving credit card through original equipment manufacturers (OEM). In deciding if a manufacturer loan is best, you need to consider the terms and interest options.

Credit Card: If you have an existing credit card with enough purchasing power, you can make your motorcycle purchase using that credit card. Benefits include no credit checks or financing applications. Be aware of the current interest rate on your credit card, and make sure if other financing options may save your money. Unless you pay it off quickly, the interest rates charged in credit cards might be too high.

Personal Loan: Your local banking institution or credit union may provide motorcycle loans. If you currently have a mortgage, you may qualify for reduced interest rate loans with your personal loan provider. Credit unions and community banks can take offer loans at agreeable terms. If you own a home, this may be the most cost-effective way to finance your motorcycle.

Hybrid Financing: The hybrid financing method typically uses a combination of financing options. One popular method is to use a short term manufacturer financing promotion and then when the promotion period ends you transfer your loan to another promotion on a Visa, Mastercard or Discover card. Hybrid Financing is a bit complicated and requires some planning. It is also a bit risky because you are betting that companies will be running the same promotion in 24 months that they are today. This type of financing is typically not recommended for those with poor credit or that are not very financially savy. You just have to think creatively and look at all the offers in the market for financing everyday purchases.

Co-buying: You and partners might buy that motorcycle jointly. That will reduce the loan that you will incurr but it also presents a different situations like what happens if someone wants out, doesn't pay or wrecks it the first time out? Look closely at the "what-ifs" to determine beforehand if your deal -- and your partnership -- will survive.

Cash: Pay the motorcycle at front with cash. Benefits include no monthly payments or finance charges. However, motorcycles depreciate rapidly during their few years.

Family co-sign: A family member may be willing to help you get that loan co-signing the loan agreements in the bank. But what would happen if you couldn't make the payments? Plan on paying this loan back just as if you owed it to the folks themselves -- because you do.