May 30, 2024

How to Finance a Motorcycle - Motorcycle Financing Explained



Published June 12, 2023, 1:20 p.m. by Bethany


This is a quick video explaining how to finance a motorcycle and motorcycle financing explained. I get a lot of people interested in motorcycles that have no clue how this works or really how to go about getting set up to make payments on a bike, so I thought I would throw some info out there to help out!

Leave ANY QUESTIONS in the comment section, I am here to help!

Financing a motorcycle is not a big deal at all, most people need to do it to get the bike that they want, and I think it's important to understand how this works so you can get the best deal and lowest motorcycle payment possible! This goes along with all of the help I try to give you guys on how to buy a motorcycle, motorcycle buying tips, and just motorcycle tips in general.

We can make this part of the Ask a Motorcycle Guy series, since I get this question a lot. Hope this helps!

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this will by far be the most exciting

video I have ever done so obviously I

realize that financing anything is not

an exciting thing whatsoever to talk

about so but took way too many people

come to me every single day that are so

confused about the concept of financing

a motorcycle or ATV or really cars or

anything like that here's the whole

thing right you want to buy a motorcycle

and you don't have a lot of money you

don't have all the cash say you want to

buy a $5,000 used motorcycle you don't

have all that money so you have to make

payments on it or you have to finance it

if you want to get it it's not that

complicated of a thing and I just want

to clear that up for everybody real

quick ok so if you're totally not

interested you can click away it's cool

it's not gonna hurt my feelings but this

is for the video for the people that are

just not super clear on how the whole

financing thing works to make payments

on a motorcycle or really anything at

all ok let's do it so here's the thing

you want to buy a motorcycle you don't

have that much money you need a little

bit of credit ok if you've got a really

good motorcycle shop and you're gonna

have to go to a shop really to do this I

mean you could go to your own bank or

credit union probably then you have to

go find a motorcycle it's a lot easier

if you do it at a decent motorcycle shop

like us or somebody else like that ok

you're gonna go to the shop you're gonna

pick out the bike you want to buy right

you don't have enough cash for it say

the bike is $5,000 you don't have enough

cash for it you're gonna need to finance

it which means they are gonna need to

take a credit app from you which is not

a scary thing it's cool you can feel the

credit up out not a big deal

you're gonna put some info down who you

are where you live where you were what

you made what your rent is okay they're

gonna submit that to a bank if it's a

new bike it'll be a big national bank if

it's a used bike it's probably gonna be

like a local bank or credit union credit

unions are awesome by the way if you're

gonna do a credit union try to do a

credit union they're gonna submit you

depending on how your credit is good

credit bad credit don't have very much

credit kind of in credit depending on

what your credit is they're gonna get

back and approval for you and the

approval is going to be for how

your loan will be and what your interest

rate is on that loan your shop can take

those two things and plug them in and

they can tell you about what your

monthly payments are gonna look like

most of the time when you're financing a

motorcycle they're gonna want to see a

little bit of money down it may not be a

whole lot it may be you know I would say

average if you're gonna have to finance

a motorcycle count on five hundred to a

thousand dollars down just count on that

budget for that ahead of time you'll

save yourself a lot of headache if you

count on five hundred thousand dollars

down for most like used inexpensive

motorcycles you'll be just fine if

you're looking at a 10 thousand dollar

motorcycle ok if you have bad credit you

might need a little bit more money down

than that but moving on so that's really

it guys if you if you wanna buy a

motorcycle and you don't have enough

money to pay cash for it you can

probably still get it if you're younger

or don't have much credit it might be a

good idea to buy it on financing because

then you're building up some credit

history and then you won't have problems

financing like cars and houses and

things like that in the future so just a

little bit of friendly advice there now

pay attention to what your interest rate

is pay attention to what your payments

are and everything make sure you can

afford it if someone's trying to pitch

you a payment that you just can't afford

tell them hey man I just can't afford

that payment so we either need to find a

different bank or a different bike or

something like that don't feel pressured

to take it just because I really want

this motorcycle so I'll take that you

know $300 payment if are you can afford

it 150 bucks a month be upfront about

that hey man all I can really do for is

150 bucks a month if you can afford 180

bucks a month just be upfront I can't go

over 180 bucks a month if they can get

it less than that great be upfront about

that it's gonna save you a lot of time

and hassles gonna say that a lot of time

and hassle it's gonna be way better for

the whole situation so you go look for a

bike if you don't have the cash just

tell them hey man I'm gonna need to

finance this so they can do a credit up

kind of early and you can get a good

idea early on be upfront about it look I

really can't afford more than this much

a month and I've got this much down max

and you know five hundred thousand

dollars whatever you could put down it's

gonna lower your payments it's gonna be

good so just go ahead and fill out the

credit form it's not a huge scary thing

tell them hey I can't afford more than

this a month and I can't afford to put

more than this down and just let them go

to work for you okay motorcycle interest

rates just so you got your head wrapped

around it you

we see interest rates anywhere from you

know like three or four percent for

really good credit people to twenty

percent for really bad credit people if

you've got bad credit and you've messed

up some of the past you've tripped up

some it's nothing to be ashamed about

but you do need to understand you're

gonna pay a little bit higher interest

because you are atoning for the sins of

the past you're making up for mistakes

you've made before and showing someone I

can be responsible enough to make this

payment so that you won't have to pay

the higher interest next time hope all

this is making sense to you guys just to

recap if you want to buy a motorcycle

you don't have enough money you need to

finance it if you want that bike bad

enough you're gonna have to finance it

it's not a huge scary thing I do it a

lot of people do it most people buy

motorcycles by making payments on them

okay just fill out the credit app trust

the finance guy a little bit if he

starts being shady just go somewhere

else you know you can usually tell if

someone's being cool about it trust the

finance guy tell them upfront I can

afford up to this much amount a month no

more I can afford this much down no more

and see what they get back for it if you

can afford the payment you can afford

the amount down and everything looks on

the up-and-up then rock and roll ride

off in the sunset enjoy your motorcycle

because that's the point right

I hope this has made the finest thing a

little bit more clear for people on how

it works if not just put some questions

in the comments below and I'll answer

them no problem I do it all time I've

been helping finance bikes for years and

years and years so I know it wasn't like

a super exciting video but I just get

this question so much that I figured I

needed to go camera to face for a few

minutes and just kind of explain how

this works so hopefully I helped clear

that up for some people out there like I

said I don't want anyone to get taken

advantage of if you have any questions

whatsoever I'm always available I answer

my comments really fast I just put them

in the comments below and I will help

you guys okay that's what I'm here for

I'm here to help you guys understand

motorcycles how to buy them how all that

kind of stuff works because it's what I

do and I love to ride and I just want to

help you guys alright I'm Alex subscribe

if you dig it

take it easy

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