MISTAKE PEOPLE MAKE WHEN APPLYING FOR A MOTORCYCLE LOAN
Buying a bike is not easy. Featured below are some of the most common mistakes consumers make.

Shopping for a bike that is too expensive
You should contact us before looking for your motorcycle to find out how much you may be able to qualify for. There is no point looking at a $30,000 Harley Davidson, if Motorcycle Loan Center can only qualify you for $15,000.

Also, it is important to keep in mind that when buying a new bike from a dealership, it is likely that the salesman is going to pressure you into utilizing financing directly from them. Although they may be able to offer more funding, dealer interest rates are going to be much higher than those offered by Motorcycle Loan Center. Don't fall into the trap of buying on impulse! The more you finance, the greater your monthly payments are going to be. Also, not only are monthly bills going to be higher as a result of the higher interest rates being paid, you are going to end up spending much more money for your bike over the life of the loan. Is this really want you want to do?

Again, please contact us before going to the showroom or checking the classifieds to see what how much you qualify for.  Utilize the motorcycle loan calculator to determine what you can afford for your monthly payments.

Buying a motorcycle that has been in accident
A bike is never the same after it has been involved in any type of crash.

Read the fine print
Another problem with dealer direct financing is that buyers jump into loans without understanding the terms and conditions; not knowing if they are getting the best deal for their needs. For example, it is has become common for bike manufacturers to offer motorcycle loans via their private label credit cards. These promotions offer low introductory rates for the first 12-24 months, and then switch to very high rates. This deal is great if you intend on paying off your bike before the promotional period expires. If you aren't, then you are better off with a motorcycle loan with a higher rate and a longer term.

Below is a list of questions you should ask any lender you are thinking about financing a bike with:
 - Is the interest rate fixed or variable? If fixed how long will it be fixed for?
 - Is there any instance that would result in the interest rate for the loan to change?
 - What happens if I am 30 or 60 days late respectively for my payment? Will the interest go up?
 - What is the term for my financing?
 - If I pay my loan off early, will I be charged a penalty fee?
 - Am I going to be required to leave a down payment?
 - What kind of motorcycle insurance is going to be needed?
 - What is the cost to register the bike and are there any other fees, i.e. administrative fees?

Borrowing more than you can afford
One of the most damaging mistake consumers make, especially first time buyers, is borrowing too much. When in the market for a new bike, it is important to factor in the cost of insurance, registration, maintenance and any accessories you may buy. Learn more about choosing a bike that fits your budget and one that is right for your needs.

Not leaving a down payment on a new motorcycle purchase
If you apply for a loan for longer than 48 months, and choose not to put any money down for your purchase, you will quickly become up-side down on your loan.

In conclusion:
You can avoid these common mishaps by taking your time shopping and asking lots of questions.

**New riders may want to consider buying a used bike for their first ride. We feature used motorcycle classifieds section for buyers to check-out.

 

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