Securing Motorcycle Financing With Bad Credit

Posted by Credit Financing Guru

Despite the doom and gloom you hear through news reports every day, it is still possible to find a lender willing to extend motorcycle financing with bad credit. If your report is less than impressive, chances are high that you can still get the financing you need.

The biggest piece of advice that I can provide is that you should try to find a cosigner. I understand that this won’t always be an option, but it’s the easiest way to secure this type of financing.

There are companies and programs that are designed to work with people who don’t have the greatest credit rating. The best way to find them and take advantage is to look online. This is where you can find out about the best lenders and how to put in your application fast.

It is not only faster to go through online lenders, but it will save you a lot of time and humiliation as well. There is nothing like the hassle of sitting in a bank trying to explain away your credit flaws, but luckily yo won’t necessarily have to do that.

There may be some little things you can do to clean up your credit and improve your chances of finding a good loan, so get a copy of your report. If you have smaller items such as doctors bills try to pay them off. Also, leave open any lines of credit you do have, even if you never use them. That open credit will build confidence with other lenders.

Also, it is common sense that the more you are willing to invest in your bike the more willing someone else may be to front you the money needed. If you can come up with a down payment of some sort your chances are greatly increased.

So, what if you cannot clean up your report right now and cannot afford a big down payment? You still have a lot of hope of finding a lender who is prepared to work with you. You just have to put in some time looking around and be open to a higher interest rate. The terms on a loan for someone with bad credit are slightly different from a bank loan for someone with stellar credit, but that doesn’t mean the deal will be bad for you. In fact, it could turn out to be a great thing for your credit score.

Finding motorcycle financing with bad credit could turn out to improve your rating. You will then be able to take out other types of loans like poor credit signature loans.

Motorcycle Financing FAQ:

Question: Where is the best place to get motorcycle financing?
I am 18yrs old and I’m trying to make my first big purchase and buy a motorcycle but no one wants to give me a loan because I have no credit. Is there anywhere I can for sure get financing?

Answer: The only places you can ‘for sure’ get financing are exactly the places you want to steer away from since they will charge outrageous interest rates, and hurt you more than help. If you can’t afford it the first time on your own you will have to do what everyone else had to do. Find a co-signer, or just put the money away on your own, and buy it outright instead of using a loan. It won’t help you gain credit, but you will be riding.

Question: Any tips on how to avoid paying full coverage insurance on a motorcycle while financing it?
My friend has been financing a motorcycle and he just did his policy online and put down that he owned the motorcycle and only put liability on it. Is this a good way to get around the system?

Answer: Your finance contract requires that you maintain full insurance coverage. If you do not, you are in default of the contract, the same as if you did not pay your payments.

When the finance company finds out about the lack of insurance, they can put insurance on the vehicle, that will cover them. They can add the premium to your loan balance, and the cost of their insurance is a whole lot more that it would cost you to buy the correct coverage yourself.

They also can repossess the vehicle if you do not provide proof of insurance, and require that the entire loan be paid off.

When you signed the finance contract, you agreed to the terms. Keep the coverage on the vehicle and live up to your word!

Question: Any ideas on a reliable site for bad credit motorcycle financing?
I have been divorced twice. Due to that and foolish decisions from my youth, I am left with a beacon (more like a flashlight) score of 570. Yamaha credit declined me. I purchased a car in March through Capital One, I have two credit cards with them (all are paid on time, ahead of schedule and way more than the minimum when I have a balance) but they do not finance bikes. Any reliable sites out there to finance someone like me?

Answer: You might want to look into “Greentree”. I had not so good credit a few years back. I ended up going to my Credit Union Bank, and just asking “If I was gonna buy a bike, what could I get approved for?” They came back with around 6k. So I went and bought an 03′ Vstar 1100 Custom for 6k with 3200 miles on it. If your one of those that’s gotta have a Harley, trust me, I’ve owned them and your not missing much.

Question: Is financing a motorcycle bad for insurance?
I was going to get the Yamaha R6S, but I heard that if you don’t have the pink slip for the bike and you get insurance, that they will charge you double for insurance or a lot more money. If thats the case then I’ll just get a Kawasaki Ninja 250R, but I would really like a R6S. I just wanted to know if financing a motorcycle would cause insurance to go up?

Answer: The financing itself doesn’t add a dime to the cost. But, if you finance it, they will insist that you carry collision insurance on it. Collision insurance on a motorcycle is extremely expensive. If you’re under 25, it’s going to be at least half the cost of the bike. So, if you’re going to pay cash for a bike, and carry collision insurance, well, it’s still going to cost a lot. If you don’t carry collision or theft, it won’t cost much. Oh, and collision and theft are way more than 2X the cost of liability.

Question: Where is the best place to look for motorcycle financing after filing bankruptcy?
I’m looking for a 600 VLX thru Honda and have a co-signer.

Answer: Your best bet is to try your local credit union or bank. If your bankruptcy is recent then the lenders that the manufacturers use will most likely not finance you. The same is true about credit unions and banks. However, I have seen credit unions take a chance and finance a person with a bankruptcy.

Question: Financing a motorcycle but I need a truck?
Last year my husband decided to buy a motorcycle. Brand new $6,000 ninja. Because of interest and low monthly payments we have only knocked that down to 5,700. The problem is we are planning to move to a colder climate and a motorcycle will not do well there. We are financing through the kawasaki credit card company. What are our options to either sell it or trade it in? We do not have the title yet since were still paying. Credit scores are around 650. If there becomes a private buyer how can we sell to them without having the title?

Answer: Sell it privately, and work with someone who is willing to wait a week to get the title transferred to him.

Question: Do you have to carry insurance on a motorcycle if you are financing it?
I know in WA state where I live you aren’t required to carry motorcycle insurance, but I am curious if you need to have insurance if you are financing a bike?

Answer: Yes. When you finance, the bank owns the bike, not you. It’s an investment on their part, trusting that you’ll pay the bike off with interest before destroying it. That said, they want to make sure their investment stays safe, which means that they will require FULL coverage on any financed motorcycle

Question: No Credit Check Motorcycle Financing in Florida?
I’m in a hurry to hop on a bike. Had my endorsement for almost a year now and don’t have enough to throw down cash full. I am 20, have no credit yet, and can’t finance a new bike because of that reason, any ideas? I live in central Florida, is there anywhere that will finance you a used or new bike with no credit?

Answer: I doubt there are but if you happened across someone who would finance you your interest rates would be astronomical. You’d be better off to get a cosigner if you can.

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