Tips for Financing a Motorcycle

Owning a motorcycle is a big dream for many, but it’s not always easy to accomplish. Luckily financing options and motorcycle loans are available to help you get your dream bike! Our team at BMW® Motorcycles of North Dallas is here to help you navigate the buying process. 

1. Research First

The first step in the motorcycle buying process is to complete your own research. Take some time looking at different makes, models, and styles. Understand what is available and think about what options would suit your needs the best. 

As you gather information, remember to think about the main purpose of your motorcycle. Will it be a daily driver? Will you use it for long road trips? The primary use of your motorcycle can also influence the type of bike you need. 

Learn as much as you can about pricing, features, maintenance, style, and ownership!

2. Set a Budget

Now that you know more about the available options, you can decide on your budget. Use the knowledge you’ve gained to establish a realistic budget, including the motorcycle, gear, and fees associated with ownership. 

You’ll need to account for insurance, registration, safety equipment, riding courses, and the loan payment when you set your budget! Thinking about every factor ahead of time will help you get the best model you can without sacrificing any additional needs. 

3. Understand Loan Types

With a set budget, you’ll be ready to shop for the perfect motorcycle, but before you head to the dealership it’s helpful to understand what loan types are available to you. Loan qualifications are based on a mix of factors including your credit score, credit history, loan amount, and the motorcycle itself. 

There are two main types of loans: secured and unsecured loans. A secured loan allows the lender to use the motorcycle or another asset as collateral. So, if you miss a few payments, the lender could repossess your bike. Typically, secured loans will have lower interest rates because of the included collateral. 

Unsecured loans do not allow the lender to use any asset as collateral, but the interest rates may be higher. 

Many dealerships will be able to help you find a lender, but you can also shop around for the best option before you begin shopping! 

4. Save for a Down Payment

With your budget set and an idea of what motorcycle loan rates are available, you can focus on setting aside money for a down payment. Being able to offer a down payment at the time of sale will lower your total loan amount and ultimately improve your rates!

Motorcycle financing doesn’t have to be difficult with the right knowledge and plan. Visit us in Plano, TX, when you’re ready to shop! We proudly serve Dallas and Frisco.