How to Obtain a Motorcycle Loan

The requirements for motorcycle loans are similar to those required for car loans in that the ability to repay the loan, repayment history and value of the vehicle are used to make loan decisions. Motorcycle loans often have steeper interest rates than car loans, however, because banks view motorcycles as a greater risk due to the fact that they are recreational vehicles. The logic follows that a person is more likely to allow a motorcycle that they use only occasionally for pleasure be repossessed than they are an automobile that is their primary form of transportation.

Instructions

1

Select the motorcycle. Often, banks base interest rates on the year of the motorcycle, making it important to have a motorcycle selected before contacting banks.

2

If purchasing the motorcycle from a dealership, obtain the vehicle identification number (VIN); a sales agreement that details the selling price, the make and model; and a list of options. If the bike is used, record the mileage as well.

3

If purchasing the motorcycle from an individual, obtain the VIN and a writeup from the owner detailing the sale price, any options and the mileage of the bike.

4

Compare the interest rates offered through local banks by visiting their websites or contacting them by phone. Have your sales information handy in case it is required to receive a quote on the rates, and record the rates on paper.

5

Select the bank with the lowest rate.

6

Gather your personal information, such as how long you have lived at your address. If you have not lived or in the same place for very long, be prepared to offer previous addresses.

7

Gather your income information, and locate your most recent pay stub. You will need the name and address of your employer, your dates of employment and your hourly pay rate or yearly salary. If you have not worked at the same place for very long, be prepared to offer your previous employer.

8

Gather your housing information. If you own your home, you will need to know your mortgage payment, bank, approximate balance and monthly payment. If you rent, it will be necessary to know your monthly rent.

9

Make a list of all of the credit cards where you have balances. Include the name of the creditor, the type of card, the balance and the monthly payment.

10

Make a list of other loan payments. Include the name of the creditor, the purpose, the balance and the monthly payment. Include any other vehicle loans, student loans, unsecured loans, medical bills, same-as-cash financing and credit lines.

11

Complete an application by visiting or calling the bank. If going to the bank in person, bring along all of the information and lists that you have gathered in the above steps.

12

Contact an insurance company to obtain motorcycle insurance. Obtain proof of insurance, as it will be needed to close the loan.

13

Upon approval, visit the bank to sign the loan paperwork.