Your Guide to Motorcycle Financing

Buying a motorcycle is a big investment that few can afford out of pocket. While a large amount of buyers finance their bikes, there isn’t a whole lot of information on how to do so. We here at North County Indian Motorcycle want to change that, so we’ve compiled this handy guide so you can get the best loan available. Once you’re ready to browse bikes, or speak with a sales representative, feel free to come into either of our dealerships in San Marcos and Corona, California! 

Preparing 

A lot of considerations go into loan applications from your income to your debt. But the most important factor is your credit score. You can check your credit score for free once a year with any of the large name reporting agencies. If your score is below 700 we advise taking some time to build it up. This can be done by reimbursing old debts and paying bills on time. Having credit history is also an important factor in your overall credit score. Even if you are not using an old credit card, it's helpful to keep around for your credit history. 

Another way to ensure you get a good loan is to put down a significant down payment. Dealers expect around 20% of the sticker price to be put down as an initial payment. If you can pay more than this you'll not  get a better loan rate, but you’ll be paying less in the long run! 

Once you’ve got some money saved and your credit score up, it’s important that you budget your income. Look at what you’re making monthly and divide it into expenses and savings. Expenses are pretty straight forward, mostly consisting of your monthly bills and a bit of spending money. Your savings should generally consist of an emergency fund for things like hospital bills, and your retirement pension. Take a close look at what costs could be reduced or where you might have some excess cash to put toward your monthly loan payment. 

Browsing

Now that you know what you can afford, you can begin looking at motorcycles! Before heading to the dealership, write down a few necessities or features you’d like your bike to have. Knowing where you plan to ride your bike and how often is important in selecting the right motorcycle for you. Writing down exactly what you need will also keep you from overpaying on bikes with cool, but perhaps unnecessary features. As you browse, be sure to ask your sales representative as many questions as you can think of. The more informed you are, the better off you’ll be when selecting a motorcycle. 

There are several lenders out there from banks and credit unions to dealerships and manufacturers. We encourage you to research and apply to multiple institutions in order to get the best loan available. We here at North County Indian Motorcycle have a great financing department and easy loan application, here! As you review your loan offers keep your best interests in mind. While a secured loan may have better rates, a few missed payment can result in your motorcycle being repossessed as collateral. 

We hope this guide has been helpful as you prepare to finance your motorcycle. If you have any questions, or simply want to browse some high quality bikes, we hope you’ll visit one of our many dealerships! We’ve proudly served the cities of San Diego and Oceanside, California, for years, providing knowledgeable staff, great customer service, and most importantly-high quality inventory.