Are you considering the purchase of a used motorcycle? If so, you may be wondering where you’re going to get the money for the purchase. After all, motorcycles aren’t cheap, and you probably don’t have that much cash sitting in a drawer or stashed under your mattress. Used motorcycle loans can be hard to qualify for, especially if you have bad credit or no credit at all, and traditional lenders usually run the other way when they find out about your poor credit history. So…
The short answer is yes. In-house motorcycle financing is the way to go instead. In-house financing motorcycle dealers assume the risk of making the loan themselves, which means they have more flexibility in who they make loans to. Many in-house financing motorcycle dealers are willing to make loans to people with no credit or with low credit scores. These dealers know the attraction of a used motorcycle, and they want to help as many people as possible realize their dream of owning one.
Here are a few good reasons why you should choose an in-house financing dealer for your used motorcycle loan.
Many traditional motorcycle dealerships want to set you up with a branded credit card that carries a revolving line of credit. This is dangerous because often you can use the card for other purchases. For someone who already has credit challenges, this is scary business. Before you know it, you have a balance that’s too high to make the payments on. A used motorcycle loan from an in-house financing motorcycle dealer is not a revolving line of credit. You only get as much as you need to buy the bike. That’s it. No more.
Used motorcycle loans usually have a fixed interest rate with an in-house financing dealer. That means your payment amount never fluctuates from month to month. You always know exactly what you owe, making it easy to budget for it each month.
Another bonus in this category: No balloon payments. Many traditional motorcycle dealers use compound interest to calculate the loan and then hit you with a balloon payment at the end of the term. This is something you need to watch out for. If the dealership you’re shopping at mentions compound interest or a balloon payment, run out the door. There are in-house financing motorcycle dealers who don’t engage in these tactics, and you’re better off buying from them.
With simple interest and no balloon payment, you’re not penalized if you have a sudden windfall and want to pay your loan off early. In fact, with many honest dealers, that behavior is encouraged! Make sure you ask about that before you sign the loan documents.
Many in-house financing motorcycle dealers report your good payment behavior to Equifax, Experian, or TransUnion. These are the top three consumer credit reporting agencies, and they’re the ones who report your credit score to potential lenders when they pull a credit report on you. By reporting your on-time payments to these agencies, the dealer is helping you rebuild your credit score. Of course, you’re helping yourself, too, by making your payments on time and in full every month.
That’s right! Many in-house financing motorcycle dealers create their own rules about who they loan money to. They can do this because they fund the loan themselves, although there are a few governmental rules they have to follow just as traditional lenders do. But the bottom line here is that even if you’re just starting out and don’t have any credit, you’re very likely to get a used motorcycle loan from an in-house financing dealership.
When you buy a used motorcycle at a traditional dealership, you’ll often notice Dealer Prep and/or Freight Fees on the contract. These fees are a signal that you’re essentially being charged for putting the bike together and gassing it up. Most in-house financing dealerships don’t include extra fees like this. This can save you between $215 and $275 on your used bike.
Motorcycle dealerships charge documentation fees when putting together a loan package. These fees run as high as $499 at a traditional motorcycle dealership. When you shop with an in-house financing motorcycle dealer, you’ll notice that the fees are much lower. In fact, many in-house financing motorcycle dealerships only charge $299.99 for this service. There you go. More money savings for you!
One of the best reasons to get your used motorcycle loan from an in-house financing motorcycle dealership is that you’ll be working with real people. The financing and collection department staff are employees of the dealership and are warm, caring people who want to see you get back on your feet – even if you kick them up on the pegs of a motorcycle right away! If you experience unexpected challenges and need a little extra time to make your payment, you can call a live human and talk with them about your situation. They’re much more willing to work with you than a bank would be.
If you’re looking for a used motorcycle loan in North Carolina, stop by MotoMax in Raleigh. This dealership hits on all these benefits and then some. MotoMax serves the cities of Cary, Chapel Hill, Durham, Garner, Knightdale, Oxford, Wake Forest, Henderson, and Youngsville in addition to the Raleigh metro area. You’ll be pleased with the service you receive and the kind folks you’ll be working with, and you’ll be hitting the open road in no time!
