Buying a used motorcycle can be a perplexing task to potential buyers. The good news is that it doesn’t have to be. With some research and newfound knowledge, buyers can take the confusion out of buying a used motorcycle.
Before you can decide on the motorcycle you want, you should find financing. When in search of a motorcycle loan, where you will purchase your motorcycle should be taken into consideration.
The purchase location can be an auction, a dealership or private owner. Your purchase location can be the deciding factor in your loans approval. Knowing this, you can better conclude where to focus your loan search. The following are things to keep in mind with regards to where you purchase your bike.
1. Auctions – when thinking of purchasing your motorcycle at an auction you should already have financing worked out, as most auctions do not offer financing on location. While there are auctions that provide financing, it’s often reminiscent of dealer financing which rarely benefits the buyer. Having your payment available at the time of purchase saves you time and energy.
Like anything else, research is key. Online lending is popular and competitive and there are lenders that offer loans for used motorcycle buyers. This is a favorable alternative as the online lenders offer speedy approvals and send the check, in the amount you are approved, for to you via mail.
If you’re more comfortable with direct lending you may try a credit union. Credit unions offer motorcycle loans and some provide the borrower a personal loan. Either way the loan can be used to purchase your used motorcycle.
2. Private sell- Buying from an individual is much like purchasing from an auction. They will require you to have your cash available at the time of purchase. Therefore, like an auction purchase, you should have your loan approved and check in hand. To have a secure transaction, you will want to be able to prove your payment, so acquiring a cashier’s check or money order is the safest bet. This way both you and the buyer are protected from claims of non-payment or delinquency.
3. Dealer financing- being that dealerships have relationships with many financial institutions, they have the ability to offer you many different options for your loan. Dealerships will typically go through GE Capital (GE Money) or HSBC for loan financing. This means that your loan amount and interest rate will be determined by your credit history. The loan you are offered may be a usual installment loan or through a promotional credit card.
Choosing to finance through the dealer means hours of waiting and paperwork and negotiating. Whereas, financing your purchase through an online lender means swift turnaround for the application process and loan and interest rate offer. Speedy approval and a check in 24 hours helps make the choice to finance online an easier decision.
All in all, finding the financing that best fits your needs doesn’t have to be a long, tedious and frustrating task. Online loans are highly competitive and therefore offer competitive rates whereas, credit unions are more comfortable and secure for other buyers. Take the time to complete a little research and make the best decision available to you as you finance your used motorcycle purchase.
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