Motorcycling can be a very enjoyable pastime. Many people in countries around the world even rely on motorcycles as their primary source of transportation to get to work and school.

Even though most motorcycles are less expensive than cars, many buyers still need to arrange financing and loans to be able to afford a new or used motorcycle. There's a multitude of companies that offer motorcycle loans. They vary in whether they give loans to only people with good credit or if they'll also offer loans to individuals with bad credit.

Used motorcycle loans tend to have higher rates than new motorcycle loans. Then there are high risk motorcycle loans. These are for people with the worst credit.

Motorcycle Loan Rates

High risk motorcycle loans have the highest rates. This is so because the lending companies who offer them don't have much assurance that the loans will ever be paid back, on time or otherwise. So they have to charge very high rates in order to try to get back the principal faster than with a lower rate loan.

The people with the best credit will always have the lowest rate motorcycle loans. That's because they have a proven history of always paying back their debts in the most timely fashion possible.

People with only average credit will get rates higher than people with excellent credit but lower than high risk buyers. The loan rate can also depend on how much a person puts down and how long the term of the financing is. Usually the more money put down and the longer the term, the lower the rate an individual can lock in at most motorcycle finance companies. Rates can be determined with a special loan calculator.

Other Ways To Afford A Motorcycle Without Loans

If a person is intent on buying a motorcycle and he either doesn't qualify for a loan or he doesn't want a loan, there are other ways he can still buy the bike. The most obvious way is by paying all cash. If he has enough money and he is careful to choose a motorcycle that's not to expensive, it's very likely he could have saved up enough money to pay in all cash.

Another way to pay for a motorcycle is by barter or trade. If a person has some skills he can perform for a seller, then he can put a price on his services offered and barter the price that way with absolutely no money out of his pocket. Also, trading some equally priced assets like a car or jewelery can completely pay for the motorcycle instead of getting a loan.

Published on November 10, 2009