Tips for Financing a Harley-Davidson Motorcycle
If you’re looking for a Harley-Davidson motorcycle, you’ll find an impressive selection to choose from. Whether you want a versatile street bike, a sporty cruiser, or a touring motorcycle for a long distance road trip, Harley-Davidson has a bike for you! However, the sticker price of these wonderful two-wheelers can be high, and few people can afford to pay the full price up front. That is why many prospective Harley owners choose to finance their purchases in part or entirely.
Build a Budget
The first step is to figure out how much money you have to spend on a bike. This accomplishes two objectives. For starters, it keeps you from falling in love with models who are out of your price range because you will eliminate them from your search from the start. Second, it prevents you from overlooking features or models that you can afford. Setting a realistic maximum spending limit will allow you to purchase the highest quality Harley motorcycle that you can afford.
Keep a few things in mind as you create your budget. Harley-Davidson motorcycles can last for many years, so plan accordingly. Don’t forget to account for extra expenses such as fuel, upgrades, and maintenance. Remember that most loan terms can range from 2 to 6 years, so think about how your motorcycle finances might change over time.
Down Payment & Monthly Installments
Most financing options require an initial down payment of 10% to 20% of the total cost of the bike. Begin saving for that payment right away! Remember that paying more upfront will save you money in the long run because interest rates will be lower.
Before you finance your motorcycle, you should be certain that you will be able to make your monthly payments. You’ll need to do some math to figure out how much these payments would be for the Harley you want, as well as how much interest would accrue over time. A bike loan payment should not exceed 20% of your total income in order to avoid going into debt.
Check Your Credit Score
Your credit score is an important consideration when applying for a motorcycle loan. The better off you’ll be with a higher credit score. Concentrate on increasing your credit score to at least 700. However, you should not let your bad credit prevent you from purchasing your dream bike. Horsepower financial accepts applications with all types of credit, so anyone can apply. Our motorcycle financing procedure is as simple as they come! You can fill out our online financing application today or contact us so that one of our knowledgeable staff members can get you started.
Types of Loans
Consider the type of bike loan you want to get. Secured loans use the bike you buy as collateral in the event you fail to repay the loan. If you fail to make payments, your motorcycle may be repossessed. These loans have higher loan limits, lower interest rates, and longer repayment terms, and they’re the best option if you need more money upfront or don’t qualify for an unsecured loan.
Unsecured loans do not require collateral, but their interest rates are higher and their terms are shorter. If you default on an unsecured loan, you will most likely not lose your bike, but you may face a penalty. Try to learn as much as you can about the loan you’re taking out. Some loans penalize you if you pay them off before the term is up, and you don’t want to deal with that. We recommend that you carefully read your loan terms and make sure you understand your obligations before signing on the dotted line.
We hope these suggestions will assist you in successfully financing your Harley-Davidson motorcycle! Once you’ve decided on a model, one of our knowledgeable and friendly team members will be happy to walk you through the financing process.
What credit score do I need to finance a Harley?
Harley-Davidson motorcycle dealers offer loans on both new and used models, with the majority of customers qualifying for interest rates as low as 3.49%. There is no minimum credit score required to be approved for a loan, and military members may be eligible for lower interest rates, flexible term options, and no down payment.
Is it hard to get financing through Harley?
A score of 720 to 850 is considered excellent and will get you easily approved for any loan, whereas a score of less than 629 is considered poor. Unlike banks, however, Harley financing is not entirely contingent on credit scores.
What is a good interest rate for a Harley-Davidson?
If the loan term is 60 months or less, APRs for rider training graduates in the highest credit tier can be as low as 4.75%. Military personnel may also be eligible for reduced rates, flexible term options, and no down payment.
What credit score do I need to get a motorcycle?
Motorcycle financing typically requires a credit score of 620 or higher. If your credit score is less than 620, you may still be able to find a lender willing to work with you.
Will financing a motorcycle build credit?
Repaying a used motorcycle loan, like an auto loan, can help you build credit. As long as you make your payments on time, your used-motorcycle loan can help you build a positive payment history and a more complete credit profile, both of which can help improve your credit health.
Why are motorcycle loan rates so high?
Repaying a used motorcycle loan, like an auto loan, can help you build credit. As long as you make your payments on time, your used-motorcycle loan can help you build a positive payment history and a more complete credit profile, both of which can help improve your credit health.
What is high mileage for a motorcycle?
20,000 to 30,000 is on the high side for small sports bikes. Motorcycle mileage of 50,000 miles or more is considered high for larger bikes. But, before you dismiss any models, keep in mind that a properly maintained bike can last well over 100,000 miles!