Why Banks Don’t Like Motorcycle Loans

February 9th, 2010

One reason banks don’t like motorcycle.  A motorcycle or ATV is not a automobile! Sure you could have originated financing for your GM car effortless and could walk into any lender and get approved.

But bikes are not quite as straight forward mainly if you underwent poor credit problems. You have to understand that motorcycle loans are a larger threat to banks delivering loans because bikes are easy to hide, often are smashed in crashes, and are not a necessity.

Therefore if you get declined for credit don’t give up, immediately move to the next lender. There are certainly substitutes in the marketplace for a lot of high quality and poor credit candidate. Shopping at motorcycle dealers can make a noteworthy difference.

Also remember many manufacturers have their own financing companies.  These companies many times are not owned by traditional banks and can help you get approved. Since the manufacturer wants to move inventory the lending criteria may be different than from a bank.  

Lastly with manufacturer financing you many times will not have to have full coverage motorcycle insurance which can make a huge difference in your total monthly payment.

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Entry Filed under: Autos


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