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Best Ways to Buy a New Motorcycle

How to Finance Your New Ride

Is owning a motorcycle on your bucket list or are looking to upgrade your current bike? Buying a motorcycle could set you back anywhere from $1,500 to more than $55,000 if you buy new. If you don’t have the cash to pay for a new ride, you can shop around for a motorcycle loan. The process is similar to buying a car, but there are things about a motorcycle loan that you should consider before purchasing your next bike.

Budgeting for a Motorcycle

As with any major purchase, the first step is determining your budget. Can you afford to buy a new motorcycle or would a used one be a better fit for your budget? When figuring out how much you can afford, you’ll want to try to keep your payments to less than 15% of your monthly net income.

Once you know how much you can afford to spend, visit a bank or credit union before you head to a dealership. Just like with buying a car, you’ll typically lock in better interest rates if you are prequalified for a loan instead of going through a dealership for financing. This is where having a good credit score can help. Typically, if you have a good credit score you’ll be offered lower rates which will save you money over the length of the loan.

United Federal Credit Union offers flexible rates on loans for motorcycles and other recreational vehicles. With United, you won’t pay an application fee and with flexible loan terms for up to 84 months for qualified borrowers on qualified loans, you can keep your monthly payments low. You can apply for a motorcycle loan on or by stopping by your nearest branch.

Keep in mind - while you might find the best loan rates at a bank or credit union, those rates will likely be higher than what you would pay on an auto loan from the same institutions.

Other Ways to Pay

There are other ways to pay for a motorcycle that don’t include getting preapproved for a loan through a bank or credit union. Some manufacturers will offer financing deals when you buy from a dealer if you have great credit. Depending on when you buy, you could take advantage of APR deals of close to 0% for 60 months or rebates.

Another option is to get financing at the dealership. It is a convenient option since you won’t need to do any work before hand, but you will likely end up paying more on the interest of your loan than if you were preapproved before you went shopping.

One payment option you may want to avoid is putting your purchase on a credit card. While you might have a credit card with a high limit, you will likely end up paying considerably more in interest by the time you pay off the bike.

Bottom Line

Before you buy a new leather jacket to go with your new bike, make sure you are prepared to take on the monthly payments of owning a motorcycle. Shop around for the best deals on loans before you head to a dealership to find your next bike. Happy riding!