How to Obtain Financing for a High-Risk Motorcycle
Financing a motorcycle that is considered high-risk can be challenging. In general, there are fewer motorcycle lenders than straight auto lenders. Compounding that problem is adding the high-risk element. However, given the popularity of motorcycles, it's possible to secure financing.
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Instructions
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Check your credit report (see Resources below for where to get a free copy of your report). In order to obtain high-risk motorcycle financing and insurance, you need solid credit, with at least a 680 FICO score. You have to pay for the score. When reviewing your report, look for negative marks such as charge-offs, judgments, excessive credit lines (over four revolving accounts), bankruptcies and maxed-out credit cards. Clear up all negative information before applying for financing.
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Start with your insurance company. If at all possible, stay away from the dealership's offer to finance a high-risk motorcycle. In most cases, the dealership's financing offer is more costly and less favorable. High-risk motorcycle insurance companies have experience with such customers and are able to provide leads on financing.
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Join an online motorcycling community. Often, other members can share valuable information on lenders. Most give feedback on lenders and offer insight into the customer service and reliability of certain lenders. Although this shouldn't be an authoritative source for your search, it may lead you down the right path. See Resources below for such a community of cycling enthusiasts.
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Narrow your search to two or three lenders. Research their records on the Better Business Bureau's website (see Resources for this link). Get financing quickly and affordably but deal with a reputable and highly rated company. Look out for red flags involving poor customer service and unethical lending.
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Apply at a few different lenders. Don't commit to any contract until you've reviewed all potential loans. Make sure the loan you accept is affordable. (Do a DIR--Debt to Income--ratio calculation. For example, if you make $2,000 per month before taxes and your monthly obligations including a motorcycle payment equal $850, your DIR is 43 percent. This is a good ratio. Shoot for a DIR that's less than 50 percent.)
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