You can borrow money for a motorcycle almost at any bank. However, in fact, there are a number of profitable programs that will help to buy the selected Harley-Davidson motorcycle model with good credit terms. Let’s consider several programs that banks offer specifically for those who wish to buy a motorcycle.
- 1 How can I finance a Harley-Davidson
- 2 Harley-Davidson financial services
- 3 Personal loan for a Harley-Davidson
- 4 Loan secured by a motorcycle
- 5 Loan secured on property
- 6 How can I apply for a Harley-Davidson loan?
- 7 How much does Harley-Davidson cost?
- 8 What are the benefits of using a Harley-Davidson loan?
- 9 Recommendations when buying a Harley-Davidson motorcycle on credit
How can I finance a Harley-Davidson
In order to buy a Harley-Davidson motorcycle, a borrower can use various programs of banks.
Harley-Davidson financial services
Harley-Davidson has launched a special lending program for the purchase of new motorcycles of the famous American brand. Harley-Davidson loan program offers loans for the purchase of motorcycles, equipment and accessories on favorable terms.
The loan program extends to motorcycles of the entire model line. Now the client, who is considering buying both an urban Sportster and a Harley-Davidson touring motorcycle, will be able to submit an application and fill out all the necessary documents right at the dealership, and at the time of application.
The special conditions for the purchase of motorcycles, which became the basis of the Harley-Davidson Financial Services program, meet the requirements of the most discriminating fans of the brand: partner banks that have a proven track record, guarantee transparent conditions, one of the lowest rates on the motor loan market and convenient repayment conditions. The Harley-Davidson loan program offers a minimum down payment of 15% of the motorcycle cost, a favorable interest rate of 12.5%, and a loan term of up to 7 years. For more information on loan conditions, you can contact managers at Harley-Davidson dealerships.
Personal loan for a Harley-Davidson
The easiest and cheapest way is to get a loan for emergency needs. The loan is provided to the borrower’s account, can be obtained in cash or transferred to the seller’s account at the request of the client. Also, you can get a credit card.
Lending conditions depend on the status of the client in the bank, his/her solvency, credit score.
- period from 6 months to 5-7 years;
- rate of 12-20% per annum;
- collateral is not required;
- additional conditions: borrower insurance, in case of refusal, the interest rate may be increased or the bank may refuse to grant a loan.
The term for consideration of the application is 1-2 days after the provision of all documents.
Loan secured by a motorcycle
A peculiarity of motorcycle loan is that transport is a pledge until full repayment under a loan agreement. The deal can go through a motor dealership or bank.
The client chooses the model of the motorcycle and the lender, who, being a partner of the motor salon, offers the most suitable loan conditions. When applying for a loan through organizations that are not partners, the interest rate on the contract increases.
Motorcycle loan programs in different credit organizations differ slightly from each other.
- the loan amount is determined by the solvency of the client, the cost of the motorcycle and the amount of the contribution by own funds;
- down payment from 10-30%;
- loan term up to 5 years;
- the interest rate is higher than on personal loans by an average of 2-3 points;
- the purchased motorcycle is pledged;
- it is possible to attract a co-borrower or guarantor;
- insurance: of transport, life and health of the borrower.
The application is considered up to 2-3 business days after the submission of a package of documents. The loan will be transferred to the seller’s account immediately after signing the loan agreement.
Loan secured on property
If the purchase amount is a large, the borrower can use a loan secured on property.
The general parameters for granting a loan under such programs do not differ from providing a personal loan.
- property owned by the borrower will be collateral for the loan;
- minimum interest rate in the program;
- loan term increases to 15-20 years;
- in addition, the borrower will have to insure the security.
Despite solid collateral, the borrower must be solvent and have a positive credit score.
A loan will be provided after registration of the pledge agreement with the registration authorities. It takes 30 days.
How can I apply for a Harley-Davidson loan?
A consumer can buy two types of motorcycles on credit – a new one (from motor dealership) or a used one. When it comes to a new vehicle, it can be purchased in the motor salon, where you can find representatives of various banks. This means that the company (motorcycle dealer) has concluded an agreement with them and receives additional profit in the form of a percentage of each transaction.
But the bank is unlikely to lose “their profit” if their loan officers are assigned to a salon where there is a high percentage of sales. As a rule, they set high interest rates and less loyal conditions. Therefore, it is better to familiarize yourself with all banking offers in the market and find the right one, rather than contact a loan specialist in the salon right away, although there are exceptions.
To purchase a motorcycle, you must contact the bank branch. You will need to provide the following documents:
2. driving license;
3. other documents, including a statement of income.
The bank may put a prerequisite to the client – the use of the vehicle as collateral. This means that the motorcycle will be collateral until the end of the loan term.
How much does Harley-Davidson cost?
A new Harley-Davidson motorcycle can cost from $8,000 to $36,000, depending on the model. It can cost even more if you want to customize it.
Used Harley-Davidson motorcycles tend to be cheaper, but do not forget to do your quality checks to make sure it is in good condition and well-maintained.
What are the benefits of using a Harley-Davidson loan?
- The ability to buy a motorcycle in the short term. You have the opportunity to buy Harley-Davidson with minimal savings, which you can use to pay a down payment or without them. The main thing is that your current income is enough to repay the received motorcycle credit.
- Large payout period. Banks provide motorcycle loans for a period of 1 to 7 years. If you choose a long period, then monthly payments will be insignificant – it can be convenient. However, in this case, the total cost of the loan increases.
Recommendations when buying a Harley-Davidson motorcycle on credit
1. Determine how much money you need to borrow to finance the purchase of a Harley-Davidson motorcycle. Take as much money as you need, because you will pay interest on the loan.
2. Decide what type of loan you need. You can get a fixed loan payment or credit line depending on the credit score.
3. Research on current interest rates. Look in the newspaper, in brochures or on the Internet, where banks advertise loan rates.
4. Consider the option of getting money using a credit card to finance the purchase of a motorcycle, and if possible with a low fixed interest rate. Remember to calculate the monthly payment and pay it every month to avoid additional financial costs or non-payment of loan payments.
5. Find out about funding opportunities directly from your motorcycle dealer. When buying a Harley-Davidson motorcycle from dealer in installments, you will have the least expensive way. In this case, you can get a preferential interest rate or interest-free installments.
The requirements for borrowers on motorcycle loans is similar to those for cars, and lies in the solvency of the borrower to repay the loan. In this case, it is enough to look at the borrower’s credit score and the cost of the vehicle in order to determine and decide on a loan. Banks are able to offer affordable, low interest rates for motorcycle loans.
Lenders follow the logic that if a person can afford a loan for a motorcycle, which he/she sometimes uses only for pleasure, he/she is more likely to repay the debt than in the case of a car loan, when the car is the main mode of transport. Also, our website provides detailed information about motorcycle loans and used car loans. Webmoneyloans is always ready to help you.
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