Tips for Financing Your New Motorcycle
So you've decided that you want to buy a motorcycle. Congratulations! Motorcycles are a fun and affordable way to get around, and they can be a great way to commute or travel long distances. However, before you can start riding your new bike, you’ll need to finance it. Read our article for great tips for getting the best loan available. Then, when you're ready, stop by our dealership in Sioux Falls, North Dakota and take advantage of our amazing financing department.
Credit Score
If your credit score is low, don't despair. There are steps you can take to improve your credit rating. First, order a copy of your credit report from any of the three major credit reporting agencies: Equifax, Experian and TransUnion. Check the reports carefully for any errors or inaccuracies. If you find any, dispute them with the credit bureau. Secondly, make sure you pay all your bills on time, including credit cards, utilities and rent. If you have any late payments or collection accounts, work with the creditors to get them removed from your report. Once your score is above 700, you’re guaranteed to get a great loan!
Down Payment
If you want to keep your loan rates low, you’ll need to put down a down payment. Ideally, you should aim for a 20 percent down to avoid raising your loan rates. One way to save for a down payment is to create a dedicated savings account and automate your contributions. You can also set up a monthly automatic transfer from your checking account to your savings account. Be sure to check these savings regularly so you know when you’re ready to start shopping for loans.
Budget
It's important to budget your income carefully to make sure you can afford your monthly loan payments. First, consider your other monthly expenses. This includes things like food, housing, transportation, and any other necessary costs of living. Once you know how much you need to spend on these other things each month, you can subtract that from your income to see how much is left. Once you know how much income you have leftover for your payments, you’ll know what you can afford monthly, as well as how long your loan might take to pay off.
Lenders
When you're ready to apply for loans, it's important to compare rates and terms from multiple lenders. We encourage you to apply with multiple lenders to compare offers, but advise you to keep your number of applications below 6—as it may negatively impact your credit. When you're comparing loans, be sure to look at the annual percentage rate (APR). This is the total cost of the loan, including interest and fees. The lower the APR, the better. You should also consider the repayment terms. Some loans have shorter terms, which means you'll have to make higher monthly payments. Others have longer terms which could mean lower monthly payments. Choose the loan that fits your budget and needs!
Now that you know how to get the best loan possible, feel free to come by our dealership and take a look at our huge inventory of motorcycles. We proudly serve the cities of Watertown and Brookings, South Dakota and have an extremely knowledgeable and helpful staff. Whether you’re needing a motorcycle, loan, or spare part, J&L Harley-Davidson® has got you covered!