Motorcycle Loans - Financing USA

The first reason Americans are applying for motorcycle loans more than ever, is due to the high price of fuel. The cost per gallon is getting ridiculous, and in 2007 going forward, the chances are fuel costs will continue to stay high.

Many people use motorcycles as a means of transportation, particularly in congested cities were there is a great deal of traffic. Consumers will use scooters, mopeds, small and large motorcycles to get around the city and avoid being stuck in traffic. Other consumers love to ride their motorcycles on the open road and enjoy the rush of air blowing around them as they ride along. What ever your purpose or need for a motorcycle, you will probably require a motorcycle loan.

What we do for motorcycle enthusiasts is very simple. We vigorously seek online lenders that cater to motorcycle purchasers and give reasonable rates. When the chips are down and the smoke has cleared there are only a few good options.

Pros: The advantage of using online lenders for your motorcycle loan, is that you can apply from the comfort of your own home, and avoid the local bank gig. You can apply with various lenders quickly by using online forms, so speed is factor.

Cons: The disadvantage of using online lenders is a possible lack of communication. You need to be sure you are not getting sucked in to a really bad interest rate for your motorcycle loan. Many online lenders prey on people who want financing fast, and they have their small print hidden on their site. Make sure you are fully aware of all their conditions of the loan and the terms. It's well worth giving the lender a call to make sure you know what you're getting involved in. There are federal regulations regarding predatory practices, but they can be vague.

A question I have asked myself many times but never asked. I assumed that everyone knew why motorcycle finance interest rates were higher so I did not want to ask a stupid question. As it turns out there is no such thing as a stupid question. I have to write many articles for web sites regarding high risk motorcycle financing and low interest motorcycle financing, but I never actually researched why interest rates were higher. I should have sooner. All motorcycle owners know this answer right? Wrong.

I asked a few of my motorcycle riding buddies this question and they all said, "Well..they are high risk". That was it. No detailed explanation in to why motorcycle financing was on average 2-3 percent more than car loans. My wife said that the mental stability of anyone riding a motorcycle must be impaired and the banks can't trust them to get it together and make the payments. (joking of course) The other theory a friend of mine had was that motorcycles are often just toys and given a lower priority by borrowers when it comes time to skip a payment or four.

Once I realized that no-one had any good answers for this I went to the good old powerful Google search engine to reveal all. Guess what.....no luck. Even Fair Isaac did not give me a straight answer. There were thousands of sites offering online motorcycle financing and many had articles about high risk motorcycle financing. These were mostly affiliate web sites using specific keywords to attract visitors but none of them actually explained why motorcycle financing have higher interest rates than cars and trucks.

Eventually I gave up on finding this information online or asking my friends. I picked up the phone and started calling the banks. Believe it or not some people working in banks told me the reason motorcycle financing had higher interest rates was "just because" or even better - "it's always been that way". I assumed that perhaps the janitor cleaning the bank's floor had picked up the phone for the fun of it! Eventually I did get a straight answer. It was from a very nice bank manager with a slightly stuffy english accent. (she wasn't stuffy.....just her voice sounded that way)

She said in very polite tone of voice, "Motorcycle owners are more likely to perish and henceforth default on their loans". Yep...cold and point blank. No wonder no-one talks about it! Very morbid indeed. I said, "You mean that is it? Your statistics show that motorcycle riders crash their bikes - die and leave the bank holding nothing but a smashed up bike?" She said, "Yes sir...that is one way of putting it. Now I know why they call them high risk motorcycle financing. High risk for the bank losing their money and high risk for the owner spreading his internal organs across the pavement. (now look who is morbid)

This kind lady went on to show me the silver lining however. I imagined her raising her chin slightly and dropping her attached eye glasses. She then said, "You will find that your insurance premiums are less with a motorcycle than with your car". I of course asked why.......She said, "Because people in motorcycle accidents tend to die and the insurance company does not have to pay for their medical expenses. So this was very comforting. I can find cheap insurance for my motorcycle because I am more likely to end up being a large piece of road kill and the insurance company does not have to pay to have me fed through a straw for 30 years!

So there you go. If you every find yourself day dreaming about a perfect world and listening to Cat Stevens too much - look no further than the pleasant lady working at the bank. Five minutes with her and you will be back to cold reality.

1. Motorcycle Loans @ A4U
A4U has been providing links and information for motorcycle enthusiasts, regardless of their credit ratings. They suggest you use a reputable lender, and they provide links to these lenders who specialize in auto loans and motorcycle loans. See their motorcycle loan directory here.