Generally speaking, the answer is the same for any type of vehicle loan. If you can comfortably afford to do so without depleting your savings, you'll save by paying cash instead of financing and paying interest. If that's not the case, a loan can help you afford the new or used motorcycle you want.
It can be more challenging because online lenders and traditional banks may not offer motorcycle loans. Dealers will usually provide financing but don't always offer the lowest rates. But Affinity is a credit union owned by our members, so we offer affordable motorcycle loans as a service to our members who ride.
There are basically three possibilities:
Motorcycle loan rates tend to be a bit higher than car loan rates, mainly because there tend to be fewer defaults on car loans. Credit scores also play a role in determining the actual rate offered to a specific borrower. Still, motorcycle financing can be quite affordable. For example, you can finance a bike through Affinity for 36 months with an APR as low as <5.24%>. See all rates.
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When a loan is secured, the lender has a lien on the motorcycle and can repossess it if the loan isn't repaid. Unsecured loans are personal loans based on the lender's estimation of your creditworthiness – they aren’t tied to an asset you own. If you have good credit and a steady income, it may be easier to get an unsecured personal loan, and you won't have to register the lender as a lienholder on the bike's title. However, rates for secured loans tend to be lower than those for unsecured personal loans, so you could save money with a secured loan.
Manufacturer financing is typically only an option for new motorcycles purchased from a dealer. If discounted financing is offered, it can be a good option. However, if other incentives are available (i.e., a rebate), you could save more by taking the discount and getting low-rate financing from other lenders or credit unions, such as Affinity.
When comparing the best motorcycle loans, there are three main factors to consider:
Motorcycle loans generally work the same way as auto loans, but loan terms and interest rates may vary compared to new or late-model used car financing. For example, Affinity offers new car financing with terms up to 96 months and regular used car financing for up to 84 months. For motorcycles, we offer terms up to 60 months, and the interest rate will typically be higher than for a car.
Affinity Federal Credit Union can provide motorcycle financing for:
You must be an Affinity credit union member 18 years of age or older.
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No. Affinity does not charge prepayment penalties on vehicle loans to members.