Article on Harley Davidson Dealers That Help People With Bad Credit

Whether interest rates are high or low or it’s the end of a model year with lots of incentives, motorcycle buyers tend to make the same mistakes when shopping for a motorcycle loan. Here are four common mistakes motorcycle buyers make with motorcycle loans.

Shopping for a motorcycle before shopping for a motorcycle loan.

Many motorcycle buyers enter the showroom looking for a motorcycle before they determine how much money a motorcycle lender is willing to loan to them for the purchase of a motorcycle. There is no need to shop for a $20,000 Harley Davidson motorcycle, if a lender is only willing to provide a loan amount of $10,000.

Additionally, once motorcycle buyers enter the showroom slick salespeople often pressure them into motorcycle loans with much higher internet rates than they could have gotten had they shopped for a motorcycle loan at a bank, credit union or online. Salespeople do not like motorcycle buyers to leave the dealership to get a motorcycle loan. In the salespersons mind this only increases the chance of loosing a sale and commission. Therefore, salespeople frequently try for a quick sale which normally results in pushing motorcycle buyers to get motorcycle financing at the dealership.

The bottom-line is that it is always best to shop for a motorcycle loan before entering the showroom.

Diving into the unknown motorcycle loan.

Motorcycle buyers often jump into motorcycle loans that they do not completely understand or may not be the best alternative for them. For instance, in today’s age manufacturers frequently run credit card motorcycle loan promotions on their private-label credit cards. But these promotions typically offer a low interest rate for a short term like 12 or 24 months and have a much higher interest rate after the short promotional term. On a credit card promotion if motorcycle buyers can not afford to pay off the loan during the short promotion period, then they are typically better finding a lender offering an installment motorcycle loan for a longer term.

Borrowing too much.

The most common mistake the first time motorcycle buyer makes in not having a clear sense of how much motorcycle they can afford. This is especially true for young motorcycle buyers who look to buy the top sport bikes that cost up to $10,000 - $15,000. What they fail to realize is that financing a $10,000 - $15,000 motorcycle can stretch them to thin, resulting in them having little cash to enjoy themselves and the motorcycling lifestyle. They may also have too little cash to pay for insurance, maintenance, registration or new accessories for their motorcycle.

Not asking the right questions.

The first warning sign that motorcycle buyers should see is that if they do not understand the type of motorcycle loan, then they should be sure to ask a lot of questions.

Here are some good questions to ask:

• Is the interest rate fixed or variable? If fixed how long will it be fixed for?

• Are there circumstances that can make the interest rate on the motorcycle loan change in the future?

• What happens if a payment is 60 days late? Does the interest rate increase?

• How long is the term on the motorcycle loan?

• If the loan is an installment loan, does it use rule of 78 or simple interest? (Simple interest is always better because it does not penalize the motorcycle buyer if the loan is paid off early.)

• What is the down payment requirement to get the motorcycle loan?

• Is full coverage insurance required?

• How much is registration and are these fees included in the motorcycle loan?

• Are there any administrative fees to get the motorcycle loan and if so how much are the fees?

Overall, motorcycle buyers can avoid these common mistakes by spending a little extra time focusing on shopping for a motorcycle loan and asking lots of questions.Do you hear it? That's the call of the open road. Are you itching to answer that call from the seat of a new motorcycle?

Heading for the motorcycle dealership with nothing more than a bad case of wanderlust and an empty wallet can lead to big payments, outrageous interest rates and more bike than your budget can handle. Here are a few tips to help you get on the road without signing your life away.

Shop around

Find out about your financing options before you cruise the motorcycle dealerships. There are competitive rates out there to fit all kinds of borrowers. No matter what your credit status or what terms you need, you deserve the best rates available.

Hassle-free online loans

The Internet is a great place to shop for a loan before you shop for a motorcycle. Not all lenders make motorcycle loans, but the Internet can put you in touch with lenders outside your local area, giving you more options. You can apply and get approved from the comfort of your own home, with no hard sales pitch or intimidating loan officers, and of course there is no cost or obligation to you.

When you shop online for motorcycle loans, look for online motorcycle finance tools that help you figure out rates, terms and how much you can be approved and which national financial institution will make you the best deal by providing multiple loan offers.

Become a cash buyer

The best defense against pushy salesmen is knowledge. Know how much money you're willing to spend the before you walk onto the lot. Pre-approval is nice, but being a cash buyer is even better.

Choose a lender that will send you a loan kit with a check up to your maximum loan amount to take to any franchised motorcycle dealer as soon as you're approved. This way you won't be tempted to purchase something outside your budget and the dealer can't push you into a loan with inflated interest rates. Plus, many dealerships will cut you a great deal if you have cash in hand.