Financing a Used Motorcycle Purchase
If you have never financed a vehicle from a dealership, fear not! There are some easy ways to make sure this process goes smoothly and be ready for whatever comes at you. Credit score is obviously what the bank looks at first, but then they’ll dig into your credit bureau and look through your accounts to see if there are any red flags. So no matter what your credit score is, the bank may come back with stipulations. Stipulations can range from one or two minor things to like ten things. I think the most stips I’ve seen a bank give my customer is 10.
Downpayment stipulations are pretty common. Sometimes the bank will want 10% or sometimes just a dollar amount like $2,000.
Your job stability is very important to the bank since it’s how you will be repaying them back. It is important for you to be prepared with your latest paystub and/or last 3 months of bank statements. This is so they can verify how much you make and also how long you’ve been at your job. Common sense: if your bank statements show you being irresponsible with your money, DON’T BRING THEM.
A silly pitfall that lenders and banks can get hung up on is a change of address. If there is a discrepancy on your state issued ID with the address you enter into the application, they will require proof that you live at your new address. If you literally just moved and have no bills yet at your new place, get a renters insurance policy (its like 10 bucks a month and you should have one anyway) and you have instant proof of address.
If you have a bad mark on your credit, but you’ve settled with your creditors or have some kind of payment plan going, bring this too. I had a gentleman who had okay credit, but a big chunk of back taxes owed. The bank ended up stipping him for his payment plan with the IRS.
The last thing people are stipped on is full coverage insurance. Some lenders do not require full coverage insurance on financed vehicle. This is terrible for a car, but especially a motorcycle. Motorcycles get dropped, crashed, and stolen and the consumer could be on the hook making payments for years without even having the bike. When it comes to insurance, knowledge is power. For more insurance info click here.
We offer a bunch of different ways to finance your motorcycle purchase HERE
