Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Motorcycle Financing and other Auto Loans topics.
One of the first things you may notice about loans for motorcycles is that the interest rate is higher than for a new or used car loan. The reasoning behind this is simple: most motorcyclists have cars that they drive as their primary means of transportation, while the motorcycle is an additional way to get around town. Although there are people who only have motorcycles as their primary means of transportation, lenders generally view motorcycles as fun extra vehicles. For this reason, lenders attribute more financial risk to motorcycle loans. After all, if a motorcyclist is having trouble paying bills, which loan will he or she pay on first: the primary family car or the motorcycle? In the vast majority of cases, the borrower will allow a motorcycle loan to go into default long before missing a payment on the family car. Consequently, folks who seek motorcycle financing will undoubtedly notice the higher interest rates offered for the loans. Don't let this stop you from shopping around and trying to find the very best interest rate possible.