When you’re getting a motorcycle loan, one of your biggest considerations should be what interest rate you’re getting. We have a few tips for getting the best interest rate when financing your new motorcycle.

Check your credit score

The better your credit score, the more likely you are to get a low interest rate on your loan. If possible, pay off any current loans you owe before trying to take out another one. This will make it appear that you are financially responsible and less of a burden if something goes wrong with the payments. Shop around for a loan.

Many banks and other lending organisations will offer you a better interest rate if they know that you have been shopping around for the best possible deal. Not only should you check with your bank, but also visit your motorcycle dealer to see what loans they offer. Most dealerships do not give advice on the products they sell so be sure to check online for reviews.

You can improve your credit score by meeting your existing repayment obligations in full and on time. 

Shop around

The interest rate you are offered on your motorcycle loan will depend on many factors, including your credit score and how much money you’re putting down. Before heading to a particular dealer, it’s always a good idea to call up other dealerships in the area and ask for their best interest rates. Ask if they offer pre-approval, which means that they’re already checking your credit before you even set foot in the dealership.

If you’re shopping for a motorcycle at a dealership, ask what the dealership’s average finance rate is and see how it matches up to other dealerships’ rates. If your bank offers to beat the dealership’s interest rate by a certain percentage, ask them to give you that percentage as a quote, and then check with the other dealerships for how much they could offer. With this method, you’ll be able to compare rates and know which dealership is the best for your loan. You can also use Driva’s motorcycle finance calculator to get an indication of how much a motorcycle loan might cost you in monthly repayments. 

Get a secured motorcycle loan

Our final tip for getting the lowest interest rate is to get a secured motorcycle loan. While this won’t always be an option depending on your credit situation and the type of motorcycle you’re getting, if it’s available to you, it can be a great option! Secured loans are almost always accompanied by lower interest rates than unsecured loans, as they use your new motorcycle as collateral, meaning the lender can repossess your motorcycle if you default on your loan.

Summing up

The three tips we’ve given you here should help you find a good interest rate and, ultimately, a cheaper loan. If at first you don’t succeed with securing an interest rate that works for you, keep trying – lenders appreciate if they think customers are serious about repaying their loans, so don’t make your first motorcycle loan your last stop.