Should you finance your new bike or pay cash? This is a question that many of us have faced. Should we finance and get it now or save up the money and pay it off all at once. Here are some reasons to both finance and to save up for a bike.
Financing is never cheap and motorcycle loans can be more expensive than a car loan. It is often a riskier loan for lenders although many motorcycle dealers often have some pretty good incentives on loans. Those incentives are for those with perfect credit though and when compared to new car incentives you can see that they are not nearly as competitive. When looking for a Seattle bike loan, it pays to shop around so that you do not end up paying Seattle payday loan rates. Look at the dealer offer but also look at the sources like your credit union or local bank. Spend some time on research and you can save a lot of money. So, back to the original question, should you finance a new bike?
Consider financing a motorcycle only if you are looking for a higher end new model. The idea of plopping down $25,000 in cash is pretty far fetched for many of us and financing is about the only option. Keep in mind that you will be upside down on the loan for several years. This means that you should be careful to choose a bike that you know that you are going to love for some time to come. If you are new to bike riding, you can not possibly know what kind of bike is completely right for you so novices should not finance a bike.
You should also never finance a used bike. Why? Because for starters, the interest rate on your loan will be very high. Cheap motorcycle loans in Seattle are almost always offered by manufacturers to promote the sales of new motorcycles. They have no interest in offering you competitive loans on older bikes. In addition, if you are buying a used bike, paying cash is probably not that far out of your reach. Just keep saving and then you will have no note on the bike. This means more money for modifications and it means cheaper insurance.
So, In conclusion, finance that brand new high end bike but avoid financing used ones. Also, if you are new to motorcycles in Seattle, stick to a used bike until you are absolutely sure about wha you like. Do not make the mistake of getting stuck in a bike that you really do not like.
Photo From Eastside Harley