First installment loan. Motorcycle.

[NewKid4Credit]

Looking to buy my first motorcycle. Want to finance to help build credit with what would be my first installment loan.

Bike sticker price is $11k. +fees? I've never dealt with dealers and thier financing.

I went to BofA (my bank for about 6yrs. Who i've had a credit card with 2 yrs. No bads.) and tried getting a loan for $13k and the banker told me it said pending for review and should get an email in an hour or so. Sure enough an email came in. Bad news was Declined main reason being not enough credit history and lack of installment loans LOL.

My fico is at 725 and rising (i just finished paying off all my credit debt) and my oldest credit line is 2yrs old. I make about 30k/yr. and pitch in a couple bills for rent.

So now I'm fearing that my only hope would be to go straight to the dealer since they claim they can finance pretty much anyone.

Will other institutes say the same about my credit history? I'm assuming they will since they probably get the same reports? 

What can I do??

[mtrsprt]

Well, with a 30K income, very little debt, and a true 725 Fico, I don't see you have any issue getting financing.

I would however, possibly looking for the same model motorcycle that's a couple years older, with super low mileage.  This will save you a few thousand easily.

[NewKid4Credit]

Thanks for the reply mtrsprt.

See that's what I thought at first but BofA turned me down mainly because of short history and lack of installment loans...

How does that work? How am I supposed to have installment loan experience if no one approves me for an installment loan for not having installment loans?

Did you mean I should no problem getting financing from the dealer?

Ps. I now have no debt. And current scores are in my siggy.

ps ps. Does lowering the requested amount a few thousand really affect approval?

[Remember0]

I think the issue here is that we're talking about a motorcycle loan. A 11k car loan, you'd have no problems. But motorcycle loans have higher default rates so lenders are far more conservative in lending on motorcycles. Not to mention they don't hold their values as well when at auction (if repo'ed).

OP, I think the best way to handle the issue might be through a local CU/bank you have a relationship with. I'm thinking that you have the highest chances of approval there. A dealer will getyou approved, but I'm goingto guess that APR might not be too favorable if you can't make the dealer compete.

[azguy13]

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@Remember0 wrote:

I think the issue here is that we're talking about a motorcycle loan. A 11k car loan, you'd have no problems. But motorcycle loans have higher default rates so lenders are far more conservative in lending on motorcycles. Not to mention they don't hold their values as well when at auction (if repo'ed).

OP, I think the best way to handle the issue might be through a local CU/bank you have a relationship with. I'm thinking that you have the highest chances of approval there. A dealer will getyou approved, but I'm goingto guess that APR might not be too favorable if you can't make the dealer compete.

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I have to disagree with this statement. As someone who has ridden Harley's for their entire life, I have purchased numerous bikes from dealers, private, and auction. Harley Davidson will keep their value better than any car driven off the lot. With that being said, many of the foreign bikes and Victory do not hold their value.

The best bike rates I have seen recently have been through DCU. I had one of my loans through NFCU which starts around 7.XX % for new bikes on approved credit. I believe DCU was in the 5% range. 

If you are going with Harley, do not go through Harley Davidson Financial Services unless it is your last option. They will offer you a crap APR and then the dealership will add their participation on top of it. 

[Paperboy999]

The bike he wants is only 11,000 so I don't think he's looking for a Harley. I would definitely look for a used private sale and go through a credit union. You'll save yourself a few bucks but the rate may be a bit higher.

[NewKid4Credit]

Thanks again everyone.

I tried the dealer and they said FreedomRoad declined (short history, no installment loans) but I was approved through Kawasaki.

Best they offered: 11k including tax and fees (+discounts on gear) $0 down, 48mths at 19.99%. I said no.

Still waiting on DCU and Nationwide replies.

Edit (sorry): bike I'm going for is a Triumph STREET Triple R 2014 New. I want to buy new because I want to keep the bike for a very good while.

[azguy13]

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@Paperboy999 wrote:
The bike he wants is only 11,000 so I don't think he's looking for a Harley. I would definitely look for a used private sale and go through a credit union. You'll save yourself a few bucks but the rate may be a bit higher.

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Plenty of used Dynas ou there for under $11K.

[azguy13]

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@NewKid4Credit wrote:

Thanks again everyone.

I tried the dealer and they said FreedomRoad declined (short history, no installment loans) but I was approved through Kawasaki.

Best they offered: 11k including tax and fees (+discounts on gear) $0 down, 48mths at 19.99%. I said no.

Still waiting on DCU and Nationwide replies.

Edit (sorry): bike I'm going for is a Triumph STREET Triple R 2014 New. I want to buy new because I want to keep the bike for a very good while.

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Welcome to two wheels... Make sure to keep them rubber side down. 

Don't forget to buy a Gremlin Bell

[NewKid4Credit]

DCU approved me but counter offered for 9,600 for 48mths @ 5.75% + a $2,000 CC w/9% interest. I also have to sign up for at least a Savings account and donate $15 to some charity. I'm going for it. I'll find myself a good used bike and hopefully this will help build my credit.

First installment loan! woo!