Which fico score is pulled for a Motorcycle Loan?

Anonymous · ‎05-12-2017

Hello everyone,

I am barely getting some negative items removed from my credit and I know I am not near getting a motorcycle loan YET.

I am curious tho, does anyone know which fico score is pulled for Motorcycle Loans? Is it Fico Auto 2,8 or something else?

Thanks

Appleman · ‎05-13-2017

It will completely depend on the lender.

HD, Honda, BMW, private shop will all differ.

Skotyjones · ‎05-16-2017

Motorcycle lending is more strict as they are not considered a necessity vehicle, they fall under 'luxory' loans just like RV's, boats etc. I would not advise applying for a motorcycle loan with a Fico 8 score under 650 unless you want 15%+ interest on a 36 month payment plan. If this is your first motorcycle, I'd recommend buying a used $2-3k with cash to learn on. I myself did not do this and financed a $7k motorcycle with $2,500 cash down and a score at that time of Fico 8 630, with a co-signer.

Also need to take in account the cost of motorcycle insurance as a financed bike must have full coverage (collision) is the most exspensive part. State Farm and Progressive tend to be the most cost effective but varies on engine size and riding experience and age too.

I've been riding motorcycles for many years and would not recommend financing your first bike. Just my $.02

In regards to what scores are pulled, it varies on who you go through and who they finance through. Always best to try a credit union over a dealership but most credit unions will have a minimum APR of 5% if in 700's. Yamaha is running 2.9% APR on scores above 750 right now.

Watchmann · ‎05-17-2017

Most manufacturers have subvented loan programs for new motorcycles and I would try to take advantage of them whenever possible, the rates are usually very good. The industry knows that many banks and credit unions shy away from loans in the powersports area (bikes, snowmobiles, boats, wave runners and the like) so they have stepped up over the years to set up their own financing programs through various banks and finance companies. Often these loans are considered 'revolving' loans, just like a credit card and not an 'installment' loan like most vehicle loans. The good part of that is the requirement for full blown insurance coverage is waived, there is no checking up to see what kind of insurance you are carrying. I've financed three Yamaha's over the past 7 years and once you have a credit line with them it is a simple 'sign and ride', the account is treated like a credit card where you have a credit line and you can borrow as much as you want up to that line. Then I just set a monthly payment program to pay the bill each month so that I pay it off well before the teaser rate ends. I do not know if other manufacturers run the same kind of programs but worth checking out.

Anonymous · ‎05-17-2017

@Watchmann wrote:
Most manufacturers have subvented loan programs for new motorcycles and I would try to take advantage of them whenever possible, the rates are usually very good. The industry knows that many banks and credit unions shy away from loans in the powersports area (bikes, snowmobiles, boats, wave runners and the like) so they have stepped up over the years to set up their own financing programs through various banks and finance companies. Often these loans are considered 'revolving' loans, just like a credit card and not an 'installment' loan like most vehicle loans. The good part of that is the requirement for full blown insurance coverage is waived, there is no checking up to see what kind of insurance you are carrying. I've financed three Yamaha's over the past 7 years and once you have a credit line with them it is a simple 'sign and ride', the account is treated like a credit card where you have a credit line and you can borrow as much as you want up to that line. Then I just set a monthly payment program to pay the bill each month so that I pay it off well before the teaser rate ends. I do not know if other manufacturers run the same kind of programs but worth checking out.

I have had the same experience with Yamaha. Kawasaki did an installment loan through HSBC but that was a million years ago so I am sure that has changed.