Motorcycle loans are different than typical auto loans in a number of ways. First, while manufacturers sometimes offer promotional financing on new bikes, the rates usually aren't nearly as good as those offered by auto manufacturers. Also, not all motorycle loans are secured and some of them show up on credit reports as personal finance accounts rather than auto or installment loans. And interest rates for motorcycle loans are typically higher than auto loans because bikes are considered powersports vehicles like boats and RVs. Finally, motorcycle dealers often try and charge higher fees than auto dealerships (e.g., "dealer prep" fees, freight, etc.).
Over the past couple of weeks, I was approved for two loans for new bikes. Since so little information is available here on motorcycle loans, I thought I'd share my experiences.
BMW Financial Services: I looked at a new 2021 BMW R18 Classic and was offered at a significant discount below MSRP. BMW Financial Services offered me 3.9% APR for 60 months with zero downpayment. But eventally I decided to pass on that bike because the ergonomics just weren't right.
Harley-Davidson (Eaglemark Bank): I found a new 2021 Harley Davidson Heritage Classic that fit me far better and was again offered a significant discount under MSRP. Harley's captive lender Eaglemark offered me 5.99% APR for 60 months with 10% down. The dealer could have paid to lower the rate further, but they declined to do so because they'd already discounted the bike so heavily.
BMW Financial Services pulled EX FICO 8 (685). Harley (Eaglemark) pulled both EX FICO 8 (685) and TU FICO 8 (677), which put me in Tier 3. Had my scores been higher (Tier 1 or 2), the best promotional rates I could have landed were 0.9% (BMW) and 3.49% (Harley). Harley's published rates are:
- 3.49% Rate for Tier 1 for up to 60 months with zero downpayment;
- 4.99% Rate for Tier 2 for up to 60 months with 10% down; and
- 5.99% Rate for Tier 3 for up to 60 months with 10% down.
From what I can tell, Harley's rate structure hasn't changed in the better part of a decade. For reference, Tier 1 is 720 FICO and higher, Tier 2 is 690-719, and Tier 3 is 670-689.
To put this in perspective, the lowest rate offered by NFCU for new motorcycle loans is currently 6.95% APR. Other credit unions like DCU might do better for Tier 1 credit.
Thanks for sharing these data points and congrats on the approval! Enjoy your new ride ! 
Nice breakdown - thanks for the DPs.
@Anonymous wrote:Great DD. I'm actually looking myself and wondering how I would fare in this economy. Ex721, EQ716, TU721
With those scores, you shouldn't have any trouble qualifying for the best rates on a motorcycle loan.
Fortunately, the demand for bikes doesn't seem to be as high as new and used cars these days. And motorcycle manufacturers aren't having the supply chain issues that auto companies are experiencing. So you can still find deep discounts below MSRP on motorcycles. Good luck finding those on any new or used automobile today!
