Motorcycle Loan

[anybodii]

Do they follow much of the approval process as a car loan? Are banks strict on them? Curious about getting one, but 4 months ago just got a small installment loan, and 2 months ago opened new credit cards. Anyone who knows about these have any advice?

[Watchmann]

It depends on where you get financing.  If you use a bank or CU they'll treat it as a vehicle loan.  But if you get financed through most manufacturers programs (Yamaha, Honda, etc) under the deals they run (1.99% through 3.99% special rates for up to 36 months) they are generally treated as a revolving credit line (like a credit card) and reports as such on your credit report.  You can get good rates through the Factory Financing programs if you can qualify and if you are buying new.  But wherever you get financing they will do a full credit check through the rating agencies,  and they may be a bit stricter because of the inherent nature of bike owners (younger and more likely to wreck them). .

[p-]

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@Watchmann wrote:

It depends on where you get financing.  If you use a bank or CU they'll treat it as a vehicle loan.  But if you get financed through most manufacturers programs (Yamaha, Honda, etc) under the deals they run (1.99% through 3.99% special rates for up to 36 months) they are generally treated as a revolving credit line (like a credit card) and reports as such on your credit report.  You can get good rates through the Factory Financing programs if you can qualify and if you are buying new.  .

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I purchased and financed through Yamaha/GEMB in 2008 and they reported as an installment account.  I did it back when my credit was pretty low and had to have my wife as a cosigner to get it done.  They pulled Equifax; She was 645, and I was 601.  I financed around 4k, and the payment was only 100 a month.

If you are above that you probably have a good chance for approval.  Other factors like income, etc. could come into play.

[Watchmann]

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@p- wrote:

I purchased and financed through Yamaha/GEMB in 2008 and they reported as an installment account.  I did it back when my credit was pretty low and had to have my wife as a cosigner to get it done.  They pulled Equifax; She was 645, and I was 601.  I financed around 4k, and the payment was only 100 a month.

If you are above that you probably have a good chance for approval.  Other factors like income, etc. could come into play.

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It's different now.  Yamaha now uses HSBC and my account reports as a Credit Account with a $12,400 CL.  Normal interest rate is a variable 15% but Yamaha always runs special rates (from 2% to 4%) for new bikes, if you qualify.  It makes it easy to buy as the CL is already set and you just tap it at the special rate Yamaha is offering, which is why it is always dangerous to go to the dealer to just browse.

[p-]

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@Watchmann wrote:

It's different now.  Yamaha now uses HSBC and my account reports as a Credit Account with a $12,400 CL.  Normal interest rate is a variable 15% but Yamaha always runs special rates (from 2% to 4%) for new bikes, if you qualify.  It makes it easy to buy as the CL is already set and you just tap it at the special rate Yamaha is offering, which is why it is always dangerous to go to the dealer to just browse.

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wow - that could have a bad effect on utilization scoring.

[anybodii]

Yes, that does seem a little weird, but its good to know now. Thank you, I will attempt to see if my bank will finance me first.

[p-]

Good luck!