Motorcycle approval

[Anonymous]

Hi,

I am looking to fianance a motor cycle looking to finance a bike around $8,000

my credit score is 524 

My job pays well around 900 after taxes I do not pay for rent where I live I take care of family 

I cant afford auto insurance so my only option at the moment for transportation to work is a motorcycle please help

[Kree]

Hi Disneyglass, 

Motorcycles generally require insurance just as automobiles do. To get out of an insurance requirement you will often need it have an engine smaller than 50cc.  These same vehicle are often unlikely to qualify for financing. However there is good news, you can find many of them new for under 2,000. So perhaps you can find a family member of friend that would let you borrow the money.

Good luck.

[Anonymous]

hello that doesn't answer my question i am going to be going to look to finance a motorcycle i can handle the insurance aspect i am trying to get a approval for a finance with my current credit score without a cosigner.....

[Anonymous]

Your only option I see is a "buy here, pay here" deal. There is lots of dealerships that do loans based on employment instead of credit. You just need to research. My advice is to always ask that question. "Do you report to the Credit Agencies?" so you can build your credit. Good luck!

[Kree]

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@Anonymouswrote:

hello that doesn't answer my question i am going to be going to look to finance a motorcycle i can handle the insurance aspect i am trying to get a approval for a finance with my current credit score without a cosigner.....

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Hello again,

you had mentioned "I cannot afford auto insurance."  I was just making sure you are aware that the cost of motorcycle insurance can be higher than the cost of auto insurance.

With your income of 900. (im assuming monthly, please correct me if I am wrong.) You are likely to be able to get a "sub-prime" loan if you have no other monthly expenses.  This would allow you to finance a $8000 motorcycle for 6 years at around 18% interest for 200 a month. Keeping your debt to income ration around 25%.

You could try to refinance in a year if your scores are improved. However there are never guarantees and I am not as familiar with motorcycle refinancing as I am with auto refinancing.

Note: these numbers and the chances of approval is a guestimate. Please do not take them as absolute numbers. You might have a better or worse deal.

[Anonymous]

great this is what i was hoping for i have done research into motorcycle insurance it is more than affordable, my pay is 1600-1800 a month i also make 400 a month on a side business but it is not claimed in taxes i don't know if that helps finance applications?

[Kree]

Side businesses can often be harder to provide verifiable income for.  But with your states income of 1600-1800, you shouldn't have an issue there.

The main thing is finding a lender that will do subprime loans on a motorcycle.  Because most people only get motorcycles as secondary transportation. (atleast in the usa), there are less lenders who deal with low credit score customers.  With an auto loan I would suggest a local credit union, or a "your job is your credit" car dealership.   These suggestions might still work for motorcycles but I have no experience.

Good luck, please let us know how this turns out. 

[Anonymous]

I am not sure what kind of motorcycle you are looking for but I know that Harley Davidson Financial Services will buy deals with subprime credit.