I would like a loan for the purpose of buying a motorcycle, probably about $12K, haven't chosen a specific motorcycle yet.
For anyone who has never looked into this, motorcycle loans are handled differently from auto loans, due to the greater risks involved. Rates are often higher, and sometimes you just get a personal loan instead of a title loan.
Option 1: Coastal Federal offers a personal line of credit, up to $25k, with interest rates as low as 5.5%. This has obvious advantages relative to a loan against the motorcycle title, but I assume it'll be harder to qualify for, at least anywhere near the higher amounts and best rates.
Update: Approved for $14K, 5.5%. I asked if they could reconsider me for a higher amount and they agreed to check, but, $14K is enough.
Option 2: Navy Federal offers motorcycle loans a little above 7%.
Update: When I applied, the application page you see in the middle of filling out info listed possible interest rates ranging from 3.something to 16.something. I was approved for 5.49%. I guess their published rates (starting at 7.09%) are out of date. However, I plan to use the Coastal PLOC instead, since the rates are the same and that means no lien on the title, as well as possible future flexibility.
I have been a Coastal Federal member for over 33 years, I do direct deposit with them, my auto loan is with them, and I have a signature Visa through them. My history with them is flawless. On the other hand, I applied for a credit limit increase on the card a few months ago and was denied.
I have been a Navy Federal member for a few months. My business with them so far is limited to a Cash Rewards Visa with a CL of $1,000. My brief history with them is flawless. I am interested in getting a Flagship card in the future.
My annual income is about 10 times the loan amount I'm interested in. As you can see in my signature, my credit is "good" but with heavy credit-seeking, including some 2-4 months ago.
My questions are:
- Odds of approval for the PLOC at a sufficient amount and for a rate below the NFCU motorcycle loan rate
- Other options I may be overlooking. (Preferably, options that do not require me to join another CU or bank.)
Buying with cash is an option, but not an immediate option, it would take cash on hand into dangerous levels. If I got a good loan rate, I'd rather borrow it.
Thanks!
When buying new, dealerships or manufacturers may arrange promotional financing, but I'm more likely to buy from an individual, or used from a dealership. If you are aware of a bank that does motorcycle loans for rates lower than the ones I mentioned, I'm all ears 
Thanks - I'm a member of the two CUs I mentioned plus PenFed. I don't see a motorcycle option on PenFed, so I guess it would be a personal loan there. The interest rate on their line of credit is much higher than Coastal's. I am also a Chase member, but, they don't offer motorcycle loans at all. I doubt I'd join another CU just for this loan, but maybe if they had other good reasons to join.
My main question is whether it's generally difficult to get a PLOC for this type of amount and interest rate, in comparison with qualifying for a loan with collateral. The PLOC would have several advantages over a loan with a lien on the motorcycle title, but I'm less confident that I would qualify.
I just recently joined PenFed, my wife has been a member forever because she works for DC government. She financed my bike through them back in 2014. So they do finance bikes. I can't remember what the rate was, the bike has been paid off and sold for about three years now. I'm sure you could call them and get a rate quote.
Goal Scores: 700 across all three
Update: NFCU approved a loan at 5.49%. Oddly, I have not seen a hard inquiry show up on my numerous credit monitoring services yet.
This made me realize that actual rates may be lower than published rates right now, since rates have gone down so much recently. Their web site may not have been updated to reflect the new rates. The NFCU published rate is a minimum of 7.09%. This probably applies to other bank and CU published rates.
I am still thinking about applying for the Coastal PLOC, which would be the same interest rate at best, but I think it might be more useful in the long run. Also, if I understand correctly, it would not require collateral, so there'd be no lien on the title. But, do I dare? I feel like it must be harder to qualify for, due to the lack of collateral.
I haven't ran across any PLOCs that require collateral. How hard to qualify depends on the lender. Most are a piece of cake. I know nothing about Coastal.
I went looking through a couple of CU's.
AOD FCU motorcycle rates are 3.75% to 4.50 % for 63 months.
Redstone 3.99% used or new.
Plenty of options. If buying new through dealer. I'd look for a 0% offer.
All of it depends on how much you're willing to pay in interest.
If Coastal has PLOCs that low. It would be nice to have around regardless, even if not used on a motorcycle purchase.
