To finance or not to finance, that is the question, at least for people looking at making major purchases. It's not always about how much you have in the bank either. Sometimes it makes more sense to spend the finance company's money upfront and keep your own right where it is. If you're thinking about taking on a motorcycle payment, you probably are weighing the pros and cons and looking at the impact on your monthly budget.
Mike Kozda has been in the power-sports industry for 17 years, and he currently serves as General Sales Manager at your local Harley® shop. With that much experience he's pretty much seen it all when it comes to choosing a bike, finding the down payment sweet spot and choosing the best option according to the motorcycle payment with which you're comfortable. Recently he visited with us about what's available through the dealership and through H-D® financing.
Can You Do Payments on a Motorcycle?
Yes! You can finance both the new and used Harley-Davidson® motorcycles you'll find at Dallas Harley-Davidson®. We have an easy, fast process we can walk you through in person, or you can use our simple, secure motorcycle finance application. People often start with the financing form, because then they know how much bike they can afford and what they can expect in terms of their motorcycle payments.
How to Afford a Motorcycle (Without Living on Ramen)
People picture long rides on the bike of their dreams, but sometimes they wonder if they'll have to settle for less in order to make sure they don't break the bank. Even when money isn't a problem, nobody wants to pay more than they should. Here's advice on how to afford a motorcycle without having to put yourself in a financial bind.
- Do your research - If you have a trade, don't just look up trade-in value from NADA or KBB. The market is crazy right now, and those resources often get it right, but they also can't always keep up with local fluctuations and spikes in consumer demand. Look at what's for sale in your area to get a better feel for what you've got. It's also wise to research Dallas Harley® dealerships because we're not all equal by a long shot. Make sure the vendor you're considering has a reputation for being trustworthy and putting customer satisfaction over profits.
- Consider Certified Pre-Owned - In case you haven't heard, the H-D® Certified program is a complete game-changer when it comes to buying a used Harley®. Take away the guesswork and the uncertainty and get a late model H-D® for used motorcycle prices.
- Think outside the box - Our finance team excels at helping riders find ways to get the bike they want with a motorcycle payment they can afford.
What is a Typical Motorcycle Payment?
That's a tricky question to answer because there are many variables. It all depends on the price of your bike and your credit situation. We look at these three factors:
- The bike price
- How much down payment you're bringing
- Your credit qualifications
That's why the question, "what is a typical motorcycle payment" is impossible to answer in a blog article, but we can definitely answer it for you once we have a few details. We've seen motorcycle payments cost anywhere from $100 to $1,000 depending on what bike you get.
What’s a Good Down Payment for a Motorcycle?
A good rule of thumb is to put a 10-20 percent down payment on a motorcycle. That gets you in a good, equitable position. If you have bad credit, putting more down can make you a better risk for lenders. It usually depends on credit criteria, but more people put 10 percent down than do double that.
So, if you're looking at a bike that costs $9,000 (and we do have bikes under 10k) your down payment should be between $900 and $1,800. If you're buying a $20,000 bike, expect to put between $2,000 and $4,000 down.
If you're low on cash, all is not lost. And, if you have plenty of cash but you're not sure you want to spend it on a bike right now, a lot of people choose to take advantage of our H-D® Visa, but more on that in a minute.
What's the Motorcycle Payment Interest Rate
Obviously, interest rates will affect your motorcycle payment. Base rates are still near historic lows, but the rate you receive depends on credit, just like it does with other types of financing.
Currently, they're ranging from the low single digits, all the way up to 25%. Interest rates aren't negotiable but H-D® does have some of the most competitive rates when it comes to financing Harley® bikes. They're also one of the easiest lenders to get approved for when it comes to manufacturer financing.
Things People Do to Afford a Motorcycle Payment
When you want a bike and you don't have one, it's painful. We've seen people do some pretty crazy things to be able to afford their dream bike. Most of the time, though, getting an affordable motorcycle payment doesn't mean going to extremes.
What a lot of people don't know is all the ways we can help. People trade in their current motorcycle, but some also trade in other vehicles. We've seen them trade cars, trucks, any possession they have that is worth money.
A super helpful option is to take advantage of H-D® Visa, credit you can apply for and use as money down. It has its own benefits like 0% for an entire year, along with a bonus structure you can use toward purchases.
That zero percent interest is a pretty tantalizing incentive. Even people who come in with a down payment in hand sometimes choose that option when they realize it doesn't cost anything to use someone else's money and keep their own. Say, for example, you borrow $2000 to use as your down payment, you could ride home on your bike without having to put down your own cash. As long as you paid that $2k off during the 12 month period, you pay no interest, it's the same as if you paid cash at the time of purchase.
Motorcycle Payment Calculator Harley Davidson®
Want a motorcycle payment calculator that tells you what to expect by price? Or how about a tool that lets you shop by payment? We make it easy with our shop by payment tool that gives you personalized financing options on all inventory. Click here to find out everything you want to know about getting a motorcycle payment that lets you take home the Harley® of your dreams.