If you are thinking about investing in a new or used motorcycle, you need to find a way to finance it. Not all of us have cash lying around to buy a new bike the moment we feel like it, so we have to look at other options. When it comes to borrowing money or financing, you have got three main options – the dealership, a bank, or a credit union. In this article, we discuss the advantages and disadvantages of using the dealership.
Advantages
- More Flexibility
When you decide to go with financing which is arranged by the dealership, you have more flexibility in terms of your options. If you are thinking of Yamaha motor finance, you can contact a local dealer or apply online. They are generally open to all options and the client will be able to negotiate a finance deal on a wide range of motorcycles.
If you were to use the bank, they usually put a limit on how much you can spend.
- Higher Approval Rates
It is easier to get approved for a motorcycle loan when you go directly through the dealership. Customers can apply online and the entire process can be done within 48 hours, depending on your background checks, etc.
Using a bank or credit union to fund your purchase can be difficult. Banks are reluctant to give short term loans that do not involve a substantial amount of money. They will also look for all sorts of information that a motorcycle dealership will not.
Disadvantages
- Interest Rates
In some places, you will get charged a higher interest rate on your loan if you use a dealership. The dealership is working with a broker and sometimes the broker increases the interest rate to make more money on the loan.
This is not the case with every motorcycle dealership as some will offer great rates on their financing packages. As a customer, you need to shop around and speak to numerous motorbike dealerships to see what they can do for you. It will take more time but your research will pay off.
Most people when looking for finance for a new motorcycle go through the dealership. They tend to offer the same rates as banks or credit unions, and everything is made easier when dealing directly with the seller. They can also arrange insurance, so you do not have to worry about that aspect either.
