Uncommon Sources for Used Motorcycle Loans
Many borrowers have complained about the process of getting approved for used motorcycle loans. With the limited amount of financing options available on the market today consumers are looking for new alternatives. The good news is that numerous online banks and even peer to peer lending sites are offering used motorcycle loans.
Both novice and experienced motorcycle riders need to take the necessary steps of getting approved for financing before shopping for a used motorcycle. Studies have shown that borrowers who get pre-approved for financing spend significantly less on their purchase and are more likely to stay within budget. Another added bonus is that by financing already secured borrowers will have additional bargaining power when making their next purchase.
Borrowers can get financing from a number of sources, both traditional and creative. While the options are wide-ranging borrowers need to be careful about where they apply for used motorcycle loans. Banks and credit unions offer financing to motorcycle enthusiasts as well as many online lenders. It might not be a surprise that dealerships are eager to offer financing to borrowers looking to purchase a new or used motorcycle. A new alternative that might be considered is peer to peer lending for their easy application process.
Lending requirements have changed significantly but consumers are still finding that it is easier than ever to get approved for used motorcycle loans. Good credit borrowers will have a large selection of financing options to choose from. Lenders are always eager to guarantee loans for borrowers with a strong credit history and a low debt-to-income ratio at low interest rates. Consumers with less than perfect credit should not get discouraged while researching used motorcycle loans.
Thanks to the competitive personal loan market borrowers with bad credit can find affordable options for motorcycle financing. Even those that have gone through a recent financial hardship may qualify for a loan. Bad credit loans typically have higher interest rates and may require a down payment to secure the loan. For borrowers that are unable to provide collateral they are encouraged to look at peer to peer lending sites as an alternative financing option.
Unlike traditional loans peer to peer lending sites have no restrictions on their used motorcycle loans. Banks typically have a long list of restrictions that prevent borrowers from purchasing motorcycles that are more than a few years old. Many also require borrowers to purchase their bike from an approved dealership.
Borrowers that are in need of money fast to buy a motorcycle will really enjoy the benefits of peer to peer lending. Two of the most popular sites, Lending Club and Prosper, specialize in connecting investors to individual borrowers looking for an unsecured personal loan. Investors are give the option to fund each loan with as little as twenty five dollars. After each loan is completely funded by the investors the money will be dispersed to the borrower. Among the other benefits, borrowers have enjoyed the low interest rates and simple loan terms.
Like others that came before them novice motorcycle riders will find that getting approved for used motorcycle loans will seem difficult at first. With a little persistence and smart research they can discover a wide range of financing options available.
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