Regardless if motorcycle loan rates are increasing or decreasing or it’s the closing of the model year with tons of dealership promotions, many motorcycle consumers tend to make the same common mistakes when shopping to get a motorcycle loan. Normally there are four common mistakes motorcycle consumers often make with motorcycle loans.

1. Looking for a motorcycle before considering looking for a motorcycle loan.

A lot of motorcycle consumers frequently enter the showroom looking for a motorcycle before considering how much money a motorcycle lender is willing to loan to them for the purchase of a motorcycle. There is not a lot of need to look for a twenty thousand dollar Harley motorcycle, whenever a lender is only willing to allow a loan amount of less than the motorcycle costs.

Additionally, once motorcycle consumers enter the showroom slick salespeople many times pressure them into motorcycle financing using much higher loan rates than they could have gotten had they shopped for a motorcycle loan at a bank, credit union or on the net. Salespeople don’t like motorcycle riders to leave the dealer to shop for a motorcycle loan. In the salesperson’s view this simply increases the possibility of loosing a sale and commission. Thus, salespeople more often than not attempt for a quick sale which normally results in pushing motorcycle buyers to get motorcycle financing at the dealership.

The bottom-line is that it is always best to shop for a motorcycle lender before entering the dealership showroom.

2. Plunging into the unknown motorcycle loan.

Motorcycle buyers many times get motorcycle financing that they don’t wholly understand or may not be the right alternative for them. These days motorcycle OEMS more often than not focus their promotions around credit card motorcycle financing on their own private-label credit cards. However these consumer financing incentives usually offer a reduced interest rate for a very short term like twelve or 24 months and have a tremendously higher interest rate after the short promotional term. On a private label credit card promotion if motorcycle buyers can not manage to pay off the loan during the short promotion period, then they are generally better with a little higher rate on an installment motorcycle loan for an extended term.

3. Borrowing too much.

The most reoccurring mistake the first time motorcycle buyer makes is normally not getting a clear feel of how much motorcycle they might be able to afford. This is particularly true for young motorcycle purchasers who look to purchase the most advanced sport bikes. What they neglect to understand is that financing a $10,000 – $15,000 motorcycle may hurt them financially resulting in them having little cash to enjoy themselves and the motorcycling lifestyle. They may also have too little cash to pay for insurance, maintenance, registration or new accessories for their motorcycle.

4. Not asking the right questions.