If you’re interested in motorcycle financing options, contact Canada Powersports Financing at (844) 531-0138 today!
What is the average interest rate on a motorcycle loan? While the answer depends on multiple factors, you can reduce your interest rate by following the advice from our Canada Powersports Financing professionals. In the following, we explain what you need to know about motorcycle loan rates.
If you need motorcycle financing assistance in Canada, give our team a call today.
Can You Finance a Motorcycle in Canada?
Yes, you can finance a motorcycle, similar to financing a car or other power sports vehicle. However, your best financing option depends on various factors, such as your credit history and financial situation.
Luckily, you have several options to consider, including:
- Online lenders
- Bank and credit loans
- Dealership financing
- Motorcycle manufacturer financing
- Personal loans
You must be at least 18 or 19 years old to finance a motorcycle in Canada, depending on your province or territory. For optimal results, ensure you have proof of income, Canadian citizenship, or permanent resident status and, preferably, a decent credit score.
The choice is yours, but not all loans prove equal. The following explains some things you need to know to answer the question, “What is the average interest rate on a motorcycle loan?”
Motorcycle loans typically last two to three years, with some loans lasting five years. The length of your loan helps determine how much interest you’re paying and the size of your monthly payments.
Paying more often than required can reduce your interest amount, but check with your lender to verify any potential fees this may incur. The longer your loan term, the more interest you pay over time.
Unsecured vs. Secured Motorcycle Loans
A secured loan, or title loan, uses the motorcycle as collateral, protecting the lender if something happens. Often, people with lower credit scores have secured motorcycle loans. An unsecured loan requires stellar credit and provides more flexibility.
Unsecured loans offer larger loan amounts, benefitting those searching for more expensive motorcycles.
Determining Your Loan Amount
To understand what you can buy, you must consider your monthly and long-term financial goals. Try to borrow the minimum amount needed for optimal results.
You should also consider a fixed vs. variable rate loan. A variable loan depends on the ever-changing prime lending rate, while a fixed rate remains steady throughout your loan term. Each affects your interest rates in varying ways.
Lenders often charge fees depending on the size and type of the loan and your financial or credit health.
Contact Canada Powersports Financing
If you’re considering buying a used motorcycle, we can help! Our team at Canada Powersport Financing can help you explore various financing options for your dream ride.
What is the average interest rate on a motorcycle loan? For ideal results, shop around and find the loan best suited to your needs. If you’re interested in our motorcycle financing, contact our financing experts at Canada Powersports Financing at (844) 531-0138 in Ottawa, ON, today!