Motorcycle & Scooter Loans

Motorcycle financing or a scooter loan are much the same as auto financing in that they are usually secured by the vehicle itself and a certain level of credit score is needed. In the case of a scooter, those with the smallest engine sizes may not qualify for a motorcycle loan, so a personal loan may be used to finance a scooter. In general, lenders classify motorcycles differently from autos, considering them recreational vehicles.

It may be possible to qualify for a loan with less-than-perfect credit, but you will likely find that motorcycle financing interest rates are higher for you. Depending upon your individual credit quality, you may be able to secure a loan with more favorable terms if you can make a sizeable down payment. Another factor in getting a motorcycle loan is the vehicle itself—interest rates may be higher on older motorcycles.

Before you shop for a motorcycle, check your credit score to be sure there aren't any errors that are having negative effects. Correcting mistakes may help improve your score.

Applying for a loan for a new or used scooter or motorcycle is easy at Space Coast Credit Union: You can apply now online. Be sure to have your Social Security number handy, as well as your driver's license, current address and monthly housing payment, information on your employment, and your desired loan amount and terms (months). You'll receive a fast decision, and can close at a branch location or online, signing all paperwork right from your mobile device or PC.

At SCCU, we offer flexible terms up to 72 months for qualified borrowers. The loan term you are offered will be based upon the amount of the loan and your credit rating.

Different lenders, including financial institutions and dealers, have different criteria, such as the minimum down payment that is required. If you are able to make a larger down payment than is required, however, you can save on interest charges and have a smaller monthly payment for the life of your motorcycle loan.

To get an idea how much you can afford, start by calculating how much your monthly loan payments may be. Use SCCU's loan payment calculator to compute the amount of principal and interest for a fixed-rate motorcycle loan, and check our most recent interest rates. Also remember to take into consideration the costs of motorcycle insurance to determine your total monthly payment.

Anytime you are considering borrowing money to make a purchase, it's smart to know what loan features you should compare from lender to lender. When you're shopping for motorcycle financing or a scooter loan, consider:

• The interest rate: It's a given that lower interest rates save money, but also ask whether circumstances like your good credit can help you get even better rates from a lender. A percentage point or two can make a big difference over the life of your loan.
• Hidden fees or costs: Make sure lenders disclose every cost you will be responsible for to avoid surprises when you close on your loan. This is a good way to narrow down your choices to lenders who are transparent about all costs you'll pay and who have the lowest total loan costs.
• Limitations, terms and conditions: Does the lender offer used motorcycle loans or does it only finance new motorcycles? What happens if you are late one month on a payment? Closely review all of the terms of the loan and ask lenders to explain anything that isn't clear.

SCCU offers financing and refinancing on new and used motorcycles and scooters. For scooters with engines under 50ccs, we offer personal signature loans that don't require collateral; for those with engines of 50ccs or more, we offer traditional motorcycle loans. There's no application fee on either type of loan, and you'll enjoy low credit union rates, fast approvals, and convenient online closing with Express Sign.

There are several sources for motorcycle financing, including the dealer where you are buying and sometimes from the manufacturer if you are buying new. The best places for an affordable interest rate, however, may be from your local bank or credit union. At Space Coast Credit Union, we offer great terms and low credit union rates on new or used motorcycles and scooters. There's never an application fee, and you can apply for and close your loan online.

Questions about financing your motorcycle or scooter with SCCU? Contact our friendly loan officers at one of the numbers below:

• Brevard: 321-752-2222
• Broward: 954-704-5000
• Miami-Dade: 305-882-5000
• All other areas: 800-447-7228

As with most any type of borrowing from a financial institution, your credit score will be affected by a motorcycle loan. Making your monthly payments on time will help build good credit, while missing payments—which can show on your credit report for seven years, even if the account is closed—or making late payments will count against your score. Since the total amount of a motorcycle loan can be much less than that of a car or truck, it can be a good opportunity to build a positive credit history.