Motorcycle Title Loans -What Are They and How Do They Work?
Motorcycle title loans are becoming more common as people realize that having equity in their motorcycles enables them to get a secured loan. With a motorcycle title loan, you are using the equity in your motorbike or motorcycle to get cash from a licensed lender in your state. Similar to what you see with a car title loan, nearly all loan companies allow you to keep riding the motorcycle for the entire loan term. Most lenders will underwrite two different types of motorcycle title loans. The first option is where an applicant takes out a loan with the expectation of paying it off in one lump sum. The other more common type of title loan is where someone makes set monthly payments to pay off the amount borrowed.
How To Get A Motorcycle Title Loan And How Much Can I Borrow?
The requirements for a motorcycle title loan are surprisingly similar to what you would need for a car title loan. You will need to provide your driver’s license and your social security information. Some title loan companies will also need your employment history and relevant salary information as a way to formulate your expected monthly payments and loan amount. The most important requirement for a motorcycle title loan is your pink slip. Anyone who owns a motorcycle outright should be able to provide the title to a lender as collateral for the loan.
A typical lender will offer you cash that equals 40-60% of the value of your motorbike. The amounts vary for each situation, but total loan amounts will often be much smaller than your average car title loan, falling into the range of $2,000 to $4,000. Also, consider that you need to sign over the title to the vehicle equity lender. Yes, you will be able to keep riding your motorbike, but the lender keeps your pink slip for collateral.
What are the interest rates and fees with Motorcycle Title Loans?
Along with a high interest rate that you would expect with any type of title loan, you also need to contend with late fees and sometimes prepayment penalties if you want to pay off the loan early. This type of loan will work very well if you are able to pay the full amount of the loan upfront, but that is not usually the case. Similar to the lower loan amounts we see with boat title loans versus auto equity loans, most people are not able to pay off a motorcycle title loan in one lump sum. This is why the interest rates are so high and why you should only use this as a short term loan. Besides the high APR, you need to worry about losing your bike to a potential repossession if you default on the loan.
Apply Online For A Title Loan On A Motorcycle
Car Title Loan Lenders makes it easy to apply for a motorcycle title loan online. All we need is your bike’s make and model and we’ll put together an estimate of how much you can borrow. Keep in mind, most motorcycles are valued at less than a vehicle so that means you can expect a loan amount of $1,000 to $4,000, but the underwriting process is just as simple. We will inspect the bike and confirm the DMV information and after that, you can get your money from a local lender. All types of bikes can qualify and that includes Harley Davidson, Honda, and more! Call 1-866-515-9866 to start your application!