RiverTrace Blog

Motorcycle Loan Rate FAQs

Posted on: November 29th, 2017 in Auto Loans

When the open road calls you, one purchase you may be considering is a motorcycle. However, if you’re not sure about the motorcycle loan process, you may be uncertain where to start.

Here are some of the questions we often hear about motorcycle loans and the answers:

Is it easy to get a motorcycle loan?

As with any loan, a motorcycle loan depends on numerous factors. The primary factors are:

  • your ability to repay the loan
  • your credit score
  • the value of the motorcycle

Before you start the process, it may be a good idea to request your own credit report, and make sure there are no errors. Mistakes do happen and they could prevent you from getting a loan, including a motorcycle loan.

How do you get a motorcycle loan?

The first step in obtaining a motorcycle loan is to fill out an application. At RiverTrace, we can help you with the preapproval process so you know when you start shopping just how much motorcycle you can afford. We will require the same financial information required for any loan; pay stubs, verification of debt, and a credit report.

Will I get approved for a motorcycle loan?

Motorcycle loan approval requires a borrower to go through all the proper steps of applying for a loan, showing an ability to pay the debt they will incur, and having a credit report pulled. Without going through the process, there is no guarantee your loan will be approved. As you might expect, your credit score is one of the best barometers of how qualified you are to borrow money.

How do motorcycle loans work?

There are different types of motorcycle loans: new financing and refinancing. Depending on the program, you could finance a motorcycle for up to 240 months. Similar to a vehicle loan, you will make monthly payments, and you must maintain motorcycle insurance.

Until you have finished making payments, there will be a lender's lien on the motorcycle; that means if you sell the motorcycle, the loan must be paid off first. You can also set your motorcycle loan payments up to be directly withdrawn from your account; this means you have less chance of missing a payment, or having a payment delayed in the mail.

Can I use an auto loan to buy a motorcycle?

Car loans may not be used for the purchase or the refinance of a motorcycle. However, it is worth understanding as a general rule, the terms of a motorcycle loan, and the interest rates are usually more favorable than a car loan.

Most new car loans have a maximum term of 84 months with a maximum loan amount of $25,000 while a new motorcycle loan could be extended as long as 240 months with loan amounts up to $100,000.

How long are motorcycle loans?

The term of your motorcycle loan is largely determined by how much you are borrowing, and the value of your motorcycle. For example, if you borrow $50,000, your loan term may be as long as 120 months; if you are borrowing $25,000 the maximum term is usually 84 months.

It’s important to remember that your creditworthiness, as well as the value of the motorcycle, will play a role in the length of the loan term you’re offered. Generally, the longer the loan term, the better your credit rating will have to be to qualify for the loan.

Can you refinance a motorcycle loan?

Yes, just like a car loan, if we can offer you a lower rate, it may be worthwhile to consider refinancing an existing motorcycle loan. Your customer service representative can review your current motorcycle loan, review your payment history and help you determine if it is sensible to consider refinancing your loan. Remember, to qualify for refinancing, your credit will be reviewed as will your ability to repay a new loan.

Can I get a used motorcycle loan?

Yes; motorcycles don’t have to be new to obtain financing. In fact, you can obtain a loan for a motorcycle whether you are purchasing from a dealer or you are purchasing through a private sale.

RiverTrace will also help you get prequalified for a loan; that means you will know before you start shopping for a motorcycle how much of a loan you may qualify for; this can help you a great deal when shopping since you will know what you can afford.

What's the average interest rate of a motorcycle loan?

The interest rate on a motorcycle loan varies depending on a number of factors. Your credit, the length of the loan, and the amount of the loan are a few of those factors. Currently, RiverTrace Federal Credit Union motorcycle loans are as follows:


APR AS LOW ASAs of 11/2017
0 - 36 Months$5,0002.99%3.74%
37 - 48 Months$5,0003.24%3.99%
49 - 60 Months$10,0003.74%4.99%
61 - 72 Months$20,0003.99%5.24%
73 - 84 Months$25,0004.99%5.74%
85 - 120 Months$50,0005.24%N/A
121 - 240 Months$100,0005.49%N/A

Where can I get a motorcycle loan?

At RiverTrace Federal Credit Union, we’re proud of our Adventure Loans which can be used for a new or used motorcycle purchase.

You can visit us at a branch or you can apply for a motorcycle loan online. We even have some dealer programs; if you are buying from a dealer, ask them if they have an existing agreement with RiverTrace.

To compare our loan rates with others in Virginia, click here.

Whether you’re considering purchasing your first motorcycle, or you have decided it’s time for a new one, you can find the loan that works for you at your branch of RiverTrace Federal Credit Union. We work hard to provide outstanding service to our members; our motorcycle loan rates are competitive and we work hard to earn your trust, and your business.

If you need to contact us about a news item, event, or just want to give us a shout, please don't hesitate to get in touch with us by calling 804-266-2767 or emailing us.

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