Jay Fran asked:




The world of used motorcycle loans is traditionally confusing to many motorcycle buyers involved with purchasing a used motorcycle but it does not have to be if you are equipped with a bit of knowledge.

When looking for used motorcycle financing, you should first consider where you will purchase the motorcycle from. For instance, will you purchase from a dealer, an individual or a vehicle auctions?

This could highly affect your used motorcycle loan decision and the direction you will choose to focus your energy with getting your loan worked out.

Here are some things to consider with each option:

1. Auction Purchase: If you are thinking of purchasing your used motorcycle at an auction it is highly recommend that you have your cash ready to buy ahead of time. Therefore, if you are going to finance the used motorcycle from the auction you will need to line up the financing first as most auctions do not offer financing.

There are several online motorcycle lenders offer used motorcycle loans, so this is a good option. Basically these motorcycle lenders will approve you online and then send you a check for the amount you are approved for to purchase your motorcycle.

Another option for your auction purchase may be to get check your local credit union for used motorcycle loans. Sometime the credit union may offer it under a personal loan but it is all the same.

2. Individual Purchase: An individual purchase will work similar to an auction purchase.

You will need cash in hand to make the purchase so you will have to line up your used motorcycle financing first before the actual purchase. Online motorcycle lenders or your local bank and credit union can help you with this and send you a cashier’s check.

Most individuals prefer a cashiers check or money order so be sure to ask them before you drive all the way to their house to make the purchase.

3. Dealer Purchase: With a dealer purchase you will have a variety of options for used motorcycle loans.

You can still choose to use online motorcycle lenders as they tend to have highly competitive motorcycle loan rates or you can use the dealerships financing. They can get you approved fast and money in your hand in 24 hours typically so making the purchase is simple. You will not have to go to the dealer and wait an hour while they do all the paperwork.

Dealers normally offer consumer financing through GE Capital (AKA GE Money) or HSBC Retail Services which is an option as well. These offers could be on a credit card or a standard installment loan and you motorcycle loan rate will be based on your credit history.

Don’t forget about your credit union and local banks as they can handle dealer purchased as well.

In the end financing a used motorcycle does not have to be difficult, you can easily use online motorcycle lenders for used motorcycle loans at competitive rates or even choose a dealer or local credit union. Online motorcycle lenders may prove to be the best option because you can arrange them in the comfort of your own home without waiting hours in a bank or dealer.

Chris

Jack Harmon asked:




Are you in the market for a motorcycle, but have bad credit and need a high risk motorcycle loan? Well don’t worry the goal of this article is provide you everything you need to know about getting approved for a high risk motorcycle loan.

First you must understand how motorcycle lenders go about classifying you as high risk. On the average, when a motorcycle lender is looking to approve any motorcycle financing they have a much higher cut off in the credit score range than an auto lender. This exists whether you have good or bad credit.

So with that said an auto lender may approve a FICO credit score of 610 as not a high risk, but a motorcycle lender would most likely classify a FICO credit score of 610 as a high risk motorcycle loan and may not offer an approval on it.

There are two reasons for this:

1. Motorcycles are much harder to repossess in good condition than an automobile. As a result of this simple fact, if you default on your motorcycle loan it is a higher risk to the motorcycle lender than an automobile lender because it is much harder to repossess a motorcycle in good condition than a car.

With all the new motorcycle riders entering the industry there is a high incident of some form of minor or major damage on many motorcycles, which translates in to a lower amount per unit a lender gets when they repossess a motorcycle for a customer that chooses to get bad credit over paying for their motorcycle loan. The damage could be from the repossession agency or the actual owner but the simple fact is motorcycle fetch much less at repossession auctions than automobiles.

This simple fact is one reason good and poor credit motorcycle loans are offered at much higher interest rates than a car and has an overall lower approval percentages when compared with cars.

2. The average motorcycle tends to depreciate very fast. Since motorcycles have higher accident rates and there are many people who once they crash do not pay off their loan, this results in higher defaults for motorcycle lenders. This is another reason motorcycle loan rates are higher and motorcycles are hard to get approved for.

Ok, now that you have a background in how a motorcycle lender views a motorcycle loan, let’s look at how you can get approved for a high risk motorcycle loan.

Step one is to really understand your credit report and credit score. Sure if you are looking for high risk motorcycle financing, you probably have had some credit issues in the past. But you never know how those credit issues played out on your credit report until you get a copy of it.

Take a look and make sure everything reported on your credit report is actually true. See every year 1000s of people just like you find creditors made errors on their credit report, which negativity impacted their credit score. If your FICO score shows a 610, but there is 1 error on your credit report you could easily raise your FICO credit score to 625 or higher by getting the error fixed. Always get errors fixed on your credit report before you submit a high risk motorcycle loan application.

Step two is to clean up your credit card debt. I know you are probably thinking I can not do this, but it can make a huge difference in helping you get approved for high risk motorcycle financing. See motorcycle lenders do not like to see your personal credit cards maxed out. Therefore, before you submit your application for motorcycle financing you should try to pay down your credit card debt. Even if you have to do it for the short term it can help you tremendously with getting approved.

For instance, if you have a 610 FICO credit score you will probably be declined if you have all your credit cards maxed out. However, if you are able reduce your credit card debt by 50% you stand a much better chance of getting approved for a high risk motorcycle loan. This is a simple concept but you will be surprised by how many motorcycle buyers fail to do this and never get approved.

Step three and the final step is too finally submit your motorcycle loan application. There are many lenders that specialize in high risk motorcycle loans. I recommend tying about 2 or 3 online motorcycle lenders and then move to your local credit unions or financing provide by the dealership such as Suzuki Finance, Honda Financing, Kawasaki Credit Card or the Polaris Star Card.

Stephanie

khalid r mustaffa asked:


For many people buying a car is the second biggest financial decision after buying a house. The number of consumers that are choosing to finance a car is constantly increasing, this is due to considerably low prime rate. If you choose to be a consumer that finances their next car purchase, you are about to find some interesting information to follow.

To ensure being in the best financial situation, you need to contact lenders on your own, especially the bank that has your primary checking account. Even if the dealerships are to contact the financing banks on your behalf, you should do the homework before visiting the dealership. Find out what sort of deals bank are willing to offer you. A very strong weapon that the average consumer is not aware of , is that within 14 days you can apply for as many “CAR Loans” as you want, and as far as your credit score is concerned, all will count as one.

Compare the financing offers you obtained at your own, to the ones the dealerships are offering you, and take the one that suite you better. You should be comparing the Annual Percentage Rate(APR), Annual percentage yield(APY), and the length of the loan. Do not get miss lead by the payment, concentrate on the amount paid after financing. Sometimes, dealers run low financing offers for certain cars, this is to help them reorganize their inventory. These rate are sometimes less than the prime rate at the time, which means the lender is lending you money for less than they are getting for. In this case, make sure you are getting a price for the car that justifies for the low interest rate.

If you were to pay the car over 4 years, Which out of the two deals would you want to be in? (0% financing, car price $12,000) or ( 5% financing, car price $10,000)? To simplify the issue, the 5 percent option you would end up paying $11,055, where the 0 percent financing you end up paying $12,000 for the car.

Visit my website if you are looking for Cars in Houston



Justin

Michael Newman asked:


Right now, finding customers who are willing to take on a new monthly expenditure is more of a challenge than it has been in years. Financial news tends to indicate a trend toward saving, rather than spending, on the part of consumers and “creature comforts” and luxuries are falling lower and lower among the priorities of consumers with every passing month. Special finance leads are an opportunity for auto dealerships to network directly with customers who are looking to buy a vehicle as soon as possible and who have already been pre-qualified for the lending that suits their needs.

“Up selling” is a tough order in an economic downturn. Many customers will show up to dealerships with a set figure in mind and will tend to be more amicable toward driving off the lot with less car and, therefore, less financing, than they had initially planned. Dealerships who work with such customers aren’t missing out, especially today, and it’s an excellent way for sales people to exploit the needs of a market that very much needs to be serviced.

Special finance leads are oftentimes responsible, reliable buyers who, for one reason or another, have suffered financial difficulties that have made their credit score difficult to maintain. Everyone’s likely been there at one time or another and, like everyone who has, most of these customers are looking to rebuild their credit rating to a level that will enable them to borrow toward the most important things in life in the future. For many of them, a car is both a necessity and an opportunity. Being current on payments for something as large as an auto loan presents these customers with a means to repair their credit. Finding a dealership who is willing to work with them toward this end is certainly going to make that business, and the sales people who helped them, stand out among their competitor’s in that customer’s eyes. One should not underestimate the word-of-mouth advertising that can be potentially generated by fostering such a relationship.

Finding special finance leads can be greatly simplified by making use of Internet resources. Internet lead generation companies have the benefit of being able to update their lists by the minute and some of them work with leads that are pre-qualified for financing up to a certain limit. For the sales people, the lead is a person who is very much in need of having a vehicle as quickly as is reasonably possible and who is simply looking for a dealer that can help them achieve that goal.

Using special finance leads can open up a whole new market in a much more targeted way than does advertising. When most consumers have become rather resistant to the traditional sales pitches, dynamic businesses know that it’s time to move out of the “tried and true” methods that simply don’t work as well anymore and to take advantage of new opportunities offered by technology and the marketplace in general.



Jack

Michael Newman asked:


The number of dealerships interested in marketing to subprime consumers has increased just as rapidly as the economy has worsened.  The number of consumers now labeled as “subprime” has increased to incredible proportions – a full 60% of the consumers in the US are now considered risky credit ventures.  That increase equates to tremendous potential for your dealership.  Because there are more consumers in a less than desirable financial situation, your special finance deals hold more value. In short, with the right auto leads, you can increase your profit and exceed sales forecasts, even during an economic crunch.

What should you look for in a lead provider? What sets a good choice apart from hucksters in the marketplace? How do you use this tool to increase your profitability without running the risks that the leads you purchase will not pan out? It will require that you do a bit of research, prior to choosing a provider.  It will also entail you verifying that the provider offers some very specific things.

First, the provider that you choose should have an excellent reputation in the industry.  This is simple to verify, using the Internet.  You must find a provider with a lengthy history of accomplishment; at least 5 years of delivering quality leads to dealerships.  If you choose a company without a good reputation, you can find that you are simply wasting your marketing capital with little or no return on the investment.

Second, you must ensure that the lead provider offers you an easy way to incorporate those special finance auto leads into your CRM platform.  Whether the leads are sent to you in a specific format, or the provider offers online web-based integration and management tools, you must be able to integrate those leads in a short time, in order to reap the benefits you desire.

Next, the lead provider should offer you prescreened and graded consumers based on your own lending criteria.  Because special finance offers vary from dealership to dealership and lender to lender, customizing the prescreening process is very important.  If you are unable to customize the process, you will find that the list of consumers is comprised of many that do not fall within your guidelines, effectively making them unmarketable for your dealership.  This situation can be avoided when you choose the best provider.

Finally, the provider must offer you the means to target consumers within your local area.  Marketing to consumers outside of your local area is pointless. Only by marketing to those consumers within driving distance of the dealership will you be able to increase sales in a predictable manner.  The provider should allow you to target consumers based on zip code; thus, ensuring that you gain access to those consumers most likely to pay you a visit.



Grace

Ray Paulsen asked:


When a consumer enters a dealership, an experienced professional salesperson with a high closing ratio will have the buyer qualified inside of a few minutes and will know the direction to pursue to close the deal. One of the key questions will be, “Are you financing?” The smart consumer will answer ” HAVE NOT DECIDED “

Answer the question in any of the following ways and the dealership is on it’s way to a huge profit:

1 ) “YES, I WILL BE FINANCING!”- When shopping at a dealership and inquiring about available financing, you’re considered a ‘payment buyer’ and you could end up with the short end of the stick. A dealer can, with some lenders, stretch the term to make monthly payments suit your budget.

2 ) “WHAT’S YOUR INTEREST RATE?”- You are telling the salesperson that the interest rate will come into play in your decision making. Some lenders will allow for a dealer to buy down the rate and if a point or two below average triggers your emotions, you are hooked.

3 ) “I AM PAYING CASH.”- A dealer profits from the lender when you finance but when you are paying cash, there is no gain. I cant recall a week going by selling cars that a buyer would not make the statement, “Paying cash. What’s your best price?” That question always put a smile on my face as I realized that I was dealing with someone who didn’t have a clue about how to buy a car. During the negotiation process, if the deal is tight showing little or no profit, the dealership will be more likely to accept if you are financing and they will be realizing a profit from the lender.

The educated buyer will have a secured loan amount in place, be it from the bank, credit union or established line of credit, and goes shopping with that amount. However, you must still consider if there is a better deal to be had. Online shopping for rates is very competitive with some excellent offers. Shop only established lenders that you know. Capital One is an example of one of the leading providers of auto loans online.

Lenders will run a credit report and each inquiry will show on your credit report and the more inquiries on your report, the less likely the current lender will approve you, it’s therefore wise to stay away from third party lenders and some dealers whom will submit your application to several lenders.



Elaine