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You can use Chase motorcycle loans to finance the purchase of new or used motorcycles.
This article will cover Chase motorcycle loans and what to expect during the application process.
- Chase motorcycle loans are structured similarly to any other auto loans.
- Chase offers low rates on motorcycle loans to borrowers with good or excellent credit (a FICO score of 690 and above).
- There are other options to consider when financing or refinancing motorcycle loans beyond traditional bank loans, such as unsecured personal loans.
Chase Motorcycle Loan: What to Expect
When obtaining a motorcycle loan through Chase, there are several key aspects to consider and expect throughout the process.
- Loan Application - You can start the process by visiting a local Chase branch or applying online through their website. Chase will conduct a credit check to assess your creditworthiness during the process. Your credit history and credit score will play a significant role in the loan approval process and the terms offered.
- Loan Approval - After reviewing your application and credit history, Chase will decide whether to approve your motorcycle loan. If approved, they will provide you with the loan terms, including the loan amount, your down payment amount, interest rate, loan duration, and monthly payment.
- Monthly Payments and Repayment - You'll be responsible for making regular monthly payments on time throughout the motorcycle loan term.
Chase Motorcycle Loan Rates
Chase offers low rates on motorcycle loans only to borrowers with good or excellent credit (a FICO score of 690 and above).
With fair or bad credit, you will get higher interest rates, meaning your monthly payment and total interest will be higher.
To receive a precise estimate, including potential down payment amounts, you can use their rate and payment calculator.
The calculator estimates your rate based on credit history, loan term, loan amount, debt-to-income (DTI) ratio, vehicle age, current market rates, and down payment amount.
Chase Motorcycle Loan Application Process
The Chase auto and motorcycle loan application is 100% online on the bank's website. When completing the online application, you must designate the dealership where you'll buy your car or motorcycle. Your approved loan information is then sent to the dealership, where you complete the transaction in person.
Most decisions are available within 2-3 hours. Applications requiring a more detailed review can take longer. Once approved, Chase agrees to hold a specific interest rate for the borrower for 30 days. To protect themselves from potential interest rate fluctuations during that time. If you change the vehicle, Chase and the dealer will adjust the financing offer as needed.
Chase Motorcycle Loan Requirements
Chase motorcycle loans vary based on your financial circumstances, loan type, and the vehicle you want to finance. However, here are some general guidelines and standard requirements you can expect when applying for Chase motorcycle loans:
- Vehicle at most ten years—When vehicles age, they tend to have higher depreciation rates and may pose higher risks for lenders.
- For personal use only—You cannot use motorcycle loans for commercial purposes, such as using the vehicle for business or other income-generating activities.
- Restrictions on vehicle types you want to finance—Certain exotic or luxury car makes, and models may not be eligible for standard motorcycle loans. Due to their high value and limited market demand, they can present higher risks.
- Mileage—Your motorcycle needs a mileage reading of fewer than 120,000 miles to meet the eligibility criteria for motorcycle loans. Mileage can impact the motorcycle's overall condition, maintenance history, and potential lifespan.
- You must purchase the motorcycle from the Chase network dealer.
Do Banks Give Loans for Motorcycles
Yes, many banks offer specialty motorcycle loans. Obtaining motorcycle loans from a bank has its advantages and disadvantages. Considering the pros and cons before deciding whether a bank loan is the right option for your specific financial needs and goals is essential.
Here are some pros and cons of getting motorcycle loans from a bank:
- Competitive Interest Rates—Banks often offer competitive interest rates, especially if you have a good credit score. Lower interest rates can save you money over the life of the motorcycle loan.
- Wide Range of Loan Products—Banks offer various loan products, including personal loans, vehicle loans (such as motorcycle loans or car loans), home equity loans, and more, allowing you to choose the type of loan that best fits your needs.
- Established Institutions—Banks are established financial institutions with a long history of providing loans. This can instill confidence in borrowers, knowing they are dealing with a reputable lender.
- Convenience—If you have an existing relationship with the bank, the loan application process may be more straightforward and more convenient.
- Face-to-Face Customer Service—If issues arise, customers can visit a local branch to speak with representatives in person, which can be reassuring for some.
- Strict Eligibility Criteria—Banks often have strict eligibility requirements, and not everyone may qualify for a loan, especially if they have a lower credit score or limited credit history.
- Processing Time—Banks' loan approval process can take longer than some online lenders or other financial institutions.
- Collateral Requirements—For certain loans, such as home equity loans, or motorcycle loans, banks may require collateral, which puts your assets at risk if you cannot repay the loan.
- Credit Impact—Loan applications typically result in hard inquiries on your credit report, which can temporarily lower your credit score.
- Additional Fees—Some banks may have additional fees or charges associated with their loan products, which can increase the overall cost of borrowing.
Other Motorcycle Financing Options to Consider
When considering financing or refinancing a motorcycle loan, you have several alternatives to explore beyond traditional bank loans. Each option comes with its own advantages and considerations, so assessing your financial situation and needs is essential before making a decision.
Other motorcycle financing options include:
Credit unions are not-for-profit financial cooperatives that offer competitive interest rates and flexible loan terms. They may be more willing to work with members with lower credit scores than banks.
Some credit unions might offer added benefits like payment protection, educational resources on motorcycle loans, or even discounts on related services.
PenFed is a credit union that offers personal loans to its members. Anyone can become a member, and get a motorcycle loan with low rates and no origination fees. This makes PenFed a strong choice of lender for people who want a cheap loan.
Many motorcycle dealerships offer financing options for new or used motorcycle purchases. Dealerships often provide promotional financing offers, and flexible terms tailored to the buyer's needs, and can offer a range of options due to partnerships with various lenders.
Motorcycle owners with strong credit scores might be eligible for the best promotional rates.
While convenient, it's essential to carefully review the terms, as dealer financing rates might be higher than other options.
Home Equity Line of Credit (HELOC)
A HELOC (Home Equity Line of Credit) is a revolving line of credit that allows homeowners to borrow against the equity in their home, typically at a variable interest rate.
A HELOC for motorcycle financing can offer lower interest rates than traditional motorcycle loans. However, borrowers should be cautious since their home is used as collateral. It's essential to stay diligent with payments to avoid potential foreclosure risks.
A personal loan is a type of financing given to individuals for personal, family, or household purposes. Personal loans can be secured or unsecured: a secured personal loan requires collateral as a guarantee for repayment, while an unsecured personal loan does not and relies on the borrower's creditworthiness.
Interest rates on personal loans may be higher than on auto-specific loans, but they offer more flexibility.
Credible offers large auto loan amounts ranging from $600 to $100,000. Rates start at 4.60%, and terms can go up to seven years. Credible is not a direct lender, but rather a loan marketplace. This allows you to save time on finding the best motorcycle loans, so you can spend your time figuring out what type of motorcycle you want to buy.
Motorcycle leasing is an arrangement where an individual pays for the temporary use of a motorcycle, typically with the option to purchase it at the end of the lease term.
Motorcycle leasing allows individuals to ride a newer model without the commitment of full ownership, often with lower monthly payments compared to traditional financing. Leasing if best for people that want to ride the latest models without keeping the motorcycle long-term or for those who want to avoid depreciation costs associated with outright ownership.
Should I Take Out a Loan for a Motorcycle?
Deciding whether to take out a loan for a motorcycle depends on your financial situation, goals, and priorities. You will have to consider several factors when deciding to take out a loan for a motorcycle.
Assess your budget and determine whether you can comfortably afford the monthly loan payments and other essential expenses. Taking on a loan should not strain your finances or hinder your ability to meet other financial obligations.
Your credit score will influence the interest rate you'll get and your loan approval chances. A higher credit score can lead to better loan terms. If your credit score is low, it might be worth improving before applying for a loan.
Also, consider the interest rates offered by lenders. Higher interest rates can significantly increase the overall cost of the motorcycle, so it's crucial to compare rates and choose the most favorable option.
Final Word: Explore Your Motorcycle Financing Options with Chase Bank
Buying a motorcycle is typically a significant investment, big enough that it requires most people to take out a loan. Before financing a motorcycle with Chase, it's important to look at your financial situation to ensure you make a well-informed decision that aligns with your situation and goals.
Thoroughly research and compare offers from various lenders to find the financing option that best fits your financial situation and needs. Speaking with a financial advisor to get personalized guidance based on your circumstances is also beneficial.