Can You Get a Title Loan on a Motorcycle?

You can get a title loan on a motorcycle. A title loan allows you to use your vehicle as collateral.

Find out how you can get a title loan on a motorcycle, how motorcycle title loans work, and examples of companies that offer title loans.

Key Takeaways

• Title loans require borrowers to use one of their assets, such as a vehicle, as collateral.
• Motorcycle title loans are short-term loans that can give you quick access to cash.
• Borrowers typically do not need excellent credit scores to qualify for a motorcycle title loan.
• Keep in mind that a motorcycle title loan typically comes with a high interest rate, and you could lose your motorcycle if you cannot repay the loan.

Can You Borrow Money Against Your Motorcycle?

A motorcycle title loan allows you to borrow money against your motorcycle, just like auto title loans allow you to borrow money against cars. How much cash you can borrow will depend on factors like your state's laws and the value of your motorcycle.

Remember, you must own your motorcycle outright to apply for a motorcycle title loan. You need a lien-free title on your motorcycle. If you have just put a down payment on a motorcycle, you most likely cannot get a title loan on that motorcycle.

What Is a Motorcycle Title Loan?

A motorcycle title loan, sometimes referred to as a motorcycle title pawn loan, is a type of short-term, high-interest loan that uses your motorcycle as collateral.

Motorcycle title loans can be single payment loans or installment loans. Single payment loans, also known as payday loans, are for people who need quick cash and will have the ability to pay the amount back in a short amount of time. Installment loans allow borrowers to pay the amount back over time with interest.

How to Get a Title Loan for a Motorcycle Step by Step                         

1. Consider the Value of Your Motorcycle

Title lenders will consider the age, make, model, and mileage of your motorcycle. Is your motorcycle new or used? A used motorcycle loan will likely give you less cash than a title loan on a new motorcycle.

2. Inspect Your Vehicle

Title lenders will inspect your motorcycle before approving your loan, but it is a good idea to inspect it yourself and conduct necessary repairs. If you are handy, making repairs yourself ahead of applying for the loan could make the process smoother.

3. Compare Your Lending Options

Most lenders make it easy to understand the amount and terms of a loan before you make a decision. Before jumping at the first opportunity for a motorcycle title loan, research the best loan products available.

Before choosing a loan, ask questions like:

• How much can I borrow against my motorcycle?
• What are the interest rate and loan terms?
• Are there any pre-payment penalties?
• Are there any hidden fees?
• Does bad credit matter less to one lender than another?
• Do you risk losing your motorcycle?

4. Prepare the Necessary Documentation

Once you have decided which lender is the best fit for your motorcycle title loan, you'll need to gather the documents required for the application process.

Important documents you might need include:

• Valid government-issued ID
• Your motorcycle's lien-free title
• Your motorcycle's registration
• Proof of insurance
• Proof of residency
• Proof of income
• Personal references

5. Apply for a Loan

Different lenders will have different application processes. You may find a motorcycle title loan online, or you may be able to work with a bank or credit union in person.

To get started, visit a lender's website. You can also contact lenders directly for guidance on their application requirements.

6. Wait for Approval

Many title loan providers offer quick cash, but remember that the time it takes to get approved for your motorcycle title loan will vary depending on the lender.

The loan approval decision can be impacted by factors like:

• Employment status
• Income
• Credit score
• Motorcycle value

7. Take Out a Title Loan

Once approved for your loan, you can sign the paperwork and officially take out your title loan. The time it takes to get the money will vary depending on the lender.

How Do Motorcycle Title Loans Work?

A motorcycle title loan is a type of secured loan. Unlike unsecured loans, you will need to provide collateral. In this case, you use your motorcycle as collateral. You will need documents, including a valid government-issued ID, to apply for a motorcycle title loan.

Title loan providers will hold your lien-free motorcycle title while you repay the loan. You can keep riding the motorcycle in the meantime.

You will get the title back when you pay the loan back in full. If you are unable to repay the loan, the lender will repossess your motorcycle and sell it to cover the remainder of the loan.

You may have the option of refinancing a motorcycle loan, which means a new lender pays off your original loan and gives you a new loan with new terms.

Is a Motorcycle Loan Different from a Car Loan?

Motorcycle loans work the same way as auto title loans. Borrowers give title loan providers their titles and the lenders give them cash advances. The vehicle, motorcycle or car, serves as collateral. If borrowers cannot repay their loans, they lose their vehicles.

Are Motorcycle Loans the Same as Personal Loans?

Motorcycle loans and personal loans are two different things. Motorcycle title loans are secured loans. Borrowers are required to supply collateral. Personal loans for a motorcycle are typically unsecured, which means they do not require collateral.

Title loans typically have short repayment terms and fees. The Federal Trade Commission reports title loan fees can be as high as 25%, which is roughly equivalent to an annual percentage rate (APR) of 300%.

The interest rates for personal loans are typically much lower.

Motorcycle Title Loan Examples

Where can you get a motorcycle title loan? Here are a few examples of companies that offer title loans:

TitleMax

TitleMax offers motorcycle title pawns. You can bring your lien-free title, motorcycle, and government ID to a TitleMax location to apply. The lender claims to offer competitive rates and a quick approval process. The maximum amount of money you can borrow will depend on your state.

TitleMax has locations in Georgia, and borrowers may be able to apply for an online loan, depending on their state.

5 Star Car Title Loans

5 Star Car Title Loans offers online motorcycle title loans. You can apply online or call to get the process started. Once you apply, you'll receive a pre-approval estimate. Next, you sign your title loan contract and send the lender the title to your motorcycle. Once that is done, you receive the cash.

5 Start Car Title Loans works with multiple third party lenders. It offers title loans up to $20,000. Borrowers with poor credit can apply for a title loan with 5 Star Car Title Loans. The lender offers motorcycle title loans with no credit checks.

LoanCenter

LoanCenter offers title loans up to $4,000. You can fill out an online form or call to get pre-qualified for a motorcycle title loan. You can review your loan offers, select one that works for you, complete the loan paperwork, and receive your cash.

LoanCenter does not charge any pre-payment penalties if you are able to pay off your loan early.

If you are worried about how long motorcycle loans are–you need to repay the loan relatively quickly–you can consider alternatives. For example, personal loans are an alternative to motorcycle title loans.

Compare some of the best personal loans to consider in 2023. For example, LightStream offers personal loans of $5,000 to $100,00 with APR that ranges from 7.99% to 24.99%.

If you are struggling with debt, you can seek credit counseling to get help on loan repayment and budgeting.

Final Word: Getting a Title Loan on Motorcycle Is Possible!

Can you get a title loan on a motorcycle? Yes, the motorcycle title loan process can be relatively simple, but keep in mind that the loan will likely be short-term and have a high-interest rate. You will need to pay the loan amount back in full to avoid losing the collateral: your motorcycle. You can compare lenders to find the best terms and get quick cash.