How to Lower your Monthly Motorcycle Payment

How to Lower your Monthly Motorcycle Payment
How to Lower your Monthly Motorcycle Payment
| Jun 10 2022
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Refinancing to Get a Lower Motorcycle Payment

You love your motorcycle, but don’t love paying for it. It’s another bill on top of the pile, and some extra breathing room would be REALLY nice right about now. Whether you want extra cash for a specific goal or are just looking to revamp your budget with inflation and rising costs, lowering your motorcycle payments likely wouldn't hurt.

Today, we are talking about how you can lower your monthly motorcycle payment.

How do motorcycle loans work?

A motorcycle loan works the same way as a car loan. A motorcycle loan is a secured loan that can help you finance your new bike. A financial institution will pay for your motorcycle, and you in turn will repay them in monthly installments with an additional fee, interest, for the convenience of borrowing money. Your motorcycle is collateral, and if for any reason you cannot repay the lender, your motorcycle will be taken away (and any money you already paid will not be returned). The term “secured” refers to the use of collateral.

Motorcycle loans have principal, which is the price of the motorcycle, plus any taxes and fees, minus any down payment you make. This principal is the base of your loan, and then interest will be applied to that principal. The interest is calculated using a motorcycle loan APR which is based off of market rates AND off of your personal financial situation. 

Motorcycle loan APRs are determined according to the following:

Market Factors

The economy’s performance will help dictate what APR you are offered. Interest rates are set by the Federal Open Market Committee. If they decide that spending needs to be encouraged, they will lower interest rates. While the economy is a bit unpredictable right now, rates are still low. But they are expected to increase as the year goes on (which makes now a perfect time to refinance if you already have a motorcycle loan).

Your Credit Score and History

The biggest factor for your motorcycle loan APR (that you can control) is your credit score. Lenders use them to determine how likely you are to pay back a loan. Your credit score looks at the following categories:


  • Payment History. Are your payments consistently full and on time? 
  • Amounts Owed. How much money do you owe on your accounts?
  • Credit History Length. How old are your accounts? 
  • Credit Mix. Do you have a healthy mix of different types of accounts and debts? 
  • New Credit. Do you have a lot of hard inquiries on your credit? Do you have some brand new debts? 

All of these factors are looked at when determining your credit score (and therefore your motorcycle loan APR). The higher your credit score is, the better motorcycle loan APR you will be offered.

Your Income

Lenders will also look specifically at your income to determine your motorcycle loan APR. Your income compared to the amount of debt you are in will indicate to lenders if you will be able to repay your loans.

The Loan Term

The longer the loan term is, the higher the interest rate you are offered will be. Lenders will often offer lower rates for shorter terms. This means that if you select a longer lease period, you are not only paying a higher car loan interest rate, but you are paying it for a longer period of time. You will ultimately end up paying a lot more money overall by selecting a long repayment period.

How can I lower my monthly motorcycle payment?

Refinancing your motorcycle is the best way to lower your monthly motorcycle payment, and it will most likely save you money in the long run. When you refinance, you are paying one loan off with another loan. This new loan will have a different APR and repayment plan. By securing a lower APR, you can save money every month. You can also accelerate your payment plan, which will allow you to pay your loan off faster and save money (lower APRs are traditionally offered to loans with shorter repayment plans). Or you can refinance a motorcycle loan to a longer repayment period and cut your payments every month.

How do I refinance a motorcycle?

If a motorcycle refinance sounds like a good idea to you, you may be wondering how to get started. The good news is it’s so simple! Here’s what you do:

  1. Make sure your credit score is looking good. It is so important to have a good credit score when you are refinancing. That is how you can make sure you save the most money. If your credit score isn’t great, wait a few months before refinancing and work on improving your score. Focusing on making on time payments and paying down debt can have a huge impact on your score.
  2. Gather all of your documents–including your original loan documents. You will need a photo ID, your vehicle’s information (may include the bill of sale, VIN number, make, model, and year of your car), proof of income and financial history, proof of residence, and proof of insurance. Scan them and upload them so you are ready to go when the time comes to apply.
  3. Get a quote from Auto Approve. At Auto Approve, we can shop around for you and save you the hassle. We have relationships with lenders across the country, which means we can find you the best deals and save you the most money. You should aim to apply to 3-5 lenders so that you have enough offers to compare. 
  4. Compare your offers.  When the deals come in, the experts at Auto Approve can help you decide which is the best loan for you. You want to look at the motorcycle loan APR, the repayment period, the prepayment penalties, and the customer service ratings when making your decision.
  5. Sign and start saving. Once you decide what loan is right for you, it’s just a matter of signing on the dotted line! We can even help you with all of the paperwork (including the DMV!) That’s it! Refinancing really is so simple when you choose Auto Approve.

And that’s how you can lower your monthly motorcycle payment.

Refinancing your motorcycle is the best way to lower your monthly motorcycle payments. By refinancing with Auto Approve, you can save a lot of money every month so that you have more free cash for the things you love.

You know you are in good hands when you choose Auto Approve for your motorcycle refinance. Auto Approve has a 96% would-recommend rating on LendingTree as well as an A+ rating from Better Business Bureau. With customer satisfaction like that, what do you have to lose? So don’t wait any longer – contact Auto Approve to get started. Get your free quote today!

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