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Motorcycle Financing Canada: Your Ultimate Guide to Getting the Best Motorcycle Loans

Sat, 13 Jul 2024 11:48:00 -0700

Motorcycle ownership in Canada is more than just transportation - it's a passion. But that big investment can put a dent in your wallet. Motorcycle financing offers a solution. From a new Harley Davidson to a fuel-efficient used bike, understanding your options is crucial for finding the right motorcycle. Let's explore motorcycle loans and how to get credit approval for financing today, bringing you one step closer to making those motorcycle dreams a reality.

Motorcycle Loan Interest Rates in Canada

In 2024, we're seeing interest rates level out and even drop slightly in the general market. While this is a great sign overall, the recreational lending industry is still riding a fairly high rate with 9.9% as the base starting point. While we may not see a drop in 2024, we do expect things to level out and hope we can get back closer to the 5.9% that we were seeing country-wide only a few years ago.

Key Motorcycle Financing Terminology

Kijiji: Canada's Go-To Marketplace

When it comes to selling anything online in Canada, Kijiji is king, and used motorcycles are no exception. Kijiji is hot in Western Canada, with Alberta leading the way in motorcycle sale listings Canada-wide.

Why do sellers flock to Kijiji? It's all about reach and simplicity. With millions of active users, your bike's likely to get plenty of eyeballs. The interface is a breeze to navigate, making it easy to create a listing that pops.

Here's what you need to know:

Massive user base: Your potential buyer pool is huge
Free listings: No upfront cost to list your motorcycle (max of two vehicles)
Category-specific fields: Easily input details like make, model, mileage and price
Photo galleries: Show off your bike's best angles
Message System: Chat directly to potential buyers to protect your personal information
Seller type filter: Allows you to filter between private seller and dealership listings

Kijiji's reach is impressive, with a notable concentration of listings in Alberta. The platform's popularity means your ad can get significant exposure, potentially leading to a quicker deal. However, this same popularity can also mean more competition among sellers. The site's interface is straightforward, allowing for easy...Read More

6 Ways Canadian Motorcycle Dealerships Might be Ripping You Off

Tue, 20 Aug 2024 13:24:18 -0700

Buying a motorcycle should be an exciting time, but it is important to stay alert during the process. Some dealerships will try to take advantage of unsuspecting buyers and cost you thousands of dollars. By knowing the tricks and what to look out for you can protect yourself and get a fair deal on your dream bike. Let’s get into 5 ways motorcycle dealerships are trying to pull a fast one on you - and how to not fall for it.

Floating Fees: The Hidden Cost Bomb

You don’t want to be surprised by extra costs when you’re looking at that new bike. But some dealerships play games with their fees, changing them from customer to customer like a game of fee tag.

These sneaky charges can add up fast:

Doc fees: Supposedly for producing paperwork, but often inflated
Processing fees: A vague term that covers a bit of everything (or nothing)
Preparation fees: For getting the bike "ready" for you

These floating fees can add a few hundred dollars to your purchase price, sometimes more. It’s not uncommon to see them add thousands to your total cost, especially if you're financing a motorcycle with bad credit in Canada. By being aware of these hidden traps you’ll be better equipped to avoid extra charges and keep more cash for accessories or that new helmet you’ve been wanting.

Pro tip: Before you sign, or better yet even view a bike that you're interested in, ask for an offer to purchase with a breakdown of all fees involved. Compare them to what other other dealerships are charging.

Debt-to-Income Ratio Explained: What It Means for Motorcycle Financing in Canada

Tue, 06 Aug 2024 14:03:46 -0700

Loans and financing can be like trying to crack a code. One of the keys to that code is your debt-to-income ratio (DTI). This important financial metric is key to your creditworthiness but many people forget about it. Also known as debt service ratio or total debt service (TDS) your DTI can make or break your loan application regardless of how good your credit score is. Let’s get into the details of DTI and break it down.

Understanding Debt-to-Income Ratio

DTI is more than just a number - it’s a picture of your financial situation lenders use to see if you can manage monthly payments and pay off debts. But what is DTI and why is it so important?

What is Debt-to-Income Ratio?

In a nutshell, your debt-to-income ratio is the percentage of your monthly income that goes towards paying your debts, including Read More

Top 10 Common Motorcycle Financing Mistakes & How To Avoid Them

Wed, 24 Jul 2024 14:25:01 -0700

Ready to hit the road on your dream bike? Not so fast! Motorcycle financing options can be a minefield of potential mistakes that could put a serious dent in your wallet. Making smart choices now can save you from years of financial headaches.

From credit scores to hidden fees, we're about to unpack the most common financial mistakes people make when it comes to motorcycle financing. By the time we're done, you'll be armed with the knowledge to secure a loan that won't leave you spinning your wheels financially.

Let's kick this into gear and dive into the first major mistake many riders make when financing their new ride.

Mistake #1: Being Unrealistic About Your Credit

Understanding your credit history is like knowing your bike's performance specs - it's crucial for making informed decisions. Your credit score plays a massive role in determining your loan options, and being in the dark about it is like riding blindfolded.

The Power of Your Credit Report

Your credit score and report mean more than just a number - it's the key that unlocks better financing options. A good credit score can fast-track you to lower interest rates, potentially saving you thousands over the life of your loan repayment. On the flip side, a less-than-stellar score might leave you facing a higher interest rate or even loan rejection.

Checking and Boosting Your Credit

Before you start shopping for that new motorcycle, take a peek at your credit report. Many digital tools offer free credit checks without impacting your score. Spot any errors? Don't hesitate to dispute them - it could...Read More

Understanding GAP Insurance on Motorcycle Loans in Canada

Thu, 18 Jul 2024 13:50:41 -0700

GAP insurance (short for guaranteed asset protection or guaranteed auto protection) is an optional coverage that many vehicle owners in Canada consider to go hand-in-hand with their motorcycle insurance. It's designed to cover the difference between your insurance payout and your outstanding loan balance if your bike is stolen or written off as a total loss. Evaluating the GAP insurance cost and determining if it's GAP insurance worth the investment are key steps in this process. Let's dig into answering the questions that are likely the reason you are here reading this right now - how does GAP insurance work and is it worth purchasing?

What is Motorcycle GAP Insurance?

GAP is an additional policy that is meant to pay the difference between your motorcycle's current market value and your outstanding motorcycle loan balance. Unlike standard auto insurance, GAP coverage steps in when your regular insurance payout isn't enough to cover what you owe on your bike.

Key aspects of GAP insurance:

Bridges the gap between your bike's depreciated market value and your loan amount
Activates when your motorcycle is declared a total loss or is stolen
Works in tandem with your comprehensive insurance coverage.

GAP protection provides an extra layer of financial security, ensuring you're not left having to pay for a bike you can no longer ride. Now, let's explore how this coverage works in practice.

How Motorcycle GAP Insurance Works

To truly grasp the value of GAP insurance, let's walk through a real-world scenario. Imagine you've decided to buy GAP insurance for a new motorcycle worth, at the time, $15,000. Six months later, your bike is totaled in an accident. Your...Read More

Marketplace Scams: The Rise of the Fake Vehicle History Report

Sat, 06 Jul 2024 20:14:13 -0700

Selling a motorcycle online can be both exciting and nerve-wracking. Platforms like Kijiji, Autotrader, and Facebook Marketplace make it easy to reach potential buyers, but they also attract scammers. One of the most common scams involves vehicle history reports. If you're not careful, a simple request for documentation that your motorcycle has a clean history can lead you straight into various vehicle history report scams.

This scam usually starts with an "interested buyer" who asks you to purchase a VIN (vehicle identification number) report from a specific, suspicious website. Their goal? To steal your credit card information and personal data. Understanding vehicle history report scams and recognizing the warning signs can help you protect yourself when selling your motorcycle online.

Understanding the Fake Vehicle Report Scam

What is a Vehicle History Report and Where Can You Get a Legit One?

A vehicle history report is like a detailed biography of your motorcycle. It includes crucial information such as accident and repair history, recall notices, title status, and sometimes service records. Potential buyers often request these reports to ensure they aren't buying a motorcycle with hidden issues.

In Canada, Carfax is the main trusted provider of vehicle history reports. A Carfax report is essential for potential buyers, helping them make informed decisions and avoid purchasing motorcycles or cars online which have problematic histories. There have been many horror stories in Canada involving the purchase of a used motorcycle or car with a lien on it or that has been declared salvage. The importance of purchasing a vehicle history report if you're buying a motorcycle or car online can not be overstated.

How the Scam Works

Here’s...Read More

Canada Motorcycle Financing Rates 2024: July Update

Tue, 13 Feb 2024 11:48:03 -0800

Exploring financing options in Canada can be tricky, but understanding what's available can make the process much smoother. As of July 2024, prospective motorcycle buyers have various flexible finance options, each with distinct rates and offers which may vary based on credit tiers. Let's dive into the different lenders, current rates, and special offers to help you make an informed decision when you finance your purchase.

Current Motorcycle Loan Interest Rates in Canada

As of July 2024, here's a general overview of what you might expect across different credit tiers:

Prime Credit (720 and above): Standard rates for pristine credit currently sit around the 9.9% mark for most recreational loans, including motorcycles.

Current Harley Davidson promotional rates start from 7.59% with 10% down. To qualify for those loan rates, however, you also need to pay for the Harley Davidson extended service plan. Harley Davidson promotional rates limit the maximum loan term to 60 month.

Mid-Tier Credit (660-719): For those in the mid-tier range, APRs typically range from 11.9% to 17.9%. Mid-tier credit situations could include a high debt-service ratio as well as some prior minor late or missed payment history.

Poor Credit (Below 660): Borrowers with lower credit scores may face rates from 19.99% and above. It's not uncommon to see a 29.9% rate offered for someone looking to completely rebuild with multiple repossessions or write-offs.

Remember, your credit score isn't the only factor determining your rate. Other "under-the-radar" factors can affect your loan approval and terms.

Factors That Influence Your...Read More

Defensive Riding: Essential Tips for Safe Motorcycling in Canada

Thu, 01 Feb 2024 12:28:39 -0800

Picture this: You're cruising down a scenic Canadian highway, the sun warming your back, and the landscape unfolding before you like a living postcard. Sounds perfect, right? But here's the catch - sharing the road with other vehicles can turn that dream ride into a nightmare if you're not prepared. That's where defensive riding comes in, your invisible shield against the unpredictable nature of traffic.
In Canada, motorcycle accidents are a sobering reality. Recent statistics show that motorcyclists are about 10 times more likely to have an accident cause severe injury and nearly 5 times more likely to be in a fatal accident compared to those behind the wheel of a car. But don't let that scare you off your bike! With the right knowledge and riding techniques, you can dramatically reduce your risk and ride safe through any situation.

Understanding Defensive Riding
So, what exactly is defensive riding? Think of it as your personal forcefield on the road. It's a set of skills and attitudes that help you anticipate and respond to potential hazards before they become actual dangers. The core principles of defensive riding include:
Stay alert and aware of your surroundings
Predict and prepare for potential risks
Maintain control of your speed and position
Communicate clearly with other riders and drivers
Now, you might be thinking, "Isn't this just like defensive driving?" Well, not quite. While both share the goal of avoiding accidents, defensive riding takes things...Read More

6 Under-the-Radar Factors Affecting Your Motorcycle Loan Approval

Mon, 31 Jul 2023 13:12:41 -0700

When you envision the open road on your own used motorcycle, the last thing you want to fret about is locking in a decent loan rate. Unfortunately, you may end up with unrealistic goals for your motorcycle financing if you're not familiar with the factors that can affect your loan rate. While credit scores and down payments are often talked about, some significant aspects go unnoticed.
Today, we're shifting gears to focus on six under-the-radar factors that influence your motorcycle loan rate:

Debt-to-Service Ratio
The Total Debt Service Ratio (TDSR), or Debt-to-Service ratio, is a crucial factor when applying for motorcycle financing. It measures the portion of your income that goes towards servicing your current debt obligations, including any existing loans, credit card payments, and the potential motorcycle loan you're applying for. Expressed as a percentage, a lower DSR signifies that a lesser portion of your income is earmarked for debt repayment, indicating to lenders that you're less likely to struggle with additional debt from the motorcycle loan. Therefore, a lower TDSR could improve your chances of loan approval and possibly secure you a better interest rate as it opens up the door to a larger amount of lenders who may be willing to take on the loan.

Read More