More and more motorcycle and car dealerships are adding buy here pay here motorcycles to their mix. This addresses the needs of customers who need a motorcycle but do not have the cash and credit to purchase one. Buy here pay here (BHPH) dealers offer bad credit motorcycle loans directly to their customers, bypassing conventional lenders.
Buy Here Pay Here Motorcycles Financing
Used buy here pay here motorcycles are sold using a different approach to financing. Conventional loans are made by banks and lenders who evaluate loan applications strictly by the credit scores of the applicants.
If you’ve experienced recent financial setbacks or a bankruptcy, you may find yourself being turned down by conventional banks and lenders. With buy here pay here financing, the dealer skips these financing middlemen and decide independently to finance the motorcycle loan. Besides used bikes, this type of financing also extends to scooters sold as well.
By offering in house motorcycle financing, these BHPH motorcycle dealers offer these bad credit loans directly to their clientele, skipping the stringent credit requirements of these lenders. Some may even skip a credit check completely. What you may probably need to provide is:
- Drivers License
- Proof of your residence (perhaps using a recent utility or phone bill)
- Proof of income (recent paystub)
- Proof of insurance
- Personal references (they can call on if you skip payments)
The motorcycle dealer will typically ask for 30% to 50% of the cost of the used motorcycle as downpayment, and ongoing payments for a duration of 6 months to a year. Since this is a bad credit loan, you can expect interest rates to be high, in the 15% – 25% range. So a $5000 bike can work out to an $1800 downpayment and $135 a week for 26 weeks. The dealer will hold on to the title until the motorcycle is paid off.
Buy Here Pay Here Motorcycles – Buyers’ Tips
Traditional buy here pay here dealers work mostly with cash, so you may required to come in every week or two weeks to provide payments. However, more and more dealers are providing more flexible payment options, such as using bank drafts or paying online. This is especially so if the motorcycle dealer has a large clientele that is spread out from where they are located.
When purchasing, be sure to ask about what payment options are accepted. You may live far from the dealership, and if so, it is not feasible to go down every week or so to make cash payments. If you are ever late in your payments, you will be putting your motorcycle ownership into jeopardy.
Buy here pay here motorcycle dealers are notorious for fast repossessions, even if the customer is just a few days late. Before you buy, make sure that you find out what the late payment terms are in the contract. Some may demand additional fees for each day of late payment. Others have zero tolerance and will not hesitate to bring the bike back into their compound. Before you sign on the dotted line, make sure that you understand the terms of the deal, and what the consequences are for late payments.
Another factor to keep in mind is the type of warranty and maintenance extended for the used buy here pay here motorbike. You are paying precious money for the bike, so you definitely want something that you can ride on without having it break down all the time.
Most buy here pay here motorcycles are older models that have some good mileage on them. So the inspection, reconditioning process and warranty extended on the used motorcycle sold to you are important factors to consider before buying. Some dealers have a repair facility right on their premises to take care of any problems the used bike may have.
Where To Find Buy Here Pay Here Motorcycles
There are plenty of buy here pay here car lots around the country, but buy here pay here motorcycles are slightly less popular. Most cities have at least a few of these dealers. Some buy here pay here car lots also take in used motorcycles, so that is another place to inquire. They may not advertise themselves as “buy here pay here” but if you see signs like “we finance,” “everyone is approved,” “no credit check,” “bad credit OK” or “in house financing,” these are tell tale signs that the motorcycle dealer is offering bad credit motorcycle loans. You can look into CycleTrader, Craigslist and listings on websites like this.
Even if there are few in your immediate area, if you look hard and ask around, you can probably find additional places in your extended area. This may require a drive out initially. If you do buy from them, make sure that you can pay them electronically or over the phone for the ongoing payments. Otherwise, it will be a lot of hassle to make the ongoing payments for the motorcycle.
Buy Here Pay Here Motorcycles Inventory
Buy here pay here motorcycles inventory consist of mostly used motorcycles that are 5 years and older. Here are some examples we found:
2003 Suzuki Gsxr 750 – $6000
2006 Yamaha Fz-1 – $6200
2006 Honda Cbr600rr – $7000
2003 Kawk Meanstreak, 31627 Miles – $4000
2003 Suzuki Gsxr 600 Sport Bike, 17174 – $6000
2012 Taotao New Evo 150cc Sc, New – $970
Looking for used buy here pay here motorcycles is a way to own a motorcycle even if you have bad credit. Keep in mind that buy here pay here purchases are sometimes frowned upon because the prices asked for may be high, while the used motorcycles offered may not be the best. The advantage is that initial cash downpayment may be low, and you can still qualify for a bad credit loan. There are pros and cons. Make sure to comparison shop, and read additional articles and websites to get informed.