Motorcycles are always high on the wish lists of adventurists and thrill seekers. After all, it is hard not to fall in love with the sensation of wind blowing through one’s hair as one zips past traffic! But this dream comes with an expensive price tag, which can be a massive deterrent for many. Luckily, it is now possible to secure a loan for a motorcycle without making a down payment.

What is a zero-down motorcycle loan?
There are two main ways of financing a motorcycle: paying the full amount at purchase or taking a loan. When taking a loan, most people make a down payment; they pay a certain sum upfront, usually a percentage of the purchase price.

Now, if someone wants to buy their dream motorcycle without having to shell out this price right at the onset, they can get a zero-down payment motorcycle loan. This loan covers the entire cost of the motorcycle.

Getting a motorcycle loan with a bad credit score
A good credit score is necessary to secure any loan, including a zero-down payment motorcycle loan. But that does not mean securing a motorcycle loan with a poor credit score is impossible.

Those with a credit score in the “Poor” range (FICO scores between 300-579) or the “Fair” range (scores from 580-699) can look for a bad credit motorcycle loan.

• Personal details (full name, contact information, and Social Insurance Number)
• Employment and income details to prove that one can repay the loan
• Details about the motorcycle of choice, including its make, model number, and purchase price

Where to look for zero-down payment motorcycle loans?
There are several ways to get a zero-down payment loan for a motorcycle in Canada. A few options are:

• Motorcycle dealerships
  Dealerships usually partner with financial institutions to offer buyers financing options. Some of these institutions may work with people with bad credit scores. Many prefer such dealerships as they allow the whole process to be carried out in one place.
• Credit unions
  Credit unions generally offer cheaper interest rates than banks and are more open to working with those with a poor credit history. But a drawback is that one may have to pay a nominal fee to access the union’s services union.
• Banks
  Banks usually  do not like  working with people with  bad  credit scores.  Still, some may offer a zero-down payment loan for a higher interest rate.
• Personal loans
  Getting a bad credit personal loan may be easier than getting a bad credit motorcycle loan. One can apply for it and use the money to buy a motorcycle without making a down payment.  But   one  must remember that such personal loans tend to be unsecured.  That means one may pay a higher interest rate if they choose this financing option.
• Online motorcycle lenders
  Recently, online lenders have been offering attractive loans. Some provide attractive motorcycle financing options, which could be lucrative.

Getting a motorcycle when one does not qualify for a bad credit loan
Even if one does not get a zero-down payment loan or a bad credit loan, one should not lose heart! There are still ways to fulfill one’s dream of buying a motorcycle, such as:

• Pay in cash
  If someone has extra cash, they can consider paying for a second-hand motorcycle upfront.  This  is a cheaper alternative than buying a new one. Individuals may drive a quality motorcycle home for around $3,000 without any wait!
• Improve the credit score
  Individuals must check their credit score before applying for a new loan and try to improve it. Doing so increases their chances of qualifying. To improve the score, one must reduce debt, pay off bills on time, and decrease credit utilization.
• Look for a co-signer
  If a trusted friend or family member has an excellent credit score, one can ask them to be a co-signer. Lenders will assess the co-signer’s creditworthiness, which can be fruitful in securing the loan, as they now become legally responsible for the repayment.  But   it  is important to note that any faults or late payments will jeopardize the co-signer’s scores.

Unlike a car, a motorcycle is not seen as essential in Canada. Riding is a seasonal activity many pursue for enjoyment. That’s why many lenders shy away from offering bad credit  and/or  no-down-payment loans for motorcycles. They fear individuals will not maintain their motorcycles like their commuter vehicles. For this reason, the interest rates (APR) on motorcycle loans also tend to be at least 3-5% higher than on automobile loans, which can drive up their costs significantly. When choosing any financing option, one must carefully read the terms and conditions and research well to avoid disappointment later. Individuals should also compare the options to find the most suitable one.