How Much Do I Need to Put Down?
Down payments are one of the most important aspects to consider when financing a new motorcycle, ATV, side-by-side or personal watercraft. We get the question all the time, “how much do I need to put down?”
Well, that comes down to what your goals are.
If you are trying to keep your payment small, a larger down payment means you typically finance less, which means smaller monthly payments.
If you are trying to get away with paying $0.00 down, be prepared to pay a higher interest rate. It may be worth it to read up on how creditors assess risk.
If you are just getting started and planning for a typical credit situation, most powersports loans will require 10-20% down.
In turn, if you are buying a $10,000 motorcycle, you should plan on putting $1,000-$2,000 down. Here is a quick reference chart.
Vehicle Amount | 10% Down | 20% Down | 30% Down | 40% Down |
$5,000 | $500 | $1,000 | $1,500 | $2,000 |
$10,000 | $1,000 | $2,000 | $3,000 | $4,000 |
$15,000 | $1,500 | $3,000 | $4,500 | $6,000 |
$20,000 | $2,000 | $4,000 | $6,000 | $8,000 |
$25,000 | $2,500 | $5,000 | $7,500 | $10,000 |
$30,000 | $3,000 | $6,000 | $9,000 | $12,000 |
$35,000 | $3,500 | $7,000 | $10,500 | $14,000 |
Is it Worth it to Finance a Motorcycle?
Even if you have the cash on hand to pay for your powersports vehicle upfront, the perks of financing are likely still worth it. See why you should finance when you have cash.
How Can I Lower My Interest Rate On My Motorcycle Loan?
Let’s talk about how we can use down payments as a tool to lower risk. Any time you lower risk for the bank, they look more favorably on the loan.
Shorter terms translate to lower risk, but they increase monthly payments. At the same time, a larger monthly payment can increase risk, depending on your debt to income ratio, because there is no guarantee you will complete that payment.
New vehicles, as opposed to used, lower risk because their established value is more consistent, not to mention the factory would rather sell a new unit than a pre-owned one.
How Can I Lower My Monthly Motorcycle Payments?
Cash, greenbacks, $100 bills, hard-earned cash. The thing we all work so hard to get but never want to give up. The more of this precious commodity – money – you are willing to part with upfront, the more likely you are to hit your ideal monthly payment amount.
How Can I Get a Motorcycle With Bad Credit?
If you are in a situation where your credit isn’t so healthy, then down payments might be the most powerful tool we can use to turn a NO into a YES. If you can combine a larger down payment with things like a shorter term, and a new asset, it only increases the chances of a yes.
You’ll also need a trained finance expert in your corner to work with you and plead your case. But you already know where to find one of them – at the Beaverton Motorcycles finance center.
Hopefully, we answered more questions than created. If not, feel free to ask online or give us a call at the dealership.
Life’s an adventure. Your journey starts here at Beaverton Motorcycles.