Choosing a lending source is a crucial part of getting a motorcycle loan. As a smart borrower, you don’t just accept the first offer that is given to you. In considering a lender, you must consider years of experience, reputation, and quality of service.
Traditional banks are where most people usually go to acquire financing. But credit unions are often forgotten alternatives. Which of these two lending sources offer the most favorable choice for motorcycle loans?
Motorcycle Financing with Banks
Traditional banking institutions offer an array of loan programs for motorcycles. In determining their rates and terms, banks use the property’s valuation, whether it is newly acquired or not, and the current market standards. Due to their reputation, banks offer the most opportunity for many eligible borrowers to get the motorcycle financing they need.
If you have been able to establish a relationship with your bank for many years, it could be easier to get a loan for a motorcycle since they hold your financial records. However, that does not mean you cannot get financing from another bank. Or, if another offers a lower interest rate than your current banking institution, you can use this as leverage to negotiate and obtain a good rate for your motorcycle loan.
Getting Motorcycle Loans from Credit Unions
Credit unions offer the same services as traditional banks. They are member-focused, which is its foremost advantage because it allows its stakeholders to have a direct impact on the cooperative. If you get your motorcycle financing from a credit union, chances are you will get lower interest rate compared to that offered by a traditional bank.
Which is better?
Scope. Credit unions require you to be a member of the cooperative before you can access its benefits. That makes reach a problem for credit unions. Banks, on the other hand, do not require its potential borrowers to become a member as long as they satisfy the loan eligibility requirements. Exclusivity could be very advantageous to those who are members of a cooperative, however, and can open a wide array of financial benefits.
Flexibility. Banks are more flexible in their loan offerings because of their size and market influence. The specialty nature of motorcycle loans is a reason for such hurdle.
Choosing whether to get financing from a bank or credit union is a question of access and availability which is fairly dependent on your current financial setup. It is thus important to exhaust your options, find what’s available, and compare your offers first before settling on a final choice.