For those of you who do not follow the motorcycle financing market on a daily basis, I guess I should let you know that motorcycle loan rates are on the rise. Therefore, if you are looking to purchase a new motorcycle with financing now is probably a better time than later.
Since the Federal Reserve started to increase interest rates over the last 18 months, motorcycle loan rates have begun to creep up. Just 12 months ago you could get a 60 month online motorcycle loan from Eloan at around a 6.5% interest rate. Today that same 60 month new motorcycle loan will be at an interest rate of roughly 8%.
With the Federal Reserve recently indicating that inflation is at the upper end of its tolerance range chances are further interest rate increase are likely into the foreseeable future. What this likely means for you is higher motorcycle loan rates.
Even manufacturers who run heavy motorcycle financing promotions have begun to increase their promotion rates. For instance, in 2004, you could have purchased a Yamaha motorcycle or Atv on the Yamaha credit card for 4.9% for 24 months. Today that same promotion on the Yamaha credit card is 6.9% for 24 months.
Overall, be aware if you are looking to finance a new or used motorcycle, the rates offered today will most likely be higher in the near future.
Posted by Administrator in Financing - Loans