Buying a new motorcycle is a major investment, even if it is not as expensive as a car. Since motorcycles are still considerably expensive, a loan is one of the best ways to buy them without bearing a lot of financial burden. The only challenge is that most loans require a down payment. There are, however, a few other ways in which one can buy a motorcycle without having to make a down payment.

How to buy a motorcycle without a down payment

1. Apply for a personal loan
One of the best ways for individuals to buy a motorcycle with financing is by applying for a personal loan. Unlike motorcycle loans, personal loans do not require one to make a down payment. Personal loans also do not require one to pledge collateral. To apply for a personal loan, individuals can directly approach their bank, where they already have an account. One can even approach other lending institutions if one finds that their bank  is not offering  the best interest rate.  Regardless of where one is applying for a personal loan, there are some common eligibility requirements one would need to meet. These include being over 18, being a country resident, having a stable income, and having an active checking account. One may even need proof of their income when applying for the loan.

2. Try manufacturer financing
Another great option for getting a motorcycle without a down payment is manufacturer financing. Most motorcycle manufacturers offer financing to their customers to purchase a new model. These financing options are flexible, as manufacturers offer them with and without down payments. Some of these manufacturer financing options even allow customers to choose the amount for monthly payments that best suits their budget. Based on that amount, the loan term can then be decided.

3. Apply for a secured loan
A secured loan is a financing option in which the bank or lender has a valuable possession of the loan applicant as collateral. So, in case the individual fails to repay their loan, the lender can take complete possession of the valuables to recuperate the loss. When buying a motorcycle, the secured loan option means that the lender has secured the motorcycle as collateral. So, if the individual fails to repay their motorcycle loan, they could lose their new motorcycle to the lender. In most cases, lenders agree to offer a secured loan without a down payment.

4. Look into credit union loans
Credit unions offer loans at lower interest rates than banks and traditional lenders. The only catch is that to get a loan from a credit union, an individual would have to be a member of that union. Joining a credit union is usually  not that difficult .  Each union has its own set of requirements that must be met to become a member. Once a person can become a member, they can request the union for a motorcycle loan without a down payment.

5. Use credit cards
Credit cards can also be a great way to purchase a motorcycle without making a down payment. Since credit cards have a spending limit, one cannot pay a motorcycle’s  full amount at once. The way to make this purchase is by making monthly payments. These monthly payments will be automatically deducted from the  individual’s  credit card account every month. For this, one would need to talk to the dealer and decide upon a fixed tenure. For instance, suppose one agrees to pay for the motorcycle over 60 months. In that case, the predetermined monthly installment amount would be deducted from their monthly credit card for the next 60 months.

6. Seek help from family and friends
If one wants to avoid financial institutions completely, one can also seek a loan from their family or friends to pay for their new motorcycle. The individual can repay the loan to them in monthly installments, just like they would to a lender. The only difference is that, in this case, one would not have to pay any extra interest. Also, one would not be required to make any down payments. This option is also ideal for individuals who do not have a bad or low credit score, like around 550 and need to buy a new motorcycle with financing or credit.

7. Trade in an old vehicle
If an individual has an old motorcycle, they can also trade it in when buying a new one. If the old motorcycle is in fairly good condition, its trade-in value can easily cover the cost of the new motorcycle’s down payment. This way, one would not be required to pay extra for the down payment and could secure a loan for a new motorcycle.