Can you buy a motorcycle with a credit card?

Do you ever wonder if it might be better to buy your motorcycle outright with a credit card and make the payments as fast or as slow as you like to clear the loan? Is it a good idea? Let’s find out. 

If you are buying a motorcycle from a dealership, then in almost all circumstances, you can pay for your motorcycle with a credit card if the credit card limit is sufficient.

How should you pay for a motorcycle?

Financing a major purchase such as a motorcycle can be a daunting experience. There are many offers to be had as banks and finance companies try to attract your business.

Clearly, if you can pay cash and not take a loan, this is a good option. Well, on the surface, it seems like a good option, but it all depends on how low the interest rate being offered is.

You will need to balance the cost of the loan over leaving your own money in the bank. Many dealerships cut the interest rate as low as possible and then try to sell add-ons like extended warranties to earn commissions.

It is a minefield. However, you will need to shop around and find the best deal on offer. Even approach your bank and find out if they can supply you with a better deal.

Credit card

Many factors to consider when using a credit card to buy a large item like a motorcycle. Credit cards will have a higher interest rate than any loan you can get from a finance house or bank.

If you can pay the whole amount of the purchase within 30 days, then you have held on to your cash for an additional 30 days and hopefully gained a little interest while using someone else’s money for the motorcycle purchase.

If you can’t pay back in one hit, you will have the flexibility of paying a minimum payment each month, usually 5% of the outstanding balance. If you take this option, the interest on each payment is enormous, and you will never really own your bike and lose any equity you used to purchase the bike.

However, if you know you can pay back the purchase in a few months, then it’s possibly an acceptable way to make the purchase. Be disciplined and pay back the credit card company as you planned.

There are some protections with a credit card purchase. Suppose anything should happen to your motorcycle mechanically, and the dealer is not fixing it to your satisfaction. In that case, the credit card company will become involved before you walk away, leaving them holding the baby.

Usually, credit cards are not secured loans. If you default on a payment, the purchase is more challenging to repossess. Check the fine details, and don’t rely on what you read here. Laws change frequently.

Can you buy a motorcycle without a credit card?

Yes, of course. If you have a driving license and cash, you can walk in and pay cash. If you have a good standing credit history and are not stretching your finances, there is no reason why a finance company would not approve your loan.

If you have a good credit history, you are in the driver’s seat. The best advice is to shop around for the best deals. You do not need to take the deal the dealership offers. Don’t be afraid to negotiate and walk out of the door.

Can I buy a motorcycle with a debit card?

If you have enough funds in your bank account, you can use your debit card to buy a motorcycle. It’s always a good idea to call your bank and let them know there will be a large payment presented with a debit card, and it’s genuine.

Can you buy a motorcycle with cash?

In a normal world, you could walk into a dealership with a bag of cash and buy a motorcycle. However, with anti-money laundering laws being so tough the dealership may not want to accept cash as in physical notes. You can arrange for a bank transfer. It’s safer for everyone.

If you are buying privately, you may consider using cash, but again for safety reasons, a bank to bank transfer is the best option.

Finance a motorcycle

Finance is available to most people when buying a motorcycle from a dealership. Even if your credit rating is not pristine, finance companies are still willing to finance your purchase.

Check the interest rates being offered and shop around. You will be surprised at how much you can save over the loan term with just a slight percentage decrease in the interest rate being charged.

What is needed to finance a motorcycle?

Each lender will have its criteria for a lending decision, but you must prove your address and identity.

To prove your address one of the below should be sufficient.

  • Driver’s licence
  • HMRC Tax Notification
  • The local authority tax bill for the current year
  • A recent utility bill
  • A recent bank, building society or UK credit union statement
  • A recent tenancy agreement issued by a solicitor, housing association or local council

To prove your identity, you will need at least one of the below.

  • Driver’s licence
  • Passport
  • Blue disabled drivers pass
  • UK Armed Forces ID Card
  • Biometric Residence Permit

Do motorcycle dealerships take cash?

You will find motorcycle dealerships are reluctant to accept anything over 500 pounds in cash. It’s a crazy situation, but with money laundering laws, that’s how the world is now.

If you want to purchase your motorcycle outright with cash, do a bank to bank transfer. It’s secure and a lot safer than carrying thousands of pounds around with you.

Bank transfers can be completed on the same day. Ask your bank for the best method; there will be a small charge.