Alternatives to Harley-Davidson Dealer Financing

There’s nothing like hitting the open road on a Harley-Davidson. Affording it is the tricky part. Luckily, there are alternatives to Harley-Davidson financing that won’t keep you sidelined. These alternatives may offer better rates, more flexible terms, and a repayment plan that fits your budget.

In this article, we’ll discuss the various alternatives to Harley-Davidson financing to equip you with a solid knowledge base of financing options that suit your budget and buying experience.

Lender	Rates (APR)	Best for
LightStream	7.49% – 25.99%	Excellent credit
Upstart	7.80% – 35.99%	Little to no credit
Digital Federal Credit Union	Starting at 7.25%	Secured motorcycle loan

Alternatives to Harley-Davidson financing

Exploring alternatives to Harley-Davidson financing can open more doors for personalized loan options.

Lenders like Lightstream, Upstart, and Digital Credit Union (DCU) each offer unique benefits that could help you purchase your dream bike. Here’s why these options might be the right choice for your next Harley-Davidson adventure.

LightStream

Best for excellent credit

4.8 _/5

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Why it’s a good alternative

LightStream is an excellent choice for borrowers with strong FICO credit scores of at least 740 seeking $5,000 to $100,000 to finance their Harley-Davidson motorcycle. LightStream offers competitive rates and a variety of loan terms to suit different financial needs. The application process is online and straightforward, often resulting in same-day funding for approved applicants.

LightStream’s no-fee policy, which includes no origination, prepayment, or late fees, makes it a cost-effective financing option. Its Rate Beat Program promises to beat any qualifying rate from another lender, ensuring you get the best possible deal.
LightStream doesn’t allow borrowers to view rates with a soft credit check, which means a hard credit check is required. Since this will affect your credit (temporarily), we think this lender is best for those with excellent credit who are confident they’ll be approved.

Competitive rates with no fees
Same-day funding available
Rate Beat Program to secure the best rates

Upstart

Best for thin credit

4.8 _/5

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Why it’s a good alternative

Upstart is a unique online lender that uses artificial intelligence to assess loan applicants, considering factors beyond traditional credit scores, such as education and employment history. This makes Upstart a terrific option for borrowers with little to no credit history looking to borrow between $1,000 and $50,000 to finance a Harley-Davidson motorcycle.

Upstart offers quick funding, often within one business day, and provides transparent terms with no prepayment penalties. Its inclusive approach to lending makes it easier for a broader range of borrowers to secure the necessary funds for their motorcycle purchase.

You can check your rate with Upstart with a soft credit check, which doesn’t affect your credit score. However, the lender charges an origination fee of up to 12%, so it might not be suitable for those eligible for a loan from no-fee lenders.

Inclusive credit assessment criteria
Quick funding, often within a business day
Transparent terms with no prepayment penalties

DCU

Best for secured motorcycle loan

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Why it’s a good alternative

Digital Federal Credit Union (DCU) offers secured auto loans designed for motorcycles, including Harley-Davidson models. As a credit union, DCU provides competitive rates and terms, often lower than those from traditional banks or dealer financing options. Borrowers can benefit from lower interest rates by securing their loan with the motorcycle as collateral.

DCU’s secured motorcycle loans are excellent for affordable and flexible financing options if you’re looking for a more traditional auto loan. The application process is straightforward, and DCU offers excellent customer service to assist borrowers throughout the process.

Competitive rates
Excellent customer service and flexible terms

Keep in mind that your Harley-Davidson secures your loan, so if you can’t make payments, DCU can seize the motorcycle

Why you might consider alternatives to Harley-Davidson dealer financing

If you’re looking past the dealership for financing options, chances are that the initial options didn’t meet your expectations. Here’s why considering alternatives like Lightstream, Upstart, and DCU offer when deciding if you should finance through a dealer or bank:

Competitive interest rates

Dealerships often have higher interest rates when compared to independent lenders. They also reserve their best rates for promotions that apply to certain models of vehicles. Alternative lenders like Lightstream offer lower rates to qualified borrowers that can instantly save you money.

Flexible loan terms

Dealerships might offer less flexible loan terms that can lead to longer repayment periods that cost you more money over the life of the loan. Lenders like DCU offer a little more flexibility in the terms that give you more control over your monthly payments and repayment period.

Hidden fees

Handling fees, preparation fees, and other hidden charges can increase the overall cost of financing at a dealership. Companies like LightStream have a no-fee policy, which includes no origination fees, prepayment fees, or late fees.

Credit requirements

Some dealerships have strict credit requirements that could disqualify you from financing your dream bike. Upstart, for example, uses an algorithm rather than just a credit check to evaluate your creditworthiness.

Should you consider an unsecured or secured loan to finance your Harley-Davidson motorcycle?

Whether or not you want to use a secured or unsecured loan to finance your Harley-Davidson motorcycle is a key decision you’ll have to make. It’s important first to understand the differences and how each option will impact your loan.

Dealer financing for a motorcycle, including Harley-Davidson dealerships, is almost always secured. Meaning, that the loan is backed by the motorcycle itself. If you default on the loan, the lender has the right to repossess the motorcycle as collateral against the loan.

Unsecured loans don’t require collateral. They report to most major credit bureaus, so your credit score is on the line, not the motorcycle. These loans usually require higher credit ratings for approval or offer higher interest rates because they are riskier for the lender.

Pros and cons of an unsecured motorcycle loan

Pros

No collateral required

Unsecured loans don’t require your motorcycle as collateral.
Quicker loan processing

Online lenders can prequalify you in minutes and disburse in 1 – 2 business days.
Less risky to the borrower

Unsecured loans reduce your risk since the lender can’t seize your motorcycle if you default.

Cons

Higher interest rates

Unsecured loans are riskier for lenders, so they typically have higher interest rates than secured loans.
Strict credit requirements

Lenders require a higher credit score to qualify since there is no collateral to fall back on.
Lower maximum loan amount

The maximum loan amount is only the cost of the vehicle plus fees. So if you’re looking for more it’s likely unavailable here.

Pros and cons of a secured motorcycle loan

Pros

Lower interest rates

Secured loans usually have lower interest rates because the lender’s loan is less risky.
Higher loan amounts

Less risk for the lender translates to more dollars in your pocket. Lenders are willing to offer larger loan amounts when collateral is backing it.
Easier to qualify

Borrowers with lower credit scores will find it easier to qualify for a secured loan because of the collateral they will have to offer.

Cons

Repossession

If you miss payments, you are at risk of losing your motorcycle.
Slower processing times

Unsecured loans can be processed in just one to two business days. Secured loans take a bit longer because lenders need to assess the value of your collateral.
Additional costs

Origination, processing, and late payment fees can quickly add up.

How to choose the best alternative to Harley-Davidson dealer financing

It’s not enough to sniff out good interest rates. The best loans balance good terms with little to no added fees. Here are some detailed steps to help you find the best alternative to Harley-Davidson dealer financing:

Learn how your credit score will impact your loan terms. Use a credit calculator to calculate how much you can afford to put down and your monthly payments.
Don’t settle for dealer financing. Research credit unions, banks, and online lenders specializing in auto and motorcycle loans.
Use this information to compare interest rates, loan terms, and fees.
Read customer reviews from trusted sources like Trustpilot, Google, and the BBB.
Prequalify to see the rates you are eligible for.
Review your loan agreement before committing anything. The devil’s in the details, so be sure to review any final documentation carefully.

FAQ

What is the minimum credit score to finance a motorcycle?

The minimum credit score to finance a motorcycle typically varies depending on the lender. Generally, a credit score of 620 or higher is considered the minimum for securing a motorcycle loan from most traditional lenders, such as banks and credit unions.

Are there alternative financing options if I have bad credit?

Yes, there are special financing options for people with bad credit. Some credit unions and online lenders also offer loans specifically for those with bad credit. It’s crucial to shop around and compare offers to find the best terms possible.

Who has the easiest motorcycle financing?

Several lenders offer easy motorcycle financing, but it often depends on individual credit profiles and financial situations.

LightStream offers a straightforward online application and a quick approval process. Online marketplaces can connect you with multiple lenders, increasing your chances of finding a convenient and suitable financing option.

Recap of alternatives to Harley-Davidson dealer financing

Lender	Rates (APR)
LightStream	7.49% – 25.99%
Upstart	7.80% – 35.99%
Digital Federal Credit Union	Starting at 7.25%