How to Finance a Scooter

Financing a scooter purchase is very similar to doing the same for a car. You need to have your paperwork together before going to a lender, you need to prove an ability to pay the loan back via income or assets, collateral may be and is frequently required, and you need to have good credit. Follow these steps in the right order and the financing will work rather seamlessly. Do it wrong and you can quickly find yourself being told "no" to a scooter loan.

Instructions

Preparation

1

Identify the particular scooter you are interested in purchasing and from which dealer. You will need to know the model of the scooter, the year of manufacturing, the dealer name and finance contact, and the approximately price of the scooter with all taxes and fees involved. Some dealers may do all of this for you at the store, but it helps to secure your own loan pre-approval to get competitive rates.

2

Run a credit report on yourself prior to asking for financing. This data will give you an idea as to whether you have a good chance or not of being approved. If your credit picture is heavy with debt, you're likely going to be denied or charged a high interest rate.

3

Collect all your related paperwork together to show your identification, driver's license, proof of insurance coverage (motorcycle), and financial assets and commitments. Lenders will also need your address and Social Security number to determine your credit rating.

4

When you are ready to finance, you can go through the scooter dealer directly if he offers a financing program, or you can apply for a loan through a bank or finance lender. Either can get the financing done, but getting your own pre-approval independently allows you to compare. It also forces a dealer to offer you a better rate and finance package if he wants your loan business.

The Loan Itself

5

If you are pre-approved, you will be required to fill out a finance application with all the relevant information for a loan officer. You may be required to show proof of your data, which is why you should bring all your paperwork with you. Being prepared prevents delays, uncomfortable questions or guessing.

6

The finished application will be reviewed by the loan officer and tentatively approved. This tentative paperwork allows you to actually close the sales contract on the scooter.

7

You will be allowed to drive the scooter away at the sale, but the deal is not final until the dealer gets paid, you get your license tags and vehicle paperwork, and the bank receives its copies from the dealer. This may take a few days to accomplish. Occasionally, this window of time may go awry due to a dealer's paperwork problem at the local DMV office or a bank's payment not processing. You will be contacted if there's a problem.