Anyone know how the loan value works on a motorcycle?

 

like if your going to put up a motorcycle to try to get a secured loan from a bank?.....what is the formula for a secured loan on a moto?

 

This can vary a great deal among financial institutions...especially in today's market. Whether it's a motorcycle, car, home, or otherwise, this link describes it fairly well.

Loan-to-value ratio - Wikipedia, the free encyclopedia

Usually many information sources like NADA and other booklet based sources provide a category of "loan value". This is usually for the purposes of what a bank, etc. will loan on a given vehicle that fits the category. This is a guide and is not binding on anyone. What you're asking involves using the bike as collateral instead of borrowing to buy a vehicle, so that may be a whole other can of worms. Today's market probably throws all these normally accepted values and conditions out the window.

 

Thanks TNC

 

... If you use your klx as collateral on a secured loan it will depend on many factors, your credit score, your relationship with that bank or credit union(if they know you well as a good prev. customer) , but as a rule they use NADA "trade value" as a guide, and they will lend up to that or in some cases they will advance you ( give you up to in $$) retail. and they hold the title until the loan is paid off. I have been in retail finance for over 30 years and most banks- credit unions do not understand or like motorcycles as collateral, but the loan and retail values you will see on KBB or EDMUNDS or NADA are far more than you can really retail or get for these bikes. as we all know these bikes can be had for some great deals out there. good luck on your loan! PM me if you need help, Chas

 

THANK YOU! tHAT WAS VERY HELPFUL INFORMATION AND I WILL LET YOU KNOW!!!

 

I was able to secure a loan without the bike but thank you for your help!!!!!

 

I was going to be a smartarse and say it depends on who you loan your bike to. With some it may only be scrap value when you get it back.

Back to the real subject I would not expect a bank to loan me much against a motorcycle especialy a bike that could be used unplated. Which got me to wondering. Do bikes for offroad only come with a title? Who do you transfer ownership on that title with? I have only ever owned plated bikes.

Cheers, Jim

 

.......Yes, all production bikes come with a M.S.O. , a title from the factory, even true MX bikes! Even if they can never be driven on the road, hence, the state that it is bought in gets their sales tax. unfair but true

 

You use the Manufacturer's Statement of Origin to apply for the initial title; it in itself is not technically a title. Most dealers will send in the application for you however so I'm not sure if it's even possible/legal to obtain a vehicle with only the MSO. I've only gotten one once, for a smallish welder trailer that was shipped to me from out of state, which I then used to title and plate it for road use.