Motorcycle Title Loans, also know as motorcycle title pawns, are a way to get cash quickly using your motorcycle title. They are very similar to car title loans, the main difference being you are using your motorcycle as collateral instead of your car. Not all lenders provide motorcycle title loans.
Motorcycle Title Loan Requirements
At Fast Title Lenders the Motorcycle Title Loan requirements include basically the same requirements as car title loans. These include:
Lien Free Title – A Motorcycle Title with no existing liens. This means you have a free and clear title to the motorcycle. You may have had a loan on the motorcycle at one time, when purchased new for example, as long as that loan has been fully paid and the lien satisfied. Typically, when you make your final payment, the lender will send you a copy of your title with the lien released. If you live in a state that participates in the Electronic Lien program, the lien can be released online. If you have made your final payment and are still not sure if you have a lien free title, check with your finance company.
Valid Drivers License – A valid (current) Drivers License. Make sure your drivers license is current and if you are driving a motorcycle that you have the proper license type. For in person loans, you will need to bring the motorcycle for an appraisal. This is not necessary form online motorcycle title loans with no inspection or store visit. There are advantages and disadvantages to these types of loans; discussed in our Online Title Loans guide.
Proof of Insurance – Full coverage insurance is required for motorcycle title loans at Fast Title Lenders. Motorcycle insurance is usually quite a bit cheaper than car insurance. As a result, if you have a motorcycle with a decent amount of equity in it, you probably already carry full coverage insurance to protect your investment. If not, the good news is it can be added the same day of the loan simply by making a phone call to your insurance carrier. In many cases, you can also update online in a few minutes.
Proof of Income – Fast Title Lenders does require proof of income for all title loans we make. This includes motorcycle title loans and title pawns. We do this for several reasons, the main reason is to ensure the loan can be repaid. It does not do the lender or borrower any good to make a loan that cannot be repaid. Some lenders do not require proof of income, if you have no income we suggest looking into title loan alternatives.
How much can I borrow?
Motorcycle Title Loan amounts are determined by two factors. The first factor is the amount the motorcycle is worth. This is the fair market value of the motorcycle. With a title loan you can borrow up to 50% of the vehicle’s fair market value. This is true for cars, trucks, and motorcycles.
The second factor is your ability to repay the loan. You must have income to support the loan payment. It does not help anyone to make a loan with a payment that exceeds what the borrower can afford because it will ultimately lead to a default and only benefit the recovery company.
Motorcycle Title Pawn Amounts
Motorcycle title loan and title pawn amounts are directly related to the value of the motorcycle. The two main factors that contribute to a motorcycle’s value, all else being equal, are mileage and condition.
Has it been garage kept? Has it ever been laid down or in an accident? Has it been properly maintained?
These are the types of questions you will want to ask when determine an estimate of the value in preparation for a motorcycle title loan.
How much is my Motorcycle worth?
Given the importance of motorcycle value to a title loan you will want to get an idea of what your motorcycle is worth prior to applying. Perform an honest assessment of condition and history, and use Kelley Blue Book’s Motorcycle Value Tool.
This will give you an idea of what your motorcycle is worth and help you figure out what amount of motorcycle title loan or pawn you will qualify for.
How much do Motorcycle Title Loans Costs?
The costs of a motorcycle title loan are the same as the costs of a car title loan. Most lenders prefer to keep their costs to themselves and would rather you don’t find out until it is too late. Our philosophy is different.
We provide our costs up front to provide you with the information you need to make a decision about whether a title loan is the right decision for you. Use our Motorcycle Title Loan Calculator to enter your loan amount, term in months, and get your monthly payment. Then decide is one is right for you.
Motorcycle Title Pawns
We use the terms motorcycle title loans and motorcycle title pawns interchangeably. This is similar to using the terms car title loans and car title pawns interchangeably. A title loan and a title pawn is essential the same type of short term loan secured by the vehicle (car or motorcycle). Some states call them title loans, others title pawns.
The term title pawn is used to make it clear that you get to continue driving the vehicle, versus visiting a typical pawn shop and pawning the vehicle (not the title). When you pawn a motorcycle, you leave the motorcycle at the pawn shop. When you get a motorcycle title loan or pawn, you continue to drive the motorcycle.
How to get a Motorcycle Title Pawn
Getting a motorcycle title loan or title pawn is easy. Make sure you meet the title loan requirements and then fill out the easy online title loan application.
Before getting a motorcycle title loan or title pawn, make sure you understand how title loan roll overs work. If you cannot repay the loan in full by the due date, you may have to roll over the loan. Doing this more than once can significantly increase to costs associated with the loan.
Motorcycle Title Loan Alternatives
Prior to proceeding with any title loan you should consider real alternatives to title loans. Alternatives to motorcycle title loans include one additional alternative. Unless you use the motorcycle for commuting to work, selling it could be a source of funds.
If you have an urgent financial need and cannot wait to place an ad and sell the vehicle, you can get a title loan for instant cash, and sell the bike to payoff the loan.
How do Motorcycle Title Loans work?
Motorcycle Title Loans work the same way car title loans work. They are secured by the equity in the motorcycle. This means if you default on the loan you may lose possession of the vehicle. This is why it is critical to borrow only what you can afford to repay.
One benefit of a motorcycle title loan is that typically they are not used for day to day transportation. This means, if necessary, you can sell the motorcycle if necessary to make the payments should something unexpected interrupt your ability to repay the loan.