My buddy took out a "personal" loan for his R1 stating that this way he didnt have to get full coverage insurance. Is this true? I will most likely be looking into a motorcycle loan from my private credit union but am unsure if I want to tell them it is for a motorcycle or not.

 

This is true, as there is no loan against the bike. He has the title and not the bank. So he can just put liability on his bike.

Wether this is smart or not is another question. a bike loan will run you around 7% a personal loan 15%. So you will pay twice the interest. then you have no coverage if you lay your bike down. So you pay twice what you need to so you can save money??

My full coverage on my 01 F4i is $500 a year so the difference in interest rates completely covers my insurance cost. If I wreck my bike I get a check to pay off the loan and go buy a new one.

 

Well here if you got a line of credit. The rate is only like 3%. I bought my first car this way.

But if it's stolen .. well enjoy the payments for nothing for the next 5 years.

 

yes this is true, this is exactly what I did. The person I talked to knew that I was taking it out for a motorcycle and it was accually her idea for me to take out a personal loan so that I wouldnt have to have full coverage. I pay about 40$ a month for my motocycle insurance so its not bad and now that I have the bike just about paid off I will upgrade to full coverage pretty soon.

 

You can get theft insurance and liability if you are worried or whatever you want. all depends on your driving record.

for what it's worth my first sport bike I bought with a student loan, got 10k spent 3500 on the bike and the rest on books n stuff.

 

almost 6 years and 3 bikes later I still haven't paid that loan off hehe :P

 

3% on a signature loan??? I ave never seen that before. You can rarely get a rate that low on a secured loan. If it is that low, then go for it and still get full coverage.

 

I got a loan for my bike that allowed me to hold the title, and not have full coverage insurance. My interest rate on the LOC was around 4%. Biggest reason I did it was because full coverage on a liter bike would have been $2000+ a year. Liability only is just $8 a month. Also when I wrecked my bike I was able to fix everything for less than the cost of the full coverage. If you are concerned about thieves take the precautions. Disc locks, alarms, lojack, etc.