Credit Union or Bank for Motorcycle Loans?

When considering a bank motorcycle loan versus a credit union, your concern is obtaining a loan that meets your needs for the purchase of the motorcycle. A select group of lenders writes motorcycle loans, which are specialty loans. Those lenders who provide these loans have an understanding of motorcycle lending and the expertise necessary to give you the best deal available.


Some banks will provide loans in the same way they offer auto loans. Their terms and rates are based on the motorcycle’s cost, whether the motorcycle is new or used and what the prevailing rates are for motorcycle loans. A bank in which you have a relationship with will provide you with the best opportunity for a motorcycle loan. You should always shop around however to determine if another bank offers a better loan rate. This provides you with some leverage to negotiate with your existing bank in order to obtain a motorcycle loan.

Credit Unions

Credit Unions are membership organizations that can also provide motorcycle loans. These financial institutions can provide the same types of motorcycle loans as traditional banks. The membership nature of credit unions allows borrowers to receive a good loan. This may result in a lower interest rate or better loan term than what a bank may provide.

Banks versus Credit Union

When considering borrowing money from a bank or a credit union you need to understand the difference between the 2 organizations. Banks do not have the membership requirements that credit unions do. This may mean that for many individual borrowers who are not members of associations, the military, school or employer related group’s access to credit unions is limited. Where such access may be available to a borrower, your consideration of a bank or credit union is based on the terms of the offer that is made for a motorcycle loan.

Banks may not be as flexible in providing a motorcycle loan on as favorable basis as a credit union. This may be due in part to the specialty nature of these loans. A bank may however be able to provide better loans because of their size or influence in a market. This would make a credit union not as advantageous a lender for some borrowers.

Your consideration for using a credit union versus a bank depends on your ability to access both types of lending institutions and the types of offers that they make. One type of lending institution may be as good as the other so choosing one over the other may be as simple as finding the best offer.

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