Loan Options for Scooter and Moped Financing

Summary:

Secured loans through dealerships and personal loans are the two most common ways to finance mopeds or scooters. Dealerships often offer special deals for customers, but it can be a challenge to compare the actual cost of different offers. Personal loans are very convenient and flexible, but you may end up paying a higher interest rate than with a secured personal loan (especially if you have bad credit). However, it’s always a good idea to compare the rates and terms available with each option before you make a decision.

Whether you’re a first-time scooter and moped buyer or you’re just looking to replace your old ride, finding financing for your new ride is likely something that’s crossed your mind. And it’s no wonder — with prices for these vehicles ranging anywhere from a few hundred to several thousand dollars, not everyone can afford to pay for a new ride outright.

For those who can’t afford the high up-front cost, options like personal loans and dealership financing can make ownership more affordable. However, it’s important to compare interest rates and terms before choosing a loan, as the wrong loan can cost you more in the long run. Let’s explore a few financing options that could help you purchase the scooter or moped of your dreams.

Financing options for scooters and mopeds

There are typically two ways to finance your scooter or moped — personal loans and dealer financing.

Dealer financing

Getting a new scooter or moped (or any powersports vehicle) can be an exciting experience, but it can be intimidating to think about how you’ll pay for it. Fortunately, most dealerships that sell scooters and mopeds recognize this challenge and offer financing options for customers. Many powersports dealers team up with third-party lenders to quickly provide multiple financing options tailored to individual buyers.

WEIGH THE RISKS AND BENEFITS

Here is a list of the benefits and drawbacks to consider.

Pros
  • No outside lender. Dealer financing is convenient since it eliminates the need to arrange financing with an outside lender — saving you time and energy.
  • May offer deals. Many dealers provide special financing offers — such as 0% APR — during their promotional periods.
Cons
  • Limited selection. Unlike with personal loans or other financing methods, you can only select from the lenders that the dealership works with.
  • May be more expensive. Since dealers often add a markup to the interest rate offered, dealership financing is often more expensive than traditional bank loans.

Personal loans

Personal loans are a great resource to turn to when you need extra funds quickly. Whether you’re looking to cover unexpected emergencies or purchase something big, like a scooter or moped, they can help make the process easier.

One of the best things about a personal loan is that they offer flexibility. This means you can use the funds for any legitimate purpose, so you don’t have to worry about restrictions limiting your options.

WEIGH THE RISKS AND BENEFITS

Here is a list of the benefits and drawbacks to consider.

Pros
  • Lump sum. Personal loans are issued as a lump sum that’s deposited directly into your bank account. By getting the money you need upfront, you can make your purchase right away without having to wait.
  • Quick turnaround. A personal loan typically has quick funding times (one to seven business days), making it a great option if you need to purchase a scooter or moped immediately.
  • No collateral. Since personal loans are unsecured loans, you don’t need to put your assets up for collateral.
Cons
  • Higher interest rates. Though these loans have lower interest rates than credit cards, unsecured personal loans typically have higher interest rates compared to secured loans that require collateral. And for those with poor past credit history and low credit scores, you might pay even more interest than those with good credit.
  • No guaranteed approval. Not all applicants are automatically approved for personal loans. If you suffer from bruised credit, lenders might not be willing to extend you the funds. And though there’s no universal minimum credit score to be approved for a personal loan, most lenders would prefer to see a FICO score above 600 for credit approval.

How does scooter financing work with personal loans?

When you’re ready to finance your scooter purchase, the first step is to prequalify with a few different personal loan lenders. This will give you an idea of what interest rates and terms you qualify for. Most online lenders offer simple prequalification forms (or even a secure online finance application) that only take a minute or two to complete.

Once you’ve prequalified, compare rates, terms, and loan options across different lenders to find the best fit for you. Then, finalize your application with your chosen lender and use the funds to buy your scooter.

Scooter financing with a personal loan is a great option for those who want to finance their purchase without using a credit card. By comparison shopping and taking advantage of prequalification, you can find the best loan option to fit your needs.

Considerations when financing a scooter or moped

Before taking the plunge and purchasing a scooter, there are several things you should take into consideration.

  1. What do you plan to use the scooter for? If you just need a quick way to get around campus or the neighborhood, a small electric scooter might be sufficient. However, if you’re looking for something that can take you on longer trips or even serve as your primary mode of transportation, you might want to look at a gas scooter or moped.
  2. Getting a motorcycle license. Depending on the state you live in, a motorcycle license may be required to legally operate a gas-powered scooter or moped. So if you don’t currently have a motorcycle license, check with your local DMV to see if you need one.
  3. Warranties and repairs. Pay attention to warranties and repair policies offered by the dealership or merchant. Doing so will protect you in case there are any issues with the scooter after purchase.
  4. Can you afford it? Finally, ensure you can afford the initial cost as well as ongoing maintenance and fuel expenses associated with being a scooter or moped owner. Even if you take out a personal loan to finance the purchase, make sure you can repay the monthly payment on time and in full each month.

Pro Tip

Not sure if a personal loan could fit into your budget? Use these personal loan calculators to see what your potential monthly payments are. You can also experiment with different loan terms to find one that fits your budget.

FAQs

How long can you finance a moped?

It depends on the scooter dealership or personal loan provider you go with. Some loan terms can be as short as six months, while some can be up to 84 months. Know that even though longer loan terms typically come with lower monthly payments, you’ll accumulate more interest charges over time.

Can you get an electric scooter on finance?

Yes, many electric scooter merchants like Pure Electric and Vene Ride work with companies such as Klarna to provide financing options for those who’d rather pay in monthly installments instead of shelling out a huge chunk of change upfront.

So if you’re interested in purchasing an electric scooter, ask the merchant if they provide any payment plans. If they don’t, you could also consider taking out a personal loan if necessary. Just be sure to do your due diligence and compare interest rates before doing so.

Does Vespa have financing?

Yes, Vespa offers several financing options for its customers. Check out the company’s finance plans page to learn more.

What mileage is high for a moped?

There’s no one-size-fits-all answer to this question since it depends on the type of moped you have or want. Some mopeds can last 10,000 miles before they break down, while some might only be able to last 2,000. Be sure to ask your dealership or merchant about the moped’s mileage before purchasing it.

Is a moped worth the money?

Well, it depends. Mopeds are an economical way to get around. Plus, they’re much more eco-friendly than cars. On the other hand, mopeds can be dangerous since they don’t offer the same protection as a car in the event of an accident.

At the end of the day, you have to decide for yourself whether the benefits of owning a moped outweigh the risks. If you live in a densely populated city with good public transportation, you may not need a moped. But if you live in a rural area or need an inexpensive way to get around, a moped could be a viable option for you. Just be sure to wear a helmet and follow all safety precautions.

What should my credit score be to buy a motorcycle?

The minimum credit score you need to finance a motorcycle depends on the lender. If you’re financing your motorcycle through your dealership, they typically will send your application to several lenders, each of which might have different requirements.

In general, though, you’ll need good credit (FICO score above 670) to get the best interest rates. The same goes for personal loans, too. So if you have bad credit, you might want to take steps to improve it before taking out a loan.

Key Takeaways

  • The two most popular ways to finance a scooter or moped are personal loans and dealer financing.
  • Although dealership financing offers convenience, you can often get a better deal by securing your own personal loan — especially if you have great credit.
  • Unsecured personal loans typically have lower interest rates than credit cards, but higher interest rates than secured loans.
  • Whether a scooter or a moped is worth your money will depend on your lifestyle and budget. Make sure to weigh out your specific needs before making a decision.
View Article Sources
  1. Moped License — Michigan Department of State
  2. Moped Registration — Hawaii Vehicle Registration & Licensing Division
  3. Choosing the Right Personal Loan Lender for Bad Credit — SuperMoney
  4. How Much Does It Cost to Patch a Tire in 2022? — SuperMoney
  5. How Much Should You Pay for a Car Diagnostic Test? — SuperMoney
  6. How Much Does It Cost to Tow a Car? — SuperMoney
  7. How to Use a Personal Loan to Build Credit — SuperMoney
  8. How to Get Approved for a Personal Loan — SuperMoney
  9. Best Personal Loans — SuperMoney