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Title loans aren’t just limited to cars. Many title loan providers allow you to put other types of vehicle titles up for collateral, including motorcycles. These are similar to other title loans: you’ll get your money fast, but you’ll likely pay APRs well into the triple digits and risk losing your motorcycle.
Motorcycle title loans work by using your motorcycle’s title as collateral for a short-term loan. You can typically borrow up to $10,000 depending on your province’s regulations and the value of your motorcycle. The federal government does not regulate title loans.
Motorcycle title loans are available to all credit types, and you don’t necessarily need a job to qualify. But they often come with APRs over 300% and can trigger a cycle of debt that can hurt your credit and personal finances.
How much your motorcycle is worth depends on several factors, including the model, make, year, kilometres and wear and tear.
You can use websites like Auto Trader Canada to get a rough estimate of how much your bike is worth. However, you’ll need to get it inspected by a professional to get an accurate number. Title lenders typically inspect your vehicle before approving your loan, so you can find out how much it’s worth when you apply.
The application process varies depending on your lender but you can generally expect to follow a version of these steps:
Title loans, like other short-term loans, are usually easier to qualify for than a traditional personal loan. However, you generally still need to meet a few requirements:
From their lax credit requirements to their fast turnaround, here are some of the perks of motorcycle title loans:
Consider these potential drawbacks before taking out a motorcycle title loan:
Motorcycle title loans are a fast way to get cash at a slightly lower rate than other short-term loan options. And if you have a car, you don’t risk losing your main source of transportation. However, all title loans are still expensive.
Before you apply, consider your short-term loan alternatives or check out our guide to title loans to learn more about how they work.
Read our guide to finding the best auto title loan in Vancouver.
Find out what an auto equity loan is, how it works and whether it’s right for you. Learn how it’s different from a title loan.
Find out if these fast loans backed by your truck or semi worth the high APR.
Find out what happens when you default on your title loan and learn what to do to avoid having your car repossessed and ruining your credit.
While you can use your watercraft as collateral, you’ll need to watch out for high rates.