Buying a Motorcycle
There are several steps in buying a motorcycle. Here we will try to focus in on these key points:- Do you have a motorcycle license?
- Do you know what type of motorcycle you want?
- The Pros and Cons of Buying a New Motorcycle
- The Pros and Cons of Buying a Pre-Owned (used) Motorcycle
- The reasons to ask for an out-the-door quote and a discussion about possible fees
- A discussion about Promotions
- A discussion about Financing
- "Ok, I want a Royal Enfield that you don't have in stock!"
1. Do you have a Motorcycle License?
The easiest way to get your license in Maryland, Virginia, and D.C. is to take a Motorcycle Safety Foundation (MSF) course and take your MSF card to your DMV. You can search for courses in your area by clicking here. On the left side, you can enter your zip code and start your search for a class. If your nervous about this RideWithRea did an excellent video that can be found here.
2. Do you know what type of motorcycle you want?
Narrow down the hundreds of options of motorcycles to the motorcycle you want. If you want to ride on and off road, you might be looking at scramblers or adventure bikes, as a 600 lb. (or heavier) cruiser may not work for you. A cruiser might be excellent for a long daily commute on the highway, but horrible in tight, inner city traffic. Some key things that will help you narrow down your search:
- How much experience do you have? Compared to cars, speed comes cheaply on a motorcycle. You might be able to afford a motorcycle that does 0-60 under 3 seconds and 90 mph in 1st gear, but do you have the skills and self-control for it?
- What speeds do you want to ride? A Grom is a great bike, but not great on the Interstate in Texas with speed limits of up to 80 mph.
- What sitting position do you want? A laid-back cruiser is comfortable for long rides. A leaned-forward sportbike is nimble in the corners but hard to ride for long periods of time.
- Do you need to touch both feet on the ground at a stop? Most newer riders feel more comfortable with both feet down, but most adventure bikes are tall for ground clearance, and sportbikes can be taller than they seem to have ample clearance with trackday corners.
- What modern conveniences are a must-have? Some people prefer the old school analog feel, others need a motorcycle with GPS, a radio, cruise control, traction control, riding modes, Bluetooth connectivity, etc
- How much work will YOU be doing on it? If you want to do your own maintenance, it should be an easier to work on motorcycle. Many modern bikes are computer-controlled and use CANBUS systems like cars.
- How much do you plan on spending on insurance, gas, and maintenance? Faster and more expensive bikes usually have higher insurance costs. Likewise, a motorcycle that is revving to 14,000 rpm may not get the gas mileage of one that revs to 6,000 rpm.
New Bike Pros:
- You perform the break-in period
- The bike has been yours since day one.
- Comes with the latest technology and model year upgrades.
- You can choose the exact color, model, and accessories from the factory.
- Manufacturs Warranty
- Requires a break-in period per the owner’s manual, limiting fun for the first 500 miles.
- More expensive than used bikes
- Costs beyond MSRP include:
- Shipping or Delivery Charge: this is the cost to ship the bike from manufacturer to dealer. It is not included in the MSRP usually. Royal Enfield currently charges us $545 per motorcycle.
- Assembly: motorcycles arrive in crates and are partially assembled. We have technicians finsh the assembly and verify the motorcycle is safe to ride.
- Just like a car, a bike’s value depreciates when it leaves the lot
Used Bike Pros:
- The break-in period is already done, but you have to have faith it was done right
- Used motorcycles are less expensive to buy as the bike has already depreciated
- Other factors reducing the price are mileage, age and wear and tear
- You are relying on previous owner to have performed all maintenance on time (maintenance is more then just oil changes and a chain service)
- Condition of the bike: How are the tires, brakes, paint, rust, etc? Was it dropped and correctly repaired?
- Sold as is, no warranty usually
- Most states will require an inspection to properly license the bike on the road. If it fails inspection are you going to repair it?
5. The reasons to ask for an out-the-door quote and a discussion about possible fees
- Knowing the MSRP of a new motorcycle, or the price of a pre-owned motorcycle, is just the first step
- To properly budget for buying the motorcycle, or to know what numbers to ask for financing, an out-the-door price is needed.
- All motorcycles (new and used) are subject to State and local taxes, title, registration, and license fees. Maryland charges a 6.5% vehicle tax, $200 in title fees, $105 for license plates and registration, $50 each time their software is used outside of their DMV, and $40 for a lienholder fee. On a $5,000 motorcycle purchase, Maryland just added $720,
- There may be other fees. Above it was pointed out that new motorcycles have shipping and assembly fees. Likewise, there are also Documentation fees, which are fees charged to cover the administrative costs of preparing and filing vehicle sales contracts, titles, and registrations.
- An out-the-door price should show the price of the new or pre-owned motorcycle with all applicable fees, including things such as tax, title, license, registration, lienholder fees, documentation, shipping, assembly, and, recently, tariffs.
6. A discussion about Promotions
- Promotions may come from the dealership itself or from the Manufacturer.
- A promotion from the manufacturer might include a dollar amount off or a rebate, a low APR% (with credit approval), or a combination of the two.
- A promotion from the dealership might include a dollar amount off, accessories installed for free, or discounted labor to install, a t-shirt or motorcycle gear discount.
- It never hurts to ask if there are any promotions or if the dealer will throw in a discounted helmet, gloves, or similar with a purchase.
Financing a motorcycle allows you to purchase the bike you want today without paying the entire purchase price upfront. Instead, a lender provides the funds for the purchase, and you repay the loan over time through monthly payments that include both principal and interest.
At Cycles of Silver Spring, we work with a variety of lending partners to help riders explore financing options. While we do not provide in-house financing, our team can help guide you through the financing process.
The Down Payment: A down payment is the portion of the motorcycle's purchase price that you pay upfront. This can be cash, a trade-in vehicle, or a combination of both. In many cases, a larger down payment can reduce your monthly payment and the total amount financed.
The Loan: Once approved, the lender pays the remaining balance of the motorcycle purchase. You then agree to repay the lender according to the terms of your loan agreement.
Monthly Payments: Your monthly payment is based on the amount financed, your interest rate (APR), and the length of the loan. Payments are made on a regular schedule until the loan is paid in full.
Ownership: Unlike leasing, financing allows you to become the owner of the motorcycle. Once your loan is completely paid off, the bike is yours free and clear.
Collateral: The motorcycle serves as collateral for the loan. If payments are not made as agreed, the lender may have the legal right to repossess the motorcycle.
Interest Rates and Loan Terms: Your Annual Percentage Rate (APR) and loan term determine your monthly payment and the total cost of financing. Loan terms can vary depending on the lender, your credit profile, and any available promotional offers.
From time to time, manufacturers may offer special financing programs, such as low APR promotions. These offers are provided through participating lenders and are subject to credit approval. To qualify, applicants must meet the lender's specific requirements.
As part of the financing process, lenders review your credit history to determine eligibility and available loan terms.
Some lenders use a soft credit inquiry, which does not affect your credit score. Others may require a hard credit inquiry, which can temporarily lower your credit score by a few points and may remain on your credit report for up to two years.
After reviewing your application, the lender will determine whether you qualify for financing and what loan options are available. If you are not approved initially, options such as a larger down payment, a qualified co-signer, or both may help improve your chances of approval.8. "Ok, I want a Royal Enfield that you don't have in stock!"
We realize that we are a small dealership and our showroom floor is limited. Due to our limited space, we can only keep one of each of Royal Enfield's current models in stock. However, Royal Enfield does have a warehouse in the U.S. If you want a model or color that we do not have in stock, let us know. We will happily pull the latest inventory from Royal Enfield's warehouse and see if it is available to order. We aim to make the process of ordering your motorcycle as simple as possible.
- Ordering In a Motorcycle
- Let us know the model and color you are looking for.
- We will verify that Royal Enfield has it in stock and that we can order it.
- If we can order it, we will provide you with an out-the-door quote.
- Upon agreeing to the quote, we will ask for a $500 deposit, which goes towards the total on the quote, or approved financing to order the motorcycle in.
- Once the deposit is received, or financing approved, we will order the motorcycle.
- Shipping from Royal Enfield to us varies, but it has usually taken about 2.5 weeks. Once the motorcycle arrives, we will provide you with its VIN while we finish assembly over the next two days and verify the bike is ready to ride.
- Once the motorcycle is ready, it is yours upon completed payment or completed financing with all down payments made.
We accept cash, debit, cashier's checks, and credit cards. We can send links by email to allow you to pay by debit or credit from home. However, there is a 3% processing fee on credit cards that is charged back to the customer, which we try to avoid if possible. Likewise, we are able to accept personal checks, but we must wait for them to clear the bank fully before releasing the vehicle, which can stall picking up the motorcycle by up to four business days.