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What are Personal Loans For? Alternative Auto Lending

vintage motorcycle

It’s no secret that personal loans are a valuable financing option for life’s large expenses or debt management. It’s not uncommon to turn to a personal loan for weddings, home repairs or debt consolidation.

But what about auto financing?

Auto loans are common, but are they the right option for every vehicle purchase? Securing a personal loan to purchase a recreational vehicle could be a smart way to expand your budget and boost your purchasing power.

A Motorcycle Loan Option

You’ve taken the safety courses, updated your licensing, and spent a lot of time cruising the showrooms window-shopping: You’re in the market for a motorcycle.

Though motorcycles are cheaper than even the least expensive economy cars, a $5,000 to $10,000 beginner-bike purchase might break the bank.

Some auto financing providers offer motorcycle loans, but when you choose a personal loan as a financing option, you can build in some additional cash to cover the necessary—and superfluous—extras that come along with motorcycle ownership:

  • Helmets for yourself and anyone who may be a passenger
  • Other safety gear, including jackets, shoes, gloves, and more
  • Cold-weather and wet-weather gear
  • Saving for routine maintenance
  • Pre-paying insurance coverage—or adding coverage to your existing policies.

It can all add up quickly, but with an effective bike-buying budget in place, you could get a motorcycle personal loan that’s sized to include everything you need.

An RV Loan Option

Is it a truck? A house? Do you need auto financing to purchase an RV, or a mortgage? RVs may not be as expensive as a typical home, but large or luxury-outfitted RVs can cost north of $100,000. And the costlier the RV, the longer the loan terms can be, sometimes stretching into mortgage-range territory with 20 or more years.

It’s a hard number to pin down, but it’s estimated that 6% of American homes are mobile homes. Whether or not the goal is to pick up roots and take to the open road permanently or to have a little motorhome for weekend camping and festival trips, RV loans are serious commitments. And like the purchase of a motorcycle, the purchase of an RV comes with several additional costs:

  • Insurance
  • Cleaning fees
  • Parking fees, slip rentals, and campground fees
  • Maintenance
  • Typical daily living expenses
  • Utilities

Padding the initial borrowed amount of a personal loan for an RV can help defray the costs of your new road warrior lifestyle.

Financing Other Recreational Vehicles

Nature and outdoor enthusiasts know all too well the costs of their outdoor gear—which can often include some kind of vehicle.

But it’s obvious that auto financing isn’t the ticket to purchasing a recreational vehicle.

Here are some vehicles for which auto financing may not be the right choice, but a personal loan can provide purchasing power:

  • Boat financing is often a barrier to entry for water enthusiasts, but a personal loan can help make your seaside dreams a reality.
  • These popular vehicles are a lot of fun, but the hard, off-road usage means a lot of maintenance. You can build those costs into ATV financing with a personal loan.
  • Motor scooters. City dwellers may be keen to zip around on these. They’re less costly than motorcycles, but require similar gear considerations.
  • Electric bikes. This niche hobby is growing in popularity, and while auto financing is out of the question, a personal loan isn’t.

The options for new, motorized toys are nearly endless. A personal loan can provide the flexibility to add whichever is most appropriate for your favorite outdoor hobbies.

Secondary and recreational vehicles can be costly hobbies, but a personal loan from Discover can put you in the driver’s seat as an alternative to traditional auto lending options.