Tips on getting a good bike loan

Nowadays, by the mere mention of any kind of a loan people shiver and turn their heads away. They are left behind with the impression that it is a never ending circle they can be stuck in. Yes, any kind of a loan is risky and hard to hold on to, but for most of the people which live their lives with lungs full and indulge themselves from time to time, this shouldn’t represent an obstacle or a blockage, but a method to help them fulfill their dreams. The procedure of applying for a bike loan does not differ much from the car loan application. The main difference is the risk that banks put on it. Motorcycles are more often crashed or stolen than the cars are, therefore banks are often setting higher demands before the approval. This way they are securing their loan. Applying for a bike loan can be stressful and tiring, but there are ways to make this process much easier. Here are some tips you should keep your mind on.

Check your credit report

You need to keep your mind on the fact that you are NOT applying for a personal loan or a car loan. These are similar to the bike loan, but you need to remember that this is a HIGH RISK loan. If you are stuck with some high credit debt or you have any inaccurate information in your credit report you WILL be declined. Then the banks will often offer you personal loans which have higher interest rate and higher taxes. If you have any debts make sure you repay them. It is also advisable to keep some money on your opened accounts. Lenders (banks) love unused money. Run a thorough check of your credit report and if you find any inaccuracies make sure you report them on time, so they can be fixed before you turn in your application for a bike loan.

Be aware of your budget and it's limits

I am well aware of that most of you motorcycle lovers would lie to ride Dodge Tomahawk V10 (>550 000 $), but your budget limitations are such that you couldn’t even afford a Vespa Scooter. Be aware of your limits. Before applying for a bike loan chose wisely. It is not only important to buy the motorcycle that you want, but also a motorcycle that you can afford. If you go way over your head, you will get stuck with monthly payments that will overwhelm and burden your budget significantly. This is a high risk loan so often the penalties for skipping payments can be severe (as in larger interest rates or tax penalties). If you want to buy a better bike but currently cannot afford that loan amount, it is advisable to wait a while and save up money. This way you will be much closer to that awful “NEEDING-GETTING’’ scale.

Understanding the loan procedures

People who are getting a bike loan for the first time and have no experience in that procedure will be exposed to the risk of getting a lame deal. You should not be afraid to ask around and spam with questions considering the loan. The information you collect and experienced advices that you adhere will help you greatly along the way and will liberate you from the stress and fear of the unknown. The lack of information can and most probably will lead you to increasing your monthly payment due to higher interest rates. It is important to stick to your budget limit and thus avoid loaning more money than you ACTUALLY NEED.

Keep your eyes open for other factors as well

There are various factors that can help you on our choice of the right bike loan that will most fit your budget. For instance, laziness is your worst enemy. Before submitting a form of application for a bike loan, you need to check AT LEAST three of your nearest banks for quotes. By this “at least three” I meant that is recommended to check more, and not only banks, but community lenders, credit unions and credit card companies as well!!! There are three important factors for a loan:

1      Interest rate

2      Monthly payment

3      Loan length

You know you got the best deal when you have the loan that has the lowest interest rate, low monthly payment and shorter term of repayment. This way you will not end up overpaying your bike. Compare quotes, negotiate and inform yourselves on time. After all it is one of your greater milestones in life. Consider these options and study them well, and in no time, you will have the most fulfilling satisfaction of boasting to the car drivers who will envy you for your parking options. 

5 Steps to the best motorbike loan

It is well known fact that financial institutions take your credit score into consideration before approving a motorbike loan. Nevertheless, many people disregard this, although it impacts the term of their motorbike loan as well as the interest rates assigned to the loan.

If you are aiming for lower motorbike loan rate, it is of great importance that you consider your credit report as a picture of a risk you can represent to your lender. Your credit score is basically a benchmark which is used to evaluate and assign a risk factor to you. This affects you when applying for any loan, as well, and especially a motorbike loan, being this is a high risk loan. Factors of your credit alter your credit score every day. Before engaging in a motorbike loan, review these five steps that are adduced. They are designed to help you improve your credit score and as a conclusion lead you to the best motorbike loans with lowest interest rates.

Watch your debt

This is a very important factor. Although banks are competing to loan you money and get more clients, they are aware of the risks that defaulters bring. You should always keep your account balance under 35% of your credit limit. Many financial institutions take credit card debts as risky and may not easily approve your motorbike loan. Even if they approve, you may be certain that you will not get the best rate on it. Here is an example. If you have a credit card with a limit of 10 000$ you should keep your debt below 3 500$ when applying for a motorbike loan.

Make your payments on time

Regular payments provide you a positive score in your credit report. Motorbike lenders don’t like people with debts. It’s that “LATE” notice in your credit report that raises your interest rate. Be very cautious of this. Make your payments on time, at least a few months before applying for a bike loan. This will give you more time to gather up some money to have a bigger equity in your car as well. If you have a period of time with no debts and no stray and unpaid bills it will be shown as a big plus in your credit report and will increase your credit score.

Establish your credit early

Time is an essential factor of your credit report. Thus, it is advised to start your credit build early. Having one or two credit cards can help you greatly in that. There is a catch in this. If you have small and frequent purchases and, most importantly, a positive balance at the end of the month, this strategy is set to succeed.  Lenders love their clients with unused money on their accounts. You should always keep your oldest account. As we mentioned, the length of your credit history can gather more facts and bring you to positive score and that makes a great difference in your approval for a motorbike loan.

Avoid excessive credit inquiries

When you apply for a motorbike loan, it is normal that you will be asked for a driver license or SSN (social security number), so the lender can perform a credit inquiry. If you do this on more places than one, it will bring a negative score in your credit report. Compare prices and offers at your bank as well as dealerships and other financial institutions. When you find the one that soothes you THEN apply for a motorbike loan.

Check your credit regularly

Online credit check is now available and offered by many creditors. Make sure you check it frequently (at least once a month), so you can perceive and point out any inaccuracies that you might find. If you find any inaccuracy, contact your creditor immediately for the repair and reevaluation, so that it would not grant you negative points in your credit report.

Remember, credit score is by far the most important thing you should always keep your wits about. Many people are afraid of loans because they cannot handle their money well. If you have your credit score taken care of, you will open many doors in your life. Loans are meant to help people fulfill their dreams and should not be considered a necessary evil. Review these steps thoroughly and you will be on the right path for buying your dream bike in time. 

How to Get a Car Loan in Australia

Regional car loans do not differentiate that much from global car loans - after all, the car financing mechanism that brings most to both lender and borrower is the one that is spreading worldwide, and with the globalization of the financing business has made interest rates and loan businesses pretty much universal. Like anywhere else, loans that you can pick up for the purpose of buying a car are the following: personal loans, credit card loans and leasing. However, Australia has one pretty much unique method of financing - Novated Lease. You may have heard about this particular phrase in the US or in the UK, but they don't mean the same thing - Novated Lease in Australia is a pretty much unique way for financing a car purchase, and one that brings great benefits to all sides involved. But I'm rushing ahead; let's quickly go through all of the loan types before we bite into the Novated Lease.

1. Personal loan

This is one of the riskiest types of loans, as you take on the entire financial burden of dealing with the bank, securing a personal loan and paying it back. Moderately high interest rates reflect the fact that this is an unsecured type of loan, although you can securitize it by offering up some high value asset as collateral - usually a home, for homeowners. This can reduce the interest rates significantly, but, while it does help in that aspect, it carries an inherent risk of losing your house if you start being late on your payments and if the bank decides that you are no longer creditworthy. Banks secure the money owed by selling your home on an auction, subtracting what you owe them and paying you back the rest - a deal that definitely does not work in your favor as the bank is under no obligation to find you the best deal possible.

2. Credit Card loan

Not much to say here, other than the fact that this is the easiest loan to secure, while being the most expensive one. Very high interest rates, with virtually no chances to bring them down will have you paying a lot of money until you're done with all of the payments. This type of loans should be avoided at all costs, unless you have a really high loan limit on your credit card and you are 140% sure you can pay them back.

3. Leasing

Leasing is a special plan for someone who doesn't need a car for an extended period of time, but still wants to have one ready at all times for him. It's a car financing plan where the lender does not end up with the product in the end. It's more like a form of borrowing a car, but with more affordable fees than what you'd be paying had you rented the car from a renting company. Several weeks to several months - these plans are very interesting usually to visitors who are staying for sufficient periods of time and need a car to use during their stay.

4. Novated lease

Now, this is a unique form of car financing that looks really good on both paper and in practice. Novated lease is a three way agreement between the employer, a lease company and an employee, where the employee gets the ownership of the car from the lease company while the employer reduces the base pay of the employee for the sum of monthly payment. While it may not look so interesting right away, there are a lot of benefits to this kind of arrangement. First, and most importantly - the monthly payment deduced from the employee's pay is not taxed as income! Second – the employee is a car owner during the duration of the lease, but he avoids all the taxes, including Goods and Services Taxes. The employee gets to pick from a bigger assortment of cars than if he had to pick one from a company's car fleet, and the employer doesn't have to maintain and manage a car fleet. There are other benefits depending on the size of the company involved - a number of company cars novated through this kind of arrangement can bring down the interest rates and monthly fees even lower.

All in all, with Australian Novated Lease everybody wins, and it's one of the most interesting original car financing options available, definitely worth looking at if you're an employee in Australia and if you're considering leasing a car.

Tips and tricks on car loans

If you are ready to buy a car and are organizing car finance for the first time is ready to do some valuable research before you start stomping pedals. A good preparation gets you much closer to your dream car. Here are some tips and advices you should keep your mind on.

Make sure you run through your credit report!

 

Before starting to embark on your car purchasing journey, try requesting your credit report from the Credit Bureau. This service is free at least once a year. This will give you a peek into your credit worthiness and will provide you information of any shortcomings. Aside from this you should have a report of your income for the last three months, as well as any paper that shows your current address (ID card, your electricity bill etc.) These are used to gather up credit points. The more credit points you have, the easier it will be to get a car loan approval. With this information you will be significantly prepared for harsh selling tactics in a way that you can always reject the offer if it is not in your best interest.

Check banks for quotes!

  

When you have had your credit report verified, you should create an idea of a car you are willing to buy and its price range. When you have come to an idea, go out and visit your nearby banks to research quotes. Each bank has its own deposit requirements, interest rates, and grace and repayment periods. In this case, when you have your documentation ready, which you have gathered in the previous step, the bank may pre-approve your loan. Without the documentation, it will take up from one to three weeks for a bank to check your credit report. When bank gives you pre-approval for your car loan, you will immediately know how much is your monthly payment and interest rate range, no matter whether or not you chose exactly that bank for your car loan.

Feel free to negotiate for a better interest rate!

Some researches proved that eighty percent of the buyers are paying their car through the car dealers. If you see yourself trapped by the finance department of a car dealership, don’t be afraid to negotiate for a better interest rate. YOU ARE THE BUYER and unofficial rule that is:”The CUSTOMER is always right!” applies here too. Information you gathered in these steps will surely give you the best heads up in purchasing a car.

Things you should be cautious about!

Make sure you use the free credit report. Any service that charges credit report often brings hidden fees and prices.

ALWAYS make sure to go around and compare interest rates, prices as well as best car loan offers. Don’t be lazy and check more than one bank to get a quote and to check interest rates on their loans. That will give you a complete idea if you are getting a good deal or not.

When buying a car at the car dealer, try to avoid any add-ons by the seller. Products such as vehicle service contracts, guaranteed car protection insurance, life and disability insurance, etc. should always be avoided at the car dealer. The prices are too high and most of them are provided so that the car loan cost can be increased as well as their profit. If you really are in need of any of those products, make sure you buy them outside of the dealership because they are a lot cheaper.

These purchases are done every day by the people in Australia. Most of them are stuck in a lot of paperwork or get to miss their best offers in buying a car exactly because the documentation cannot be completed fast enough and therefore loans cannot be issued in time. These helpful car loans and financing tips will surely get you ahead of that and prepare you for the car you can buy and ease the nights spent not sleeping because of the fear of the unexpected surprises at the end of the month.

Best business car finance options

Successful companies today, with big competitions and new market openings, have a great need for improving and expanding their business. Therefore, if a company wants to keep their status, they have to provide fast and quality service, as well as variety of services. Control of these factors, as well as independence from the other companies, are the key to every successful business. Why should you depend on other companies? Why would you consider a possibility of errors and/or latency because of factors that aren’t under the control of your company? Buying business vehicles today is not an option, but a need. 

 

Whether it is just one vehicle or a motor pool, with its benefits it pulls some expenses with it which can be reduced with right moves. These are the best business car finance options.

Car lease

A car lease (finance lease) is the most frequent choice of business car financing. The financier buys the vehicle for the company. The business owner is obliged to pay fixed monthly rental with fixed interest rate. At the end of the lease period the customer (business owner) can either pay the final installment and become the owner of the vehicle, or trade it in or re-finance residual and continue the lease. The benefits of this kind of financing are numerous. Contract is made with highly flexible terms which can vary from one to five years. Monthly lease rental and interest rate are always known in advance, so it offers no surprises at the end of the month. Provided the vehicle is used for business purposes, you will have some tax deduction and very reasonable interest rates because this is a way of secure financing.

Commercial hire purchase

This form of financing does not differ much from a car lease. The business owner makes a commercial hire purchase agreement with the financier about the vehicle. You have the same benefits as in car lease option, such as fixed monthly payments and interest rate. The difference is that at the end of the term you pay the residual value and become the owner of the car. This should be considered if you are sure you want to become owner of the vehicle, because you can’t lease the car after the term ends.

Chattel Mortgage 

  

Chattel mortgage resembles much of a classic car loan. This is a secured way of financing. The financier gives funds to the business owner for buying the vehicle. The business owner then gets the ownership of the vehicle but the financier makes a mortgage over it as a security for their loan. The contract that is made can be flexible from one to five years and, being that the monthly payment and interest rates are fixed, the cost is known in advance. With this kind of car financing you can even turn in a cash deposit up to 50% of the full car value. At the end of the term the charge is removed and you become an owner of the vehicle.

Novated lease

This is a three way agreement between the financier, the business owner and the employee. This way an employee enters the car lease with a financier where the business owner pays his obligations as long as the vehicle is used for company purposes. This is a great way of stimulating your workers. Employees under Novated lease agreement can choose which car they shall buy. If the employee, at any moment during this agreement, leaves the company or the lease agreement is finalized, all obligations by employer revert back to the employee. This way of financing brings numerous benefits to both the employer and the employee. Employer can provide a more attractive remuneration package, and therefore attract the employees they want. They have no residual risk or an excess vehicle if an employee leaves. This kind of financing also cuts down the administration time and costs comparing to business vehicles. As for the employee, he can choose the car he wants to buy; he controls the maintenance and care over the car, and generally has all the other benefits of car lease.

All of these options offer a great deal of advantages, respectively. If you are a business owner, you should check out all of these options before settling for the right one. It all depends on what you need the car for. One thing that is certain is that it is better to pay for your car pool little by little, than all at once, since companies that can provide that amount of cash at once are rare nowadays.

Boat loans – Making it easy

When you look back on the last few years, the main topic you could have been hearing about in every media is the Global Economy Crisis. Even kids know that economy is in big problems and that the entire world is wrapped in this endless web of digits. Nevertheless, humans are positive beings and we have to believe in the better tomorrow. So, with that kind of attitude we still approach banks and collaborate with them, even in terms of just a strict intermediary object which provides us our salary or much needed help for enriching our wallet and life. Many people see banks, credits, loans and mortgages as necessary evil, but it doesn’t have to be that way. If you are pretty sure in the banking system and you want to ask for help for some unusual purchase like a boat, for instance, you’ll have to consider a few things. 

 What can you expect?

Some will say that buying a boat is crazy with the current state of the economy, but real pleasure and joy do not have a price. With your current credit record you can hardly be able to buy it by yourself, so it’s logical that you’ll ask for a loan. Even though you are approaching banks for certain financial help, it doesn’t mean that you’ll get what you wish for. Yes, every bank will be nice and polite with you, they’ll try to convince you that they are the best choice for you, but in reality it works the other way around. After you make your choice the real face will show off, and, to be honest, you will most likely not like what you see. The first thing that will make your stomach spin is tons of paperwork you’ll have to deal with. For instance, you’ll have to ensure every detail of your finances EVER. This means that the bank will check your entire credit history from your basic bank accounts and savings accounts, all the way to your previous loans and credits with your repayments efficiency. Other thing that will drive you crazy is the bank’s evaluator. Simply, the guy’s job is to find every detail that will help the bank not provide all the money that you asked for. That way they would not spend a lot of their resources, but they’ll still have you as their client and they will benefit from the interest rate. It’s all simple economy, minimal investment – maximal profit. Last, but definitely not the least, are the interest rates and repayment options. With such an unusual loan you have to expect much higher rates because, if you fail to repay all the money, the bank will have a tough time selling your item. 

What should you do?

 The easiest way to avoid all this unpleasant surprises is to be well prepared. How? Simple! Dig up all needed paperwork on time, even better, before even considering a boat loan in bank. Check them, look for possible errors and if you find them correct them as soon as possible. Also, check for eventual missed repayments that you’ve maybe forgotten about and settle them. After that, find your perfect boat and inspect it thoroughly. That way you’ll know in advance what could be the subject of your conflict with the evaluator and you’ll know how to beat him in his own game. When it comes to the interest rates on boat loans, there is not much that you can do. Most of the banks have their standards which they oblige and follow. But on the other hand, don’t feel ashamed to bargain! There is nothing you can lose, you can just get!

Be aware!

The thing that can harm you the most in the process is you repayment program. As you probably know there are two systems that are offered: Variable and Fixed rate. They both have their good sides and their bad sides, which one you’ll pick is up to you to decide. Main factors that will help influence your decision are questions: How much money do I need? How long do I want to be in debt for? Do I want to repay the same sum of money every month or not? Do I expect some bonus or big income that will help me repay my debts faster? Depending on your answers you’ll get the whole picture. If you are planning to pay off your loan for a longer period of time paying the same amount of money every time, your choice must be fixed rate. This way you’ll be able to plan and manage your funds in advance, while making sure that there will be no changes in your installment. If you are ready to take the risk of a different interest rate every month and get an option of having more loans during the repayment period you should most definitely take variable rate. This way you’ll have the chance of beating the banking system if the interest rates go on your hand and actually earn from your loan. In the same time there’s a risk of losing much more money the same way. One more hazard with variable rate is that many banks offer you additional loans during your repayment period so you can be dragged into a vicious circle of repayments.

Considering the price you can get in the end of the process, all the stuff you have to go through seems meaningless and minor. Be smart, be prepared, follow the instructions and enjoy the open sea!

How should I finance my car – loan or lease?

Car industry is one of the most developed industries in the world. Automobiles have become a usual mean of transport for most of the people around the globe. The only problem is that they are quite costly and hard to afford. This is why a lot of people turn to getting loans, or getting a car on a lease. The two mentioned options are very different and there are numerous reasons why people choose each of them. We will go through all of the differences between these car financing options.

Loan

This is the lump sum that you acquire from a bank or a lender used to purchase your car. You are obliged to repay the money within one up to five years. Services like these cost, which is why the interest rate that you pay additionally when returning the money exists. You can always contact several banks and compare the interest rates and other options in order to get the best deal for your budget.

Lease

When you lease a car you pay for its usage over the extended period of time. Before you start leasing the car, leasing company decides the residual value of the car three year from that point and your obligation is to pay for that cost difference. When the contract runs out you can either purchase the car for its residual value or simply walk away from the vehicle.

What are the basic differences?

When you are getting a loan for your car, this means that you intend to purchase it and after the loan repayment is over, you are the complete owner of the car. Monthly installments for loan repayment are much higher than leasing monthly installments. If you are leasing a car, it does not necessarily mean that you are planning to purchase the vehicle, you are basically renting it for a three year period of time with certain rules, such as limited annual mileage.

Why should I finance with a loan?

First of the reasons is that after the final installment, the car is officially your property forever. While it may cost more than leasing, at least you get to keep the car, while people who are leasing walk away from it leaving behind numerous bills and no car. After the final payment, there are no more fees on your car, ever. All you have to do is pour some gas and drive as much as you like. There are no mileage limitations when financing a car through loan. Even damaging your car is not as bad as when leasing, because, beside the compensation for the damage done, with leasing you would be penalized and that would cause additional expenses. These are the reasons why you should go for financing a car through a loan.

Why should I lease my car?

Most people would find leasing a car a financial loss, and it may be so, but on the other hand there are those who can afford this kind of financing without damaging their budget. There are some advantages that leasing gives. Monthly installments are usually much lower than monthly installments for a car loan. You are always driving a new car and by doing that it is very unlikely to have any serious maintenance expense, even if something goes wrong with the car, it is always under warrant. Some leasing companies don’t even require down payment upon contract closing. After all, who knows what might happen, you may purchase the leased vehicle after the contract is finished and you have paid the last installment. There are numerous options open and it is possible to continue leasing after the contract runs out.
 
After revising the differences it is easy to make a decision. You should aim for your goals. If you want to obtain a car and make it your own property financing it through a loan is the way to go. If you always want to follow trends and have a nice style with a new car every three-four years, the best option for you is definitely leasing. You should know what you are aiming at and use your budget in the way that will get you the most benefits. Whichever of the car financing methods you choose, you will achieve your purpose of having a brand new car upon creating the contract with either a leasing or a lending partner.

Saving money on a car loan

Buying a car can be a great thing. That feeling of self-satisfaction, fulfillment and accomplishment when you get in your new set of wheels, grabbing the steering wheel and roaming off on the open road. But right before you step on the pedal, alarm starts ringing, you wake up and reality hits you like a moving truck. Being that car purchase is one of the largest life expenses, you cannot let yourself be hasty. There are various ways you can save up money on your car credit. Banks, as well as other financial institutions, are practically fighting over to give you money. This way more and more car loans are approved. This provides the possibility for a great number of people to buy themselves a new set of wheels. But don’t be fooled. Many banks are offering instant cash credits, for which interest rates are higher than for the credits that are 
meant for buying car (a car loan).

 
Have you recently noticed people around you in new cars? Have you, at some point, listened to their discussion on the purchase? That is a good place to start. Any piece of information you gather can only help you with your decisions. If you cannot gather enough money in such a short notice for a car purchase, you should consider borrowing it. There are assertive guidelines which will help you save money on your loan. Persistence, planning and price comparison are needed if you are aiming for the best deals.

Do your credit check!

You should run your credit check before trying to swim in the seas of administrative paperwork. This will give you a glimpse of your credit capabilities. If it turns out right, you will have no problem in negotiating better interest rates. However, if your budget is burdened with various loans, car loan, bike or boat loan, house loan, stacks of unpaid bills or any other credit, then be sure that the lender will set his interest rates high. Primary object is to save money, so you should always keep that in mind.

Pay your bills on time!

Make sure you pay your bills on time, if you want to avoid negative points in your credit report. It is of great importance that you repay all your debts in time. If you do so for several months (three to six months will be advisable), it will surely prove to be a positive thing on your credit score. Some unused savings on your account or on several accounts will greatly improve your credit score. Keep in mind that credit score dictates the interest rate on your loan.

Keep your loan realistic!

There are more ways to save your money on car loans. Having a sizable down payment is one of them. The lower the loan is, the lower the interest rates will be. It’s good to have your feet on the ground. Borrow the amount you actually NEED for buying a car so your car loan may be preapproved with low interest rate. This way you are avoiding surprises at the end of the month. Excess of money you get increases the monthly payment as well as the interest rate.

Check more financial institutions and do a comparison!

There are numerous financial institutions which you can lend money from, such as banks, credit unions etc. But these days you can find great deals and low interest rates with the online lenders. Take your time to check as many lending options as you can and compare their offers. Keep that in mind and you will find the best deals which can save you money. Patience is your friend here.

Be wary of the car dealers!

Almost every car dealership is offering to arrange a car loan for you, but this is the last thing you should consider. Not that many car dealers can offer you a good arrangement. Nevertheless some of them are followed by a good reputation, customer satisfaction and words of grace. If you chose to buy a car at the car dealership, make sure you bypass the add-ons, such as car and life insurance, disability insurance and such as well as  the car add-ons such as car stereo, window tinting, alarm installment, leather seats, pin-stripes. These things can increase your car loan and with it, your monthly payment and interest rate.

If it is in your best interest to save money while buying a car, you should keep these tips in mind. There is no un-useful information. And remember…patience, planning and price comparison, these three are your friend.

Loans for vehicles

Everybody who has a job and a family should also have a means of transportation. Of course, one can always use the public transport of his city, but having a car or a motor bike at your disposal whenever you want is always a preferable option. This, however, has its common drawback, and that is finance. Not many are able to just take out the cash and buy a vehicle on the spot, especially if they have an average monthly income and that is why people usually loan the money in order to purchase a vehicle. Loaning the money for a purchase of any sort carries that well known burden of “Interest debt”. However, in return, you are not paying for your item right away; actually you pay a smaller amount of money weekly or monthly depending on your income. There are specified car loans for this purposes like for example “Short Term Auto Loans” and “Long Term Auto Loans”.  

Short Term Auto Loans

These loans designed for the purchase of a new or used car and have payment terms of 12 up to 36 months and, as its name states; it has a shorter amount of time with lower interest rate for paying for your vehicle and getting that problem off your back. On the other hand you should not expect these monthly payments to be small. In other words, a customer with a bad credit rating may not find this option preferable to him or her since in that case the interest rate can be higher in order for them to have this kind of loan approved by the lender. A person with a good credit scores may opt for this loan, since his interest rate will be lower.

Long Term Auto Loans

These loans have payment terms longer than 36 months up to about 84 months and individual monthly payments are significantly smaller. The drawback of this option is that interest rate increases immensely and one will end up paying for a car a lot more than its original price.

There are other options to have a vehicle at your disposal for example “leasing” and this option will lend a weaker blow to financial situation. How does this work actually- what you need to do is find a financial institution that will lend you money for the car purchase and, after that, you repay the money that you have borrowed from that institution in monthly payments which are not as high as the ones that you would pay in the case of Auto Loans. The main difference in this case is that you are not the owner of the vehicle; instead you are a person who rents it from the lender since the financial institution which paid for it is the owner. Despite the ownership twist, this option has a lot of advantages:

1.       1. You get to use the vehicle during its best years.
2.       2. You do not have to worry about the increase when it comes to the interest rate.
3.     3. There is an option in which case you can pay more money in advance in order to decrease monthly installments.
4.       4. There are no additional payments after the agreement with financial institution has been reached.
5.       5. If you are satisfied with your vehicle there is an option of prolonged leasing period.
6.  

This can be a very good deal if one is not ready or does not have a luxury of affording a great cut-back in his or her budget to provide his or her family with a means of transportation.
 

There is another interesting way of buying a car or a motorbike it is called Residual Value or Balloon payment. It allows you to pay back the money that you have loaned for the vehicle in monthly payments that can be different and the amount of money that you pay monthly is all up to you under the condition that the amount of money that you promised to pay back over designated time remains the same. So if you borrow, for example, $40.000 and have 25% interest your total debt would be $50000. If your contract states that you need to repay this money in 5 years your monthly or weekly payments depend on you as long as you pay the full amount in 5 years time. This agreement reacquires some special conditions so it is not possible for everyone to make this kind of payment.

What You Should Consider Before Applying for a Motorbike Loan

There are various ways to finance your motorbike loan. You can either do that through the dealership or any financial institution such as banks, credit unions, etc.

Bank motorbike loans are often better than the dealership. However, this may not always be the case. If you are looking for the most convenient choice, you should let the dealer organize the motorbike loan for you. This is the easiest way, if you are already at the motorbike lot, purchasing it. On the other hand, if you are looking for a better deal you shouldn’t consider this.

Getting a motorbike loan resembles the process of getting a car loan. Only thing that differs here is that not many banks will approve it, since this is a high risk loan. Motorbikes often succumb to thefts and crashes. Yet people often chose motorbikes over cars because they can travel the same distances faster for significantly less gas. Even though motorbike loans are more available now, some banks still refer to it as a specialty loan.

First thing you need to do is to ask for your credit report. Never apply for any loan without checking it. This is by far the most important document for this action. According to the passed Fair Credit Reporting Act, many creditors are obligated to provide your credit report to you. This service is free once a year. On top of that report you will find your credit score which is presented with a number from 1 to 1 000. If you have your credit score over 695, you can be sure that you will have no problems in obtaining a motorbike loan. However, if your score is under 695, you should consider either improving it or qualifying for a personal loan. Personal loans are an option, but their interest rates are higher, thus they are not specialized loans.

Before applying for a loan you should consider what motorbike you wish to buy, as well as its price. Take in consideration any add-ons you are willing to purchase, such as item enhancements, motorbike wear and gear and/or tools. This is an example of the most common mistake:

• “Can you tell me how much money would you need us to lend you for a motorbike you decided to buy?”
• “I don’t know. I haven’t thought of it yet. Probably around 10 000$.”

DO NOT EVER TRY TO GET A MOTORBIKE LOAN WITHOUT KNOWING EXACTLY HOW MUCH MONEY YOU ACTUALLY NEED! If you do this you won’t be stuck with excess money which, due to interest rate, increases your monthly payment.

Do not go shopping for a motorbike at the dealership before consulting your bank or a financial institution in which you are applying for a loan. There is a good reason why people have aversion to dealerships. Their financial services offer “good rates” and “special offers and promotions”. Some of these promotion researches show that the interest rates are great… for the first 12 months. After that they go way up and you might find you overpaid greatly. It is a salesman gimmick they are using, hoping you will be overexcited and buy a motorbike without thinking long term. When asking about your motorbike loan in your financial institution you should keep these questions in mind:

• “Is the interest rate fixed or does it vary over time?”
• “Will the interest rate change in time for ANY reason?
• “Do you have to pay any administrative fees and taxes?”
• “What are their prices?”
• “What are the penalties for skipping payments; let us say…… a month or two?”

Nowadays online banking became very popular, so the financial institutions are improving it every day. You can skip some administrative taxes and fees by applying for a motorbike loan online. Terms of repayment for motorbike loans purchased online vary from 12-36 months. There are some extreme cases where the end term can reach up to 72 months. Yet again you should keep in mind the history and status of your lender.

• “Do they have good customer service?”
• “Will they be able to give you good advice and instruction in times of need for it?”
• “Do you have a possibility of choice on what date will your repayments will begin and end?”
• “Can they automatically deduct the payments from your account, making the whole repaying process simple?”
• “Will you have a possibility of an online check?”

Getting a motorbike loan does not necessarily always have to be a tense process. It can actually be a benefit for you in a lot of ways.  The research will always do you good, plus you are upgrading your credit report. And in the end, you will have your dream bike roaming and traveling down the open road… am I right?