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:
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?
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