Perhaps it’s a new year’s resolution. Perhaps it’s your first bike. Perhaps you hanker for a suitable machine to take you on long rides, tackle new adventures or off-road tracks. Whatever the motivation for the purchase, riding out of a dealer showroom on your new motorbike sooner, and in a better financial position, may come down to being prepared to secure the best new motorcycle finance.
Most buyers of the latest models will require a loan. Loans for goods like motorbikes vary across the consumer credit market with different rates, approval criteria and even lending products. Jade Bike Loans advises that attending to credit issues and selecting the right loan and lender may contribute to securing the best new motorcycle finance. Spending a bit of time addressing finance issues at the same time as deciding which model to purchase, may pay dividends.
Check New Motorcycle Finance Eligibility
Motorbike loans come under the consumer credit lending sector with guidelines set by ASIC which lenders must adhere to. To be eligible for consumer loans, applicants must be 18 years or over, have regular verifiable income and/or employment, Australian residential details and provide a range of documents regarding residency, employment and financial position. The types of documents which can be requested include payslips, bank statements and income tax returns.
If this is the first time the applicant has applied for a loan, they may be required to provide additional security or require a guarantor. Our brokers can advise applicants of what is involved if a guarantor is required or preferred.
The rider status – new licence holder or experienced, is not a requirement to apply for a loan. But insurance is required with goods purchased with credit and the age and/or experience of the rider may impact the policy – subject to individual insurer guidelines.
Beyond the ASIC requirements, lenders will have their own guidelines for approving loan applications based on credit scores, and for establishing credit limits for individual applicants. We assist applicants by selecting the lender that best suits their particular profile.
Credit Facilities for New Motorcycle Finance
Secured Motorbike Loans are the most widely used credit product for new bikes of all types. The size, variant and model does not directly impact the type of loan. This type of credit may be known as a Secured Personal Loan by some lenders and uses the bike as the collateral for the loan. Saving buyers from having to find other assets to put up as loan security.
With the goods as collateral, lenders may approve more attractive interest rates and higher loan totals. The amount a buyer can borrow is the individual credit limit as approved by a lender. This borrowing capacity can determine what deposit the buyer will be required to make on their purchase.
Applying for a loan prior to committing to the purchase, allows buyers to know their borrowing limit and select the motorbike with a price to suit. We can assist with pre-approved loans which are conditionally approved prior to purchase.
As goods purchased under finance, insurance will be required on a motorbike financed with a secured loan. Lenders will need details of the insurance policy – policy number, insurer, etc, before
they will settle the finance. Buyers typically obtain a cover note with an insurer which covers the bike for a short time while the policy is being arranged with the insurer. Buyers may expedite settlement and delivery of their machine by researching their insurance options ahead of time. Ask our brokers for assistance with motorbike insurance.
Navigating the Lending Market Loan Variations
Securing the best motorbike loan can depend on securing the best interest rates. That can be a major challenge with variations across the consumer lending market with rates as well as with application approval criteria.
Lenders set their own interest rates which typically reflect, but are not the same as, the cash rate as set by the Reserve Bank of Australia. In trying to find the best rates, buyers are cautioned to avoid applying for the same loan from many banks and finance companies to obtain quotes to compare. This has the potential to result in negatively affecting the credit score which in turn affects any rate offered. This can be avoided by using our broker services. We source the lender that best suits each customer’s profile and requirement and the best available interest rates.
Address Credit Scores to Secure Best New Motorcycle Finance
Key to securing the best loan offer is having a good credit score. Lenders advertise their best rates for applicants with good credit scores. Individuals can obtain a copy of their credit report and check if there are any issues which may be fixed to improve their score. Details on how to do this are available at Moneysmart.
Being approved for the best borrowing capacity may depend on the financial position. Where possible, pay out current loans and debts to reduce liabilities and improve the overall financial position prior to submitting a new loan application.
Use Buyer Tools to Compare and Plan
When planning to purchase a motorbike with credit, buyers can use our Motorcycle Finance Calculator to prepare and compare different loan options. This too allows buyers to quickly calculate estimated monthly repayments for models at different prices and with different loan amounts to establish the most workable options and preferences.
To secure your best motorcycle finance, contact Jade Bike Loans on 1300 000 003.
DISCLAIMER: IN REGARD TO ANY ERRORS OR MISREPRESENTATIONS IN THIS MATERIAL, NO LIABILITY IS ACCEPTED. THE DETAILS, CONTENT AND DATA IS PRESENTED PURELY FOR GENERAL INFORMATIONAL PURPOSES FOR MOTORBIKE BUYERS AND THOSE SEEKING MOTORCYCLE LOANS. THIS IS NOT INTENDED AS THE SOLE SOURCE OF INFORMATION FOR FINANCIAL DECISIONS. IF SPECIFIC ADVICE IS REQUIRED AROUND FINANCIAL DECISIONS, READERS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
" alt="">