In preparation to buy a new motorbike with finance, buyers may improve their loan prospects by addressing credit profile and financials and using a broker. You may want to rush out to get that newly released model or the one you’ve had your heart set on for ages. But when a loan is required to make that purchase a reality, doing some basic prep and using professional financing services, may result in a much better outcome. Remember, the overall cost of the loan is what the machine is actually costing you. Taking steps to reduce those loan costs may mean a lower overall outlay.
As specialists in motorcycle financing, we share some of our expert tips including some simple steps that buyers can easily take ahead of applying for financing. We also cover off on some of the basics of consumer loans to ensure you have a better understanding of what is involved when taking on finance.
Loan Tips to Buy a New Motorbike
Regardless of whether it may have been a while since you applied for a consumer loan or this is your first loan application, understanding the current lending market may be an advantage. There are many banks, finance companies and dealers offering finance for motorbikes. Some, like Jade, offer a specific loan, while some offer a more general Personal Loan.
There will be some similarities in the format of a secured personal loan but there can be many differences across the lending market when it comes to the loan amount approved, the terms, and especially the interest rate. Lenders set their rates based on their own guidelines. Individual rate offers will depend on the specifics of the individual application.
Many buyers will typically start contacting as many lenders as possible to find which will offer them the best loan. Be aware – this process may damage your credit profile. Lenders report applications to Credit Reporting Agencies which post them to individual credit reports and multiples can be considered a negative by lenders.
A solution can be to use a broker to find your loan. As brokers, when we cover off on our large lender base to find the best loan offer, there is no negative impact on our customer’s credit score.
Lenders offering loans to consumers must be Licensed Credit Providers by ASIC and abide by set procedures when assessing applications and making loan offers. Most significantly, lenders assess the credit score and financials very closely. The credit profile and financials – the personal balance sheet and income compared with debts and expenses, affects the interest rate you will be offered and how much you will be approved to borrow which could affect the model you can afford.
Paying some attention to these matters prior to applying for a loan may assist in getting a better offer. Refer to Moneysmart for ways to get a free credit report to get started. If your balance sheet is not looking so positive – possibly have other loans, credit cards, etc, addressing these can also be a good idea.
Comparing Loans to Buy a New Motorbike
When buying a brand new model, a secured format loan will be the most popular choice of credit product for most buyers. A secured format loan allows for the machine to be the collateral to secure the loan. Whether this is the only collateral required, will depend on the lender’s decisions.
Interest rates on secured loans can be fixed or variable. Our secured loans have a fixed interest rate which means that the rate and the monthly payment won’t change while you’re repaying the loan. A variable rate can change if the lender changes their rates for that loan, which may happen if the Reserve Bank changes the cash rate.
When comparing loans, also look at the terms offered. We offer a fixed term and with our fixed rate, that means fixed monthly payments.
Now will you need to make a deposit? A lender won’t actually tell you to make a deposit. What they will tell you is how much you are approved to borrow on that particular machine. If the loan amount is less than the purchase price, then yes, you will need to pay a deposit.
Planning Tool - Use a Loan Calculator
These may sound like a lot of details to cover off on. But by using our Motorcycle Finance Calculator, planning and prep can be quicker and easier. Buyers can work out their repayment estimates based on different machine and loan amounts and with different interest rates.
To make the entire purchase with finance process even easier, buyers can apply for their loan with us before even making their machine selection. Pre-approved loans provide buyers with certainty around how much they are approved to borrow, know their monthly commitments, and select the machine to suit the loan.
If you’re intending to buy a new motorbike with finance, contact Jade Bike Loans on 1300 000 003 to have your loan arrangements handled expertly for you.
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.
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