When in the market for a new motorbike, most riders will want to make their decisions and get on their new machine as soon as possible. You know what you want in your new ride. Know the type of motorbike, have preferred or even favourite manufacturers and are narrowing down the short list with test rides. But if you need finance to buy that new ride, do you know what’s needed to apply for a motorcycle loan? Are you prepared for that critical stage in the buying process?
Knowing what’s involved in the application process, being prepared with the right documents and using available expert services and resources, may expedite the purchase and with a better motorbike finance deal. A better interest rate and more affordable repayments.
We’ve prepared this guide with details on what loan applicants will need, tips on what to avoid and how to get the best motorbike finance deal.
Step One – Are You Eligible to Apply for a Motorcycle Loan?
Before getting over-excited about buying a new machine with finance, it’s wise to know if you are eligible to get approved for that finance. Loans for motorbikes fall under the category of Consumer Credit. Lenders in this market operate under regulations and guidelines set by ASIC.
Responsible Lender Guidelines must be adhered to by lenders and these regulations determine the information required and the eligibility criteria. These are minimum requirements, and banks and finance companies can have their own guidelines for approving loan applications. These can include minimum credit scores, credit limits, and loan limits.
The essential requirements for eligibility include:
- Over 18 years of age.
- Permanent Australia or New Zealand residency or hold current appropriate visa.
- Regular source of taxable, verifiable income in Australia.
- Residential Australian address – verifiable and fixed.
- Credit history.
Having a motorcycle rider’s licence is not a condition of eligibility to apply for a motorcycle loan.
Step Two – Check Your Credit Profile
Credit history, score and profile are integral to getting the best finance offers. The credit score reflects the risk factor of lending to an individual and lenders review credit profiles when deciding on interest rate offers, loan limits, and approving applications. Good scores attract the best rate offers and can contribute to being approved for a higher loan amount, which may reduce the deposit needed.
Tip – applying to multiple lenders for the same finance can cause negative impacts on an individual’s credit profile. These applications are noted in credit histories, even if not proceeded with, and are typically considered a negative by lenders.
To ensure the credit profile is in the best shape, address the position before submitting a loan application. Head to Moneysmart for ways to improve a credit rating by fixing errors. Another tip – improve the overall credit position by reducing debts – pay off loans, finalise BNPL instalments, and other outstanding commitments.
Step Three – Prepare Documents to Apply for a Motorcycle Loan
Being prepared to submit all the required documents with the application can contribute to a faster processing and approval process.
You will need:
- Identification with the usual documents such as passport, birth certificate, Australian driver’s licence, Medicare card and photograph ID.
- Detail financial liabilities such as credit card balances, loans, debts and BNPL instalments outstanding.
- Detail specifics of assets in your name – eg, current motorbike, cars, items of value, investments, etc
- Proof of income with wages and payslips and/or documents for income from sources including investments, property, shares and Government payments. Having the latest tax return on hand is advisable.
- Detail regular, recurring living expenses and bills such as rent, utilities, etc.
- Bank statements.
- Specifics of the motorbike being bought – make, model, new, used, price, accessories.
Step Four – Check Deposit and Collateral Requirements
Before applying for a bike loan and before committing to buy a machine, it can be smart to know what collateral you’ll need and what deposit you may have to make. Buyers of new machines and quality second-hand rides will be selecting the Secured Motorcycle Finance. This type of loan allows for the ride to be used as security for the finance. Whether or not this is the only collateral required will be subject to the lender assessing the application.
The deposit required will be based primarily on the individual credit limit as assessed by the lender. Where the loan amount requested is above the credit limit, buyers may need to make a deposit. Some buyers can be approved to borrow the full amount of the purchase, even including accessories. When using our services, our experts match buyers with the right lender from the outset. Ensuring these aspects of the application process are streamlined and straightforward.
Priority – Use the Experts to Apply for a Motorcycle Loan
While we’ve left this point to last it should really be the first step and a priority for buyers seeking a streamlined and fast way to achieve the best motorcycle finance. The experts at Jade Bike Loans assist riders to apply for a motorcycle loan with streamlined processes, individual service and fast approvals.
We handle everything from that initial enquiry – finding buyers the most suitable lender, the best rate, processing the application and even assisting with settlement. So if you are looking to get on your new ride faster and with the best finance deal, apply for a loan with Jade, online or by phone.
For fast application processing and approval, apply for a motorcycle loan with Jade Bike Loans on 1300 000 003 or online.
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.
