Buyers requiring finance to purchase a new motorcycle will be seeking the most affordable option, based primarily on the best interest rates. There are many variations in credit products and rates with the numerous lenders in the consumer finance market. Finding the best option can involve considering not only lenders but the specifics of each credit option. To compare motorbike loan interest rates, buyers can review fixed & variable options, Comparison Rates, lender conditions and repayments using a loan calculator.
To simplify the process, we provide expert tips on what to look for in comparing rates as an initial step when preparing to take on credit to fund a new machine.
Compare Motorbike Loan Interest Rates by Lender
Buyers surveying the market for motorcycle finance will quickly realise the differences in not only rates but credit products with different banks, finance companies and dealers. Before comparing rates offered by lenders, buyers can start with comparing credit products to ensure they are considering the product that best suits their requirements. While ASIC regulates the Consumer Credit market with Responsible Lender Guidelines, these guidelines focus primarily on loan application approval. They do not regulate the rates and all specific credit product features.
Lenders may offer a general Personal Loan for purchases such as motorcycles, which may be secured or unsecured. We provide specific Secured Motorbike Finance which is secured with the machine being funded. New and quality second-hand bikes can be financed with secured credit. Used machines need to be approved as suitable collateral or an unsecured product may be used.
In considering if a credit product is suitable, check the maximum and minimum credit products suit the amount required for the finance. Check the terms available for the finance. The term may not affect the rate offered but can affect the total interest payable and the monthly repayments. Check any special conditions which a lender may include in their credit products to ensure they suit your requirements.
Compare Fixed with Variable Rate Finance
A key difference with consumer credit products is whether the rate is fixed or variable. A fixed rate will remain at that level and unchanged over the full fixed term of the credit. A variable rate changes when the lender changes their rates. This typically occurs when the Reserve Bank changes the official cash rate. But lenders can change their rates at any time and may do so with a cut or a rise, before the RBA moves.
Some personal loan products are offered with a variable interest rate. Our Secured Motorbike Loan has fixed rates which ensure a fixed repayment and no changes over the fixed term. When comparing rates, keep in mind that rates for new and used machines can be different.
Understand Comparison Rates
An important aspect to understand with Consumer Credit are Comparison Rates. When comparing lender rates, you will notice two rates displayed – known as the interest rate and the Comparison Rate. The Comparison Rate is the interest rate calculated on a specific credit example which must be detailed alongside the rate. The Comparison Rate will include some, but not necessarily all, lender fees and charges.
Comparing Comparison Rates and the difference between advertised and Comparison rates, may provide an insight into the lender fees.
Using a Calculator to Compare Motorbike Loan Interest Rates
Comparing a rate based purely on the percentage may not provide buyers with sufficient information to make their buying and finance decisions. A Finance Calculator is a useful device to provide greater perspective for buyers. Buyers can calculate repayment estimates using different rates, for the amount they are seeking to borrow.
The repayment estimates generated with the different rates can then be compared. To get estimates, enter the amount required, preferred term and a rate. The rate may be our currently displayed best rate, or a rate obtained from another lender. Leave the total and term unchanged and enter a different rate to obtain an estimate for that lender.
Getting the Best Rate Offer
While making comparisons is a useful process, the end objective is to be offered the best possible rate. Lenders will display their current best rate which is for new motorbikes and for applicants with a good credit rating. Prior to applying for credit, buyers may improve their prospects of achieving that best rate by addressing their credit position. Credit positions may be improved by paying off other debts such as personal loans and credit cards and by fixing any errors on the credit report.
Buyers can simplify and expedite the entire process of obtaining sufficient information from lenders to make comparisons by using a broker to source their motorcycle finance. As brokers, we source customers the best offer from across our lender base which includes over 80 – banks and finance companies. We do the work of selecting the lender that is best suited to the individual profile and requirements of our customer and sourcing the best rate offer.
To easily compare motorbike loan interest rates, contact Jade Bike Loans on 1300 000 003 for your best rate quote.
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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