A friend of mine was so keen to purchase a motorbike that it didn’t make any difference what the finance market was like. Interest rates could be high or low or it may be the end of the year Bike sale with lots of incentives or even the end of a particular model sale, buyers tend to make the same mistakes when shopping for a motorcycle loan. There are many common mistakes motorcycle buyers make with motorcycle loans.
Looking for a motorcycle before organising a motorcycle loan. Many motorcycle buyers enter the showroom looking for a motorcycle before they determine how much money a Bank or Finance Company will advance them based on their personal circumstances. There is no point in shopping for a $20,000 Yamaha motorcycle, if a lender is only willing to provide a personal loan amount of $10,000.
Additionally, once motorcycle buyers enter the showroom, the sales team often pressure them into motorcycle loans with much higher internet rates than they could have gotten had they shopped for a motorcycle loan at a bank, credit union or applying online. Salespeople prefer to do the whole process in house rather than let motorcycle buyers leave the dealership in order to obtain a motorcycle loan. In the salespersons mind this only increases the chance of loosing a sale and commission. Therefore, salespeople frequently try for a quick sale which normally results in pushing motorcycle buyers into getting motorcycle finance at the dealership.
The bottom-line is that it is always best to shop for a motorcycle loan before entering the showroom. Phone Aussie on 1300256267 to obtain a quote
Diving into the unknown motorcycle loan. Motorcycle buyers often jump into motorcycle loans that they do not completely understand or may not be the best alternative for them. For instance, in today’s age manufacturers frequently run motorcycle loan promotions – but these promotions typically offer a low interest rate for a loan term like 48 or 60 months and have a much higher purchase price than if you haggle the price down.
The most common mistake the first time motorcycle buyer makes in not having a clear sense of how much motorcycle they can afford. This is especially true for young motorcycle buyers who look to buy the top sport bikes that cost up to $10,000 – $15,000. What they fail to realize is that financing a $10,000 – $15,000 motorcycle can stretch them to thin, resulting in them having little cash to enjoy themselves and the motorcycling lifestyle. They may also have too little cash to pay for insurance, maintenance, registration or new accessories for their motorcycle.
Not asking the right questions.
The first warning sign that motorcycle buyers should see is that if they do not understand the type of motorcycle loan, then they should be sure to ask a lot of questions.
Here are some good questions to ask:
Is the interest rate fixed or variable? If fixed how long will it be fixed for’ – Fixed is generally considered better.
Are there circumstances that can make the interest rate on the motorcycle loans change in the future’
What happens if a payment is 30 days late? Does the interest rate increase’ – Try to always pay on time. Future loans will be declined if your payment history is poor.
What happens if a payment is 60 days late? Does the interest rate increase’ – Don’t let it get this bad for the reason above.
How long is the term on the motorcycle loan’
If the loan is an installment loan, does it use rule of 78 or simple interest? (Simple interest is always better because it does not penalize the motorcycle buyer if the loan is paid off early.)
What is the deposit payment requirement to get the motorcycle loan’
Is full coverage insurance required’
How much is registration and are these fees included in the motorcycle loan’
Are there any administrative fees to get the motorcycle loan and if so how much are the fees’
Overall, motorcycle buyers can avoid these common mistakes by spending a little extra time focusing on shopping for a motorcycle loan and asking lots of questions.