Bike Finance Made Easy
It is easy to get confused about motorbike finance interest rates when you are first setting out to research what is going to be the best option for you. When you’re using a motorbike loan calculator and it asks for the interest rate most people just pluck a figure from mid-air and hope that it is correct, in other words they are uneducated as to what a good deal is for their profile in today’s finance market.
There are good reasons as to why lenders to not publish their full range of interest rates, and that is because to establish what the best deal is for you they must know more about your credit history and lending or repayment habits.
Is there such a thing as one Motorbike Loan rate for everyone?
The short answer is no, but ask yourself this question. If I pay my loan repayments on time every time and have had no credit issues in the past do I deserve a better deal than someone who doesn’t pay their loans on time and default on their repayments? Of course you be excused for thinking that you deserve a better deal than the person that doesn’t keep their repayments up to date and default on their loan commitments. This means that your interest rate in theory would be less than the other person.
On top of this each lender have their own credit criteria in which they assess a loan by. This being the case, there is a lot more to consider than just interest rate, for example:
Which motorbike lender suits your lending profile?
How old is the motorbike that you are buying?
What is the amount that you need to borrow?
Type of motorbike being purchased (e.g. registered or unregistered)
What is the overall financial status of the applicant? E.g. Do they have savings?
Does a low advertised interest rate always mean that I am getting the best deal?
Definitely not. If it sounds too good to be true it probably is. Some Dealerships and their Manufacturers advertise very low interest rates, and it is your job to research what the deal really means for you. Some things to look for are:
Do you have to pay full price for the motorbike to get the low interest rate?
What loan term do you need to take the loan over to get the low motorbike finance interest rate?
What does the interest rate change to if you change the loan term?
What penalties do you encounter for paying out your motorbike loan early?
What loan set up costs will you incur?
At the end of the day the only way to truly know what sort of interest rate you are eligible for is to speak with a motorbike loan expert that knows and understands the marketplace. Even then, you will need to apply for the motorbike finance to get the final result so you might as well have someone there to help you along the way. This is where a good motorbike finance broker will come in handy.
Don’t get trigger happy!
One more thing to keep in mind is to ensure that you don’t go and make multiple finance companies with the hope that they will all come back to you with their best deal for you to choose from. Making multiple enquiries in a short period of time will put up red flags to all reputable motorbike finance companies. This will leave you with a very busy credit file which will cause some lenders to see you as a higher risk to their business and in turn will result in you being offered a higher interest rate as a result of these enquiries.
So what can you do to make sure you get the best motorbike finance deal?
Contact an experienced motorbike finance broker, one that has a wide experience in the motorbike industry, just like Ask4Finance. Many of our team of motorbike loan experts have motorbikes themselves, so they not only understand who is going to give you the best deal, but they also understand your passion for motorbikes.
Apply online or call us on 1300 769 177 for more information.