So, you have just decided to buy an awesome new motorbike. Congratulations, and let the fun begin. Now ask yourself this question. Is it better for me to invest my cash money into the bike rather than pay interest on a bike loan? If you decide to go with a bike loan, here are a 5 simple tips to help you get the best possible deal and save yourself a packet along the way.
1. Aim for a secured loan
A secured bike loan is one where you will be asked to provide general information about your income and expenses. Under this bike loan structure you do not fully own the bike until the bike loan is fully paid off. The bike is collateral on the bike loan and it can be repossessed if you don’t keep up your loan payments. Now that might sound a little bit harsh, but it is because of this condition that the lender will view this type of loan as a lower risk, and therefore will be more likely to lend you money at a more competitive rate. This is why we find that we can generally offer our customers the most competitive interest rates going on this style of bike loan. After all, our job is to help you compare and save.
2. Aim for something shorter than a five year loan term
The basic rules of maths will tell us that the shorter the loan term, the less interest you’ll end up paying. Your overall commitment per month will of course be higher than if you took the loan out over the maximum term of 7 years, but the overall amount to you will repay will be less. Do your sums and if your budget can stretch and allow you to pay more back faster, why not save yourself some money. Check out our repayment calculator to see how much money your budget could get you. If you have more questions about this, speak with one of our experienced bike loan specialists to see what your repayments could look like over a shorter term. Ask4Finance bike loan specialists are trained to help you structure your bike loan to suit your individual budget and needs.
3. Ensure that the terms of the loan allows for an early payout
The best way to stop paying interest is to pay out the loan. Getting your loan paid off earlier can also help you build a great credit rating for any future loans that you may require. It is important that you don’t get caught out at the other end of your loan when it comes time to payout the bike loan early and get stung with huge early termination fees. Most secured bike loans will have some fees associated with early payouts, but speak with one of our bike loan specialists about structuring your bike loan with one of our motorcycle lenders to ensure this is kept to a minimum or not even have these fees to pay out at all.
4. Consider adding a deposit
The more you can invest up front into your new bike loan, the smaller the loan will be and the less interest you will pay in the long run. If you have already set yourself up with a budget, you have probably been squirreling away some savings for a while, well done, now put it to good use. Another bonus to having a savings plan and deposit on hand is that this can display to the lender that you do have extra disposal income at the end of each pay cycle to save, hence proving to them your ability to afford this new commitment. Whilst it is generally not a condition of one of our Ask4Finance bike loan approvals, we have found that this can give us some bargaining power with the banks and can sometimes assist us when it comes down to getting you a better deal.
5. Work closely with an experienced Broker like Ask4Finance
Ask4Finance has many years of experience finding our customers the very best bike loans available on the market today. Not only that, most of our bike loan consultants actually ride a motorbike themselves, so not only do they know loans, they also know your ride. Feel free to call and speak with one of our experienced bike loan specialists on 1300 769 177 or simply apply online and you could have your bike loan approved today.