The scenic beauties in Australia are unmatched. The landscapes and the coastlines are to die for. Anyone who loves the idea of road adventures along the coast or mountains, especially now during the warm and pleasant temperatures, would be ecstatic to own a motorbike!
Riding a bike can be exhilarating and provide freedom like nothing else. But before you head out to purchase a motorbike, you need to rationally think the decision through, especially about attaining motorcycle finance.
Here are the top 3 things that cause an impact on your motorcycle finance!
First things first, when you are out and about browsing through motorcycle options, you need to be very mindful of your budget. Do not get caught up in fancy options, and make sure to conduct thorough research on your own before heading to a showroom.
Determine the purpose of buying the bike. Will it be a weekend cruiser that you take on off-road trails? Or is it just for daily rides to your office?
Once you are sure about the purpose, you need to decide whether you need a brand-new motorbike or not.
A new bike might cost you a fortune, but it will also offer you the best performance, the latest technology and up-to-date style. You can even seek some discounted financing options.
On the other hand, a used bike will save you a significant amount of money, but you will have to deal with the wear and tear caused to the motorcycle by previous owners. So, make sure you buy a well-maintained used bike.
Carve out a budget and make sure not to stray from it!
Regarding assets, credit providers and banks do not consider motorbikes very highly. As opposed to car loans, motorcycles are just deemed to be of high risk.
So, when you go to the bank to secure finances, ensure that your credit report is clean and solid so you can get the best loan rate possible. You can order the credit report copy beforehand so you can have all the necessary information that the bank will review.
It’s essential that your credit report has no irregularities and that all the information is up-to-date and accurate. If not, you can get it corrected by contacting the credit reporting bureau.
Additionally, ensure all your personal loans are paid and your house mortgage payment instalments are paid on time. If your score reflects above 700, most banks will approve your loan application at an excellent interest rate!
Most credit unions, banks and building societies do not offer a particular motorcycle loan product. Customers usually have to finance their bike purchase utilizing an unsecured personal loan.
The issue is that unsecured personal loans come with higher loan assessment measures. It’s because the banks do not have any security over the bike. This inadvertently makes motorcycle purchases hard for people who don’t have good financial assets, job stability or a house.
In such a case, you need to find the right lender that offers secured loans for all models of bikes.
Buying a bike, much like any other asset, can be quite an overwhelming decision. There is no shortage of options in the market, which can confuse you. If you are a beginner, you may purchase a basic model, costing around $5,000-$10,000. If you want a model with stronger horsepower, you may have to shell out around $10,000-$35,000. Sports bike is even costlier, capped at around $40,000.
So, before buying, you need to consider many factors. You need to make sure to fix your budget, check your credit score and find the right lender. With these three factors straightened out, you can make a wise decision!