Are You Choosing the Right Motorcycle Finance

If you are in the market to buy a new motorcycle you may be in need of some motorcycle finance. Your previous credit history and your ability to make repayments will to some extent dictate what type of finance you qualify for, but the number of options to consider can be overwhelming.

When trying to get the best finance to suit your individual situation it can be helpful to do some preliminary research into your requirements, before you being looking into what’s available. You can do this by asking yourself questions designed to identify your actual needs.

Question: Do I want to get a loan?
Answer: Loans are the most popular way to buy a bike that you can’t otherwise afford, although your monthly payments might be higher than with other options. A lot of this is dependent on your credit rating – often banks can actually be less expensive if you have a poor credit rating, since bad debt loan companies will charge far higher interest rates to give you your loan.
Question: Do I want to get a lease?
Answer: Leases are a lot more popular now than they were 10 years ago – and it can make sense for some buyers. However, under leases you are often restricted to what type of bike you can buy and have stringent conditions to follow such as regular maintenance schedules.
Question: How much will I need to finance?
Answer: Since you already know which motorcycle you’re going to buy, you know how much it costs. But don’t forget other upfront purchase costs such as insurance or registration. Decide how much of your own money you can spend, then figure out how much you’ll need to finance.
Question: Do I have a deposit?
Answer: The larger your deposit, the less you have to borrow and repay. Some lenders and dealerships don’t require a deposit for financing.
Question: Do I have a trade-in?
Answer: If you have a cycle to trade-in it can alter the type of finance options available. Check with the dealership.
Question: What is my credit history?
Answer: If you have a great credit history you’ll have better options. It’s as simple as that. If you have a spotty credit report, though, you’ll be forced into more expensive terms or questionable deals.
Question: Is this the motorcycle I really want?
Answer: You’ve already picked your motorcycle, but it can’t hurt to re-evaluate it once you start looking at your financing options. You might find that you can save a lot of money with other choices.
Question: Can I truly afford it?
Answer: Motorcycles are expensive. Take your time – motorcycles aren’t going away anytime soon. The more money you can spend on a down-payment, the better off you’ll be in the long run (and you’ll have cheaper financing).