So you have decided that you need a motorbike, but you cannot afford to pay it in cash right now. An option is to get a motorbike loan. Nowadays, this type of loan is very popular in Australia, and it can be the perfect solution for you, too. Here are five useful tips you should know if you are planning to get a motorbike loan in 2016.
Pay some of your debts before filling in an application
The chances of getting a motorbike loan are definitely lowered by a high credit card debt. Almost every lender wants to see your credit history before providing you with any loan offers. If you have a lot of debts, the credit provider will probably assume that you are not a trustful person, and you won’t pay the loan at the right time. This will drastically decrease your chances of getting the loan, so you should first pay some of your debts, and then fill in an application and negotiate with a lender.
Verify your credit record
The lenders will do that for sure, but it is better to make sure that there aren’t any errors in your credit history before applying for a motorbike loan. If you notice any mistakes, make sure that these are revised before your lender will check your credit record.
Opt for a new or almost new motorbike
The chances of getting the loan increase if you opt for a new motorbike or one that is almost new, because credit providers consider that their value is higher, and they can be easily resold. In fact, this is a logical reasoning. If the motorbike you want is already old, not only that it can be used for a shorter period, but the reselling price will be much lower than in the case of a newer motorbike. This is a risk that credit providers are not eager to assume. Gumtree is a great resource to search for new or used motorbikes.
Negotiate for your loan
Keep in mind that there isn’t only one credit provider and the field of finance is a competitive one. You should negotiate with a potential credit provider for the best deal and then compare it with other credit providers’ deals. This way, you will make sure that you choose the best option for you. You can also search on the Internet for more options.
When you compare the offers, make sure you also read all the terms and conditions.
Ask all the questions you have about the loan
A big mistake made by those who are excited to get a motorbike loan is that they omit to ask all the questions about the loan. In fact, you may be so enthusiastic about a low rate that you forget to consider other fees and charges. And your credit provider may also ‘forget’ to mention them. That’s why it is essential to make sure that you understand all the risk and the advantages of the loan before signing the papers. Don’t hesitate to ask anything you would like to know about the loan; the credit providers are there to answer all these questions for you.