How to finance your motorbike in 2017

Posted on Friday, February 10, 2017 - 11:58

Buying a motorcycle is a dream to many Australians. Relishing the freedom of the open road, the wind in your hair, or simply the availability of parking spaces and versatility are aspects that make such a purchase an aspiration.

But what is the best finance option for your motorcycle?

In order to choose the right funding, it’s mandatory to compare different loan options; elements such as interest rates, loan terms, additional fees, and choosing the right model for your needs are crucial to every Aussie who is eager to own a motorcycle.

The statistics below have the purpose of informing you in regards to the Australian motorcycle market.

  • Based on official data, motorcycle, scooter, and ATV sales attained a total of 114,783 in 2016, which involves an increase of 7,073 units over 2015.
  • The growth of motorcycle purchases is acknowledged as the fifth highest sales results recorded in the history of the industry.
  • Honda is recognised as the best-selling brand in Australia, representing 22.9 percent of the total amount.
  • Yamaha is a top choice for off-road motorcycles, as it has sold 30.5 percent of the total motorcycles in this category.
  • As expected, the renowned Harley-Davidson occupies the top position in its category, having sold 10,282 road motorcycles to eager Aussies.

Shop around for the right financing option

A golden practice that applies in each scenario is to research the market for the best solution, based on your budget and individual specifications, such as credit history, personal background, etcetera.

By all means, you should avoid being too tied to a particular model or manufacturer, since this may compromise your chances of finding a fantastic deal.

Comparing different loan option

Comparing various factors will aid you to establish which financing solution fits you best.

Loan terms

Depending on the type of lender you choose, each is featured by a combination of conditions. For instance, you can opt to apply for financing with your bank. Still, in the case in which you’re coping with outstanding debt and bad credit, the likelihood of securing a loan is limited.

A finance broker is another viable alternative; the broker sends your application to several lenders in the industry, thus maximising your chances of getting approved. Also, alternative lenders are a decent choice, since they offer lenient lending criteria. Bear in mind that you should choose a financing alternative that is right for your choice of motorcycle. For instance, some secured loans don’t accept motorbikes over a certain age.

Additional fees

Additional charges will influence the amount of cash you end up paying in instalments. That’s why we advise you to try to understand the implications of each loan. For example, in the event of late payments or changing due dates, certain extra fees may be applied.

These vary by lender, so it’s best to check first.

Interest rates

The interest rates will directly determine the total sum representing the loan. Note that interest rates depend on each lender and the amount of the deposit. Before you commit to a financing option, you should shop around, workout your motorbike loay repayments and compare different options.

Owning a motorcycle isn’t impossible, even with bad credit, as long as you’re consistent in your search and flexible. What other tips would you add? We would be happy to know!

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