For most buyers, the purchase of a new ride will entail the need to borrow the funds. Making the credit arrangements an integral part of the buying process. With the availability of online buying tools such as our finance calculator and comparing rates charts, buyers have a simple way to calculate estimates. A tendency when calculating these credit estimates can be to focus intently on the interest rate without paying the appropriate concern to the motorbike loan terms.
Comparing our affordable motorbike finance rates is very significant as interest rates vary across the lending market. But the period over which the credit is taken – the term, can be significant in both the amount due to repay the credit each month and the total cost of the credit and hence, the total outlay to own the machine.
Understanding how all components of the lending interact and how approval is given, may assist buyers to better calculate estimates for their particular requirements.
What Motorbike Loan Terms are Available, Approved.
The credit periods available for lending products can vary across the lending market. Different banks and credit companies will offer their credit periods based on their own guidelines. The period over which credit is offered is subject to lender approval of individual applications and may be based on their assessment of a number of factors.
The amount being borrowed is a major consideration. Lenders will assess the amount being requested, the repayment amount that represents over certain periods at the interest rate offered, against the individual credit profile and financial position and income prospects. Assessing the risk factor and the ability of that person to furnish that amount on a monthly basis over the number of months/years requested.
If the preferred or requested credit period is not approved by a lender based on the credit total, buyers can consider reducing the total requested by making a downpayment.
Lenders will want to have confidence that the applicant has a good credit history for making their credit commitment payments. The credit profile and hence risk assessment of the applicant can be critical in the rate approved, the amount approved and the term approved. Buyers who have not checked their credit report for some time may seek information on how to get a free copy and how to fix errors to improve their rating at Moneysmart.
With our access to more than 80 lenders, we have the resources to find the lender best placed to approve our customer’s preferred credit period. We do have lenders that will approve credit periods of up to 7 years.
Impact of Motorbike Loan Terms on Final Outcomes
The focus of many buyers can be on minimising their monthly commitments when taking on credit to purchase a new machine, especially when costs-of-living are high. Obtaining the lowest monthly repayment means getting the longest credit period available. But focussing just on that repayment figure and not on the big picture may be overlooking the real costs.
Interest rates on our secured lending product are at a fixed rate with interest accrued on the principal – the amount borrowed, pa - per annum, each year. While the rate remains constant for the full credit period, the period itself can greatly impact the total interest payable on the funding.
The total interest payable is significant for buyers to consider. When added to the purchase price, the total sum is the actual cost of making the purchase. That is, how much that machine has cost to acquire.
That brings us around to the credit period.
The longer the credit period in months/years, the lower the monthly repayments will be, but the higher the total interest payable on the funding. From the opposite perspective, a lesser number of months results in a higher monthly commitment but with less total interest compared with a longer credit period. So the machine total cost is less and buyers own their ride outright sooner with a shorter credit period.
Working out Estimates for Different Terms
Confused? Not sure what credit period will suit your budget? Using lending motorcycle finance calculator enables buyers to get a fuller picture of the significance of the period of the credit arrangements.
By keeping the lending total and interest rate unchanged and entering different credit periods, buyers can immediately see how the monthly estimated payment changes. Great intel to use as a guide to set preferences to brief our brokers or use when submitting an application.
How to Get Approved for Preferred Motorbike Loan Terms
After using a calculator, buyers typically will establish the credit period that they would want for their lending. But is it a matter of just telling your broker or lender what you want? All conditions around credit must be approved by a lender. The credit period can be considered in context and perspective with other aspects of the lending – the amount, the rate, the risk assessment, as noted above.
As specialist motorcycle lending experts, Jade Bike Loans assist buyers to get approved for their preferred motorbike loan terms through negotiations direct with lenders. We handle the process on behalf of our customers, using our skills and our connections to get the preferred credit period approved.
For assistance in getting approved for your preferred motorbike loan terms, connect with Jade Bike Loans on 1300 000 003 or online.
DISCLAIMER: IN REGARD TO ANY ERRORS OR MISREPRESENTATIONS IN THIS MATERIAL, NO LIABILITY IS ACCEPTED. THE DETAILS, CONTENT AND DATA IS PRESENTED PURELY FOR GENERAL INFORMATIONAL PURPOSES FOR MOTORBIKE BUYERS AND THOSE SEEKING MOTORCYCLE LOANS. THIS IS NOT INTENDED AS THE SOLE SOURCE OF INFORMATION FOR FINANCIAL DECISIONS. IF SPECIFIC ADVICE IS REQUIRED AROUND FINANCIAL DECISIONS, READERS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.