Car owners may consider their motorbike loan options to switch to two rather than four wheels in the current fuel shortage and price hike situation. Motorbikes can be more economical on fuel than cars, a prospect which may be extremely attractive in the current situation. Enabling owners to continue to meet their commitments with the work commute and getting to personal engagements. Plus, bikes are easier to park which can be a major advantage in big cities where parking comes at a premium.
Car owners may choose to buy a motorcycle to use for commuting and solo travel and keep the car for when extra passengers or loads need to be transported and for longer trips.
The fuel situation may also have current bike owners considering switching to an electric model to ease the stress of fuel issues and realise even more benefits. Especially keeping those road trips and weekend rides on the agenda.
Whether switching from four to two or from petrol to electric, the financing is going to need to be workable and affordable. Despite the Reserve Bank lifting rates at its February and March meetings, competitive rates on motorcycle finance are achievable through Jade. We cover off on your finance options and how to get fast approval to accelerate your purchase process.
Unsecured and Secured Motorbike Loan
There are essentially two types of consumer loans for financing goods such as motorbikes – secured and unsecured. A major difference is the collateral for the finance. With a Secured Motorbike Loan, the machine is accepted by the lender as the collateral. Many buyers will not need to provide additional assets as finance security. As the name implies, an Unsecured Personal Loan does not require collateral. As lenders have no security for recouping outstanding monies if the borrower defaults, unsecured loans have higher interest rates than secured loans.
Most buyers of new models and good quality second-hand machines will be opting for a secured loan. This type of credit can be used for all types and brands of motorcycles including electric models. The interest rate is fixed as is the repayment term. Providing a set number of fixed monthly repayments for easier budget management.
How much a buyer is approved to borrow – no deposit or a percentage of the purchase price, will depend on the lender and loan applicant. Lenders assess applications for the applicant’s borrowing capacity – how much they are prepared to lend to that individual at a certain interest rate. A lower rate increases the borrowing capacity.
Insurance is required for goods purchased with secured loans. Policy rates will vary with lenders and the machine details.
New vs Used Motorbike Loan
If purchasing a motorcycle as a second form of transport to a car, or if buying with a close eye on your budget, then you may be drawn to the second-hand market. Prices are lower and good quality used motorcycles can be available.
There can be differences between loans for new and used motorcycles. First, the lender must accept the machine as suitable collateral if seeking secured finance. Most quality used machines will be acceptable collateral.
The percentage of the value or purchase price which a lender will approve for the finance can be less on a used compared with a new machine. Interest rates can also vary.
If considering both new and used, request finance quotes for both to assist with your purchasing decision.
Motorbike Loan Interest Rates
Interest rates vary with lenders, with credit products and for individual applicants. The financials and credit score of the applicant is key to achieving the best possible rate. To assist buyers, we find them their best possible rate from across a large lender selection. Not only saving them time, but saving negative impacts on their credit report by requesting quotes from multiple lenders.
A lower percentage of loan compared with the value of the machine can deliver a lower interest rate. For buyers, that means considering their downpayment. Make a larger deposit and not only reduce the loan required and the monthly commitments, but also potentially be offered a lower rate. Lower rates also mean lower payments.
Review our latest rates for planning purposes and use our Motorcycle Finance Calculator to get estimates to establish your budget and set purchase price targets.
Electric Motorbike Market
Electric motorcycles are not e-bikes or e-scooters. These are motorcycles with an electric motor. According to reports, demand for these models in Australia has not been high. But there are a number of less well-known brands offering riders this option.
Researching the market is strongly advised. Brands like Zero, Evoke and Energica and Melbourne-based Savic Motorcycles are some to look for. These machines require less servicing which may reduce overall ownership costs.
There are downsides which buyers should research when considering the different makes and models. These may include long charging times and of course range. The range issues may be overcome by simply planning longer stops on a road trip. For those wanting an electric ride for daily commutes only, this may present a very astute budget decision.
Also check licence requirements for electric motorcycles in your state and what models are LAMS approved for new riders. Riders may need to be more aware and take greater caution when riding an electric machine in pedestrian areas. Pedestrians and even drivers may not hear the quiet engine!
Fast Motorbike Loan Approval
If you’re wondering how you are going to fill your motor vehicle tank this week to get to work or how you’re going to budget the higher prices, getting onto two wheels could be a high priority. We can help you out by having your finance application approved within 24 hours, for most buyers.
For even more convenience, submit your application for conditional approval before you start test-riding and be ready to ride out of the dealership on your new wheels asap.
For fast motorbike loan approval at competitive rates, contact Jade Bike Loans on 1300 000 003.
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.
