In early January, the FCAI (Federal Chamber for Automotive Industries) released the motorbike and OHV (off highway vehicles) sales for last year and the results were positive. While factors around the pandemic are suggested as contributed to strong sales, the low motorbike loan interest rates were sure to have also been a factor.
The overall sales for 2021 in the motorbike and OHV sector recorded a 13.4% increase on the results for 2020. Off road motorbikes comprised 43% of those sales which was a rise of 18.8% on the previous year.
Road bikes were second in popularity with just over 30% of the market and a 6.8% increase on 2020 sales figures. OHVs captured nearly 23% of the market while scooters the smallest share at just over 8%.
In releasing the 2021 sales results, Tony Weber, the Chief Executive of the FCAI, said the market remained positive especially with the restrictions of COVID-19 limiting the access of buyers to showrooms over the year.
Mr Weber said that despite the limited access, all the sectors of this market posted growth in 2021. He said the result demonstrated the quality of the product available in Australia. He urged Governments to especially take note of the off-road sector which represented a widely-used recreational activity.
He pointed out that many Australians were utilising off-road bikes as a means of increasing physical fitness and also for improved mental wellbeing. This form of motorbike riding is a great way to experience the great Australian bushland locations.
Mr Weber emphasised the importance for politicians to realise these factors and allocate suitable land for off-road bike activities. Urban use of motorcycles was also mentioned in the statement as a something that governments should consider. Bikes and scooters could be used as tools to ease traffic congestion, especially in major cities and centres and to take the pressure off transport in general.
Increasing the number of commuters on motorbikes and scooters could reduce the congestion, while assisting the flow of traffic. Mr Weber concluded the statement with a call out to Governments to develop ways that commuters could be motivated to get on their bikes. Describing motorbikes and scooters as a practical, efficient and safe form of transport to get around cities and the urban areas.
Getting on Your Own Bike
While factors such as not wanting to commute on public transport during the pandemic and the call of the wide open roads post-lockdown are certain to have driven an increase in sales, the low interest rate scenario should not be overlooked.
The RBA cut the official cash rate through 2020 as a pandemic stimulus with the rate ending up at the historic low of 0.1% at November 2020. Sadly for those seeking a loan, that is not the interest rate on motorbike loans or other finance. But it is the basis, the starting point, for banks and lenders to set their lending rates. When the cash rate is low that scenario flows through the lending sector.
While Jade Bike Loans has built a business based on achieving cheap interest rate motorbike loans, in an historic low rate environment, we have been able to achieve some of the cheapest loans ever. This situation has been a motivator for many buyers to upgrade their existing wheels and for others to make their move to two wheels.
The RBA sets the cash rate based on economic conditions. Specifically, those indicators have been inflation sustained around 2-3% and unemployment figures possibly below 4%. A figure which is technically approaching full employment. A position not achieved in Australia for a very long time.
As the economy has bounced back from the effects of the Delta variant and seemingly managed to be resilient against Omicron, the key economic indicators have improved. Inflation is surging and unemployment continues its downward trajectory.
Great for the economy, not so great for those considering taking on finance as a rise in the official cash rate is looking fairly certain for some time in 2022. By how much, when and how lenders react is a wait and see situation.
For those considering buying a bike with finance, acting while rates are low simply makes extremely good sense. Check out our current motorbike loan interest rates and use the loan calculator to see what that may equate to in repayment estimates for the bikes you’re considering.
If you’re wondering how much more per month in repayments you may have to pay after a rise in interest rates, simply enter a higher rate in the calculator.
To get organised to capture a cheap interest rate motorbike loan and the bike of your choice, give us a call to start the application process.
For a quote on a cheap interest rate bike loan, contact Jade Bike Loans at 1300 000 003
DISCLAIMER: IN REGARD TO ANY ERRORS OR MISREPRESENTATIONS IN THIS MATERIAL, NO LIABILITY IS ACCEPTED. THE DETAILS, CONTENT AND DATA ARE 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.
