New motorbike finance may offer benefits to buyers compared with financing a second-hand machine, in lower rates, larger loans, and collateral requirements. Yes, we acknowledge that the price of new machines will be higher than the price of used models and that would mean lower monthly loan payments. And, with costs-of-living a high priority for many Australians, saving even a few dollars with major purchases can be important. But are you across the advantages in loans for new bikes over financing used goods?
While we provide affordable loans on both new and used machines, the benefits realised with new model loans may be significant to the purchase decision. To assist buyers to decide which way to go, we elaborate on these benefits and provide an easy way to compare different loan options on the machines you are considering.
New Motorbike Finance – Better Interest Rates
All types of motorcycles from all leading brands – Harley-Davidson, BMW Motorrad, KTM, Suzuki, Triumph and others, are financed with the same loan products. New machines are typically financed with a Secured Motorbike Loan. Second-hand machines may be financed with a Secured Loan if the machine is accepted as suitable collateral. If the machine is not accepted as suitable collateral, the bike may be financed with an Unsecured Personal Loan.
With new machines typically considered acceptable loan collateral, lenders offer their best rates on financing new consumer goods. Rates displayed by lenders will usually be for new goods, unless they state otherwise. The difference in rates on new and used goods may be significant. Any small percentage variation is reflected in lower monthly payments, less interest accrued over the term of the loan, and subsequently, the total acquisition cost of the motorcycle is lower.
To see how much a higher interest rate affects repayments and total interest over the term of the loan, use our Finance Calculator. Calculate estimates based on different rates and note the difference. While lenders across the market predominantly offer lower rates on new compared with used motorcycles, rates will vary with different lenders and with dealer financing.
Rates will also vary with the credit profile of the loan applicant. Using our brokers to find your best rate from the most suitable lender can expedite and simplify the process of securing your best and most affordable motorcycle loan.
Loan Condition Differences – Used v New Motorbike Finance
There are a number of other variations between financing new and used motorcycles that buyers may also like to consider. One is there can be a difference in the amount that lenders will approve for the loan. When approving the total loan amount, lenders will be reviewing the credit profile of the applicant to determine the borrowing capacity. But also looking at the value of the machine compared with the loan amount requested. Loans on new motorcycles may be approved with a higher limit.
A higher loan amount compared with the purchase price then impacts how much deposit is required to make up the difference. Some applicants may be approved for borrowing the full purchase price of a new motorcycle, i.e. no deposit finance. Having to find less cash for a downpayment may suit many buyers.
We touched briefly on loan collateral requirements above, but this is worth elaborating on. New motorcycles are generally accepted as loan security. Many buyers will not be required to offer other assets in addition to the machine being financed.
The same situation is not always the case with a used machine. Additional collateral may be required. This may pose an issue for asset-poor buyers. Insurance requirements should also be considered. All goods used as security for finance need to be insured. Getting quotes on different machines may assist with those buying decisions.
Comparing New Motorbike Finance with Used Bike Loans
Using our Finance Calculator presents a quick and easy way to compare estimates on loans for different machines. For new machines, head to the manufacturer’s website to see price guides being shown. Note the conditions which apply to ride-away pricing. Some offers may only include 6 months rather than 12 months of rego. Rego may also differ from state to state. Note if you need to allow for dealer delivery costs on top of the price guide and if the model is actually in Australia yet. If it is a few months away, the price may be higher when it arrives, depending on the exchange rate market. For second-hand machines, use the price as the loan amount.
Enter the loan amount, our latest interest rates, your preferred term to repay the loan, and the monthly payment estimates will be displayed. The results are subject to lender approval of the loan amount and individual rate offers. But provide a useful guide for making finance comparisons and supporting buying decisions.
Added Benefits of Buying a New Motorcycle
Apart from the potential finance benefits, buyers may also consider other benefits they may realise by buying new rather than second-hand. Maintenance and servicing costs may be significantly lower with warranties on new machines which may be limited on a used model.
Fuel efficiency may be better with the new engines being developed by manufacturers. Safety and tech features may also be better, which may contribute to more comfortable and safer riding.
To assist with making your buying decision, contact Jade Bike Loans on 1300 000 003 for a quote on new motorbike finance.
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.
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